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Case Study Of The ABC Learning Centre

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Abstract:
With the ASA 701 auditing standard investors are provided with information about the auditors respond about the crucial auditing matters, their deep vision about the crucial auditing matters and their greater level of the transparency towards their responsibilities in auditing the financials of the company. Investors are now at the safe side and their decision becomes more rationale rather than instinct.
The report has also indicated the case study of the ABC Learning Centre and the reason of the failure of the company. The failure of the ABC Learning Centre was due to the three basic reasons. These are too many debts against too little cash flows, investment in the intangible assets and the inappropriate third party auditors.

Executive summary:
The report is made possible due to the help and support of my facilitators and teachers. They have advised and guided me how to do it well and how to accomplish the goal. Moreover, my friends have also advised me in how to incorporate the guidelines
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The company was supported with funds to provide free education to the children. However, government has modified their support system by directly providing funds to those children who need money for the education. At this time subsidies and grants were wrote off for the ABC Learning Centre. The new strategy was to acquire new centers and grow so that they can enlist themselves in Australian Stock Exchange. In 2001, ABC Learning Centre was enlisted in the ASX with their 30 centers in Australia, (Richardson, 2009). The need for the expansion took them in the markets of America, New Zealand and United Kingdom as well. The company was growing so fast that in 2005 it has acquired almost 660 childcare centers by signing mergers and acquisitions with different small childcares and day cares. In 2006, the ABC Learning Centre was the owner of 2238 centers around the
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