Asia Entertainment & Resources Ltd. Announces Continued Retention Of UHY LLP As Its Independent Registered Public Accounting Firm And Receipt Of Legal Opinion That Profit Interest Agreements Are Enforceable
Asia Entertainment & Resources Ltd. (“AERL” or the “Company”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, announced that its Audit Committee has decided to continue to engage UHY LLP as its independent registered public accounting firm for 2012. The Company would also like to clarify certain comments regarding variable interest entities being incorporated into the Company’s consolidated accounts and the enforceability of the Profit Interest Agreements entered into between the Company and the Promoter Companies.
UHY LLP has been the Company’s independent registered accounting firm since its formation and initial public offering in 2008. UHY LLP performed the 2010 and 2011 audits for the Company after its acquisition of Asia Gaming & Resorts Limited (“AGRL”) on February 2, 2010. UHY LLP is one of the largest professional service firms in the United States and is currently ranked in the Top 10 accounting network firms in terms of aggregate income in the United States by the International Accounting Bulletin (the “IAB”). UHY LLP is one of the founding firms of the international network, Urbach Hacker Young International Ltd. (“UHYI”), which is one of the largest accounting networks in the world and currently ranks as the 16 th largest international network by the IAB. UHYI has member firms in 81 countries and 250 cities and has access to more than 6,800 professionals, advisors and consultants worldwide to service their clients. UHYI is also one of 21 firm networks that are members of the Forum of Firms (the “FOF”). The FOF was established by the International Federation of Accountants to promote quality for transnational audits performed by international accounting networks. UHY LLP is registered with the United States Public Company Accounting Oversight Board (the “PCAOB”). The PCAOB has inspected UHY LLP on two occasions, and the reports produced from the inspections both resulted in no accounting or auditing findings. The reports can be accessed at www.PCAOB.org.
The Company’s Audit Committee works with UHY LLP to review the scope of its audit. UHY LLP sends its U.S. staff to Macau to conduct the semi-annual review and year-end audit. Its year-end audit procedures include cage counting procedures; direct confirmation of cash account balances with the banks, marker receivables from agents as well as commissions due to those agents and direct confirmation of amounts earned by the Promoter Companies and due from casino operators; and engaging the specialists review of contingent consideration calculation and annual goodwill evaluation. The review and audit procedures encompass all of the Promoter Companies that are the source of revenue and expenses included in the consolidated financial reports of the Company. UHY LLP also reviews the Company’s internal controls based on Sarbanes-Oxley (SOX) guidelines for AERL. The Audit committee meets with UHY LLP regularly to review the work performed and is provided with the results and receives suggested improvements from the Firm. The Audit Committee expects UHY LLP to continue the same level of service during their 2012 engagement.
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