Description:    This past week, Parliament was dominated by just what Justin Trudeau may – or may not – have done to intervene in the so-called Lavalin affair. If we look at SNC-Lavalin’s recent history, however, we quickly realize the engineering firm is no stranger to controversy. The stakes are high in the charges it faces regarding the corruption scandal in Libya. If found guilty, SNC-Lavalin will be barred from federal government contracts for 10 years.

Date:  February 08 , 2019

Source:  cbc.ca

Link: https://www.cbc.ca/news/canada/snc-lavalin-corruption-fraud-bribery-libya-muhc-1.5010865

Discussion points: 

1)Were you aware of the SNC-Lavalin story in the current news? What was your reaction?

2) If you were the CFO of a company, and you found out that Lavalin was one of the bidders on a contract your company had put out for bids, would you think twice about awarding it to them ?

3) See page 134 in Wiley’s Financial Accounting: Tools for Business Decision-Making. What is the difference between an error in the financial statements and fraud?