The Royal Dutch/Shell group was similarly involved in a global financial scandal, though with relatively less consequence. The company’s financial statements are released with an estimation of the oil reserves it claims to have control over in the fields it operates in. There estimates were reported to be grossly overestimated by Shell. Some reports suggested the company had over reported the oil reserves in Oman by nearly 40 percent (Crowther 2007).
This was based on the optimistic view surrounding the technological advances in drilling which were reported to gives greater output, thus increasing the value of the oil reserves controlled by Shell and the rapid rate in which it could access it. Such overestimation would have had to come under the scrutiny of the company auditors who failed in this regard and allowed the company’s asset part of the balance sheet to be increased to a great extent (Crowther 2007).
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