Tuesday, September 24, 2013

An Audit Analysis

A. BACKGROUND laser applied science is a altogether owned subsidiary of Lightray Inc., a connection listed on the unused York Stock Exchange. laser Engineering is a conjunction which manufactures and sell distribution of high engine room engineering equipment. Laser Engineering is an Australian based company which has ii subsidiaries, thaumaturge Supply Pty Ltd and Bell Manufacturing Pty Ltd. The Board of Directors of Laser Engineering consists of two directors of Lightray Inc. and three Australian directors, Sandra Thomas (Managing Director), rouse Jackson (Finance Director) and Dave Chan (Operations Director). In terms of capital structure, the company relies significantly on the impartiality rather than debt in the year 2003. On the contrary, the company relies hard on debt in the year 2004. By feeling at the figure in the Draft Statement of monetary Position, this may increase the risk of going concern problems which lead be discussed later. Being a high technol ogy company, it may give out to high inherent risk, because of the complexity of valuation of enquiry and Development. The query and Development cost has been capitalized even though the gross gross of the new machine have been disappointing. SWOT ANALYSIS potence home(a) strengths 1.         Adequate financial resources by the p atomic subjugate 18nt company in the United States. 2.          equal leadership concentrating on a new machine which is more accurate and a lot cheaper than others already available in the market.
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Potential internal weaknesses 1.          advanced debt to equity ratio (Appendix 1). 2.     !     Obsolete stock of machines which are out-dated may affect the inventory turnover ratio and government aftermath on total assets. 3.         Poor quality of employees specifically on hiring the temporary accounting staff. There is a likelihood of scoffing to be committed. 4.         Lack of integrity and objectivity of management as management is potentially biased as they have an inducing to prepare a report that reflects... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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