BKAL 3063 INTEGRATED CASE STUDY GROUP E (6) (CASE REPORT ANALYSIS OF A LETTER FROM PRISON)
GROUP MEMBERS:
LECTURER’S NAME: PN ROHANA @ NORLIZA BT YUSSUF
SUBMISSION DATE: 22 SEPTEMBER 2015 Execu!"e Su##$%&: Computer Associates has a “sales-driven-culture” which is “the more you sell, the more commissions you will get”. Richard was the head of Sale Department and his responsile to !eep an eye on things li!e when the contra contract ct are are sig signed ned and when when those those paymen payments ts are are assur assured. ed. The highlighted p!"le# was the action account department has ta!en was not following the the i$$% i$$%ee &"!% &"!%tt ethi ethi'$ '$(( $o "AA AA# # and and the $o the word word of Richard himself, himself, this way of
accounting was not a really ig deal li!e the %orldCom an!rupt or &nron an!rupt. an!rupt. 'e is also very con(dent con(dent to continue continue developing developing his career career in the
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future after he got out of *ail. 'owever, t! !)e'!#e the p!"le#$ Computer Associates must %$e the $%it&"le &''!%*ti*g p!li'ie$+ e$t&"li$h '!p!&te g!)e*&*'e $t%'t%e &*d e#ph&$i,e i*te*&l '!*t!l !* thei #&*&ge#e*t &*d -i*&*'i&l ep!t( '0 INTRODUCTION
$he "enerally Accepted Accounting #rinciples +"AA# was reuired to e met in order for revenue associated with a software license agreement to e recognied. Computer Associates accountant must follow the "AA# as the action that had een ta!en was not following this accounting principle. /esides that, ethics also very important in Computer Associates as it concern an individual0s moral *udgments aout right and wrong. Decisions ta!en within an organiation may e made y individuals or groups, ut whoever ma!es them will e in1uenced y the culture of the company. $herefore, Ri'h&d$+ I& Z&& &*d !the $i. e.e'%ti)e #%$t "e #!e ethi'&l thei /!$ &$ it gi)e i#p&'t t! A( Be$ide$ th&t+ ethi'&l "eh&)i! &l$! '&* pe)e*t the '!#p&* "e &* %*ethi'&l i* gi)i*g i*'e*ti)e /hi'h i$ '!##i$$i!* th&t /&$ "&$e !* $&le( I* !de t! !)e'!#e the i$$%e$ !- the p!"le# -&'i*g " the Computer Associates /e *eed t! &*&l$i$ the p!"le# &*d pep&ed /ith
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0 ANALYSIS OF PROBLEM
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Ri'h&d$ i$ gl!"&l $&le i* !#p%te A$$!'i&te$ 3A4( he $t&t /!i*g i* A Sd*e !--i'e+ /ithi* 2 e&$ he "e'!#e #&*&ge+ the he get p!#!ti!* t! %* the Ne/ Ze&l&*d !--i'e 2
