Yuuzoo says audit delay due to 'intense interaction' with auditor

YUUZOO Corp is delaying its annual general meeting (AGM) - and the publication of its annual report - due to delays in the audit being carried out by RT, the social commerce company announced on Monday.

Singapore-listed companies have four months after their financial years end to conduct an AGM. Yuuzoo, whose fiscal year ends on Dec 31, had missed its April 30 deadline and now expects to hold its AGM by May 30, 2017, instead.

In response to a query by the Singapore Exchange (SGX), Yuuzoo said on Monday that its audit has been delayed as a result of "intense interaction" with RT during the audit. The company said it adopted significantly more conservative accounting policies in 2016 than in 2015 to make them "more conservative, more prudent and more supportable" to avoid facing the same issues that led its previous auditor, Moore Stephens, to withhold its opinion on the FY15 results.

Moore Stephens in 2016 raised concerns about the way Yuuzoo valued its franchisees' shares, which the company receives as franchise fees, and S$17 million of receivables that were to be settled with equity. Moore Stephens declined to continue as Yuuzoo's auditor after that.