Fiddle or Not to Fiddle
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES
DEPARTMENT OF ACCOUNTING
ACC 4291: INTEGRATED CASE STUDY
GROUP CASE STUDY:
TO FIDDLE OR NOT TO FIDDLE
TABLE OF CONTENTS No | Topic | Page | 1 | Summary, Protagonist, Main Issue and Problem | 3-5 | 2 | Why is it wrong for the economic officer to make such a request? | 5 | 3 | What are the consequences of giving in to the economic officer/s request? | | 4 | How would you ensure „true and fair view‟ of financial reporting? | | 5 | What are the Accounting standards a Malaysian accountant has to comply with? | | 6 | “Those foreign accountants like to show an account making a loss, to avoid paying tax”, alleged the Economic Officer. Can it be true? | 6 | 7 | How and with what would you „educate‟ the directors and management staff of the company? | | 8 | References | 7 |
* SUMMARY
The case is about a financial controller in a Sino – Malaysian joint venture was asked by a director representing the interest of the Chinese government, who was also a government official supervising foreign JV companies, to change the P&L position from loss to profit, so that he could paint a rosy picture in his report of JV performance under his charge. This case introduces the scenario in which an accountant may face when he works in a foreign country in a joint venture. The case also serves to illustrate the importance of corporate governance in the business world. Corporate governance encompasses achieving corporate mission or objective, law compliance, upholding code of best practices and adherence to business and personal ethics. The corporate governance could be the foundation of a better business world where fraud, malpractice, corruption could be minimised. * PROTAGONIST / DECISION MAKER AND PROBLEM FACED
The protagonist in this case reflected to Mr. Zhang as General Manager which also as the one who makes the decision. He is the one who responsible due to
KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES
DEPARTMENT OF ACCOUNTING
ACC 4291: INTEGRATED CASE STUDY
GROUP CASE STUDY:
TO FIDDLE OR NOT TO FIDDLE
TABLE OF CONTENTS No | Topic | Page | 1 | Summary, Protagonist, Main Issue and Problem | 3-5 | 2 | Why is it wrong for the economic officer to make such a request? | 5 | 3 | What are the consequences of giving in to the economic officer/s request? | | 4 | How would you ensure „true and fair view‟ of financial reporting? | | 5 | What are the Accounting standards a Malaysian accountant has to comply with? | | 6 | “Those foreign accountants like to show an account making a loss, to avoid paying tax”, alleged the Economic Officer. Can it be true? | 6 | 7 | How and with what would you „educate‟ the directors and management staff of the company? | | 8 | References | 7 |
* SUMMARY
The case is about a financial controller in a Sino – Malaysian joint venture was asked by a director representing the interest of the Chinese government, who was also a government official supervising foreign JV companies, to change the P&L position from loss to profit, so that he could paint a rosy picture in his report of JV performance under his charge. This case introduces the scenario in which an accountant may face when he works in a foreign country in a joint venture. The case also serves to illustrate the importance of corporate governance in the business world. Corporate governance encompasses achieving corporate mission or objective, law compliance, upholding code of best practices and adherence to business and personal ethics. The corporate governance could be the foundation of a better business world where fraud, malpractice, corruption could be minimised. * PROTAGONIST / DECISION MAKER AND PROBLEM FACED
The protagonist in this case reflected to Mr. Zhang as General Manager which also as the one who makes the decision. He is the one who responsible due to
References: REFERENCES 1. Messier/Glover/Prawitt/Margaret Boh, Auditing and Assurance Services in Malaysia, McGraw-Hill Education (Malaysia), 2007.