Business scams explained to school students

Recent international financial scandals have highlighted the fact that exercising good judgement is often just as important as following professional rules, says Accountancy Prof. Paul Dunmore.

Prof. Dunmore, a specialist in auditing and corporate governance, was giving advice in a lecture to year-13 secondary school economics and accountancy pupils visiting the Massey University Manawatu campus last week.

Nearly 200 pupils from schools throughout the region got a taste of university lectures aimed at helping their studies and offering real-life learning.

Prof. Dunmore and other lecturers were presenting analysis that is relevant for their NCEA internal assessment and scholarship exam.

Students not only got the benefit of a heads-up to help them with their exam, they also found out more about the role corporate governance, accountancy and auditing plays in major frauds.

“It’s topical and students need to understand the role of board, shareholders and management, and that being an accountant is not just about doing what the boss wants,” says Prof. Dunmore.

He also analysed the financial statements over recent years of NZ company Restaurant Brands.

“It’s interesting because I’m sure all of them would have eaten at KFC or Pizza Hut at some stage, and because it’s a real company, not just one created on paper as an example,” he says.

Manawatu Commerce and Economics Teachers’ Association secretary Jenny Scott, a teacher at Palmerston North Girls’ High School, says the lectures are valuable for students in a variety of ways.

“We’ve worked closely with the university to pitch it at the right level for the students and to make it relevant to the work they do at school. It’s also good for them to be on campus and to get a taste of student life,” she says.

Other lecturers were Business and Economic Research Ltd economist Ganesh Nana and Massey’s Prof. Anton Meister and Stuart Birks.