You are an experienced audit manager at Samway Baker Fitzgerald (SBF), an accounting firm
with offices in Orange, Wagga Wagga, Tamworth, Port Macquarie and Albury in NSW,
Toowoomba in Queensland and Ballarat in Victoria. Although a medium-sized firm by national
standards, SBF includes Australia’s largest regionally-based auditing practice. Most of SBF’s
audit clients are in the manufacturing and service industries. SBF recently acquired a major
new audit client, Dudley Health Limited (DHL), which fully owns:
• St Neville’s, a highly regarded private hospital located in Tamworth
• Acuity Vision, a network of day surgery clinics across NSW and Queensland
• Pellegrino Shores, a retirement village located in Port Macquarie
Its a chilly evening in early July 2019 and you are meeting with your audit senior, Jek Porkins,
to discuss the findings of his preliminary work for the 30 June 2019 audit of DHL.

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