Objective: Assess liquidity, long-term solvency and credit risk of a company in a loan decision.
Required: Please complete the following tasks assuming the role of the lender.
1. Computations See Excel
2. Cash Flow statement analysis - Assess the cash sit
1. What factors likely contributed to the oversights made by the Ernst & young auditors during
the 2004 AA Capital engagement? Identify measures that audit firms can implement to minimize
the likelihood of such oversights on the audit