Auditing assignment Essay Example | Topics and Well Written Essays - 500 words

Auditing assignment - move ExampleGiven the Current Asset of $178 million and Current Liabilities of $277 million the current ratio of the smart set is less than one highlighting the weakness in the liquidity position (Forest Enterprises Australia Limited, 2009, p.51-52).Industry players like massive Southern and Timbercorp have already collapsed. The fall of entities in the industry is a factor for the issuance of spill concern opinion (Kachor, 2010). The investors of the company have sought legal advice in the matter relating to the repayment of contribute by FEA. The company did not make significant financial disclosures to its investors for the fiscal year 2009 and 2010. These being essential information should have been disclosed to the potential investors failure to do so is a non-compliance of statutory extremity (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 re garding financing arrangements and restructuring plans. The company also undertook a successful capital raising course of instruction last year (FEA Group of Companies,