...Table of Contents Introduction……………………………………………………………………………………..1-2 Issues………………………………………………………………………………………………2 The Discovery of Fraud……………………………………………………………………..…..3-4 Corporate Governance of FCB……………………………………………………………………5 Auditor Dilemma……………………………………………………………………….……….5-7 Using the Fraud Triangle Model to analyze the situation in Flat Cargo Berhad……………..…8-9 Who is responsible in the fraud of Flat Cargo Berhad ……………………………………..…10-11 Prevention Measures for Fraud ……………………………………………………………….12-13 Detection Measures for Fraud…………………………………………………………...……14-15 Recommendation…………………………………………………………………….……….16-17 Conclusion…………………………………………………………………………...……….18-19 References………………………………………………………………………………………..19 Introduction The case is related to one company known as Flat Cargo Berhad (FCB), FCB was one of the largest air freight companies in Malaysia which servicing several government linked companies including Freight Malaysia Berhad. FCB is a listed company and was registered as an investment holding company with several subsidiaries. Among its subsidiaries are FC Spare Sdn Bhd, Cargo Management Sdn Bhd, FCB (SPV) Ltd, Cargo Air Services Sdn Bhd and FC Air Ltd. FCB started its operations in 1997 with two aircrafts: a Boeing 737-200F and a Cessna Grand Caravan. FCB’s major shareholder in 1997 had been Bangor Berhad, which was part of a diversified international family owned conglomerate, the Miri Group. On September 2001 the company was listed in Bursa Malaysia. The...
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...Overview This case is about the dilemma of an auditor, Mr. Chuah Mun Soong who has found suspicious issues that may lead to fraud upon auditing Flat Cargo Berhad (FCB). He was supposed to report to the audit committee of FCB regarding the audit outcomes. However, Mr. Chuah needed to inform the managing partner of his firm with regards to the findings on the inconsistencies of accounts in FCB. Company Background FCB Cargo Berhad (FCB) was established in 1997 operating primarily as an air cargo carrier. FCB providing freight services to the intra-Asia air market. Its services were not only limited to air freight transportation but also included aircraft charter and leasing. FCB was chaired by Dato’ Ibrahim Samad, a former Director General for the Ministry of Transportation and former President of Malaysia Chamber of Commerce. He was the company’s independent Non-Executive Director. The senior management team consist of Mr. Lim Loon Sim as the Chief Executive Officer, Mr. Ali Bin Ahmad as the Executive Director and Mr. Kim Boon Chok as the Chief Financial Officer. Mr. Ali Bin Ahmad also held the position of FCB’s Audit Committee Chairman. In terms of financial growth, FCB demonstrate a tremendous revenue growth from year 2001 to 2005. It is also recorded a 1.5 times increase in revenue amounting to RM550 million in 2005 compared to 2004 and was projected to increase further by 54% to RM809 million in the following year due to its major capacity expansion in 2005. The increase...
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...ACT 4197 INTEGRATED CASE STUDY FLAT CARGO BERHAD: AN AUDITORS CONUNDRUM Submit to Prof. Madya Dr Nor Aziah binti Abu Kasim Submit by Ummu Syafiqah binti Yaakob 156756 Lee Liu Kim 157279 Nurhafiza binti Abdul Razak 157458 Tay Yee Joe 159264 Semester 2, 2013/2014 * Table of Contents 1.0 Introduction 1 2.0 Case Overview 2 3.0 Issues Identified in FCB 4 3.1 Material Misstatements in Financial Statements of FCB 4 3.2 Lack of Internal Control 7 3.3 Weaknesses on the Corporate Governance 9 3.4 Ethical Issues of the Top Management and Auditors 11 4.0 Recommended solutions 15 5.0 Conclusion 23 6.0 Appendices 24 Introduction Flat Cargo Berhad (FCB) is an air cargo company, which was listed in Bursa Malaysia on 15th September 2001. It was known to be one of the largest airfreight companies in Malaysia. The company was registered as an investment holding company with several subsidiaries, for which their principal activities ranging from air freight services to ground handling services. FCB was the only dedicated Intra-Asian overnight express cargo operator based in Malaysia and had exclusive excess to an international cargo complex at Sultan Abdul Aziz Shah Airport in Subang. Furthermore, as it has successfully secured the landing rights in Asia Pacific regions, FCB was in ideal niche position to serve the international integrators, freight forwarders, and major airlines within Asian region. However, as highlighted...
