Question 1:

You are being asked to assist in the planning of the audit ofVirgin Australia Holdingsby undertaking an analytical review of Virgin for the period 1/7/14 -30/6/19 with a view to establishing whether Virgin meets thefinancial requirementsto be classified as a going concern as per ASA570 for the reporting period ending30/6/19.

In undertaking an analytical review of Virgin, you are required to calculate and analyse key financial ratios relevant to assessing the ability of Virgin to continue as a going concern (see below). Your analysis should focus on calculating and discussing the following ratios for the period identified:

1.Current ratio

2.Quick ratio

3.Debt ratio

4.Times interest earned ratio

You arenotrequired to calculate any additional ratiosfor this question. You are only required to calculate the four ratios listed above.

Question 2:

For the reporting period ending 30th June 2019, identify and discuss two (2) events specific to Virgin that will assist the auditor in assessing whether it meets the requirements of being classified as a going concern as per ASA570.