Auditor unable to express opinion on Cybertowers

Auditor unable to express opinion on Cybertowers
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 02 January 2014 18:01

KUALA LUMPUR (Jan 2 ): External auditors of Practice Note 17 (PN17) firm Cybertowers Bhd has expressed an audit disclaimer opinion on the company's financials for the year ended August 31, 2013 (FY13).

In a statement to the exchange today, Cybertowers which is involved in Internet-based locating systems, said its auditor Messrs. Siew Boon Yeong & Associates was not able to get enough evidence to support its audit opinion on Cybertowers.

"Accordingly, we do not express an opinion on the financial statements,” Siew Boon Yeong & Associates said.

According to Cybertowers, Siew Boon Yeong & Associates has indicated that the latter could not verify the existence and valuation of the former's computer servers which are installed in the US.

Siew Boon Yeong & Associates has also expressed doubt on the sustainability of Cybertower as a going concern. This is based on Cybertowers' loss of RM7.65 million and RM3.7 million at group and company levels respectively in FY13.

The auditor also said Cybertowers' current liabilities had exceeded its current assets.

The auditor said : "The directors (of Cybertowers) were unable to provide a detailed assessment on the group’s and the company’s abilities to continue as going concerns and in addition, we were not furnished with any management’s plans to deal with these events or conditions.

"This is not in accordance with the requirements of MFRS 101: Presentation of Financial Statements. Accordingly, we are unable to satisfy ourselves as to whether the use of the going concern basis in the preparation of the financial statements of the group and of the company is appropriate".

In a separate statement, Cybertowers said it is still working on a regularisation plan to rejuvenate its financials.

"Premised on the first announcement, the company is required to submit the regularisation plan to the relevant authorities by 31 October 2014, which is approximately 10 months from the date hereof," Cybertowers said.