I am having a problem with three of the eight points (6,7,8) in relation to this problem. I am required to prepare a memo to the partner in accounting firm covering in detail the accounting and audit issues arising from this engagement.
Attached is point number 6 - the question relates to inventory.
The following points I could not attach as I could only attach 3 files. These are the two other questions I require insight in.
7.) The $3,514 million term bank loan is secured by a floating charge over all corporate assets. The loan agreement requires Autotech to undergo an annual environmental assessment of the old and new blending facilites. During your meeting, Mr. Douglas enquired whether your firm could provide such an assessment.
8.) Autotech has incurred substantial losses during the past fiscal years.
Sample memo provided. No references.