Report of Fcb Case

3630 Words Oct 6th, 2012 15 Pages
ACC 4291 – Integrated Case Study

Case Analysis Report on Flat Cargo Berhad: An Auditor’s Conundrum
Group : KHADIJAH

Masita bt Abu Bakar
0921714
Arnianty bt Amirbak
0810192
Nik Nur Wahidah bt Nik Zainal Abidin
0928160

ACC 4291 – Integrated Case Study
Case Analysis Report on Flat Cargo Berhad: An Auditor’s Conundrum
Group : KHADIJAH
Masita bt Abu Bakar 0921714
Arnianty bt Amirbak 0810192
Nik Nur Wahidah bt Nik Zainal Abidin 0928160

Synopsis
Flat Cargo Berhad (FCB) was a listed air cargo carrier service company which also registered as an investment holding company with several subsidiaries. They are FC Spare Sdn. Bhd, Cargo Management Sdn. Bhd, FCB (SPV), Cargo Air Services Sdn. Bhd and FC Air Ltd. Its primary
…show more content…
Almost 1trillion increased from previous year. According to auditor from Kencana & Associates, the aircraft purchased by FCB in 2005 was unable to be verified. Long Term debt of FCB increased drastically by RM700 million in 2005 made this company to be listed high gearing company by Rating Agency Malaysia (RAM). In addition, the list of FCS’s Board of Directors comprise majority of non-independent directors which can affect the transparency of the company’s financial statement. According to the general Corporate Governance in Malaysia, the code specifies that the board should have a balance of the executives and non-executives directors. Apart from that, all audit committees should be non-executives directors.
Data Analysis :
Question 1
It is important to realize that the work as an auditor has been created in this world in order to give a fair and view on audited financial statements. A layman who wanted to make an investment will invest based on what auditor said in his report. Thus, if something bad happen in the company later, the reliability of the auditor is the first to be questioned.
The effects of FCB’s fraud can be seen from two angles, the effects to the company of FCB and the effects to the audit firm, Kencana& Associates. The possible effects of FCB’s fraud is highly can affect its own stakeholders such as the FCB’s shareholders, the customer’s, the

More about Report of Fcb Case