Ok, so the board might have been misleading investors by not...

Ok, so the board might have been misleading investors by not disclosing the unprofitability of 40% of their centres.... but surely the auditors must share a good amount of responsbility as well?

I mean, you'd somewhat expect people with a vested interest, to act within their own interest. But the auditor is supposed to be impartial and unbiased so presumably their word on the company's state of affairs should have more credibility than that of Eddy Groves.

If you ask me the fact that the auditors signed off everything as hunky dory for so long is just as bad as management's lack of disclosure as to the true state of affairs of the co