Premium Essay

Delima Enterprise Sdn Bhd

In: Business and Management

Submitted By fatinrashid
Words 3620
Pages 15
Introduction

Accounting, auditing are taxation are the main disciplines of studies in business world. Many company are applied the accounting standard, audit assurance and tax compliance to make sure their business running smoothly and to reduce the problem possibilities. Some of the company are in problem to maintaining the financial report due to fraudulent, misstatement and not accordance with Generally Accepted Accounting Procedure (GAAP).

Delima Enterprise Sdn Bhd is one of the companies that face the problem in maintaining their financial statement. Delima Enterprise Sdn Bhd is headed by Encik Zayed and Puan Hashimah who is the director of the company. The company was appointed Aziz & Co as an auditor of the company to perform statutory audit for the period 2003 to 2006. During audit field, the auditor was decided to qualify the audited report due to several unsolved issue. However Encik Zayed and Puan Hashimah try to negotiate with auditor not to qualify the audit report.

Time was the essence and the Audited Financial Statement had to be issued to the bank at least by September 2006, as Encik Zayed had applied for banking facilities to implement several contracts the company had managed to secure. Encik Zayed had assigned the tasks to Cik Amy, the Finance Executive who was newly appointed by the company to analyse and provide the Auditors with the necessary clarification and documentation.

Question 1:

Were there any abuses of power by the management and breach of fiduciary on the part of the director?

Answer:

What is fiduciary duty?

A fiduciary duty of directors is to act in good faith, with reasonable care, and in the best interest of the company and its shareholders. There are three types of fiduciary duties which consist of duty of obedience, duty of

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