http://www.businesstimes.com.sg/opinion/scouring-accounting-footnotes-to-prevent-tunnelling
Scouring accounting footnotes to prevent tunnelling
KEE KOON BOON
933 words
19 August 2015
Business Times Singapore
Framework needed to tackle insiders’ stealing of corporate wealth.
IMAGINE that the S-chip (Singapore-listed China stocks) fraud with its “missing cash phenomenon” and the penny stock scandal never happened – because there was a way to prevent them.
While accounting information and disclosures may be abused to deceive, instead of being used to inform, there is a countermeasure if one only looks for it. For fraud perpetrators actually, if inadvertently, leave behind a trace of their accounting transgressions in the footnotes of annual reports.