Case Study Of Pramuka Bank

Based on the case, company poor accounting system creates opportunities for Mr Praveet to commit fraud because the information on trade register was authorized and managed by Mr Praveet. There is no other personnel that in charge of the authorization of the fund such as approval of the fund from higher authority of the financial manager, Mr Mehta. Good accounting information system able to provide accurate and timely information, but this does not appear in Taj Mahal Investment Company. The accounting system is important for prevention and detection of fraud and it did not alarm an alert to the company about the losses in investment until when Mr Praveet had left the company. So, Mr Praveet easily commits fraud without notice by the

Traditionally the duties and rights of the bank were stipulated by the contract between the bank and the customer. In the present case a very important decision concerning the rights and duties of the bank has been taken

In the document is also said that even when people have money in that bank people would go to the bank and go get their money since that bank was going to be a failed and it also said that after their failure the repressive effect on the spending of its clients. They couldn’t do anything to help the bank to crash even though they will all be crashed any day.

AICPA Code of Professional Conduct principles prevents vises such as fraud that are experienced in accountancy field. Audit is the best measure of the effect of the fraud that are imposed to investors by accountants. The relationship of the investors and account holders are supposed to be affirmed through auditing to ensure accounting principles are upheld(Weirich, Pearson, & Churyk, 2010). Improper loss of the funds through propagation of the accountant officer should be treated as fraud and criminal activity that should lead to prosecution. Therefore, the paper seeks to relate two fraud cases that have been audited and presenting AICPA Code of

In both developed and underdeveloped economies, there is a need to put regulations which ensure that profits are not abnormally earned at the expense of the innocent clients. It is therefore the mandate of the territorial authorities to put in place measures that introduce checks and balances in all trades. The respective companies or business must also follow the same suit lest they find themselves in the crossroads of law. However,

Tamanitoakula, who was the Senior Accountant abused the authority of his office, and processed the payments to T.F.Jan Bulldozing Company amounting to about FJ$2.3m without following proper procedures. According to Fiji Sun (2015), it was his duty to verify all documents

In past, Schedule I Banks ought to be widely held by a large number of shareholders, originally with no investor holding more than 10% and foreign ownership was previously limited to 25%. However, these rules have been changed according to a new legislative policy framework introduced in June of 2000. Under the new rules, there are three sub-classes of banks, based on the size of their equity capital: 1) large (greater than $5 billion); 2) medium ($1 to $5 billion); and 3) small (less than $1 billion). Based on present figures, the $5 billion cut-off point would establish the top six Schedule I Banks as large banks, except the National Bank (although it would be classified as such until deemed otherwise by the Minister of Finance). The large banks have to remain widely held under new criteria that eliminate the 25% foreign ownership rule, and permit a single investor to own up to 20% of the voting shares of the bank, and up to 30% of non-voting shares, subject to a ¡°fit-and proper¡± test designed to evaluate their character and suitability. Medium banks would be allowed to have a single owner hold up to 65% of shareholdings and would be required to maintain a public float of at least 35% of voting shares. Small banks would face no ownership restrictions other than the ¡°fit and proper¡± test. Following the reform, the nationality is no longer a

A payment of $10M by an HIH subsidiary to a company of which Rodney Adler was a sole director. By use of a trust mechanism following investment was made $4M was used to acquire HIH share, venture capital unlisted investments were purchased from another Adler company, and loans were made to entities which were associated with Adler. All this investment was made without approval and no disclosure to the board of investment committee of HIH. Loans were made without proper documentation so that it does not catch other director attention. In this case the adler breach his duties under four sections. Section 180 duty of care and diligence, s181 duty to act in good faith and intended purpose, section 182 duty to misuse the position for personal benefit and section 183 duty not to improperly use information. The judge found that adler had personal financial interest in those transaction in company name and no business judgment was shown in good faith of the company. The conclusion was that when dealing with any transaction related to corporation should go under duty of care and diligence and proper step should be taken to mitigate the risk. All transaction should be closed across the board, should ensure that those transaction for the benefit of company and conflict of inflict should be avoided in

As per the case that was filed by the people of The State of New York the defendants i.e. the bank was committed to multiple frauds in order to provide RMBS scheme to the public all around the globe on which the defendants failed to represent the assess the quality of loans they provided to the people in order to buy the land which were deposited in RMBS. Similarly the defendants also failed to respond to defects in their securitization after the purchase they did along with quality control process. On the other it was seen in the case that the defendants led

All communication materials we send out through the different channels – Direct mail, Web, Email, Advertising etc. are highly affected by the regulations. The legal and compliance team audits all the communication materials before they are made public. Banks are governed by quite a number of regulatory bodies who would state laws regulative certain activities. Banks would first make sure they adhere to these laws to determine what’s ethical and what non ethical is. What is not specified as illegal is not necessarily view as illegal. As stated in the readings,

It is vital the bank adheres fully to sanctions regimes to prevent a breach or potential criminal offence from occurring as such regimes are prescriptive and there is no option to adopt a risk based approach. Importantly we need to be aware that as an international bank we are not

This article discusses Commonwealth bank having a systemic fraud and systemic theft. They are lying to customers and this is a big impact on the customers. The chairman Mark Bishop is struggling to describe the issue since this is a most trusted financial institution (Ferguson, 2014, para. 1).This articles relates to studies from Chapter 2 where it discusses prudential supervision and the regulation of Commonwealth bank because they are not doing the right thing.

The banking sector is the division of society’s economy, which is devoted to managing financial assets for its people. The industry invests on the finances, leveraging them to produce more wealth as it follows the regulation of the government. The holding of people’s financial assets is done as per customers’ wish and request. It all starts with a simple account opening, which in turn involves giving full individual information including their dates of birth, full names, next of kin, national document registration numbers, residence, gender, nationality, and so on. The bank vows to keep this information secure, and the

This contains with rules and regulations and policies that every business need to follow no matter its small or large. Legal boundaries guide, assist, protect and prevent firms. Hence, every firms need to follows rules as per acts developed and implemented.

The RBI has granted operating approval to a few privately owned domestic banks; of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion.