|Audit Intelligence

Diamond resorts international

DIAMOND RESORTS INTERNATIONAL (DRII)

08-08-2016: Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
 

The audit firm expressed the view that the Company may not have correctly applied the relative sales value inventory valuation model in the preparation of its consolidated financial statements for 2014 and subsequent periods.

Based upon the advice of management, at a meeting held on August 7, 2016, the Audit Committee concluded that (i) investors should no longer rely upon the Company’s previously filed consolidated financial statements and other financial information for each of the Company’s years ended December 31, 2015 and 2014 and each of the quarters within the period beginning with the quarter ended September 30, 2014 through the quarter ended March 31, 2016, and should no longer rely upon the audit reports of BDO USA, LLP on the Company’s consolidated financial statements for the fiscal years ended December 31, 2015 and 2014, including its reports on the effectiveness of the Company’s internal control over financial reporting, and (b) the Company should restate certain of those historical consolidated financial statements and other financial information to reflect its correction in the application of the relative sales value model in accounting for Vacation Interests cost of sales

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On the same day, the company filed the restated filings.