User Account

All Pages

Identify two other parties that could have played vital role

Assignment Help Accounting Basics
Reference no: EM132582439

Two former executive directors of Polo Incorporation Bhd received jail sentences for furnishing false statements to Bursa Malaysia Securities Berhad (Bursa). The Sessions Court sentenced Chong Loon Sing, 56, and Sivaraja Maniam, 48 after a guilty plea from each defendant. They admitted to furnishing false information to the Bursa in relation to Polo's revenue of RM91.13 million, of which RM51.5 million was false, for the fourth quarter ended 31 March 2018. The defendants also faced four other charges for the same offence in relation to Polo' consolidated income statement for all four quarters in the 2017 financial year. It was discovered that the company did not have an internal whistle-blower policy and their outsourced internal auditors were from the same firm that provided external audit services to the company, albeit from a different team. The external auditor firm also provided tax consultancy services to the company. The company's Audit Committee and external auditor have failed to scrutinise the company accounts and thus, they were unaware of the fraud. The crime was finally uncovered when one of the employees decided to report to the SC on the discrepancies of the accounts. Judge Nuriman Ahmad took these facts into consideration in sentencing the two defendants.

Chong received a 7-month imprisonment and fined RM200,000. Meanwhile, the Judge meted out a 12-month imprisonment to Sivaraja. Both defendants were former substantial shareholders of the company. The sentences were meted out following the two men's applications for a plea bargain, said the SC.

The trial against Chong and Sivaraja started in 2018. Hearing will continue against two other individuals, Mohd Reza and Tee Poon Huat, who were jointly tried with Chong and Sivaraja for the same offences.

REQUIRED:

Question a) Apart from Audit Committee and external auditor, identify two other parties that could have played vital roles in upholding the integrity of financial reporting at Polo Incorporation Berhad? Justify your answer.

Question b) Recommend steps that the Audit Committee can take to improve the integrity of financial reporting at Polo Incorporation Berhad.

 

Reference no: EM132582439

Questions Cloud

Prepare a trial balance as of the end of june : Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Prepaid Insurance
Create spatial transformation matrix : Calculating the moment invariants and Create spatial transformation matrix T4 for rotating the image - which calls to another function named
Why is oxygen necessary for aerobic respiration : Why is oxygen necessary for aerobic respiration?
Different societies have different social structures : Different societies have different social structures. What components contribute to the macrosociological perspective of social structure?
Identify two other parties that could have played vital role : Identify two other parties that could have played vital roles in upholding the integrity of financial reporting at Polo Incorporation Berhad? Justify answer
Strategic competitiveness : From the first e-Activity, determine which of the two primary drivers of the competitive landscape is more influential. Explain your rationale.
What is the probability that the progeny of f 1 generation : What is the probability that the progeny of the F 1 generation will have white or red flowers? Explain your answer.
What makes the c4 cycle that much different : What makes the C4 cycle that much different than the "normal" C3 plants?
Why would someone propose this hypothesis : It has been hypothesized that if we could genetically modify crops like potatoes and tomatoes to become CAM plants we could aide hunger issue around the world

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the amount of their investment interest expense

Assuming that the Clicks' marginal tax rate is 35 percent, what is the amount of their investment interest expense deduction for the year

  Current liability and long-term liability

At December 31, bonds payable of $100,000,000 are outstanding. The bonds pay 10% interest every September 30 and mature in installments of $25,000,000 every September 30, beginning September 30, 2011. What is the dollar amount that is to be report..

  Determine the effect of its inventory and receivables

Carmen and Vanessa's Corporation wants to determine the effect of its inventory and receivables management on its cash flow cycle. Carmen and Vanessa's sales last year (all on credit) was $200,000, and earned a net profit % of 10%.

  Compute the revenue for the year on a cash basis

Revenue on the income statement was $121,560. Accounts receivable were $3,680 on January 1 and $3,500. Compute the revenue for the year on a cash basis.

  Determine sales volume in units necessary to earn the profit

Determine the sales volume in units necessary to earn the desired profit. Determine the sales volume in dollars necessary to earn the desired profit.

  What are debits and credits

What are debits and credits? How are debits and credits used to record business transactions? Why do accountants debit asset accounts to increase them but credit liability accounts to increase them?

  Calculate the dollar value for ending inventory

Using the LIFO method, calculate the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent

  Director pension entitlements for the year

The financial statements of AB, a listed company, disclose the following information on the Chairman's pension entitlements: (a) for the year ended 31 December 20X0 the pension fund is sufficient to pay the director a pension of £200,000 a year fro..

  On march 1 2010 ruiz corporation issued 800000 of 8

on march 1 2010 ruiz corporation issued 800000 of 8 nonconvertible bonds at 104 which are due on february 28 2030. in

  Audit evidence than traditional sampling techniques

Audit evidence than traditional sampling techniques?

  The estimated useful life of its manufacturing equipment

you are hired to review the accounting records of sophia corporation before it closes its revenue and expense accounts

  Rohan corporation holds assets with a fair value of 150000

rohan corporation holds assets with a fair value of 150000 and a book value of 125000 and liabilities with a book value

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd