A Delima Case
STORY OUTLINE AND CHARACTERISTIC
In 1981, Delima Enterprise was founded by Encik Zayed. The primary activities were conducted trading and supplying related products including manpower supplies to the oil and gas industries. In 2004, the enterprise was incorporated as Delima Enterprise Sdn. Bhd. The case started when the company had secured a contract worth RM 750,000 to be implemented over duration of six months. However, due to shortage of funds, the company had submitted applications to Malayan Banking Berhad and CIMB Bank Berhad for banking facilities total RM1 million. The banks required the company’s Audited Financial Statements for the last two years but Encik Zayed and Puan Hashimah realised that the company had not performed any statutory audit. To perform the statutory audit for the period 2003 to 2006, Encik Zayed engaged the external Auditor Aziz & Co. (Chartered Accountant) in July 2006. Due to several unresolved issues, the Auditors need to qualify the Financial Statements. Encik Zayed and Puan Hashimah tried to negotiate with the Auditor because company needs the audit to be completed at least by September 2006 to meet the bank’s requirement. After failing with negotiation, Encik Zayed planned to terminate the auditor’s appointment and want to appoint a new “friendly party”. For analysing and providing the Auditors with the necessary clarification and documentation, Encik Zayed had employed Cik Amy in May 2006. She holds the position as Finance Executive in the company. She was a young Accounting graduate from a local university since April 2006 and had no working experience. Furthermore, Encik Zayed and Puan Hashimah were also not familiar with Accounting Standards and the provisions of the Companies Act 1965, including their roles and duties as Company Directors. Besides, the company maintained a very lean organisation and had employed their own family members as employees and some did not have the required job experience.
The characters
In 1981, Delima Enterprise was founded by Encik Zayed. The primary activities were conducted trading and supplying related products including manpower supplies to the oil and gas industries. In 2004, the enterprise was incorporated as Delima Enterprise Sdn. Bhd. The case started when the company had secured a contract worth RM 750,000 to be implemented over duration of six months. However, due to shortage of funds, the company had submitted applications to Malayan Banking Berhad and CIMB Bank Berhad for banking facilities total RM1 million. The banks required the company’s Audited Financial Statements for the last two years but Encik Zayed and Puan Hashimah realised that the company had not performed any statutory audit. To perform the statutory audit for the period 2003 to 2006, Encik Zayed engaged the external Auditor Aziz & Co. (Chartered Accountant) in July 2006. Due to several unresolved issues, the Auditors need to qualify the Financial Statements. Encik Zayed and Puan Hashimah tried to negotiate with the Auditor because company needs the audit to be completed at least by September 2006 to meet the bank’s requirement. After failing with negotiation, Encik Zayed planned to terminate the auditor’s appointment and want to appoint a new “friendly party”. For analysing and providing the Auditors with the necessary clarification and documentation, Encik Zayed had employed Cik Amy in May 2006. She holds the position as Finance Executive in the company. She was a young Accounting graduate from a local university since April 2006 and had no working experience. Furthermore, Encik Zayed and Puan Hashimah were also not familiar with Accounting Standards and the provisions of the Companies Act 1965, including their roles and duties as Company Directors. Besides, the company maintained a very lean organisation and had employed their own family members as employees and some did not have the required job experience.
The characters