Victoria PLC has recently discovered accounting issues at its subsidiary, Hanover Flooring. These concerns were brought to light by the company's auditor, prompting Victoria PLC to allocate additional financial resources to ensure proper maintenance of accounting records and internal controls.
The specific issue revolves around a heightened financial risk faced by Hanover Flooring due to inadequate accounting records linked to customer receipts totaling no more than £400,000 ($488,200).
Despite this, the board of Victoria PLC emphasizes that there has been no evidence of any wrongdoing at Hanover that would impact the company's financial statements. Furthermore, the auditors have not made any allegations to that effect.
However, the strong outlook for Victoria PLC has been overshadowed recently due to the significant reaction following the auditor's qualified opinion resulting from incomplete accounting records at Hanover Flooring.
To address these concerns and provide clarification, Victoria PLC has conducted extensive investigations in collaboration with a prominent 'Big-Four' accounting advisor. Based on their findings, they assert that all payments due have been received, and no funds are unaccounted for. As a result, Victoria PLC has not incurred any losses in this regard.
Executive Chairman Geoff Wilding affirms that there are no other such concerns across the rest of the group. The company's auditors have confirmed that the accounts accurately present a true and fair view of Victoria PLC.