Wisteria World is a theme park operated by an audit client of Salmon Partners. It is located on the Gold
Wisteria World is a theme park operated by an audit client of Salmon Partners. It is located on the Gold Coast and, due to its proximity to the ocean, the rides are prone to rust and corrosion. During the 2020 school holidays, two of the most popular rides experienced major breakdowns. Children were trapped on the rides for several hours, resulting in several being taken to hospital with minor injuries. An inspection following the incident revealed that key parts needed urgent replacement. The parts are made in the United States and imported by Wisteria World. The cost of the replacement parts is $4.5 million (against profit after tax in the previous year of $400 million). The repairs are scheduled to begin in April, with completion in July 2020.
Discuss whether there are any events or conditions that may cast significant doubt on Wisteria World’s ability to continue as a going concern.
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