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Kia Motor Fraud

In: Business and Management

Submitted By seansayshi
Words 4866
Pages 20
Executive Summary

This report would provide a thorough application of Accounting Information System concepts, accompanied with thorough findings on Kia Motors, South Korea’s second largest automobile manufacturer. The findings were based on mainly secondary data through research obtained from web-based sources such as online articles, analyst reports, financial reports, academic journals and academic databases.

The report aims to present the detailed findings of Kia Motors and the fraud that occurred in 2002 through a Balanced Scorecard (“BSC”), Document Flowchart Diagram (“DFD”), as well as the facts and role of the accountant, Cecile Campbell in the fraud committed on Kia Motors in 2002. The report consists of mainly three components.

Firstly, a BSC that was developed using Kia Motors’ mission, vision and strategies that were identified and inferred from online research and Kia Motors’ financial statements and sustainability reports. Key information that was included in the BSC were Kia Motors’ performance and risk-based goals, initiatives, measures and their performance target.

Secondly, a DFD was created to reflect one of Kia Motors’ key operations. The diagram that was drawn up was based on Kia Motors’ expenditure cycle. It showcased a detailed description of the relevant source documents involved, as well as their flow throughout the business process. The report further highlighted the key internal control strengths, the risk of material misstatements they serve to prevent as well as how the internal controls can be tested. The other thing that the report highlights is the control deficiencies within the business process and recommendations on internal controls that should be in placed to mitigate these deficiencies.

Lastly, focus was placed on the Kia Motor’s accountant, Cecile Campbell and the scheme she used to perpetrate a fraud on Kia...

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