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Best World independent auditor issues disclaimer of opinion
THE independent auditor of Best World International has issued a disclaimer of opinion in relation to the group's financial statements for 2018.
Ernst & Young's (EY) disclaimer of opinion relates to matters disclosed in Note 2.1 to the financial statements that were raised during the independent review conducted by PricewaterhouseCoopers Advisory Services. PwC, as the independent accountant, is looking into Best World's export model and franchise model adopted in China.
The independent review is ongoing and close to finalisation, and Best World will "in due course" provide clarifications on the key matters raised, the mainboard-listed premium skincare products seller said in a bourse filing on Sunday night.
Best World added that it will continue to devote the necessary resources to complete the independent review as soon as reasonably practicable.
"For the avoidance of doubt, the disclaimer of opinion (by EY) does not raise any audit issues which may give rise to material uncertainty on the group's ability to continue as a going concern," Best World said.
In EY's report, the independent auditor said it had been unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.
EY has carried out audit procedures on the interim findings of PwC's review, which Best World disclosed on March 22, 2020.
However, EY has not been able to complete its audit procedures to obtain satisfactory audit evidence or explanations on matters including potential unrecorded transactions, the group's relationship with its import agents and marketing agent, as well as goods sold but undelivered as at Dec 31, 2018.
PwC had said in its nine-page interim update in March that Best World may have understated the sales and expenses relating to its China franchise business in 2018, with some 20 per cent of sale proceeds going into other bank accounts instead.
Best World will convene its virtual annual general meeting on June 22 at 10am via a live webcast.
Shareholders who wish to watch the live webcast must pre-register at www.meetings.vision/bwil-agm-registration, starting from June 8 at 5pm till June 19 at 10am.
Trading in Best World's shares has been suspended since May 2019.