Interesting reading!I have stated BioInquire as this was the...

Interesting reading!

I have stated BioInquire as this was the infamous value placed on BioInquire that allowed the directors to claim a 'bonus' for their profit that year!

The ASX item 2 states:-

Q. "Given the Disclaimer relates to an inability of the auditor to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion, what steps does the Company intend to take to obtain an unqualified audit report in future financial periods".

A. The Company will, as it has in previous years, comply with Australian Accounting Standards for all future financial periods. The Company will seek advice from independent experts (eg external valuers to determine the valuation of the intangible assets) as required in an attempt to ensure an unqualified audit report in future financial periods.

The Company believes that for the 30 June 2012 audit it has provided all information that was required by the auditors in a timely manner. This included seeking relevant independent experts reports on Intangible Assets that were required. The Directors are also seeking appropriate guidance from its auditors for all future financial periods.

In this response I see a couple of issues at least:-

a. The Company will, as it has in previous years, comply with..... is obviously a very loose statement. It infers that Australian Accounting Standards have ALWAYS been met. If so, why the questions from Bird Cameron?

b. The company believes that for the 30 June audit it has provided ......(including) seeking relevant independent experts reports on Intangible Assets. This appears to me that they sought an independent report on the principle of valuing intangible assets and NOT an actual independent valuation of BioInquire.

In principle their response to the ASX questions have been very obtuse and they have avoided being specific in their response!

There are still many more questions to be answered in my mind and there is still no apology OR acknowledgement that they have been involved in very poor company Corporate Governance.

Regards............

p.s. probably a couple more elephants in this response!