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Fuji Xerox NZ leases photocopies to business in New Zealand. Several years ago, an investigation of the company found $472m in accounting irregularities from 2011-
Fuji Xerox NZ leases photocopies to business in New Zealand. Several years ago, an investigation of the company found $472m in accounting irregularities from 2011- 2016. Essentially, management and sales staff were recognising too much revenue from leasing (or renting) of its photocopiers to business too early in the lease period. The value of leases was also often over-estimated. An investigation by the parent company, Fuji Holdings, found that: "Inappropriate accounting of early sales recognition continued because there were incentives for the MD [managing director) and employees of FXNZ such as commissions and bonuses and that structure placed an emphasis on sales." (2017, p.4) With respect to the fraud triangle, the commissions and bonuses for management and sales staff are an example of: a. Rationalisation O b. Corruption Oc. Opportunity O d. Pressure O e Financial statement fraud
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