I heard that the accountant I had a conflict with a couple of years ago was fired and was sued.
2 years ago, I was called by the School Director and contracted me for one month. He asked me to check their “Cash Receipts” only. I was working on the cash receipts when i found some errors. I immediately told the accountant to fix their receipts and deposits, to make sure that they do not overdeposit or underdeposit.. I didn’t want to look bossy so I told her in a nice manner.
I did my reports as I was instructed to do so. The director called me on the phone and asked me about my findings. I asked the cashier to make sure that nobody else will pick up
the other phone (cause the line is extended).
Here’s what I told the director:
The errors are not material as of the moment.
First: There are underdeposited and overdeposited amount. But in accounting, every centavo counts. Locating the missing centavo took me more time than what i have expected.
Lousy work of the accountant. She should’ve seen those errors during Bank Reconciliation.
It ruined my time frame.
Second: You have a loose system. Your accountant should not handle cash. It should be the cashier. It’s a conflict of interest. She could easily do magic in her books. Not being
judgemental, I’m just telling you the possibility.
Third: Work is redundant. The records are redundant.
Fourth: Anything immaterial becomes material when aggregated. Please fix your system. Especially segregation of duties when it comes to cash.
I never knew that scanning and checking their records with the permission of their head will be offensive on the accountant’s part. She, together with the school nurse, came into my office one morning and confronted me.
The accountant was offended by the mere fact that I recalculated their cash inflows… Take note, the coverage was just 5 months. She told me i disrespected her. And I was wondering, in what manner did i disrespect her or her record? Who among us disrespected who? They came in my office early in the morning just to tell me that I am DISRESPECTFUL.
I was there listening to their woes. The more they tried to tell me how disrespectful i was, the more i realized how stupid that confrontation was. So they literally spent the whole morning talking nonsense. Their sentiments in and out of my ears. The nurse, who was supposedly at the clinic treating patients was there, trying to sound like Ms. Know It All, spoke of “Auditing”.
As soon as they finished, I explained to them why I was there. I was there for work. I was tasked to do something, so i did what i have to do. No other reasons.
As for the nurse, I didn’t mean to be rude but I had to tell her not to “meddle with the business of people inside the office” and just stay “out of the picture” for she isn’t part of the accounting team. She’s friends with the accountant, but it’s nothing personal, it’s just part of the “JOB”.
I sure did raise my eyebrow upon hearing her say “Audit”. What does she know about Auditing? I bet she doesn’t even know the basic concept of auditing, not even the meaning.
If i were her, I would stay away from things beyond my expertise. I would save myself from looking like a dumb kid.
The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with an applicable financial reporting framework, which enhances the degree of confidence that intended users can place in the financial statements. An audit conducted in accordance with GAAS/GAAP and relevant ethical requirements enables the auditor to form that opinion.
What I did was clearly not Audit, it was merely a CASH INFLOW REPORT discrepancy checking and reporting.
If I meant them harm, I should have told the Director long ago how unprofessional his STAFF are.
I finished my report, forwarded it to the Director and left their institution. I have no hard feelings because I didn’t take what happened personally. Days after, the Director talked to me in person about my report and i explained to him well my findings. He asked me about the Staff’s attitude during working hours. I didn’t want to speak ill so I just told him to watch their CCTV and be the one to find out, besides, it wasn’t part of my job.
He insisted so I just told him the most obvious observations, people come in and out of the office, which, naturally should be open for “authorized personnel” only. The accountant acts more like a liaison officer, the nurse takes part on accounting issues, the registrar’s head is up in space, doing nothing but put her red lipstick on. Those were just my observations, supported by the CCTV. He thanked me and paid me for my services. And I promised myself never to work on their institution, again.
So back to the issue of the accountant. She was given a memo. It was not the first one she received. But she promised to do her job better. And she was given another chance.
Yeah, everybody deserves a second chance… But what she did that ruined her was unforgivable.
It’s just now that I realized why did she perceive me as disrespectful… Why that violent reaction from her…
There was embezzlement.
She misappropriated not more than 2 Million funds during her stay in the office. She was lucky enough that I wasn’t tasked to go over their disbursements. I could have found out those blank checks with no supporting vouchers. I could have pointed those over expenditures. I could have been the one who would’ve given her the red ticket to hell.
Now I fully understand why she is afraid of me. If i only knew, I would’ve given her the F word back then.
She got what she really deserved. Standing Ovation from Me. I wish her well… in Jail.