Adrian JohnsonTLDR:
- The Japanese used car dealer, Good Speed Co., has been revealed to have engaged in accounting fraud to make it appear that sales targets were achieved.
- An independent committee conducted an investigation into the company’s improper accounting practices and found that sales of vehicles before delivery were recorded on quarterly financial statements since July-September 2018.
Good Speed Co., a Japanese used car dealer, has released a third-party investigation report detailing the accounting fraud that took place within the company. The report, conducted by an independent committee, reveals that the company manipulated its quarterly financial statements to make it seem as though sales targets were met. According to the report, sales of vehicles before delivery were recorded on all quarterly financial statements since July-September 2018, at the instruction of an executive within the company.
The fraudulent accounting practices were discovered during an investigation into the company’s improper accounting methods. Good Speed Co. has stated that it takes these findings seriously and will take steps to prevent a recurrence of such practices in the future. The company plans to correct its past financial statements by March 29 and is considering taking disciplinary measures against those involved.
While the accounting fraud investigation was ongoing, it was also discovered that Good Speed Co. has been involved in fraudulent auto insurance claims. However, the company has stated that these fraudulent insurance claims are unrelated to the improper accounting practices. A company official has reported that 121 cases of fraudulent auto insurance claims have been identified so far.
The revelation of accounting fraud has raised concerns about the integrity and transparency of Good Speed Co. and the wider used car industry in Japan. Consumers may question the accuracy of financial statements from other companies within the industry and their trust in the purchasing process of used cars. It is imperative that steps are taken to restore confidence and ensure compliance with proper accounting practices within the industry.
In conclusion, the investigation into Good Speed Co. has exposed accounting fraud within the company, revealing that sales targets were falsified on quarterly financial statements. The company has acknowledged the seriousness of the findings and plans to correct its past financial statements. Separate from the accounting fraud, the company has also been involved in fraudulent auto insurance claims. These revelations highlight the need for stricter oversight and regulation within the used car industry in Japan to protect consumer interests and maintain trust in the market.
