Business Daily Living Filipino Tradition MBA Society & Culture

Hear No Evil, See No Evil, Report No Evil

Will you tell the truth? What will you do if you are in a situation wherein you need to think whether to tell what really happened, whether to divulge the truth or not?

I don’t want lies, especially to a work, I’m an accountant, some do auditing some are being audited, and I am part of the latter. It was tough when you are under audit, auditors keep on asking so many documents, interviewing you of the transactions happened, why this is like this and that, they will keep on asking and asking until they are satisfied and you have justified the transaction. That is why, it is hard not to tell the truth and hide something, it will be very hard to undisclose something that you know will affect you in future. I am not good at that though, but others are.

In our Financial Management 1 subject, we have given a case relative to this. It is about Cindy Putman who had his first job at Wheeler Co. as an accounting clerk. Being new in the company, you have of course need to do the best and show the hardwork. She found out that the bank erroneously recorded a deposit Wheeler Co. made, an amount of $24,245 was recorded as $42,245 resulting to a $18,000 increase in cash. She told this to Mr. Wheeler, the owner of the company and advised her that she had no right of correcting the bank’s error, they will soon find it, meantime, Mr. Wheeler told Cindy to record it as a debit in cash and credit in retained earnings and reverse once the bank discovers the mistake, he told her to keep quiet and share the fortune. She obeyed him, thinking one day, the bank will really see the error. And one day she saw that she had an additional $500 on her paycheck, thought it was a bonus from a hardwork she showed. After two years, a tax audit was conducted by the Internal Revenue System or IRS and found out the increase in revenue. Being unable to explain the reason of the increase in retained earnings, the IRS charged the company a tax evasion. Mr. Wheeler told the tax agent that Cindy was the sole responsible and rarely brought him the issue, and the time the transaction happened, Cindy had little experience. In a private conversation, Mr. Wheeler impliedly told Cindy not to tell the truth, and that they will get off the hook. He even told her that the mere accepting the $500 he gave to her will surely put her in jail. Cindy was shocked, she expected some loyalty from him, she wasn’t even aware that the amount given to her was a fee for keeping quiet.

What would you do if you are in Cindy’s situation? The company was charged a tax evasion, and if Cindy will tell the truth, this might be changed, a penalty will do 🙂

That is the case we need to analyze, and being an honest person, young and hardworking, I want to tell the truth to the auditor. 🙂 (Bahala na si Mr. Wheeler hehehe).

 Till then,