An Audit Analysis

A.
BACKGROUND
Laser Engineering is a wholly owned subsidiary of Lightray Inc., a company listed on the New York Stock Exchange. Laser Engineering is a company which manufactures and retail distribution of high technology engineering equipment. Laser Engineering is an Australian based company which has two subsidiaries, Ace Supply Pty Ltd and Bell 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), Bill Jackson (Finance Director) and Dave Chan (Operations Director).…