Professional Documents
Culture Documents
no.
225812
225828
225858
225885
234454
INTRODUCTION
Flat Cargo Berhad (FCB) was one of the largest air freight companies in Malaysia.
Core business is air freight transportation, which included aircraft charter and
leasing.
Kencana & Associates served as its auditors.
This case attempts to bring out the whole accounting fraud issue at FCB from an
auditors perspective.
It creates an atmosphere of suspense and tension by portraying the dilemma of
an auditor.
The auditor was only able to reveal the dark secrets after years.
This case provides a penetrating view of the accounting fraud at FCB and other
related issues that aggravated the whole chaos.
Auditors dilemma
whether Flat Cargo
Berhad practices
fraud or it is the
weakness of
management?
Inconsistencies in Flat
Cargo Berhad accounts
Weakness of corporate
governance in Flat Cargo
Berhad
Lack of auditor
competencies
Restructure the
audit committee
Audit committee
prepares
systematic
documentation
and report
progress
regularly to the
board
Strengthen the
internal audit
RECOMMENDED SOLUTION,
IMPLEMENTATION & JUSTIFICATION
Restructure the audit committee
CONCLUSION
Kencana as the external auditors of Flat Cargo
Berhad can be considered responsible for not
detecting the misstatement only but not
responsible for causing the fraud.
Kencana and Asscociates cannot bethe one that
solely blamed for this issue because the
mainparties responsiblefor
leadingthemisstatements and fraud are the Board
of Directors and Management of FCB.