Flat Car Essay
Flat Cargo Berhad (FCB) was a listed company, focusing on air freight and aircraft ground handling services. It was established by Lim Loon Sim and Ali Bin Ahmad and successfully became one of the largest air cargo carriers in Malaysia, servicing not only the public but also the government linked companies.
FCB started its operation in year 1997 and being listed in Bursa Malaysia on 15 September 2001. It consists of five subsidiaries which are FC Spare Sdn Bhd, Cargo Management Sdn Bhd, FCB (SPV) Ltd, Cargo Air Services Sdn Bhd and Fc Air Ltd. Consequently, FCB fueled its expansion plans from year 2001 to 2004 by increasing the demand for express transportation services with intensive e-business activities.
However, …show more content…
The same time, auditor should always perform physical examination to ensure the existence of assets.
However, if this is intended, FCB had violate the accounting principal and Malaysian Code. Thus, actions should be taken on FCB to ensure such act is not repeated in the future.
As such act is usually manipulated by the upper level of management, an independent audit committee should be formed and all the result should be reported to the Board of Director for decision making to avoid manipulations and unfair judgments.
3.0 Point 2 4.4 The problem
Secondly, several debtors’ confirmation letters were returned because the addressees had changed their mailing addresses.
4.5 The root causes of problem
First, it may be merely an error in recording that FCB did not keep the proper mailing addresses and did not keep track with the latest contacts of the debtors.
However, if this is not a simple error, these debtors may be not exist and simply created by FCB to overstate its credit sales and asset values.
Reason is because FCB wanted to window-dress its financial statement so that a presentable and healthy image can be shown and performed to the shareholders and public.
4.6 The possible solutions
If this is a simple