&*d A%$t&li& !--i'e &-te t/! e&$( I* 15+ he "e'!#e$ $e*i! )i'e pe$ide*t !- P&'i-i' egi!*( I* Apil 1+ he /&$ p!#!ted t! le&d !* !- !#p%te A$$!'i&te N!th A#ei'&*( I* Apil 2000+ he p!#!ted t! gl!"&l he&d !- $&le( I* 6%l 2000+ A &**!%*'e$ th&t it -i*&*'i&l e$%lt i$ l&$$ th&t 7'%e*t 8&ll Steet e$ti#&te9( The p!"le# i$ %*e.pe'ted $h!t-&ll$ i* e)e*%e( The i*)e$tig&ti!* $t&t$ " :ep&t#e*t !- 6%$ti'e 3:O64 &*d Se'%it &*d E.'h&*ge !##i$$i!* 3SE4( 8he* &tt!*e &*d -!e*$i' &''!%*ti*g 'he'$ the e#pl!ee '!#p%te$+ the -!%*d th&t t/e*t;thee "!.e$ !- d!'%#e*t /ee !igi*&ll #i$$i*g( The -!%*d th&t FO+ I& Z& h&)e "&'d&ti*g $!#e !- the '!*t&'t( :ie't! &*d the 'h&i#&* !- the &%dit '!##ittee h&)e de'ided th&t -&%d h&$ !''%ed "e'&%$e !- A e#pl!ee h&d "&'d&ted $!#e '!*t&'t( <%#& 3A Pe$ide*t4+ Ri'h&d$ &*d !the e.e'%ti)e de*ied &* i*)!l)e#e*t i* the "&'d&ti*g+ "%t -ede&l p!$e'%t!$ "elie)e th&t !the $e*i! !--i'e$ /ee &l$! '%lp&"le( The &tt!*e$ i*'e&$e thei e--!t th&t -!'%$ !* <%#& &*d !the $e*i! #&*&ge#e*t( The* the di$'!)e th&t & *%#"e !- e;#&il e.'h&*ge th&t el&ted t! <%#& &*d the* Ri'h&d$( Ri'h&d$ e$ig* -!# A i* 2= Apil 200>( SE -iled & -!#&l '!#pl&i*t &g&i*$t Ri'h&d$ i* the Septe#"e( The '!#pl&i*t i$ &"!%t he&d !- $&le &t A h&)e -&'ilit&te the e.te*$i!* !- the -i$'&l ?%&te+ &ll!/ $%"!di*&te t! !"t&i* '!*t&'t$ &-te the ?%&te e*d+ &*d -&iled t! &let the -i*&*'e &*d &''!%*ti*g dep&t#e*t &"!%t '!*t&'t$ th&t #& h&)e "ee* "&'d&ted( It &l$! e.pl&i* th&t h!/ the #i$ep!ti*g &--e'ted e)e*%e &*d e&*i*g$ d%i*g the e& 2000 &*d 2001 -i$'&l e&( C$ue +, -%+./e#
I* the '&$e thee &e i$$%e$ th&t '!*ti"%te t! the p!"le#$ !''%ed i* A( the -i$t i$$%e i$ &''!%*ti*g i$$%e /hi'h i$ AAP $t&*d&d$ th&t &ll!/ $!-t/&e -i# t! e'!g*i,e the e*tie 3
)&l%e !- li'e*$i*g '!*t&'t &$ e)e*%e i* the ?%&te th&t the '!*t&'t /&$ &--i#ed( It &l$! '!*ti"%te$ t! the '%lt%e !- A t! #&*ip%l&te the e)e*%e( The 'h&*ge$ i* e)e*%e gi)e &* i#p&'t t! e&*i*g( All the 'e&ti)e &''!%*ti*g th&t %$e " A &l$! gi)e i#p&'t t! &$$et &*d li&"ilitie$( 8he* the e'!d l!/ e)e*%e it$ #e&*$ it /ill %*de)&l%ed &$$et &*d !)e)&l%ed li&"ilitie$( The $e'!*d i$$%e i$ &"!%t ethi'$+ it i$ "e'&%$e Ri'h&d$+ I& Z&& *d !the = e.e'%ti)e d!i*g %*ethi'&l /! th&t gi)e i#p&'t t! A( The 'e&ti)e &''!%*ti*g ! g& &e& &''!%*ti*g i$ leg&l "%t %*ethi'&l "e'&%$e the t t! $h!/ & g!!d -i*&*'i&l $t&te#e*t 3de$$i*g /i*d!/4 t! e.te*&l p&t( Thi$ %*ethi'&l "eh&)i! i$ '&%$e " the i*'e*ti)e /hi'h i$ '!##i$$i!* th&t /&$ "&$e !* $&le( The t t! $h!/ high $&le t! get high '!##i$$i!*( !##i$$i!* gi)e* i$ t! #!ti)&te the e#pl!ee$ t! i*'e&$e $&le -! '!#p&* "%t h&$ "ee* &"%$e "& $!#e p&tie$(
30 ALTERNATI1E SOLUTIONS
