• Rimbun Berhad Accounting Scandal The chief financial officer of Rimbun Berhad, Ramlan Karim was charged with conspiracy and securities fraud. He has manipulated RM230 million of operating expenses as capital investments. Improperly spreading operating costs inflated Rimbun Berhad’s profits. The company also improperly recorded its profit worth RM330 million from 2014 to 2020. Most of the RM330 million was used to manipulate the reserves. The management used the reserves to cover the company estimated loss which include uncollectable payments from customers and lawsuits. Ramlan Karim and other executives successfully misled the board members on high-risk accounting practices. They also pressured Mike Mckennen, the audit service provider of Rimbun Berhad to ignore the issue. Rimbun Berhad shareholders filed a lawsuit after the company share, which achieved a high of RM12.50 in the middle of 2019, plummeted to less than RM1 by the end of 2019. Mike McKenna was found to be negligent in its role in auditing and overseeing Rimbun’s financials.
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•  Required: 
• a. Discuss FOUR (4) issues that arise in Rimbun Berhad.  
• b. Justify the techniques of creative accounting that Ramlan Karim has used. 
• c. Discuss the mechanisms to overcome the illegal actions in the creative accounting of Rimbun Berhad.