Given the Current Asset of $178 million and Current Liabilities of $277 million the current ratio of the company is less than one highlighting the weakness in the liquidity position (Forest Enterprises Australia Limited, 2009, p.51-52).
Industry players like Great Southern and Timbercorp have already collapsed. The fall of entities in the industry is a factor for the issuance of going concern opinion (Kachor, 2010). The investors of the company have sought legal advice in the matter relating to the repayment of loan by FEA. The company did not make significant financial disclosures to its investors for the fiscal year 2009 and 2010. These being crucial information should have been disclosed to the potential investors; failure to do so is a non-compliance of statutory requirement (Kachor, 2010).
In order to lower the debt component the management has planned for an asset sale; and is also in the process of discussion with the financiers regarding financing arrangements and restructuring plans. The company also undertook a successful capital raising program last year (FEA Group of Companies, ...
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Justify your evaluation based on the information provided. [350 words] Business risks identified in the memorandum seem to be potential problems, but that is just the tip of the proverbial iceberg of the problems that are wrong with this company. First of all, the salaries for the people at the two top levels are Tony Lockett and Peter Roos.
al public and the accounting profession have had their differences over time on how the auditor should handle the process and what type of information should be reported by auditors to the users of the financial information. The difference between what the public and other
types: control tests-determine the accuracy of the internal controls and substantive tests-determine the fairness of the data in reflection to financial affairs of the organization (Alderson, 1993). Basically, this paper will provide guidelines or explanations on the importance
the events between the date of the financial statements (date of last period covered by the financial reports) and the date of the auditor’s report (when they are made available to third parties) and facts after the auditor’s report (Ex CAS92).
It necessary to compare
need for the auditor to concentrate efforts on the most important and relevant aspects of the client’s financial statements (Millichamp & Taylor, 2012). This major demand requires that the auditor must assess the audit risk and ensure that the opinion passed on the financial
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