The extend of the overreporting of the revenue for Transmile shocked many. What is worst is that the overreporting is not only for the accounts of financial year 2006 but also for 2005.
Its external auditors were suspicious of revenues of about RM300 millions (prorated for 18 of the 20 companies whose receivables were in doubt) for 2006. However, they (whether the same company or not I don't know) certified the accounts for 2005. It is now discovered that there was probably an overstatement of revenue of RM197 millions for 2005. So, how did they miss a doubtful revenue of close to RM200 millions?
This brings me to the next question. Are there any more 'Transmiles' out there? There were many companies on Bursa which recorded very good growths during the last few years. Were their CEOs all honest? Did their auditors all do a good job and not miss out on doubtful figures? This, only time will tell.
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