Accounting Fraud Cases: Hongwei Technologies and China Hongxing Sports
Posted by Amy CHAN Wen Yi, final year undergrad at the School of Accountancy, Singapore Management University
Amy: I was reading through the articles on “Detecting Accounting Fraud in Asia” (Part 1, Part 2) written by KB and noted the fact that companies owning high net cash in the balance sheet does not mean that they represent “must-buy” investments. Some examples would be China Hongxing Sports Ltd, Hongwei Technologies Ltd and China Gaoxian Fibrefab Holdings Ltd.
Accountants need to be strong in their ethical principles
Kang Wai Geat and Ang Soon Lii
7 January 2015
Business Times Singapore
NEWS broke on Dec 12, 2014, that three former top executives of Singapore Technologies Marine (ST Marine) were charged in court for corruption and falsification of accounts. Among them is ST Marine’s former financial controller, a professional accountant, who was charged with making fictitious petty-cash claims amounting to over S$500,000 when there were none. It would be easy and convenient for accountants, dealt another blow by this debacle, to be generalised as being dishonest. Continue reading