Group Audit

The parent company DLPT has asked the subsidiary Daniel it subsidiary to guarantee a loan for Benita. Benita has defaulted in the repayment of the loan due to bad business. The security provided by Daniel is sporting plan. Daniel is in a good will Business and contributed 40% Benita used to contribute 30% of revenue. As a result of the non-payments of the loan by Benita, Daniel has made the payments on her behalf, and has created a receivable in his records from Benita at year ended. Benita only knew about the three (3) months payment made by Daniel at the end of the third(3) month and has refuse to pay the payable in her own account and has insisted that this will be taken care of at the group level. This has been impacted Daniel and has stop in repaying the loan. The creditor has decided to call the entire loan and has taken legal actions to empower the bottling plant, which has given by the court ruling to recapitalize this subsidiary (Daniel)
Access the implication in respect to: Daniel (subsidiary), Benita and Parent company