RE:Did anyone read the auditor report?vg, it is very important to include all the information. You have left some out. The auditors are not raising a red flag, but are being prudent in identifying variables that most investors already know about but that require monitoring by both management and investors. There is a discussion of these variables on https://groups.google.com/g/quarterhill
First, while you raise the "Key audit matter", you neglect to include the audit tests that were performed that led to the audit opinion that preceeded the portion you cited. The tests are important.
Immediately before the "Key audit matter" you highlighted, the Auditors Report states:
To the Shareholders of Quarterhill Inc.
Opinion
We have audited the consolidated financial statements of Quarterhill Inc. and its subsidiaries [the “Group”], which comprise the consolidated statements of financial position as at December 31, 2021 and 2020, and the consolidated statements of (loss) income and comprehensive (loss) income, consolidated statements of shareholders’ equity and consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021 and 2020 and its consolidated financial performance and its consolidated cash flows for the years then ended, in accordance with International Financial Reporting Standards [“IFRS”].
Basis for opinion
We conducted our audit in accordance with Canadian general accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion
Further the report states:
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
We obtained Management’s Discussion and Analysis prior to the date of this auditor’s report. If, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required to report that fact in this auditor’s report. We have nothing to report in this regard.