Kinetiko Energy has been forced to defend its 2017 annual report after the ASX quizzed the oil and gas explorer over a lack of information provided to the auditor regarding a joint venture.
Kinetikos (ASX:KKO) auditor was unable to obtain sufficient evidence to provide an audit opinion on the annual report, leading the ASX to question whether the report accurately reflected its financial position.
The issue stems from a deal between Kinetiko and Badimo Gas to create a joint venture company, Afro Energy. Kinetiko owns 49 per cent of Afro while Badimo Gas holds the remaining 51 per cent stake.
Kinetiko said it could not access the complete books and financial records of Afro, leaving the auditor unable to determine the financial…
Read the full article at: https://stockhead.com.au/resources/kinetiko-energy-asked-please-explain-annual-report-issues/