Y Ventures explains internal control lapses

Singapore

THE entry of incorrect unit costs, understatement of administrative expenses, and insufficient manpower and expertise in the finance and accounting department were the three key inadequacies in internal controls which led to lapses in the recording of transactions, said Y Ventures in a filing with the Singapore Exchange (SGX) on Wednesday, in response to SGX queries.

The e-commerce firm said that it had faced "higher complexity" in the buying process and documentation of its inventory in 2018, amid a tight labour situation. This resulted in "considerable stress" on its internal control systems and standard operating procedures, it said.