Callmate Telips Telecom Limited (Callmate) was in the telecommunications business, the industry in which regulation and control have been phased out by the Government of Pakistan in the context of economic deregulation program. Callmate was a pioneer in pay phones and prepaid phone card industry in Pakistan. Developments in the case shows that the strategy of the company, as well as aggressive management of the stock price, can be dangerous if it were not checking the director. All directors Callmate were close family members and audit committee consisting of three directors. External audit firm that audits were Callmate Ferguson AF & Co (Ferguson), branch of Price Waterhouse Coopers International. Callmate as was listed on the Karachi Stock Exchange, it was obliged to publish their financial quarterly thereafter considered Ferguson. The company received permission in early 1995 to enter the international long distance market. The disagreement between the auditors and the company's accounting policies related to revenue recognition. This dispute, along with the company trying to manage their share prices, led to a number of problems that have been made public, as the company was trying to tarnish the auditors. The case considers corporate governance, the role of external auditors and holding the board and control of public companies. "Hide
on Muntazar B. Ahmed Source: Richard Ivey School of Business Foundation 21 pages. Publication Date: April 23, 2009. Prod. #: 909N08-PDF-ENG
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