...Actor: 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 Issue: 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? Criteria: 1. Problems 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 Key assumptions 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...
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...Department of accounting Acc 4291: integrated case study Chicken run Section <1> Semester 2 2011/2012 Members: Mastura hashim 0735072 Muhammad safwan mohamad 0723979 Siti aqilah talib 0733292 Table of Content Executive Summary Decision Maker What should Ms. Choy do? ~Analysis: 1) SWOT analysis 2) Fishbone diagram 3) Financial evidence ~Alternatives ~Recommendation and Action Plan Executive summary: 1998, Excel Poultry & Meat Sdn Bhd (EPM) was a SME located in Kluang, Johor, operating business of chicken farming and supplying chicken throughout Malaysia. This subsidiary of PCK holding since 2005 was managed by Encik Selamat, a Certified Public Accountant (CPA). It became one of top 5 chicken suppliers within mid-tier producers in the country due to increasing demand in year 2000 from superstores and fast-food chains, high chicken consumption by Malaysian, and expansion of chicken industry. However, in 2008, cost of poultry production increased. EPM operating cash was low and severe, that it “had puzzled Encik Selamat” (p.4). Other problems were also identified. Decision Maker: Credit Controller Ms Choy is the decision maker as she has the responsibility to make the right decision regarding unethical conduct of Encik Selamat, she can convince Board of Directors about En. Selamat. If she failed to convince BOD to take action, she can then reveal the issue to the auditor, besides mentioning to the auditor the lack of...
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...Chicken Run Case Study: En Selamat Key assumptions 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. 1. Financial • Cash flow not liquid. • Financial ratio analysis. • Apply for short term borrowings from bank and financial assistance → Skim Pembiayaan Perniagaan MARA, TEKUN. • To increase sales (new market, fully utilized=sell chicken poop and bulu ayam) → not only sell the meats. 1. Meats 2. Eggs 3. Fertilizer (poop) 4. Livestock (sell the chicks/breeds to other farmer) 5. Feathers • Improve marketing → use En Selamat’s skill in marketing. • Send reminder to debtor. • Give good credit term. • Cut cost → feed and labour expenses (hire relative). 2. Leadership • Autocratic → laissez faire. • Recommendation: democratic. 3. Conflict of Interest • En Selamat and En Azman (“personally benefit from the deal”). • En Selamat and BOD. Recommendations: • Establish a clear set of policies and procedures within the company. • Develop a whistle blowing policy. • Ensure the independency of the management team. ...
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