Ann: Response to further ASX Query Letter, page-2

Holy Shit Batman !!! ...Its going well.
At what point do ASIC get involved in this?

Audit Observations
Extract of Audit Observations from Query Letter:
G. The audit observations which ASX understands MRI’s auditor noted as part of the audit
process of MRI’s Annual Report:
(i) MRI’s auditor was unable to obtain sufficient appropriate evidence that services had
been delivered by consultants;
(ii) MRI’s auditor observed payments to some consultants were made before the relevant
invoice had been received and the audit identified concerns regarding the validity of
invoices, such as a lack of ABNs disclosed or GST charged;
(iii) MRI’s auditor observed prepayments to consultants were made significantly in
advance of services being provided which resulted in cash flow constraints leading to
uncertainty in respect of going concern and indicating potential issues with the
safeguarding and management of group assets; and
(iv) MRI’s auditor identified potential management override of controls by MRI directors,
in instructing staff to make payments without the appropriate documentary evidence.
(together, the Audit Observations)
25. Are the Audit Observations correct?
Yes.