It is pretty scary on the findings by auditors...
Improper business practices revealed at S i2i units; Corrective actions taken
SINGAPORE (Aug 24): S i2i Limited, the telecom and IT services provider, says a staff member of its Cavu Group has admitted to creating evidence that companies within the group had in its possession an amount of software and stock when in fact such software and stock was not in its possession.
The same staff member also admitted to creating documents on two lease/hire purchase agreements involving companies within the Cavu Group and a third-party company.
Another staff member of the Cavu Group also failed to disclose his interest in companies which had dealings with the group. There is also evidence to suggest that one of these dealings may not have taken place on an at arm’s length basis.
These improper business practices were uncovered during investigations by Ernst &Young Advisory after it released a qualified opinion and emphasis of matter report on S i2i's FY2013 financial statements.
Meanwhile, auditor BDO LLP says they did not come across any evidence to indicate that quantities of phones billed and booked as sold by PT Selular Group remained kept in the warehouse.
In addition, the auditor says it did not come across any incorrect provisions and write-offs other than the exceptions arising from the agreed upon audit procedures highlighted in their review.
In its SGX filing, S i2i listed the specific actions the group has taken to correct the problems, tighten supervision and ensure they do not occur again in the future.
This includes the creation of a new position of Head-Process Control to ensure that the above measures are appropriately designed and remain fully operational after their respective implementation.
S i2i closed flat at 38.5 cents on Aug 21.
http://www.theedgemarkets.com/sg/article...ions-taken