This report provides a comprehensive financial analysis of the collapses of OneTel, HIH, and ABC Learning, three prominent Australian companies. The analysis delves into the events leading to their liquidation, including aggressive buying strategies, poor corporate governance, and auditing issues, with a specific focus on the role of liabilities. The report examines the ethical and corporate governance failures within each company, highlighting how decisions made by management, often disregarding shareholder interests, contributed to their downfall. Furthermore, the report explores the impact of agency theory, the influence of regulatory lapses, and the changes in auditing standards (ASA701). Through detailed examination of cash flow issues, acquisitions, and the misuse of accounting standards, the report offers insights into the key factors that led to the financial failures of these companies, providing a valuable case study for understanding corporate financial management.
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