letter to your local member, page-9

"The real issue for me is that the auditors and directors never once took the cash flows to the logical process of how much was needed to get to harvest and what its implications were if you didn't get there".

HOW COULD THEY?

I would direct you to the forensic accounting done by McGrathNicol in relation to the accounts of the Great Southern group of companies, and referred to in the following affidavit of James Thackray (R&M)

http://www.mcgrathnicol.com/currentprojects/greatsouthern/Documents/investor%20information/10%20Aug/Affidavit%20of%20James%20Thackray%20Receiver%20%20Manager.pdf

Thackray's affidavit was summarised in the Business Spectator as follows:

Thackray's explanation of what McGrathNicol found in its forensic accounting of Great Southern's MIS accounts will be of concern to investors.

The analysis found that operationally and for financial and management reporting purposes, the individual MIS projects were largely disregarded in Great Southern's accounts.

Thackray found there was no reporting mechanism to allocate costs by entity or by MIS basis and there was a fundamental lack of understanding by Great Southern Group staff of the distinction between legal entities and the need to capture and record financial information by entity.

He went on to say that there were no comprehensive sets of documents or legal records that enabled the receivers to understand the cost drivers in the business or the various commercial arrangements between entities, between various MIS and the members.

“The receivers have continually found structural integrity issues with data, meaning that financial information has repeatedly had to be re-checked and re-worked,” Thackray says.

http://www.businessspectator.com.au/bs.nsf/Article/Bendigos-Great-Southern-gaffe-pd20090811-UT889?opendocument&src=rss