ACC 4132 AUDITING & ASSURANCE SERVICES SEM 1, 2020/2021 GROUP PROJECT 1MDB Background Occurrence of fraudulent in financial reporting can cause significant consequences for the organization and public confidence in capital market. Pressure to meet performance targets, weak monitoring mechanisms and lapsels in management control practices have heightened the propensity to falsify financial information. The situation worsens when the board fails to understand and manage risks as well as fail to encourage ethical behaviour (i.e. making decisions in the best interests of the company and the shareholders in general). Hence, main questions to be answered are as followed: i) What are the main issues* that contribute to the case of 1MDB? Who are the main actors? ii) In reference to the existing regulatory frameworks, how these issues could be prevented or solved? iii) What are the implications of the findings on internal or external) auditor and those charge with governance