Report On Corporate Fraud | Assignment

Running head: REPORT ON CORPORATE FRAUD
REPORT
ON
CORPORATE FRAUD
Name of the Student
Name of the University
Author Note:

CORPORATE FRAUD1
Summary of the case:
In recent years Saudi Arabia has faced several corporate frauds in their banking
industries, however the accounting scandal of Saudi’s one of the largest company Saudi Telecom
Co. is one of the most significant cases. While analyzing the case scenario it is observed that in
the 2013, Etihad Etisalat popularly known as Mobily has pointed out a major scandal at Saudi
Telecom Co. where an account fraud has been detected. The primary reason behind this fraud
was lack of expertise in the accounting department of this company as well as the careless
attitude of the CEO towards the finance department of Saudi Telecom (CEO suspended at Saudi
telecoms group hit by accounting scandal 2020).
How fraud has been detected?
Followed by the above discussion it is observed that almost $380m has been wiped due to
the occurrence of the mentioned fraud. While analyzing the primary reason behind this fraud it is
observed that due to miss-account of revenue this problem has raised. Thus, it is very prominent
that the company has majorly impacted the count of sales as well as other organizational
expenses and profits. According to the data shared by Mobily it is determined that the amount of
fraud wad nearly equal to the 30% profit of the past year. Primarily the fraud has been detected
via the investigation conducted by capital market authority however, even after the detection they
have not publically disclosed the concern for many months (Alotaibi 2019).
Impact of accounting and finance system:
Followed by the above identification it can be stated that this fraud has majorly caused
due to the lack of concentration in accounts department of Saudi Telecom Co., along with this
lack of expertise has also been determined which has majorly impacted the accounts of the