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...Kanan A. Jafarov Jlt, Cluster E, Global Lake View Tower, Flat No. 1307, Dubai 340581, UAE Mobile: | +97 1506 565 039 | Email: | kenan.jafarov@gmail.com | Professional Profile A dedicated and experienced business development professional with over 10 years’ management expertise within the Oil, Supply, Trade and Logistics industries. An enthusiastic and highly self-motivated individual who remains flexible to the changing demands of business environments, is able to develop and implement new initiatives with a particular talent for implementing projects to open and manage strategic supply routes within the Caspian and Black seas. Has experience with pipeline solutions, ensuring effective delivery of all contractual terms for multinational customers. Is able to think both laterally and strategically in order to produce innovative ideas and feasible plans for cost-effective solutions. Has excellent abilities in driving and motivating teams in order to deliver internal efficiencies, identifying opportunities for personnel development as required. Has a hands-on management style and effective communication skills, working with people at all levels to deliver results. Objective Now looking for a new and challenging position which will fully utilise existing skills and experiences, while enabling further career development. Career Summary 2010 – Present | Commercial / Business Development Manager, Milio International Ltd, Dubai, UAE. | * Responsible for the management...
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...Sarah Allmond, Kamal Assaf, Doug Bice, and Renee Burkart Dr. Mike Marzano Logistics Management February 21, 2013 Infrastructure in India India’s port, road, and rail networks need massive capital investment. The ports in India are operating beyond their intended capacity in spite of the construction of a number of new sites. Moreover, there are bottlenecks when clearing goods from customs: the time required to clear goods in India is twice that of South Korea and Thailand and three times that of the average for members of the Organisation for Economic Co-operation and Development (OECD). Since most ports are overstretched and the time taken to obtain customs clearance is quite long, companies in India hold large inventories. Poor road and rail networks exacerbate these problems. India is presently ranked 17th in the maritime nations of the world. About 95% by volume and 70% by value of the contry’s trade is carried on through meritime transport. The country’s coastline comprises 12 major ports (Chennai, Ennore, Haldia, Pradip, Kandla, Kochi, Kolkata, Marmagao, Mumbai, New Manglaore, Tuticorin and Visakhapatnam) and 187 minor and intermediate ports. FDI up to 100% under the automatic route is permitted in the construction and maintenance of prots and harbours, maritime transport services and internal waterways transport services. The department of Shipping is also planning to enact a Shipping Trade Practices Act, which is presently in the daraft stage. The government...
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...8.5 - Term Paper Assignment Submission Historic Air Disasters Richard DeWayne Gwinn Embry-Riddle Aeronautical University Abstract My paper will cover some of the most horrific air disasters in aviation history. I will be using information from the National Transportation Safety Board (NTSB), Federal Aviation Administration (FAA) and news media to draw my conclusion of the events. I will then explain how these air disasters changed aviation, what rules were put in place, what changes to aircraft design were made or what training was needed to prevent a repeat of the incident. I believe this topic is important to the history of aviation in America because we learn from our mistakes and with every aircraft incident new regulations were developed to increase the safety of flight. HISTORIC AIR DISASTERS In this paper, we will be revisiting three airline crashes that changed aviation. 1956 Grand Canyon mid-air collision, 1977 Tenerife Airport Disaster, and 1992 El Al Flight 1862. I believe that these three flights had a significant impact on aviation in terms of safety, design and procedures that are in place today. 1956 Grand Canyon mid-air collision The midair collision between these two airliners led to the birth of the modern air traffic control system. (Fss.aero, 2015) On June 30, 1956 a United Airlines Douglas DC-7 (United Airlines Flight UA 718) struck a Trans World Airlines Lockheed L-1049 Super Constellation (Trans World Airlines Flight TWA 2) over the Grand Canyon...
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...1.0 Introduction Flat Cargo Berhad (FCB) is an air freight services and ground handling company. Its company’s operations cover Asian Pacific region including China, Japan, Thailand, Singapore and many more. Their main customers are United Parcel Services (UPS), City Link and Nationwide Express. The main shareholder for FCB is Bangor Sdn Bhd which is part of Miri Group represented by 26.5% of the company interest. Kencana & Associates is the auditor company that audit FCB’s account. The leader of the auditors is Mr Chuah Mun Soong. The auditing team found some irregularities in accounting record of FCB. There are two parties which Mr Chuah has to report, they are his superior, Mr Keong Chee Wah and FCB Audit Committee. However, Mr Chuah concerns that FCB might have a fraud due to the past experience such as Media Com and Blue Vital. 2.0 The Root Cause of the Problems As per our discussion about this case study, we managed to find out several root cause of the problems. 2.1 Rising of Oil Price The first root cause is the rising in oil price in the year 2005. In the year 2005, there was an international crisis occurred with the exceptional increase in oil prices. The hike started in mid-2004 at US$40 per barrel but eventually, the increase continued to stages of US$50, US$60, US$65, US$70 and US$80 per barrel. The price hike in fuel surcharges drastically affected the freight forwarding industry significantly because of its reliance on fuel for operations. This...
