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itzgr82balive

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15/12/19

18:05

Post #: 41977746
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Originally posted by gattertop: ↑

During an audit, auditors will often identify matters of particular significance during the relevant period. In the 2018 audit Grant Thornton identified revenue recognition as the Key Audit Matter (most likely because of the fluctuation in revenue in the second half of calander 2018 and almost certainly because of the triggering of performance shares). The report is worth a read as it details the steps they took to test and verify the recorded revenue.

i know audit independence is often queried but that is in relation to the big corporates where millions in consulting fees are at stake. I worked in audit for a couple of years when I started out and I can’t see the audit partners rolling over or turning a blind eye for the sake of helping their consulting teams pitch for work. In any event, ISX fees would be stuff all to Grant Thornton so there is no way they would jeopardise their reputation and licence.

IF the revenue in 2018 was fudged to the extent that some on this thread would like us to believe, the audit failure will be a massive story in itself.

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Again thanks for that. I had missed the significance when I read it pre all ASX's questions. I have been putting 2 and 2 together based on JK's answers combined with what I thought would have rationally happened. This with the auditors description of account policies, should settle any sane person's mind around the June 2018 revenue figures.

ISX Price at posting: $1.07 Sentiment: Buy Disclosure: Held
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