[Flashback] Finance minister cautions against window dressing by accountants


Posted by Latha Do NADARAJAN , Year 3 undergrad at the School of Accountancy, Singapore Management University

NEW DELHI: Finance minister Pranab Mukherjee has asked the country’s auditing fraternity to be vigilant against “window dressing” of financials by companies, and highlighted the need for stringent disclosure norms on complex financial instruments. Continue reading


[Flashback] Detect, Prevent, and Deter Fraud in Big Data Environments

Click to access combat-credit-card-fraud-with-big-data-whitepaper.pdf


Posted by Latha Do NADARAJAN , Year 3 undergrad at the School of Accountancy, Singapore Management University

Abstract: More than 50% of fraud cases are detected by accident, after loss has occurred. Many tools
require excessive effort by fraud analysts to generate useful information, or the tools generate
too many false alarms.The cost of using these tools is high, and the return is low.

For effective fraud management, you need an approach that detects and prevents fraud –
as it happens. The right solution will help your organization keep pace with ever-changing,
increasingly sophisticated criminal tactics. Then if fraud occurs, your analysts can investigate
it efficiently and thoroughly check transactions without negatively impacting operational productivity.

Hanergy Seeks to Reassure Investors on Soundness of Finances



Earlier postings:

(1) Breakneck growth of Hanergy raises questions; The Financial Times, in analysing recent financial statements of the company, has found some unconventional practices behind Hanergy Group’s soaring fortunes; Hanergy has been racking up enviable revenues largely through sales between its listed subsidiary, HTF, and itself (Link)

A little-known Hong Kong-listed firm has come out of nowhere to become the world’s largest solar-power company by market value. A tight relationship with its parent company should give investors reason to worry whether its time in the sun will last (Link)

(2) Short sellers feel the heat from Chinese solar group Hanergy (Link)

(3) The Convoy Financial-Finsoft-Hanergy connection and aggressive accounting (Link)

Hanergy Seeks to Reassure Investors on Soundness of Finances

byEhren Goossens

February 2, 2015

(Bloomberg) — Hanergy Thin Film Power Group Ltd., the Chinese solar equipment manufacturer whose market value surged to $19 billion within a two-month period, downplayed a report in the Financial Times that questioned how it reports sales. Continue reading

[Flashback] How to encourage the right kind of whistleblowers


Posted by GOH Shu Qi, Year 3 undergrad at the School of Accountancy, Singapore Management University

FORTUNE — Following in the footsteps of other agencies with successful bounty programs like the IRS, the Dodd-Frank Act has required the SEC to implement protections for whistleblowers and payments of what could be large sums for valuable information related to corporate fraud. While the SEC has been offering these protections and rewards since the Dodd-Frank Act’s passage, on May 25, the SEC established rules that will govern these procedures going forward. Continue reading

Investment scams fuel 25% rise in fraud cases coming to trial


Posted by SEAH Hui Ting, Year 3 undergrad at the School of Accountancy, Singapore Management University

The number of fraud cases coming to trial in the UK rose 25 per cent in 2014, driven by large numbers of investment scams . A total of £717m was lost to fraud in cases that came to court during the year, of which £216m went into fake investment schemes, the biggest single category, according to a twice-yearly fraud barometer survey by KPMG, a professional service firm. This compared with £168m the previous year. Continue reading

[Flashback] Chinese Companies in Alleged Accounting Fraud: China Biotics and West China Cement


Posted by CHEN Liting, Year 3 undergrad at the School of Accountancy, Singapore Management University

China Biotics (CHBT) is a Fraud – Now sue Citron- We Dare You.

Posted in Citron Reports by CitronResearch on the September 14th, 2010

Yesterday, DYP and DGW were the number 1 and 2 losers in the market declining 54% and 41% respectively.  This only shows the fragility and lack of transparency that exists with small cap Chinese companies.  Citron will prove that China Biotics does not just lack transparency, but rather it is an outright fraud. Continue reading

Buffett: “If you think the auditors know more…, then they should run the business and you should take up auditing.”


Posted by Joel CHUA Yong Sheng, Year 3 undergrad at the School of Business, Singapore Management University

Joel: This article is about Warren Buffet’s investment in Petrochina, his thought process and due diligence when selecting in a stock to invest to avoid the lemons and frauds.


Buffett’s PetroChina Investment: Finding Large Gaps Between Price & Value

By John Huber On August 4, 2014 · 13 Comments

“You don’t have to know a man’s exact weight to know that he’s fat.” – Ben Graham

I was reading through some notes from the 2008 Berkshire Hathaway Annual Meeting and one of the questions grabbed my attention. The question was pertaining to Warren Buffett’s decision to purchase stock in PetroChina back in 2002. Basically, the questioner was surprised that Buffett made such a sizable investment after a seemingly small amount of due diligence saying “all you did was read the annual report… Wouldn’t you want to do more research?”

Here is the question along with Buffett’s response: Continue reading

[Flashback] Vietnam Tycoon Nguyen Duc Kien Jailed for 30 Years Over Fraud


Posted by Joel CHUA Yong Sheng, Year 3 undergrad at the School of Business, Singapore Management University

Vietnam Tycoon Nguyen Duc Kien Jailed for 30 Years Over Fraud

HANOI, June 9 – A Vietnamese court jailed a tycoon and former banker for 30 years on Monday for his part in a series of elaborate financial scams worth $1.1 billion that have become one of the country’s most high-profile banking scandals.

Nguyen Duc Kien, 50, founder of Asia Commercial Bank , one of Vietnam’s largest private lenders, was found guilty of a litany of crimes along with seven co-conspirators who used “sophisticated and cunning tricks” to deprive depositors and companies of hundreds of millions of dollars. Continue reading