I noticed when considering whether to cash in my frequent flyer points (by buying one gift card per day) that KPMG Sydney signed Virgin's half year Independent Auditor's Review Report on 25/02/19 without even a going concern emphasis of matter, despite Virgin Australia having negative net current assets at 31/12/19 and the corona virus threat being obvious in February. Hopefully we could sue KPMG if we don't cash out points now and our points become worthless.
After dithering on this I decided to not buy daily gift cards based on KPMG evidently having a good (but not stated in the half year report) reason to not even give Virgin a going concern emphasis of matter despite the insolvent looking balance sheet, EBITDA only 2.1 times finance costs, and the corona virus threat that was obvious before 25/02/19. Such a decision by KPMG would have required at least a 4 partner circus despite this only being a review opinion. Thoughts? Why was there no going concern emphasis of matter in late February?
VAH Price at posting:
8.6¢ Sentiment: Sell Disclosure: Not Held
