change of auditor, page-2

FactorX,

The article you referred to is below and it is quite disgraceful that the auditors should even be considered for a change.

I suggest that we garner enough support somehow to vote against the change if we are able.

This mob has been conning us for some time now.

If I wasn't in so deep I would be out.

And they have the hide to take bonuses from SPP funds - not from justified and proven profits.

Regards..........

IT'S THE MONEY

The board of NuSep, the gel and ''sperm sorting'' biotechnology powerhouse, thinks now is just about the right time to replace its auditor of five or so years, RSM Bird Cameron.

In its notice of meeting lobbed to shareholders last week, NuSep asked shareholders to vote for the removal of the auditor that has been going through its books since its 2007 listing.

But rather than being a reaction to RSM Bird Cameron reporting NuSep and its directors to the Australian Securities and Investments Commission for several alleged breaches of corporations law, the company's executive chairman, John Manusu, explained to CBD that ''it is not the main reason for seeking to remove the auditor''.

''We've had a board change that went through last year and we had a complete change of the people on the audit committee.

''They [the audit committee] took the view that we're new and want to do an assessment on what we should be paying for the audit and they put it out to tender. And ultimately a group we've been working with for a number of years came through with a proposal that was just on last year's numbers $20,000 cheaper,'' he said about the auditor that hopes to take over, Lawler Partners.

Good to see the proposal to replace auditors was not a knee-jerk reaction to being reported to the corporate regulator.

IN DEFENCE

RSM Bird Cameron, in a letter attached to NuSep's notice of meeting, argued it had ''appropriately discharged'' its responsibilities as auditor. This included reporting NuSep to ASIC for several possible contraventions of the Corporations Act after auditing last financial year's accounts.

The possible breaches included failing to comply with continuous disclosure responsibilities, creating a ''false market'' in its securities, the company acquiring shares in itself and ''the failure by the company's directors to appropriately discharge their duties''.

In its letter, RSM Bird Cameron added: ''We note further in relation to our audit for the year ended June 30, 2011, that we proposed and the company accepted 25 material accounting adjustments to the financial statements that were initially presented to us for audit that resulted in a reduction in net profit before tax of in excess of $2 million.''

It added that it had noted its concerns on whether the company could continue on as a going concern in the June 30, 2011 accounts.

The letter also noted the same possible breaches of corporations law it uncovered from going through the company's first-half accounts, along with the incorrect issuing of a notice to the corporate regulator of a share issue.

Read more: http://www.smh.com.au/business/kmart-boss-breaks-below-50-barrier-20120530-1zjgm.html#ixzz1wOVAR844