Business Case Study: Toshiba, An Electronic Japanese Company

Introduction

FACULTY OF BUSINESS AND ADMINISTRATION

Toshiba is an electronic Japanese corporation. It was founded in 1939 by the union of Shibarua engineering and Tokyo Denki. It is one of the most famous company in the world. The nature of the company is production company, producing wide range of electronic product such as Computers, Camera, TV and many others electronic products.

Toshiba has many subsidiaries around the world such as Toshiba America, Inc, Toshiba Asia Pacific LTD, Toshiba of Europe and many others. And all these subsidiaries has not obligations to the parent company in Japan, Tokyo in Paying debt.

According to the CEO of the company Satoshi Tsunakawa the mission of the company is to ‘ create higher quality of life for all

However, this was not last for long. The people who involved in the case are two of top management Atsutoshi Nishida and Hisao Tanaka tried to hide the fraud when it is discovered. Also, all internal control department not investigation and rising this issues to management rather than keeping salience.

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FACULTY OF BUSINESS AND ADMINISTRATION

Weaknesses in the company 's accounting system and internal control

Toshiba experienced declined in the overseas business, specifically during the financial crisis time. Therefore, company has to show good financial result to the shareholder to gain the trust by overstating the profit and company. There are few weakness of Toshiba accounting system as followed:

Lack of awareness of appropriate accounting standard

Overstatement of profit by using inappropriate care of to overstate the profit made it looks good in the financial year, and can be seen that the profit was overstated and excess the real profit. Despite that, the overstated profit was done by large number of people and change without permission. Therefore, the top management climes that this is due to lack of awareness of accounting standard.

Internal Control was not