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  • What Happened???

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    gabriel omli
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    Last year, 2GO Travel was investigated by the SEC for overstating profits in 2015-2016 through inflated receivables. This was one of the major accounting scandals investigated by the SEC, resulting in a 2-day suspension. A new management took over in 2017 and hired auditors to conduct a special audit, discovering discrepancies. The financial statements were restated, showing much lower net income than previously reported. The new management was committed to improving corporate governance standards at the company.

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    2go Travel, KPMG and SGV issue

    Original Title

    2GO

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    Last year, 2GO Travel was investigated by the SEC for overstating profits in 2015-2016 through inflated receivables. This was one of the major accounting scandals investigated by the SEC, resulting in a 2-day suspension. A new management took over in 2017 and hired auditors to conduct a special audit, discovering discrepancies. The financial statements were restated, showing much lower net income than previously reported. The new management was committed to improving corporate governance standards at the company.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    393 views8 pages

    What Happened???

    Uploaded by

    gabriel omli
    Last year, 2GO Travel was investigated by the SEC for overstating profits in 2015-2016 through inflated receivables. This was one of the major accounting scandals investigated by the SEC, resulting in a 2-day suspension. A new management took over in 2017 and hired auditors to conduct a special audit, discovering discrepancies. The financial statements were restated, showing much lower net income than previously reported. The new management was committed to improving corporate governance standards at the company.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 8

    What happened???

    What happened???

     Last year, 2GO Travel has been set on fire after alleged
    purposeful inflation of its profits for the year 2015 and
    2016 by overstating its receivables to attract investors
    which bore holes on the shipping company’s credibility
    and integrity.

     This has been one of the major accounting scandals


    that SEC investigated. To resolve the issue SEC
    suspended the company for 2 days.
    What happened???

     The issue came up after Sulficio Tagud, Jr. retired both


    from the management and the board of 2GO Group,
    Inc. in April, and Dennis Uy became president and
    chief executive officer. Frederic DyBuncio of SM
    Investments was elected ExCom chairman.
     The new management who take over the company
    hired SGV & Company to conduct a special audit
    which discovered the discrepancies.
    What happened???

     SGV used to be the external auditor of 2GO. But in


    2014, the 2GO board of directors replaced SGV with
    the accounting giant's rival KPMG RG Manabat &
    Company who audited the 2015 and 2016 financial
    statements of 2GO.
     Tagud explained that the 2GO board decided to replace
    SGV in 2014 due to a major disagreement between
    management and the auditing firm over how to treat a
    deferred tax asset during the 2013 audit.
    What happened???

     As a result of the special audit, the new management


    with the support and approval of the newly elected
    members of the audit committee and board of directors,
    issue the restatement of the prior period financial
    statements.
    What happened???

     The restated financial statement reported a net income


    that is 90% and 74% lower than the 2015 and 2016
    reports, respectively. Also, for the first quarter of 2017,
    2GO said it should have reported a net loss of P264.86
    million, instead of a P267.562-million profit.
    What happened???

     Despitethis, Mr. Uy remained confident that the


    potential of 2GO to grow and be a major player in this
    dynamic shipping and logistics industry remains intact.

     Therestatement is a commitment of the new


    management and Board of Directors to raise corporate
    governance standards in the company, Mr. Uy said.
    THANK YOU !!! 
    REFERENCES :
    http://www.bworldonline.com/content.php?section=Corpor
    ateNews&id=147943

    http://www.bworldonline.com/content.php?section=Opinion
    &title=the-2go-business-case-study&id=149050

    https://www.rappler.com/business/175521-2go-group-
    accounting-mishap-sulficio-tagud-jr-denial

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