The favourable opinion and the crisis of Abengoa S.A.

Abstract

The aim of this report is the economic-financial analysis of Abengoa S.A, a company that has been a benchmark in Spain for its evolution and growth in the energy sector. The analysis covers the period 2011-2014, years previous to the declaration of bankruptcy, as one of the objectives of this analysis is to see if the data presented by the company could have predicted the risk of declaring insolvency proceedings. On July 21, 2015, the new Accounting Audit Law, Law 22/2015 was published. In general, this new Law is for all companies with economic activity; however the main changes affect especially the Public Interest Entities. The articles of this law that affect the Public Interest Entities will be analyzed, in order to determine if their application to the audit report of Abengoa SA before the declaration of bankruptcy, would have been useful in detecting the serious risks that the company had. The choice of this company is related to the possibility of combining two topics: the declaration of bankruptcy and the new Law 22/2015, both issues being related to the current and economic news.