...SUMMARY OF THE CASE Established in 2002 in Taiping, Perak, Palm Haul Sdn Bhd (PHSB) was a small and medium sized enterprise in the Crude Palm Oil (CPO) transportation business. PHSB was managed by En. Rossly, the Chief Executive Officer which is also the son-in-law of PHSB’s founder, Datuk S. Najeed. Like the other transport companies involved in the business, PHSB also faced problems with its drivers embroiling in oil piracy. Transport companies are naturally will held the responsibility for such thefts as they usually take place under their watch and these companies are bound to compensate the refineries for such losses. The culprits involved frequently tanker drivers, depot operators and transporters. One of the major customer of PHSB, Oilene Refineries (Oilene) complaint about the quality of the CPO delivered by PHSB and its later impact on Oilene’s failure to fulfil their customer orders. This is because of the practice of siphoning CPO and adulterating the consignment with water, used oil or sludge was so uncontrolled that a number of PHSB’s customers have threatened to change their custom to other more reliable transport companies. Besides that, profits for the first quarter of 2009 had drastically decrease compared to the same period on the previous year due to the high compensation expenses and maintenance cost. These matters worried Datuk Najeed whom then insisted En. Rossly inspect the matters and report to him within one week with possible solutions. En. Rossly...
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...ICS PRESENTATION CASE 2 Issue 3 : Auditor’s issue. The independence of auditor’s in Flat Cargo Berhad(FCB) is much questionable. This is mainly due to the fact that the appointed company auditor has been previously hit by another case of fraud in the other entity concern. This could be a very worring circumstances that the company has to face as there is high posibility of the auditor to commit fraud the second time in FCB. The lack of independence in the auditor could lead to inappropriate analysis of the financial statments in which the financial statements are not in a true and fair manner. The auditor is also neglecting the responsibility to rely on the previous auditor’s report in order to give a reasonable assurance. This will subsequently lead to a wrong decision making process by the management and finally producing a fraudelent material mistatement reports that mislead the users of this report such as stakeholders,investors and regulatory bodies( government and MASB). 2. By end of 2006, it was reported that FCB had been involved in accounting fraud that inflated its earnings for 2004 to 2006. In your opinion, should the auditors be held responsible for not detecting the misstatement earlier? (refer to ratio analysis) In my opinion, I strongly believe that the auditor’s should be held responsible for not detecting the material mistatement earlier. Owing the fact, that the responsibility of the appointed auditor’s is clearly stipulated in the auditing standards...
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...Survey on Students Punctuality at Class Please note the following instructions: 1. Indicate your choice by putting a cross (X) in the appropriate space. In a few instances you will be required to write a few words. Circle your appropriate answer. SECTION A Gender : Male Female What is your course of study? | SECTION B 1. How often do you attend your lectures late? A. On a daily basis B. A few times a week C. A couple of times every few weeks D. Very rarely and there’s usually a very good reason for it E. Never, I’ve never been late to class 2. Why do you think that some students are late for lectures? A. Because the roads are busy B. Because they’ve got plenty of other things to do so they arrive late to lectures C. Because they don’t manage their time properly D. Because they don’t value time E. Because they don’t care about the lecture 3. Do you think students take advantage of the university atmosphere that gives them more freedom to come and go when they please (i.e. more independence than in school, more likely to have a car) A. Yes, as soon as students get into university, they start becoming less punctual than they were at school B. Sometimes, but it’s not often. C. No, students are just as punctual in university just as they were in school 4. If you believe students do take advantage, why do you think that is? A. They cannot handle the responsibility of being given the freedom to choose what time to go to university ...
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...CASE STUDY : PIRATES OF THE SILVERLAND (PALM OIL PIRACY) Company’s Introduction Palm Haul Sdn. Bhd. (PHSB) was a family-owned small and medium sized enterprise in the crude palm oil (CPO) transportation business located in Taiping, Perak. Established in 2002, it had about 200 employees which most of them were tanker drivers. On the average, PHSB transported 3000 tonnes of CPO from palm oil mills to the respective refineries that purchased the oil from oil palm plantation companies and cooperative mills. The company actually facing alarming problem with the quality of consignments to the refineries where the CPO either delivered short or contaminated with water or sludge. Statement of the problems Oilene refineries as one of PHSB’s major customer seriously affected by the bad consignments as they had to shut down the plant to clean out the sludge almost on a weekly basis and this was affecting their delivery timelines as well as the quality of the oil they produced. On top of that, there had been many occasions where the consignment delivered did not tally with amounts listed on the delivery orders. Oilene management had to decide whether to renew contract with PHSB which is due in June or to hire other CPO transportation company such as Tiger Oils Transporter which reported a more reliable transporter. Recommendations for Oilene 1. Contaminated CPO To overcome the problem caused by contaminated consignments that shutdown the eventually shutdown the whole production...
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...Problem statement Quality and quantity of CPO delivered The root problem encountered in this case is the quality and quantity of the CPO delivered. Palm Haul Sdn Bhd’s (PHSB) major client Oilene Refineries Sdn Bhd is unhappy with their service mainly because the CPO delivered is either contaminated or short delivered. The CPO delivered to Oilene is contaminated with either sludge or water. This is due to unethical behavior of tanker drivers who involve in oil piracy by siphoning the CPO and selling them to syndicates. The CPO that is being siphoned is replaced with either water or sludge so the end user will not realize the theft. Further, this situation prevailed as the oil piracy during the time period of 2009 was robust with a record of approximately RM 325 million of CPO production lost annually. This hence triggered the tanker drivers to actively involved in this illegal activity. Apart from that, delivery of contaminated CPO has a negative impact on Oilene operation as they have to shut down the plant to clean the sludge almost every week and thus affects their delivery time and the quality of oil produce. Besides, the consignment from PHSB is causing more problem than other transporter which gives a competitive advantage over their rivals and might risk losing their contract to Oilene. Apart from that, the CPO delivered to Oilene does not match with the numbers in the delivery order; which means they are being short delivered. This has incurred a high cost in the...
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...ACC 4291 INTEGRATED CASE STUDY TERM CASE THE PIRATES OF THE SILVERLAND (PALM OIL PIRACY) NAME: RAJA SITI AFIQAH BINTI RAJA AZMI MATRIC NO: 0826174 LECTURER: PROF. SHAMSUL NAHAR SECTION: 2 DATE SUBMITTED: 26th NOVEMBER 2012 SUMMARY OF THE CASE Established in 2002 in Taiping, Perak, Palm Haul Sdn Bhd (PHSB) was a small and medium sized enterprise in the Crude Palm Oil (CPO) transportation business. PHSB was managed by En. Rossly, the Chief Executive Officer which is also the son-in-law of PHSB’s founder, Datuk S. Najeed. Like the other transport companies involved in the business, PHSB also faced problems with its drivers embroiling in oil piracy. Transport companies are naturally will held the responsibility for such thefts as they usually take place under their watch and these companies are bound to compensate the refineries for such losses. The culprits involved frequently tanker drivers, depot operators and transporters. One of the major customer of PHSB, Oilene Refineries (Oilene) complaint about the quality of the CPO delivered by PHSB and its later impact on Oilene’s failure to fulfil their customer orders. This is because of the practice of siphoning CPO and adulterating the consignment with water, used oil or sludge was so uncontrolled that a number of PHSB’s customers have threatened to change their custom to other more reliable transport companies. Besides that, profits for the first quarter of 2009 had drastically decrease compared to the same...
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