Record Details

Fraud in Rights and Contracts: A Review of Bankruptcy Case of Livent Inc. Based on Governance, Risk, and Compliance (GRC) Framework

Binus Business Review

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Field Value
 
Title Fraud in Rights and Contracts: A Review of Bankruptcy Case of Livent Inc. Based on Governance, Risk, and Compliance (GRC) Framework
 
Creator Widhoyoko, Samuel Anindyo; Podomoro University
 
Subject —
bankruptcy, compliance, governance, risk, earnings management, fraud, corporate governance, accounting standard
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Description This research discussed the accounting scandal in the perspective of governance, risk, and compliance using Governance, Risk, and Compliance (GRC) framework. Unlike other fraud’s framework, GRC framework combinedthree different aspects of business sustainability of reporting. The purpose of the research was to highlight early business fraud that usually initiated by the company in boosting up the revenue during the Initial public offering(IPO) processes. When other research discussed the business’ fraud schemes through the document alteration, this research focused on a case showing how a business could make the wrong statement to the investors through real and lawful future contracts with unqualified audit opinion. Structurally, this research was done through the action research method in pointing out all the directors’ failures in their function to hold the fiduciary duty to exercise their responsibility. Based on the analysis with the accordance with the framework used, it is highlighted that directors in the aspect of (1) governance decisive, they fail to set proportional target, provide ethical value, and react positively to maintain the company sustainability; (2) compliance submissive, they do not submit the accounting standards through undisclosed third-party agreement, misrepresentation of revenue recognition, and mistreatment of expense omission; (3) risk preventive, they fail to assess the risk occurs from legal aspect of conflict of interest, long-term contractual and engagement risks, and insufficient future cash flow.
 
Publisher Bina Nusantara University
 
Contributor —
 
Date 2017-05-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
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Format application/pdf
 
Identifier http://journal.binus.ac.id/index.php/BBR/article/view/1827
10.21512/bbr.v8i1.1827
 
Source Binus Business Review; Vol 8, No 1 (2017): Binus Business Review (In Press); 31-39
2476-9053
2087-1228
 
Language eng
 
Relation http://journal.binus.ac.id/index.php/BBR/article/view/1827/2992
 
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