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Patung Sdn Bhd Case Study

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Integrated Case Study: Case 2
Patung Sdn Bhd is an automobile parts company which is located in a small town. The holding company of Patung Sdn Bhd is based in UK. Alfred & Associates is the tax agent for the company, while reviewing the current-year tax computation of Patung Sdn Bhd, the tax manager, Jennifer, noted something curious. In the working papers related to travelling expenses, Jennifer saw that the some expenses are not supported by proper documents.
Johnson has been recently hired as the senior manager in marketing for Patung Sdn Bhd and is about to begin a major expansion that will double its capacity. He has been on the job about a month and enjoys the partnership they have developed to date. He had originally interviewed with Smith, the General …show more content…

We can convince the workers and the people in town that the decision was necessary, if we can show them accounting and cost information to justify the decision. If they see good, sound reasoning for the action, they’ll be less likely to resist and cause trouble. We need for them to maintain productivity and efficiency until the new equipment is here. I want you to work on a cost summary, showing why automation is a good idea.”
George: “But the net present value and other analyses I did earlier showed this plant should stay the way it is.”
Smith: “When we were working on the analyses, you said yourself that the benefits of automation are hard to identify and assign numbers to. You had to make several assumptions in order to do those analyses. If you change some of your assumptions, you can make the numbers look better. Try a longer useful life for the new equipment, or change some of the projected cost information. As soon as you have the new numbers, bring them to me to look at.”
What Are the Ethical Issues? What Are the Possible Alternatives? What Are the Practical Constraints? What Actions Should Be

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