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In 2018 the world of investment in Indonesia was shocked by cases of fraudulent financial statements conducted by SNP Finance. The case dragged the Big Four Public Accounting Firm (KAP), Deloitte Indonesia. The case began with SNP Finance which is a subsidiary of the Columbia group. Columbia sells furniture and home appliances retail to end users, both world and credit. In credit sales, Columbia cooperates with its subsidiary, namely SNP Finance, which in fact is a credit company to handle credit. SNP Finance requires working capital in a sizeable amount, to meet the working capital needs, SNP Finance borrowed funds from several banks, including Bank Mandiri. The loan is collateralized using the current asset, Columbia customer accounts receivable. There is a change in market tastes and people's buying behavior, where people now prefer to buy furniture and home appliances online. This condition hit Columbia and SNP Finance sales. SNP Finance then for funding issues medium term notes (MTN) or medium-term debt securities, a kind of bond products but medium term. SNP Finance has audited its financial statements by KAP Deloitte Indonesia. Deloitte has audited SNP Finance for a period of several years. Deloitte always provides an unqualified opinion for SNP Finance's financial statements. In 2018 finally, it was revealed that the trade receivables pledged by SNP Finance to the Bank were fictitious trade receivables, which actually never existed and were deliberately made for manipulation. Deloitte Indonesia has so Page 1 of 2 far failed to detect the existence of these fictitious accounts, so it continues to provide an unqualified opinion on SNP Finance's financial statements. Bank Mandiri as a creditor who has for several periods been a creditor to SNP Finance, Deloitte knows this, because Deloitte has also audited SNP Finance for several periods of years. Bank Mandiri and other creditors because it refers to the financial statements and independent auditor's reports from Deloitte, remained for several years continuing to disburse loans to SNP Finance. They assume that when the trade receivables are collectible then the funds can be used to pay off obligations, even though the trade receivables are fictitious. The impact of this manipulation case is that SNP Finance failed to pay for its obligations in the Bank and failed to pay the holders of the Medium-Term Notes (MTN). Banks and MTN holders become disadvantaged. SNP Finance management is subject to criminal fraud, and Deloitte Indonesia is sanctioned by the Otoritas Jasa Keuangan (OJK). Questions: a. In this case, Deloitte committed negligence or fraud? Explain your answer! (10%) b. In this case do you think Bank Mandiri can be classified as an identified user or foreseen user or foreseeable user? Explain your answer! (10%) c. According to your analysis, what mistakes Deloitte did, and how they should act! (10%)