FLAT CARGO BERHAD

1. ALTERNATIVE SOLUTION

1.1. Work Culture

1.2. Create Hotline

1.3. Restructure BOD & Audit Committee

1.4. Creating Expectation of Punishment

1.5. Employ Anti-fraud Specialist

1.6. Comply MCCG

1.7. Fraud Prevention

1.8. Appointment of New External Auditor

1.9. Hire a third party to do bookeeping

2. DECISION CRITERIA

2.1. Time consumption

2.2. Effectiveness of the Solution

2.3. Cost Incurred

2.4. Possibility for Fraud Commitment

2.5. Management Acceptability

2.6. Operational Acceptability

2.7. Stakeholder & Shareholder Concern

3. STATEMENT OF PROBLEM

3.1. Accounting Fraud

3.2. Problematic of Audit Committee

3.3. Incompetence of the Auditors

3.4. Independent of audit committee and BOD

4. CAUSE OF PROBLEM

4.1. Pressure

4.2. Opportunity - Ability to do fraudulent act without being punish

4.3. Rationalisation

5. RECOMMENDATION

5.1. Integrity

5.2. Compliance of MCCG 2012

5.3. Antifraud Specialist