FLAT CARGO BERHAD CASE STUDY

2085 WordsNov 22, 20139 Pages
Flat Cargo Berhad Presented by: Presented to: ABDUL RAHMAN BIN YAACOB AC088467 AFIFAH BINTI HALIM AC088398 MAZIAH BINTI MOKHTAR AC088445 MOHAMMAD AZWAN BIN BASHIRUN AC088323 MOHD ZUBAIR BIN NOR AZMAN AC086470 NABILAH BINTI SAAD AC088349 SIR AZWAN ABD RASHID INTEGRATED CASE STUDY ACSB 413 INTRODUCTION Company Background 1997 Started operations with 2 aircraft - Boeing 737-200F - Cessna Grand Caravan Operating Primarily -Air cargo carrier Principal activities of FCB Subsidiaries -Air Freight Service and Aircraft Ground handling service 15 September 2001 -Obtained listing in Bursa Malaysia Auditor -Kenyans & Associates In 2001 to 2004 -the have a fast growing at intra- Asian air express market -demand for express…show more content…
Most of these transactions involved small clients. -Overstatement of sales & may not able to collect the revenue -Fictitious revenue -Trace sales journal entries to supporting documents, including duplicate sales invoice, bill of lading, sales order, and customer order. -Pre-numbered invoices -Regular reconciliation A loan received from a Hong Kong based company was found to be incorrectly recorded in debtor’s account. -Error of principle -Misconduct of FCB in concealing loan from stakeholders - Loan received was recognized as a debtor to show increase in cash flow without claim against its assets. -trace incorrect entry into debtor and creditor ledgers if the control a/c are not balance -control account (debtors control account & creditors control account) -FCB should adopt more transparent & ethical manner of a/cg adherence to the regulations. Situation/Red Flags Potential Fraud Several abnormal - Increase in transaction fixed assets involving the (aircraft) purchase of - Decrease in aircrafts by FCB debtors and offsetting the - FCB did not debtors’ accounts want to disclose were found in the high cash FCB’s books. outflow to investors Common Test Procedure Control Procedure -Review purchases invoice and account receivable -Apply rules for recording revenue & expenses are derived from the rules for owner equity A=L+OE -These two roles shall be separated by individual -In FCB,

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