Al-Khodari unable to determine financial disclosure date; cites issues with external auditor

Abdullah A. M. Al-Khodari Sons Co. Announced, in a bourse filing on Sunday, its inability to publish its annual financial statements for 2019, attributing the reason to the abstention of its external auditor, Ernst & Young, from issuing a disclaimer of opinion related to their audit report.

Al-Khodari added that it rejects Ernst & Young’s position, noting that it will cause a continuous trading halt on the company’s shares.

The points of controversy between Al-Khodari and Ernst and Young are primary to the fact that the latter has omitted the supporting documents and evidence provided by company’s management, noting that these documents were also verified by external independent consultants.

The external auditors based their position primarily on their failure to assess the company’s ability to continue its operations, which contradicts the principles and objectives of the bankruptcy law and the regulations issued by the commercial court I in Dammam, the statement also said.

Accordingly, Al-Khodari also stated that it has fulfilled its responsibilities towards shareholders and held Ernst & Young accountable for all statutory and professional responsibilities for not issuing the report that “fairly” reflects the firm’s financial statements for the year ending Dec. 31, 2018.

The Saudi Stock Exchange (Tadawul) placed on April 30, 2019 a trading halt on the shares of Abdullah A.M. Al-Khodari Sons Co. until the company discloses its fiscal statements for 2018