“Basis for qualified opinion A limitation in the scope of our audit work exists for the reasons described below:
Included within Notes 10 & 27 of the financial report, the Group has reported a loan receivable from AXIS Consultants Pty Ltd amounting to $13,752,125 (2017: $12,158,032) which has been fully provided for. We have been unable to obtain sufficient appropriate audit evidence in respect to the collectability or otherwise of this amount.
Included within Note 11 of the financial report, the Group has reported Inventory in relation to its diamond stock at an estimated realisable value of $637,717. We have been unable to obtain sufficient appropriate audit evidence in respect to the expected sale price of the diamond stock supporting its estimated realisable value as shown in the financial report. These uncertainties may require a further adjustment to the value of the diamond stock, should management achieve sales at materially different prices to those estimated. Furthermore, it was not feasible to observe the counting of physical inventories as at 30 June 2018 or satisfy ourselves concerning those inventory quantities of diamonds by alternative means.
Accordingly, we were unable to determine whether adjustments might have been necessary had these limitations in scope not existed.”
MED Price at posting:
0.6¢ Sentiment: None Disclosure: Held
