Small suppliers are too loose to check retailers’ ability to pay, according to auditors.
As early as 2010 accounts, the company behind Lime Grocery store in Greenland and Frogner sharp criticism from the auditor.
The auditor concluded that it was not possible to express an opinion on the financial statements on the basis of the information given. The following year the company changed its auditor and continued in the same vein in 2011 and 2012.
Poor procedures for cash handling.
Missing documentation for “greater cash transaction.”
Missing procedures for counting.
Registration inventories and lack of control of funds.
This is an expression that recurs in auditor reports. The company has not provided accounts for 2013 before the deadline. The auditor reports for the companies behind Lime stores a number of locations in and around Oslo is taxed reading. The auditor will not approve the financial statements. The series of omissions, violations and lack of documentation is long.
– Audit also acts as a form of remediation in business, says CEO. Director Per Hanstad in Revisorforeningen.
He explains what occurs when the auditor says no to approve the financial statements:
First, the auditor would take up controversial issues with the company. Is not the reprehensible conditions corrected, then the auditor has a duty to retreat.
A new auditor is obliged to consult the old auditor. If things are not OK, the new auditor did not take the job. A mandatory audit company that does not have the auditor is forced to dissolve.
If a new auditor may accept the audit engagement, the auditor shall document that everything is in order. If the later happens in the company and the auditor does not have this documentation in order, so the auditor may have problems with FSA.
Both right and wrong
Aftenposten has gone through the financial statements and auditor reports Lime companies it has been possible to identify the Brønnøysund Register Centre. It is very diverse reading.
Many of them have not yet submitted financial statements for 2013, although the deadline has expired. For some, there are no accounts in Brønnøysundregistrene at all.
But for some companies, the auditor is satisfied. Lime stores on Nadderud, Haslum and Ski boasts audited financial statements for 2013 and two years back.
John Christian Elden is a lawyer for the owner and CEO of Lime-chain Sajjad Hussain, who is in custody and charged for serious trafficking. Elden has the following comment to the auditor criticism:
– They have been through extensive controls in recent years and appreciate it, so that everything could be right under Norwegian laws and regulations. The auditor’s shareholders’ man to get things on care. Just as Lime addressed all notices from the Labour Inspectorate at improvements that made the audit had no objections to the operation in 2013.
Driver on
Coffee with auditor is not enough to stop the operation of a company.
– Although the auditor has substantial comments in the audit report, or even expressed recommend that the financial statements should not be approved by the General Assembly, we see time and again that companies still establishes accounting. They send it to Brønnøysundregistrene and continue operations, said Hanstad in Revisorforeningen.
They can do this because vendors continue to deliver the goods.
– Cap fits closely, but in many small suppliers can just call the stores and get the goods delivered on credit, he says.
The wholesaler lose 10 percent
Lime stores had wholesaler K. Ekrheim that provider.
– We have never had any relationship with Lime as a chain, but only regarded the individual stores, says CEO Haakon J. Ekrheim.
They supply food products to stores in Oslo and Akershus and a turnover of around 900 million a year. Now counting Ekrheim that around 10 percent of revenue disappears.
– We lose revenue on this, but it can only be. We can not compromise ourselves if these allegations prove to be correct, says Ekrheim.
He hopes the police are right when they first have conducted extensive raids so that they have.
His colleagues have not experienced any abnormality in touch with Lime stores, and they have followed the same procedures as they do with all their customers.
– We can only accept payment by direct debit or online payment and ten days’ supplier credit . They do not pay within it, only prepayment applies. In advance of a customer relationship, we check recovery warnings and accounting as we do with all new customers. Is there anything to suggest that they are not payment talented, we supply does not last without prepayment, says Ekrheim.
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