I* the '!#p&*+ the #&*&ge#e*t $h!%ld t&e the e$p!*$i"ilit -! the &''!%*ti*g ep!t$ /hi'h i$ i* &''!d&*'e /ith IFRS( The #&*&ge#e*t $h!%ld #&e $%e the -i*&*'i&l $t&te#e*t$ &e -&il pe$e*t the -i*&*'i&l p!$iti!* &*d pe-!#&*'e$ the '!#p&*( I* &dditi!*+ #&*&ge#e*t #%$t g%&&*tee the -i*&*'i&l $t&te#e*t /ith the &''!%*ti*g $t&*d&d$ &*d pe)e*t the# t! "ei*g -&%d( E)e* th!%gh &''!%*t&*t$ pep&e the -i*&*'i&l p!$iti!* ill%$t&te &*d /hethe #&e 'h&*ge$ i* the -i*&*'i&l $t&te#e*t( I* the '!*'l%$i!*+ the #&*&ge#e*t i$ e$p!*$i"le -! the '!*te*t !- the -i*&l &''!%*ti*g ep!t$( I* !#p%te A$$!'i&te$ 3A4 '&$e+ &$ & $e*i! #&*&ge+ Ri'h&d did *!t t&e hi$ e$p!*$i"ilitie$ t! '!e't the #&*ip%l&ti!* !- the e)e*%e$ i* the -i*&*'i&l $t&te#e*t$ &*d 4
&pplied t! the $&le$;di)e* '%lt%e i* A( he p&id #!e &tte*ti!* t! the $&le$ &*d the e)e*%e$ i* the '!#p&*( Thee-!e+ /ith the $%pp!t !- the #&*&ge#e*t i*'l%ded Ri'h&d$+ the i#p!pe e)e*%e e'!g*iti!* #eth!d /&$ i#ple#e*ted i* the '!#p&*( Thee &e $e)e&l e'!##e*d&ti!*$ th&t A '&* "e i#ple#e*t t! &)!id the$e -&%d i* thei '!#p&*( Fi$t+ A '&* 'h&*ge the &''!%*ti*g p!li'ie$( The '&* %$e the leg&l /& t! #&*ip%l&te the e)e*%e$ $%'h &$ A '&* 'h&*ge the '&l'%l&ti!* &*d 'h&*ge the &ll!'&ti!* !- the e$e&'h &*d de)el!p#e*t e.pe*$e$ /ithi* the e*e&ll A''epted A''!%*ti*g Pi*'iple$ t! ed%'e the e.pe*$e$ $! th&t the p!-it$ '&* "e highe( Ne.t+ t! !)e'!#e the -&%d th&t h&ppe* i* the '!#p&*+ A '&* 'h&*ge the 'l!$i*g d&te p!li' !- the $&le$ t&get( A$ it i$ #e*ti!* i* the '&$e+ the '%$t!#e$ %$e del&i*g t&'ti'$ t! *eg!ti&te /ith A t! get the "ette de&l( L&ge p!p!ti!*$ !- the '!*t&'t &e "!!ed i* the -i*&l /ee !- the ?%&te th&t #&e$ A h&d t! e'!g*i,e the$e '!*t&'t i* the '%e*t pei!d &*d it #&e$ A t! "&'d&te the '!*t&'t$( A '&* $h!te* the pei!d -! the $&le$ t&get+ -! e.&#ple+ it '&* "e 'l!$ed #!*thl $! th&t the '!*t&'t$ '&* "e e'!g*i,ed i* ti#e( Ad!pti*g e&*i*g #&*&ge#e*t $t&tegie$ i* !de t! #&*ip%l&te the -i*&*'i&l p!$iti!* !- & '!#p&* i$ & /ide$pe&d p&'ti'e+ /he* %$ed &pp!pi&tel( Neglige*'e t! %$e '!p!&te g!)e*&*'e $t%'t%e$ t! &)!id $it%&ti!*$+ $%'h &$ the &lleg&ti!*$ &g&i*$t A+ h&$ th%$ pl&'ed the '!#p&* i* & leg&ll )%l*e&"le p!$iti!*(
!p!&te g!)e*&*'e i$ the $$te# " /hi'h
'!#p&*ie$ &e die'ted &*d '!*t!lled( It i$ the e$p!*$i"ilit !- the "!&d #e#"e$ t! 'e&te thi$ #!*it!i*g $$te#+ /hi'h !)e)ie/$ de'i$i!*;#&i*g &*d '!*t!l the &'ti)itie$ !- the '!#p&*( 8ith!%t the$e p!'ed%e$ i* pl&'e t! g!)e* the "eh&)i!$ !- the '!#p&*( The !le !- '!p!&te g!)e*&*'e #e'h&*i$#$ #& h&)e &lle)i&ted e&*i*g$ #&*&ge#e*t &t A(
