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Question 2: Who Should Be Held Responsible and Accountable?

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1. Directors
Directors of the company (Encik Zayed and Puan Hashimah) are held responsible and accountable for the problem occurs in Delima Enterprise Sdn Bhd. As a director, they should be familiar with their roles and duties. In addition, they are responsible for keeping proper accounting records which disclose with reasonable accuracy of financial position of the company and ensure that the financial statements are comply with the Companies Act 1965 and approved accounting standards.
Encik Zayed and Puan Hashimah tried to negotiate with the Auditor to not qualify the Financial Statements, so terminate the auditor’s appointment and appoint a new auditor that could issue an unqualified audited report, in order to obtain bank facilities. However, a director was prohibit to make improper use of their position to gain directly or indirectly, a benefit for themselves of for any person to cause detriment to the corporation under Section 132 (2) Companies Act 1965. Therefore, they should take initiatives to enhance their knowledge about the accounting standards, provision of the Companies Act 1965 and the operating performance of the company.
2. Finance Executive
Prior to Cik Amy’s appointment as Finance Executive, Puan Hashimah was responsible for all finance related matters. Therefore, Puan Hashimah was accountable for the improper keeping of records, lack of internal control and no procedures and financial system were in place. She should administer and monitor the financial system to maintain accurate and timely manner. For example, assist with preparation of the budget, prepare and reconcile bank statements. She also responsible to maintain the accounts payable and accounts receivable system to ensure that records of all moneys are complete and accurate (reconcile weekly deposits), administer employee files and records, payroll (verify timesheets and hours

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