You are right about these questions but some of them can be answered /elaborated and the questions themselves can be added to:
2) I get it the sales issues in oz etc what about london, hongkong - Big is more than oz?
That is certainly what they are claiming in their announcements but if you look at the accounts and their quarterly cash flows:
- they only have one operating segment: "Digital Video Production". They don't have an "Australia" and "Rest of World" segment, which suggests that if there are international sales, they are not yet material to the group in total
- if they are actually making sales, they are billing these international small business customers in Australian dollars (which makes no sense, why would Bill's Burgers in Kansas City pay in AUD?) as from their 2017 accounts:
"Foreign currency risks arise from the Group's investment in foreign controlled subsidiaries. The currency in which these transactions are primarily denominated are Mozambican Metica (MZN). Impacts are largely borne on translation with variances included in the loss from discontinued operations."
Nothing about revenue billed or collected in GBP, HKD, USD, let alone them paying employees, contractors or suppliers there in their local currency.
4) why have so many not for profit customers acknowledged Big. Simply youtube big review tv and see the not for profits. Again how did the lousy sales team secure this?
How many of these have actually paid vs their "fee" being financed directly to BIG by FCC vs not having paid at all?
9) The auditors in question are not exactly small they are a subsidiary of much larger accounting firm which has offices across australia.
Arthur Andersen was a multinational firm with offices all over the world but that was no guarantee with Enron. In over two decades of working in accounting I have never heard of this firm. There appears to be a Sydney office (called Rothsay Chartered Accountants), while their Perth office website refers to Rothsay Resources and claims to be a specialist in "ASX listed mining and investment companies":
https://rothsayresources.com.au/. If you look at their list of public company audit clients on that page, apart from BIG they are almost all thinly traded microcap miners, and 5 of them wouldn't even come up on my broking account or on Yahoo Finance. I wouldn't be surprised if these companies are reviewing their choice of auditors over the weekend.
They do promise a "friendly, no fuss approach", which they'll need over the coming weeks and months.
To the list of questions can be added:
10) Why is there no disclosure of foreign currency denominated revenues or expenses or the related currency risks, given they announced "early revenue from US operations" on the 4th of November 2016?
11) How many not-for-profits have actually paid vs their "fee" being financed directly to BIG by FCC vs not having paid at all?
12) Why exactly did the largest shareholder request that PKF be ousted as auditors in 2016 at the AGM? It can't be over fees, PKF were paid $48k in 2016 and Rothsay were paid $47k in 2017.
At any rate, I suspect there'll be plenty of time for all these questions to be answered, it will take them ages to sort out the disclosure issues and restate the accounts and 4Cs.
