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  "documentTitle": "Allied Capital (ALD)",
  "authorId": "04_Greenlight_Capital",
  "authorName": "David Einhorn",
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  "presentationDate": "2002-06-17 00:00:00",
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  "notes": "The slide uses a direct investigation of AICPA audit guides to debunk a specific claim made by Allied's CEO and Merrill Lynch.",
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      "text": "The actual change in the audit guide occurred in 1996/1997. This cannot explain why the 2001 audit letter should be worded differently from the 2000 letter.",
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      "text": "In fact, Merrill Lynch’s own research report acknowledges in a tiny footnote that it was comparing the AICPA guide from 1993 to the 2001 guide. The actual change in the audit guide occurred in 1996/1997.",
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      "text": "Mr. Walton, Allied’s CEO, stated on the May 16th conference call, “There has been no change in the scope of the audit.”",
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      "text": "Greenlight actually has no way to know whether or not the scope of the audit changed. Despite Mr. Walton’s and Merrill Lynch’s claims, this issue is not central to Greenlight’s analysis in any way.",
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      "text": "According to Greenlight’s auditors: “We contacted the AICPA and consulted with their ‘technical hotline’ department... In conclusion, the changes in guidance for auditors on this particular matter occurred between 1996 and 1997 and not during 2001.”",
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      "text": "“There has been no change in the scope of the audit.” — Mr. Walton, Allied’s CEO. “the accountant does not function as an appraiser and is not expected to substitute his judgment for that of the company's directors.” — ASR 118.",
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