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Be$ide$ th&t+ Ri'h&d #e*ti!*$ i* the lette he /!te th&t /e h&)e 'e&ted & pe-!#&*'e di)e* '%lt%e /ith!%t the e*!%gh '!*t!l -&#e/! -! pe!ple t! !pe&te /ithi* thi$ $h!/$ th&t thee /&$ *! e&l $t%'t%e &*d p!pe i*te*&l &''!%*ti*g '!*t!l &$ -& &$ &* i*di'&t! -! the g!/th( Th&t i$ /& A p%$hed t!! #%'h t! e&'h the g!&l !- e$ti#&ted e&*i*g$ eg&dle$$ !- '!*$idei*g &* %le ! eg%l&ti!*+ /hi'h '&%$e A t! t&gi' e$%lt$ el&ti*g -!# p!! de'i$i!* #&i*g &*d l&' !- !g&*i,&ti!*&l $t%'t%e &*d '!*t!l( The A $h!%ld e#ph&$i,e i*te*&l '!*t!l !* thei #&*&ge#e*t &*d -i*&*'i&l ep!t &t e&'h ?%&te !- the e)e*%e &*d e&*i*g$ it e.pe'ted t! e&* d%i*g th&t ?%&te( O*e !- the i*te*&l &''!%*ti*g '!*t!l th&t '&* "e %$ed " A i$ '!*t!l &'ti)itie$( !*t!l &'ti)itie$ &e the p!li'ie$ &*d p!'ed%e$ th&t &$$i$t i* e*$%i*g th&t #&*&ge#e*t die'ti)e &e $%''e$$-%ll i#ple#e*ted( The p!)ide the #e&*$ t! &dde$$ the )&i!%$ i$$ th&t #& hi*de the &'hie)e#e*t !- the !g&*i,&ti!*9$ !"Ce'ti)e( I* e$$e*'e+ '!*t!l &'ti)itie$ &e e$t&"li$hed i* e$p!*$e t! pe'ei)ed i$$( Ri'h&d $h!%ld p!)ide e&'h ?%&te !- the e)e*%e ep!t t! "e e)ie/ " B!&d !- A &*d &l$! i*'l%de #!*thl e)ie/ !- -i*&*'i&l $t&te#e*t$ " the te&$%e &*d B!&d !- :ie't!$ &*d '!##%*it #&*&ge(
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20 RECOMMENDED SOLUTIONS
The "e$t e'!##e*ded &#!*g the <e*&ti)e $!l%ti!* -! !#p%te A$$!'i&te$ 3A4 '&$e /hi'h i$ the -i*&*'i&l -&%d &lleg&ti!*$ &g&i*$t '!#p&* i$ " u!* 4e u!$./e $cc+u*!* -+/!c!e5 e$./!4 c+%-+%$e +"e%*$*ce %ucu%e $* e#-4$!7e !*e%*$/ c+*%+/ +* 4e!% #$*$e#e* $* ,!*$*c!$/ %e-+%
The $ig*i-i'&*t '!#p!*e*t i* the &**%&l ep!t !- & -i# %$%&ll &"!%t thei &''!%*ti*g p!li'ie$ &*d the$e &''!%*ti*g p!li'ie$ -%*'ti!*i*g &$ &*i#p!t&*t p&t i* the pep&&ti!* !- -i*&*'i&l $t&te#e*t$( A 'h&*ge i* &''!%*ti*g p!li' '&* i#p&'t $ig*i-i'&*tl the -i*&*'i&l ep!ti*g &$ /ell &$ the e&*i*g #&*&ge#e*t !- &* !g&*i,&ti!* i* !#p%te A$$!'i&te$ 3A4( T! &)!id -!# h&)i*g & -&%d i* the !#p%te A$$!'i&te$ 3A4+ the '!#p&* #& 'h!!$e &* &''!%*ti*g p!li'ie$ th&t '&* $%it thei pi!it( Be$ide$ + the #&*&ge i* !#p%te A$$!'i&te$ 3A4+ $till et&i* $!#e -le.i"ilit i* &''!%*ti*g p!li' $ele'ti!* th&t #& "e &"le t! p!$iti)el i#p&'t thei pe$!*&l $&ti$-&'ti!* &*d the #&et )&l%e !- thei '!#p&*( Thi$ i$ the leg&l /& t! #&*ip%l&te the e)e*%e$ $%'h &$ A '&* 'h&*ge the '&l'%l&ti!* &*d 'h&*ge the &ll!'&ti!* !- the e$e&'h &*d de)el!p#e*t e.pe*$e$ /ithi* the e*e&ll A''epted A''!%*ti*g Pi*'iple$ t! ed%'e the e.pe*$e$ $! th&t the p!-it$ '&* "e highe(F! &* e.&#ple Ri'h&d &*d !the e.e'%ti)e '&* %$ed the &''!%*ti*g p!li'ie$ th&t i*'l%de the ti#i*g &*d &#!%*t$ !- e.t&!di*& ite#$ $%'h &$ /ite;!--$ &*d Sh&e;"&$ed '!#pe*$&ti!*+ i*)e*t!
