SNC-Lavalin Group Inc: Accounting Ethics

1638 Words Jan 29th, 2018 7 Pages
is an engineering and construction company headquartered in Montreal, Canada. It is one of the top five global design companies in the world. The company has been involved in major engineering and construction projects in the world in Canada, Madagascar, Australia, and Spain. The company has more than 30,000 employees and a turnover of over 6 billion Canadian dollars. Recently in March of 2012, the company's CEO, Pierre Duhaime resigned as a result of breach of accounting ethics. It was found that the CEO had misallocated payments to agents totaling to $56 million. This included $33.5 million which the company's chief financial officer and another company executive had refused to sign off on ADDIN EN.CITE Lemer2012284(Lemer, 2012)28428423Jeremy LemerSNC-Lavalin head resigns over 'breach of ethics'Financial Times2012New YorkThe Financial Times Ltdhttp://www.ft.com/cms/s/0/5549bce4-7760-11e1-827d-00144feab49a.html#axzz2AEVBzXtxOctober 25th 2012( HYPERLINK l "_ENREF_2" o "Lemer, 2012 #284" Lemer, 2012).

In trying to identify the agents that were paid off by SNC, the board members found that they were unable to contact some of the agents or to identify their true identity. This breach in the company accounting ethics occurred as a result of material weaknesses in the company's internal controls over their financial reporting which allowed the CEO to sign off on these transactions without informing the company chief…

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