Olympus executives and auditor plead guilty

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Three former Olympus executives have pleaded guilty to charges relating to a £1bn accounting cover-up in one of Japan's biggest business scandals.

Prosecutors in the Tokyo district court charged former chairman Tsuyoshi Kikukawa, former executive vice-president Hisashi Mori and former auditor Hideo Yamada with inflating the company's net worth in financial statements for five years to March 2011.

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26th Sep 2012 12:19

what goes around

comes around

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By waltere
27th Sep 2012 09:53

Can one of you accountants please explain?

From:  http://www.accountingweb.co.uk/article/olympus-whistleblower-demands-ans...

"In January KPMG and Ernst & Young were cleared of responsibility for the accounting fraud that took place at the company.

A panel of lawyers appointed by the company produced a report which blamed five current and former internal auditors for the scandal and said it would have been too well covered up for external auditors to have unravelled it." [my emphasis]

From this posting:

Last October former chief executive Michael Woodford exposed the accounting fraud after querying deals later found to have been used to conceal the losses.

The Japanese camera and medical equipment maker sacked Woodford just two weeks after his appointment. [my emphasis]

So, hang on... the fraud was SO well concealed that it took Woodford a whole two weeks to find it (and, presumably, he wasn't able to dedicate 100% of his time to this activity).

Either the stories in AWeb don't give us the whole picture, or... well, draw your own conclusions.

 

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