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)&l%e$ pi'i*g &*d !the$ /hee" the Ri'h&d &"le t! dete#i*e h!/ #%'h !- e)e*%e &*d e.pe*$e t! 'l&$$i- !* & '%e*t i*'!#e $t&te#e*t(
Ne.t e'!##e*ded$!l%ti!*$ t! '!pe the -&%d p!"le# the !#p%te A$$!'i&te$ 3A4$h!%ld e#ph&$i,e the i*te*&l '!*t!l &*d e$t&"li$h '!p!&te g!)e*&*'e $t%'t%e(T! help pe)e*t -&%d%le*t &'ti)itie$+ the #&*&ge#e*t !- the !#p%te A$$!'i&te$ 3A4+ #%$t i#ple#e*t i*te*&l '!*t!l$ ! $t%'t%e+ &*d *!/ /h&t $it%&ti!*$ t! l!! -!( T! h&)e the g!!d i*te*&l '!*t!l the !#p%te A$$!'i&te$ 3A4 $h!%ld$egeg&te &''!%*ti*g -%*'ti!*$( O*e !- the #&i* -&'t!$ !- &* e--e'ti)e i*te*&l '!*t!l $$te# i$ $egeg&ti!* !- d%tie$( M&*&ge#e*t /ill help$ t! pe)e*t -&%d " ed%'i*g the i*'e*ti)e$ !- -&%d( O*e !- the i*'e*ti)e i$ &"!%t the !pp!t%*it t! '!##it -&%d i$ ed%'ed /he* &''!%*ti*g -%*'ti!*$ &e $ep&&ted i* the !#p%te A$$!'i&te$ 3A4(The &'t !- $egeg&ti*g d%tie$ $ep&&te$ the e'!deepi*g+ &%th!i,&ti!* &*d e)ie/ -%*'ti!*$ i* the &''!%*ti*g p!'e$$( T! $egeg&te d%tie$+ thee #%$t i*)!l)e #!e th&* !*e pe$!* i* the -i*&*'i&l $t&te#e*t pep&&ti!* p!'e$$( I* &dditi!* -! the !p!&te g!)e*&*'e i$ !le$ &$ the i#p!t&*t p&t i* the #&*&ge#e*t( The !#p%te A$$!'i&te$ 3A4 $h!%ld h&)e the el&ti!* t! e--e'ti)e g!)e*&*'e p&'ti'e /hi'h i$ the t!p #&*&ge#e*t /!%ld p!)ide high i*tegit th!%gh!%t the !g&*i,&ti!*( Thee-!e+ !#p%te A$$!'i&te$ 3A4$h!%ld h&)e & )e $t!*g t!*e &t the t!p i* !de t! 'e&te & g!!d '%lt%e i* the '!#p&*( The !le !- i*depe*de*t die't!$ i$ )it&l( The '!*t!l $$te# /ill "e #!e e--e'ti)e " h&)i*g #!e i*)!l)e#e*t " the i*depe*de*t die't!$( The i*depe*de*t die't!$ $h!%ld "e #!e i*)!l)ed i* the -i*&*'i&l $t&te#e*t di$'%$$i!* "e-!e the i$$%&*'e !- the
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-i*&*'i&l $t&te#e*t( 8ith eg&d t! the !g&*i,&ti!*9$ '!*t!l$ &$ & /h!le+ the '!*t!l -&#e/! $h!%ld "e de$ig*ed &*d i#ple#e*ted &'!$$!#p%te A$$!'i&te$ 3A4(
The '!*'l%$i!*$ i$ thee &e #&* /&$ t! !)e'!#e the -&%d i* the !#p%te A$$!'i&te$ 3A4( A$ $t&ted &"!)e the "e$t /& t! '!pe the -i*&*'i&l -&%d i* the '!#p&* " h&)i*g the $t!*g i*te*&l '!*t!l+ e$t&"li$h the '!p!&te g!)e*&*'e &#!*g the #&*&ge#e*t &*d %$i*g the $%it&"le &''!%*ti*g p!li'ie$ &$ it i$ the leg&l /& t! %$e -! "ette pe-!#&*'e !- the !#p%te A$$!'i&te$ 3A4
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80 E9TERNAL SOURCING
JurnalCooking the Books: The Case of Malaysian Listed Companies by FathilatulZakimi,Abdul amid, !ohami"hafie, Zaleha #thman, $an %ordin $an ussin,Faud&iahanimFad&il, 'ol( ) %o( *+ #-tober ./*+
):
