1. Encik Selamat- General manager of Excel poultry & meat Sdn Bhd 2. Encik Kassim- Manage the finance & marketing
3. Mr Choy- Credit Controller
4. Encik Azman- Executive director of Cold Gold Sdn Bhd (debtor) 5. Puan Azura- Account Executive
6. Mr Siva- Retail customer
7. Encik Munir- Former staff at finance department
1. Late 2008, operating cash running low.
2. Significant increase in short term borrowing.
Increase financial obligation (interest payment).
3. Credit limit of Cold Gold Sdn Bhd had gone into its level and yet the marketing department continued to supply product to them.
Operating loss → exorbitant price of chicken feed.
* Cold Gold had been asked to pay part of the payment.
Best friend → issue on professionalism here….
4. The figures on statement of account not tie up with balance in account (debtor balace).
Encik Munir not disclosed the receipt of payment from customer. → Issue on internal control
Fraud: Manipulation? Mislead?
2. Specify key assumptions
3. Identify relevant info and sources to solve the problem 4. Evidence and quality of evidence
5. Qualitative and quantitative tools
6. Conclusions, implications and consequences
1. En Munir had conducted cash skimming in the company which leaded to his resignation. 2. En Selamat has personal benefit from the deal with Cold Gold Sdn Bhd. Therefore although CG did not pay within the credit term, En Selamat did not stop the marketing department to continue supply products to the company. 3. There is possibility that the irregularities in the account balances is due to illegal transferring of a particular debtor’s balances to another debtor.
* Cash flow not liquid.
* Financial ratio analysis.
* Apply for short term borrowings from bank and financial assistance → Skim...