20. Over the years, we have observed several accounting scandals unfold, latest in line being the one at Toshiba. It is understood that Toshiba would have to revise its pre-tax profit figures by ¥ $ over a seven-year period dating back to 2008. The amount involved accounts for nearly 30 per cent of the total pre-tax profit during the period.
The initial findings have showed top executives’ involvement in accounting malpractices where the inflated figures were made possible by delaying the reporting of losses and underestimating project costs. A sustained failure of this kind most definitely points to gaps in the audit process. 21.