Hi Fatskeg, then you should know that an audit is not carried out over 3 months like you suggested, but a much smaller window of time, especially as the auditors are Big4 (Deloitte) and the little audit of Condor would not be high on their priority list.
Imo this is how the year-end audit would've played out: Deloitte would've probably sent some junior auditors out there for a few days in June to carry out planning/interim work. After year end the bulk final audit work would be done for say a week towards the end of September (after 31 August deadlines met for other larger Deloitte clients) with juniors, and audit senior/manager. This is when the delays in receiving info from Chile would've become apparent resulting in: disuruption to the audit sign off schedule, probable need to reorganise future audit visits (subject to availablity of Deloittes staff who would've not doubt already been planned on other Deloitte clients), and as a result of this, the delay we are seeing now.
Generally, explorers with low admin expenditure do not have the resources in their accounting function as say an established listed company with revenue, because of the costs associated with employing the staff. Most of the time there will not be a segregated accounts team, but a single staff member with the added delegated responsibility of "getting the year end audit done". Sure they could employ various team members but then the monthly cash burn would be higher.
I am not making excuses up for the company- the delay should've been anticipated by either the auditors or the company itsef, but i'm trying to explain the possible reasons why the delay happened and I don't think it's such a big deal as you are suggesting.
CDB Price at posting:
7.8¢ Sentiment: LT Buy Disclosure: Held
