My employer has had a difficult year. We have ended up in the position where the company has sold a number of assets for which the finance agreements still in place - i.e. amounts are still owing. The directors are not disputing that the amounts are owed and fully intend to pay them off in due course, and in the meantime are making monthly payments against the agreements as if the assets were still owned.
The auditors are due in imminently and I would expect that the auditors would notice these agreements are still outstanding although the assets are sold. Is this likely to generate a qualified audit report or other adverse impacts? I am not comfortable with the current situation, but the company doesn't have funds to settle these agreements and the amount owed is growing - I anticipate it could take more than a couple of years to repay. I'm wondering if I can be held at fault, and if it is time to look for a job elsewhere?