FMA questions NZAX-listed Australasian Food Corp's audit report
The food and beverage investor was late in filing its annual results.
Australasian Food Corp, which took over the NZAX-listed shell Vetilot last year, is being examined by the Financial Markets Authority over statements made by the company's auditor Staples Rodway accompanying its annual report.
The Auckland-based company said it's cooperating with the market watchdog over statements by auditor Staples Rodway in its report, tagging Australasian Food Corp's 2016 accounts with a 'disclaimer of opinion' note over its inability to obtain enough audit evidence.
The audit report said, "transactions on behalf of the group were undertaken through the personal bank accounts of an employee rather than the bank accounts of the group". Because those transactions were outside the group records and Staples Rodway couldn't verify the books through other means, "we were unable to determine whether any adjustments were necessary in respect of these balances."
The auditor also said it couldn't rely on Australasian Food Corp's internal control processes over related party transactions.
"The FMA considers that the statements may indicate noncompliance with various requirements of the Financial Markets Conduct Act relating to keeping of proper accounting records that enable financial statements to be readily and properly audited and maintaining a satisfactory system of control of the accounting records," Australasian Food Corp said in a statement today.
The food and beverage investor was late in filing its annual results, which showed it generated a profit of $474,016 to equity holders in the 12 months ended March 31 on revenue of $1.57 million.
The shares last traded at 0.9c , having gained 50% so far this year.
(BusinessDesk)
Paul McBeth
Fri, 19 Aug 2016
Fri, 19 Aug 2016
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FMA questions NZAX-listed Australasian Food Corp's audit report
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