SGH 0.00% 54.5¢ slater & gordon limited

On 24 June 2015, SGH made the following ASX announcement: ____...

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    On 24 June 2015, SGH made the following ASX announcement:
    ____
    The company notes the AFR article today citing unidentified “sources”, implying that Slater and Gordon’s accounting practices are the subject of an ASIC examination. The article goes on to infer that SGH has recently engaged EY to undertake its UK audit in response to preliminary inquiries from ASIC. Both of these contentions are incorrect and misleading. EY assisted SGH with its financial due diligence in relation to the acquisition of the Professional Services Division (PSD) and was recently appointed to undertake the UK component of its audit process, which had been formerly undertaken by Baker Tilley (UK). Pitcher Partners were not involved in the financial due diligence relating to the acquisition of PSD. Furthermore Pitcher Partners has confirmed that it has not received any targeted enquiry from ASIC in relation to the accounting practices of SGH.

    This was followed up by a 2nd ASX announcement, also on 24 June 2015:
    _____
    Further to the announcement earlier this morning and various media reports, we confirm that neither Slater and Gordon nor Pitcher Partners has received from ASIC any targeted inquiries in relation to the accounting practices of Slater and Gordon. As reported, we are aware that ASIC has been in contact with Pitcher Partners regarding its audit of Slater and Gordon as part of a routine, periodic and rotational review of the processes of auditors of publicly listed companies. ASIC reviews audit work in respect of a number of companies each year. ASIC’s engagement with Pitcher Partners is preliminary and ongoing. We remain very confident in the robustness of our accounting practices.

    Then on 29 June 2015, SGH mad ethe following updated announcement confirming ASIC's involvement since 24 June:
    _____
    Since Wednesday 24 June Slater and Gordon (SGH) (Company) has engaged proactively with the Australian Securities and Investments Commission (ASIC) following ASIC's routine review of Pitcher Partners’ (PP) audit process of the Company. The Company asked ASIC to raise with it any queries it had as expeditiously as possible. The Company advised ASIC that it would fully cooperate and was eager to resolve all ASIC queries as soon as reasonably possible. On the evening of Friday 26 June, the Company was notified by PP that ASIC intends to raise some queries directly with the Company. The Company has engaged Ernst & Young (EY) to independently assess the Company’s responses to ASIC’s queries. The EY assessment will be overseen by the Audit, Risk and Compliance Committee of the Board. The Company and PP have commenced a detailed analysis of the financial information to be provided to ASIC. In the course of that initial analysis, a consolidation error (see attached disclosure) in the reporting of the historical UK cashflows has been identified. The Company has been advised by its auditors that the usual way of dealing with such an error is a note affixed to the FY15 Financial Statements. A draft of the proposed disclosure is attached. The net operating cash-flows, as reported, remain unchanged. The Consolidated Statements of Comprehensive Income and the Consolidated Statements of Financial Position also remain unchanged. The Company will provide an update to the market regarding the EY assessment during July.

    On 6 August 2015, SGH updated the ASX:
    ______
    Slater and Gordon’s engagement with ASIC is ongoing and is progressing in a timely manner. EY Australia is continuing to assist the Company in relation to its responses to ASIC’s queries.

    Since then, the only further updates /announcements have been via year end financial reporting /annual reports.

    That's the historical approach to date, so presumably, anything future advice will also be via an ASX release.
 
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Currently unlisted public company.

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