Explain whether you believe the accounting firms should provide the assurance on CSR reports.
Explain reasons why a company would choose to have their CSR report assured.
b) Provide reasons why a company would choose not to have their CSR report assured.
c) Explain whether you believe the accounting firms should provide the assurance on CSR reports.
(Provide reasons for and against the accounting firms providing the assurance and then
d) Explain the difference between reasonable assurance and limited assurance on the CSR report
and the effect that this has on the auditor’s level of work.
You need to undertake research to answer these questions – you textbook is not sufficient! You are expected to refer to at least
two external sources such as books or academic articles.
Question 3 (5 + 8 + 8 = 21 marks)
|ING takes a $30m hit in accountancy fraud case|
Published: February 16 2012 – 3:00AM
The multinational insurance and finance company ING suffered a $30 million net loss from the massive
fraud committed by its senior accountant, Rajina Subramaniam, court documents reveal. Files released
after Subramaniam was sentenced to at least seven years’ jail last week, show the company has
recovered only a third of the $45.3 million the 42-year-old stole over five years. While most of the
incredible haul of luxury goods and property purchased with the money – including $16 million worth of
Paspaley Pearls jewellery and eight waterfront apartments – has been recovered and resold by the
company, it has taken a substantial hit. ”There is no realistic possibility that the full cost of those items
can be fully recovered,” documents tendered by the prosecution state.
This is due, in part, to the fact that Subramaniam paid well above market rates for the properties she
The court documents also paint a less-than-flattering picture of internal security at the section of ING
where Subramaniam worked, ING Australia Holdings. During her interview with police shortly after
being arrested, Subramaniam said: ”My manager is so slack, he didn’t care, so I was sort of doing it to
see when I would get caught [but] you know, he just left it open for me.” She said the manager – who
cannot be named – would come in at 10am, and appeared not to be interested in the job.
It is understood Subramaniam did not have any formal accounting qualifications, but had worked her
way up from the position of assistant accountant.
As a senior accountant she made 200 illegal transfers into her personal accounts or directly to shops
and real estate agents. She then used the computer log-ins of former staff to delete the records or alter
them so the transactions appeared legitimate.
”Whilst this conduct was deceptive, it was not particularly sophisticated,” Subramaniam’s defence
barrister said during her sentencing hearing.
An ING spokeswoman said the case was an exceptional circumstance of fraud, involving a trusted long
time employee. She said ING ”acted immediately to investigate and address the situation upon receiving
the details of the fraud” and was satisfied with its security measures.
The documents also raise questions about the ease with which Subramaniam was able to purchase items
from Paspaley Pearls. She told police despite an initial request for her name, date of birth and postal
address, staff never asked her ”where the money I was using to purchase jewellery came from or how I
could afford to buy Paspaley jewellery”.
The documents show she developed personal relationships with a number of the staff and was wined and
dined, including a dinner with the patriarch of the chain, Nick Paspaley.
The company declined to comment, but said it formed many relationships with customers.
This story was found at: http://www.smh.com.au/business/ing-takes-a-30m-hit-in-accountancy