Accounting Fraud: Case Study of PICNIC Pcl

Abstract

The PICNIC case discussed the accounting frauds committed at a fast-growing company in the Stock Exchange of Thailand, PICNIC Pcl. during 2004. It provides an insight into the ways by which the financial statements were manipulated at PICNIC. The PICNIC fraud was the result of a failure of corporate control and governance. PICNIC did make numerous transactions with its closely related parties to inflate its earnings and hence share prices. Some transactions seemed to point out that they were made to siphon cash from the company. The dysfunction, conflicts of interest, and break down of governance standards and management practices had damaged investor confidence and weaken the credibility of Thai capital market.