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...Analysis ………………………………………………………06 5.1 Weakness……………………………………………………………………...06 5.2 Threats…………………………………………………………………………06 6.0 PESTLE Analysis…………………………………………………………….07 Table 3: SINGAPORE AIRLINES PESTLE Analysis …………………………………….......................07 7.0 Recommendation…………………………………………………………….08 8.0 Conclusion…………………………………………………………………….09 9.0 References…………………………………………………………………….10 1.0 Introduction Aviation industry is one of the largest, growing and most competitive industries in the world. Its main duty is to provide air transportation services for its customers. Manufacturing aircrafts, handling airlines and ground support are part of the industry. Global market businesses such as medicine, tourism, transport are connected to the airline industry. Every year, more than half of the world’s tourist travel by air as it is fast, safe and a comfortable way to travel long and short distances. In 2013, the Airports Council International (ACI) annual published report stated that 6.3 billion passengers travelled world wide and 96 million metric ton cargo was transported safely (ACI, 2013). Aviation industry creates jobs and it is spread over many areas, such as airport terminals, aircraft maintenance, catering, cargo and ground support. Currently 58 million people work in this industry. Singapore International Airline (SIA) annual report 2013 had announced that about 741 flights...
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...Recommendation In order to meet the stated objectives of four stops per hour and 5,000 deliveries per day, our official recommendation is that an investment in management systems will be absolutely necessary to achieve those goals. They simply cannot continue to achieve their growth targets with the incomplete system they have in place presently. CEO Claud Germain touts the company focus as one of logistical execution. An absolute requisite for excellence in logistics are analytics and support systems. Furthermore, Gateway as an e-tailer will need to enhance their purchasing systems and include mobile purchasing applications and software that further bolster the recommended technological improvements. Square is a good company to consider with iPad, iPhone, and android support built in with the hardware that attaches to those devices seamlessly. Dominque’s first option of extending driver shifts comes with a massive increase in potential problems. Having drivers on the road for extended periods of time provides the propensity for increases in accidents, mistakes in delivery and overall compounds the likelihood of human error to appear. The bottom line is tired and overworked drivers equal unsafe and unhappy drivers. This move would also require significant investment in staff support to ensure service levels would remain adequate. The second option was to bolster the RIMMS system to enhance the analytical capabilities to include profitability measures as well as improved...
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...| |2014 | | | | | |Submitted to: | | |TAKRIMA SAYEDA | | |Lecturer | | | | | |University Of Dhaka | | | | | | | | |Course: THM 325 | |[BANGLADESH RAILWAYS – THE LIFE LINE OF THE COUNTRY] | | | | | |Prepared By: GROUP – ‘Knockout Knights’ | | | Group name : `Knockout Knights` Course code : THM - 325 Member’ |Name ...
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...verification. Before making any investment decision, please consult a VM Wealth Management Advisor. STOCK STOCK DATA LAST TRADED PRICE: $18.05 4 WEEK PRICE MOVEMENT NCBJ RECOMMENDATION & RATIONALE RECOMMENDATION: BUY RATIONALE: The Company reported relatively flat earnings for the 3 months ended Dec 31. However, our outlook for NCBJ over the medium- to long-term is positive on the basis of an improving economy and ongoing structural changes at the Company, which could lower operating costs. NCBJ National Commercial Bank Jamaica YTD CHANGE: 0.28% P/E RATIO: 5.16x 20 19 18 17 P/B RATIO: 0.61x LAST TRADED PRICE: J$8.60 YTD CHANGE: 2.14% DCOVE Dolphin Cove Ltd P/E RATIO: 13.29x DCOVE 9 8.5 8 RECOMMENDATION: BUY RATIONALE: The majority of the Company's income is in US currency, which provides a good currency hedge for investors. The improving global economy should also provide tailwinds. The Company’s continuing expansion plans should continue to result in significant revenue and profit growth. The Company plans to expand into Turks and Caicos by October 2014. P/B RATIO: 2.51x LAST TRADED PRICE: J$58.05 YTD CHANGE: 5.55% GK GraceKennedy P/E RATIO: 6.02x P/B RATIO: 0.94x LAST TRADED PRICE: J$4.94 YTD CHANGE: 9.78% JBG Jamaica Broilers Group P/E RATIO: 5.87x GK RECOMMENDATION: BUY RATIONALE: The Company has expressed plans to continue its expansion of revenue...
