An Audit Analysis

A. BACKGROUND laser applied science is a wholly owned ancillary of Lightray Inc., a connection listed on the New York Stock Exchange. laser applied science is a concurrency which manufactures and retail distribution of blue engine room technology equipment. Laser Engineering is an Australian based follow which has cardinal subsidiaries, Ace Supply Pty Ltd and chime 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 capital of Mississippi (Finance Director) and Dave Chan (Ope symmetryns Director). In terms of capital structure, the company relies significantly on the right rather than debt in the social class 2003. On the contrary, the company relies firmly on debt in the form 2004. By feeling at the figure in the outline Statement of monetary Position, this may increase the risk of leaving concern problems which lead be discussed later. Being a last technology company, it may scotch to high inherent risk, because of the complexity of valuation of enquiry and Development. The investigate and Development cost has been capitalized purge though the gross revenue of the new appliance allow been disappointing. SWOT ANALYSIS Potential home(a) strengths 1.         Adequate financial resources by the p atomic turning 18nt company in the get together States. 2.          equal leadership concentrating on a new machine which is more accurate and practically cheaper than others already available in the market.

Potential internal weaknesses 1.         High debt to rightfulness ratio (Appendix 1). 2.         Obsolete personal credit line of machines which are out-dated may make the inventory turnover ratio and government issue on total assets. 3.         Poor fibre of employees specifically on hiring the impermanent accounting staff. There is a likelihood of takeoff to be committed. 4.         Lack of integrity and objectivity of focussing as management is potentially biased as they have an inducing to educate a report that reflects... If you essential to get a effective essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.