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plese help to solve Ariex, GLOBAL BERHAD's chief financial officer, was accused of conspiracy and securities fraud. He reclassified RM230 million in operating costs as

plese help to solve

Ariex, GLOBAL BERHAD's chief financial officer, was accused of conspiracy and securities fraud. He reclassified RM230 million in operating costs as capital expenditures. The earnings of GLOBAL BERHAD were overstated due to improperly dispersing operating costs. From 2014 to 2020, the corporation has erroneously recorded a profit of RM330 million. The majority of the RM330 million was spent on reserve manipulation. The reserves were utilised to cover the company's expected loss, including uncollectible consumer payments and lawsuits. Ariex and other executives deceived the board of directors by using high-risk accounting techniques. They also pressured Mike Mckennen, GLOBAL Berhad's audit service provider, to ignore the problem. Shareholders of GLOBAL Berhad filed a lawsuit after the company's stock plunged from a high of RM12.50 in the middle of 2019 to less than RM1 at the end of the year. Mike Mckennen's role in auditing and supervising GLOBAL BERHAD's financials was determined to be irresponsible.

a. Discuss FOUR (4) concerns that have arisen in Global Berhad.

(15 marks)

b. Justify Ariex 's use of innovative accounting techniques.

(15 marks)

c. Discuss the mechanisms for overcoming Global Berhad's illegal acts in creative accounting.

(15 marks)

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