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...Company background The story of Malaysia Airlines started in the golden age of commercial air travel. A joint initiative of the Ocean Steamship Company of Liverpool, the Straits Steamship of Singapore and Imperial Airways led to a proposal to the Colonial Straits Settlement government to run an air service between Penang and Singapore. The result was the incorporation of Malayan Airways Limited (MAL) on 12 October 1937. On 2 April 1947, MAL took to the skies with its first commercial flight as the national airline. Fuelled by a young and dynamic team of visionaries, the domestic carrier turned into an international airline in less than a decade. With the formation of Malaysia in 1963, the airline changed its name to Malaysian Airlines Limited. Soon after, Borneo Airways was incorporated into MAL. Within 20 years, MAL grew from a single aircraft operator into a company with 2,400 employees and a fleet operator using the then latest Comet IV jet aircraft, six F27s, eight DCs and two Pioneers. In 1965, with the separation of Singapore from Malaysia, MAL became a bi-national airline and was renamed Malaysia-Singapore Airlines (MSA). A new logo was introduced and the airline grew exponentially with new services to Perth, Taipei, Rome and London. However, in 1972, the partners went separate ways. Malaysia introduced Malaysian Airline Limited, which was subsequently renamed Malaysian Airline System and took to the skies on 1 October 1972. It was later branded Malaysia Airlines...
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...CASE STUDY 1: FLAT CARGO BERHAD: AN AUDITOR’S CONUNDRUM A. INTRODUCTION OF THE CASE There are many puzzling issues that could occur in the process of auditing a listed company. These issues could be created either intentionally or the other way around. Therefore, an objective analysis is needed to clear the puzzles especially if the auditors wish to curb fraud cases among their clients. In the case of Flat Cargo Berhad (FCB), the auditor has found some inconsistencies in the accounts of FCB. Thus, a case study is conducted to bring the hidden mystery to the light as possible. Based on the study, a report was written to summarise the situation. The aspects that were given highlights in the report included the issues contributing to those inconsistencies and the possible reasons that have led to this situation. Based on the identified problematic issues, several possible solutions have been suggested to overcome the said problems. Finally, an objective conclusion is made to make a stand about the given case study. This is important as it could facilitate the auditor to make an appropriate decision for the said case. B. COMPANY BACKGROUND Flat Cargo Berhad (FCB) was established in 1997 as the mean of providing air freight services to the Intra-Asia air market. FCB’s services were not only limited to air freight and aircraft ground handling but also included aircraft charter and leasing. FCB was chaired by Dato’ Ibrahim Samad...
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...1. Introduction Good Supply Chain Management practices and properly designed Supply Chain Strategy plays a very crucial role in the success of any organization. Supply Chain Managements concept is formed around two nucleus ideas. According to the first idea, nearly all products that make to an end user signify the collective effort of several organizations. Cumulatively, these organizations are referred to as the supply chain. Based on second idea, though supply chains have been in existence for quite a long time now, the majority of the organizations closely monitored to what was taking place in the supply chain within their four walls. A small number of companies understood and managed the entire chain of activities in their supply chain that finally delivered goods to the ending stage of supply chain that is the customer. This resulted in disorganized and repeatedly ineffective supply chains (R. Handfield, 2011). Supply chain management now can be defined as an active management of supply chain activities to maximize consumer value and attain a sustainable competitive advantage. It characterizes a cognizant endeavor by the supply chain companies to build up and run supply chains in the most effective & efficient ways possible. Like any other organization, supply chain also plays a very important role in the airline industry. Currently in the airline industry, various links in the supply chain are in tension leading to minimized profits, heavy losses and in some cases...
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...The Battle for Value, 2004 FedEx Corp. vs. UPS, Inc. FedEx was form in economic class by Fred Smith in Yale University. In 1971, Smith invested 4 million dollars of his own capital and raises an addition of 91 million dollars to launch the firm. His key innovation was a hub and spoke distribution pattern. By 2003, FedEx owned 50,000 ground vehicles, 625 aircraft, 216500 employees and shipped more than 5.4 million packages daily. The company had $15.4 billion in assets, $830 million net income, and generated $22.5 billion revenues. UPS was founded in 1907 by Jim Casey. He started a bicycle messenger called American Messenger Company and changed its name to United Parcel Service of America in 1929. The success key of UPS was efficiency. UPS was the largest package-delivery company in the world. Both ground and air parcel delivery was the primary business. Gradually, the company offered more specialized transportation and logistics service. By 2003, UPS owned 88,000 ground trucks, 583 planes and 360,000 employees. | FedEx | UPS | Ground Vehicles | 50,000 | 88,000 | Aircraft | 625 | 583 | Employees | 216,000 | 360,000 | Packages shipped/ day | 5.4 million | 13 million | Assets | $15.4 billion | $28.9 billion | Net Income | $830 million | $2.9 billion | Revenue | $22.5 billion | $33.4 billion | Problem: Market observers of the air-package delivery industry considered how FedEx and UPS would develop. Was the performance of the companies in recent years predictive...
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