Ann: HOTUpdate-Corporate Spotlight offering with Big Review TV Li, page-139

You raise an interesting question as it's not just the new auditor but PKF as well that never mentions them and that leads me to think that it is an undisclosed arrangement or informal. So the auditor does not see it as anything but third-party financing that is lending money to the debtor - the question about the debtor may never have emerged as on the face of it BIG have received the funds so don't have a debtor and FC have a debtors book but BIG isn't the debtor.

Personally, if it was intentional to place this off-balance sheet it could not have been designed better. I think the Australian accounting standards will have to be changed to incorporate disclosure to the auditor directly from the lender where it believes that there is a third party obligation to refund in the event of default. Unless you have this letter popping up at the auditor its not going to easily be established...