NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
The auditors' report on the financial statements for the period ended 30 June 2023 was qualified.
The qualification in the audit report was as follows:
Disclaimer of opinion
We were engaged to audit the financial statements of CM01 Limited (the 'Company') for the period ended 30 June 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom
Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for disclaimer of opinion
We were not appointed as auditors of the company until after 30 June 2023 and were unable to obtain sufficient, appropriate evidence over the opening balances as at 1 January 2022, specifically with regard to the opening trade
receivables. We were unable to we were unable to confirm or verify by alternative means trade receivables as at 31
December 2021, which were stated in the Statement of Financial Position at a total amount of £nil. Accordingly, we have been unable to confirm whether revenue reported for the period ended 30 June 2023 has been recognised in the correct period.
Included within trade receivables as at 30 June 2023 were balances totalling £499,637 which had not been recovered through receipt of cash nor any other means as at the date of signing this report, and for which we had been unable to obtain direct confirmation from the relevant customers. Accordingly, and in light of the absence of appropriate evidence over income in the prior period, we have been unable to confirm whether the revenue reported for the 18 month period ended 30 June 2023 relates to a valid entitlement to recognise income in the period, or that the associated balance receivable is recoverable.
In addition, a change in accounting systems between 31 December 2022 and 1 January 2023 resulted in the failure of management to maintain adequate accounting records for the period between 1 January 2022 and 31 December 2022, which has meant that sufficient, appropriate audit evidence could not be obtained to confirm the validity of material revenue and costs of sales transactions during the period. Furthermore, attempts to obtain direct confirmations from the company’s customers and suppliers have been unsuccessful. As of the date of our report, management was still in the process of rectifying the system deficiencies and correcting the errors. We were unable to confirm or verify by alternative means the following financial statement balances:
- Revenue transactions totalling £416,364 within the Statement of Income and Retained Earnings for the 18 month period ended 30 June 2023;
- Costs of sales transactions totalling £1,580,467 within the Statement of Income and Retained Earnings for the 18 month period ended 30 June 2023;
- Accounts receivable included in the Statement of Financial Position at a total amount of £499,637 as at 30 June 2023;
- Accounts payable included in the Statement of Financial Position at a total amount of £3,291,786 as at 30 June 2023; and
- Other creditors included in the Statement of Financial Position at a total amount of £973,451 as at 30 June 2023.
As a result of these matters, we were unable to determine whether adjustments might have been found necessary in
respect of recorded or unrecorded income, accounts receivable, costs of sales or accounts payable, and the elements making up the Statement of Income and Retained Earnings and Statement of Financial Position.
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