Chicken Run

4282 Words Apr 29th, 2013 18 Pages
MAF680 CASE: CHICKEN RUN
GROUP MEMBERS
AFIQ IZDIYAD BIN IBRAHIM 2008368767

AHMAD SABRAN JAMIL BIN MOHD AMIN 2008555807 MUHAMAD RUZAINI BIN AB RAHMAN DAYANG CASANDRA ASMALIA BT SAIDI ILI NAZIEERA BT MOHD SOHED 2008383779 2008333715 2008318359

CONTENTS
Page Introduction 1. What were the problems/issues facing the company? 2. Who are the stakeholders and what their stakes are? 3. How were the affairs of the company managed? 4. How would you describe the system that existed within the company? 5. How would you assess and rate the financial health of the company? 6. What are the possible salvage plans? 7. What would you suggest as appropriate course of actions? 8. How would an external auditor perform his work in this company? 9. If you are
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Bhd., he will personally benefit from the deal. Encik Selamat did not disclose this matter to the Board. The company also faced a decrease in net profit within 3 years of its operation in year 2006 ± 2008. The decrease of net profit is mainly becaus e of the feeding cost hike and also undiscovered irregularities in the accounts. The figures in the balance of the accounts of the company do not tie up to the confirmations given to their debtors and creditors. This proves that the company¶s accounts are not in proper order and there is possibility of misstatements in their accounts. Another problem disco vered during the aging analysis is that in EPM¶s books, a retailer, Mr. Siva¶s account had outstanding balance. This was in contrast with the books of Mr . Siva, where he claimed to have paid all outstanding balance and the cash payments had been made to Encik Munir (one of the former personnel in finance department).

2. Who are the stakeholders and what their stakes are? Customers are one of the important people that help a company grow. Without them, a company cannot sustain its operations. That is the importance of customers to the company. In turn, customers also have stakes in the company. Customers rely on the supply of products, in this case, poultry supply for their daily sales and consumptions. They need reliable supply of poultry in terms on quality, price and time of delivery of the poultry.

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