Summary Flat Cargo Bhd
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
KULIYYAH OF ECONOMIC AND MANAGEMENT SCIENCE
INTEGRATED CASE STUDY ACC 4291 SEMESTER 1 2012/2013
CASE SUMMARY CASE 2: FLAT CARGO BERHAD: AN AUDITORS CONUNDRUM
Flat Cargo Berhad (FCB); a high reputable company, was one of the largest air freight companies in Malaysia. It was a listed company and registered as investment holding company. The main activity of the company was as an air cargo carrier, provide air freight transportation which includes aircraft charter and leasing. FCB also has several subsidiaries and the principal activities of its subsidiaries included air freight services and aircraft ground handling services. FCB started its operation in 1997 and on September 2001, the Company was listed in Bursa Malaysia. The largest share of the company owned by Miri Group amounted 55.2 million shares, which brought from the founders via an off market deal. In 2005, FCB was ranked 4th in term of capital gain and dividend to shareholders. The share price had roses from RM 1.89 in 2001 to RM 10.60 per share in 2005. With the wide range of customer worldwide, the Company can maintain it financial operation in five consecutive years. The protagonist or decision-maker in this case is Mr Chuah Mun Soong, auditor from Kencana & Associates which responsible to make a financial audit for Flat Cargo Berhad (FCB). In 2006, while prepare audit work for Flat Cargo Berhad, the auditors discover several suspicious result which lead to delay a decision in finalizing the auditor’s report. Mr Chuah had been informed by his subordinates that there had been inconsistencies in the accounts of Flat Cargo Berhad. Mr Chuah needs to gain more information from the company in order to inform his boss, Mr Keong Chee Wah about the situation occur in the client’s company. Mr Chuah was in dilemma because he wants to keep good the
KULIYYAH OF ECONOMIC AND MANAGEMENT SCIENCE
INTEGRATED CASE STUDY ACC 4291 SEMESTER 1 2012/2013
CASE SUMMARY CASE 2: FLAT CARGO BERHAD: AN AUDITORS CONUNDRUM
Flat Cargo Berhad (FCB); a high reputable company, was one of the largest air freight companies in Malaysia. It was a listed company and registered as investment holding company. The main activity of the company was as an air cargo carrier, provide air freight transportation which includes aircraft charter and leasing. FCB also has several subsidiaries and the principal activities of its subsidiaries included air freight services and aircraft ground handling services. FCB started its operation in 1997 and on September 2001, the Company was listed in Bursa Malaysia. The largest share of the company owned by Miri Group amounted 55.2 million shares, which brought from the founders via an off market deal. In 2005, FCB was ranked 4th in term of capital gain and dividend to shareholders. The share price had roses from RM 1.89 in 2001 to RM 10.60 per share in 2005. With the wide range of customer worldwide, the Company can maintain it financial operation in five consecutive years. The protagonist or decision-maker in this case is Mr Chuah Mun Soong, auditor from Kencana & Associates which responsible to make a financial audit for Flat Cargo Berhad (FCB). In 2006, while prepare audit work for Flat Cargo Berhad, the auditors discover several suspicious result which lead to delay a decision in finalizing the auditor’s report. Mr Chuah had been informed by his subordinates that there had been inconsistencies in the accounts of Flat Cargo Berhad. Mr Chuah needs to gain more information from the company in order to inform his boss, Mr Keong Chee Wah about the situation occur in the client’s company. Mr Chuah was in dilemma because he wants to keep good the