Toxiba
company, one of the biggest in the region of Eurasia, apologised for using
fraudulent methods of inflating its profit. The company artificially increased
its profits by USD 1.2 bln during preceding 7 years. The technique of defrauding financial
statements was not innovative and referred by Capitalist (magazine in Oceania)
as “101”. This usually includes overstating net revenues, booking early
revenues and postponing expenses. The company had the auditor R&U, which
failed to detected fraud. R&U is multinational company founded in Oceania,
having offices in all big cities, including Airstrip One. Our correspondent,
Rob, asked for the comments from the audit specialist, Mr Ask, in the city of
Airstrip One:
Rob:
What could be done to prevent such cases?
Mr
Task: Well, first of all the corporate culture in Eurasia should change towards
being more open and this depends from tone at the top. Second, I think the
auditors from R&U should review their fraud detection and cut-off
procedures, and then, question themselves, why they were not able to find the
intentionally made errors.
Disclaimer:
all situations and names is this blog post are not real.
No comments:
Post a Comment