Cacoethes Scribendi

Write to satisfy the urge to write

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New Railway System

I am no fan of Vice-President Nolid De Castro. However, big credit is due him for being firm in front of the squatters who impedes the progress of this country. Mr. Vice-President shows that he also has a strong political will when it comes to making sure that we are going to have new railway system. This will surely improve the mode of transportation of so many people.

I saw on TV that one squatter said that the vice-president has no “malasakit” or concern/sympathy for their pligths. I would say that they are afforded sympathy and concern which they do not deserve. They are squatters and illegal occupants of that public land. They should not be living in that land and the mere occupancy of that land is a crime. Those squatters are criminal and they want sympathy. They should not be benefitted by their unlawful act.

I sympathize with the plight of the urban poor, but if they are given housing somewhere, then they should learn how to be grateful that the government did not jail them, but instead, extended a compassionate heart to them.

Those squatters-criminals should not be allowed to impede the progress of this country. In so many progressive countries in the world, a common characteristic exist–a dependable railway system to facilitate transporation.


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Accounting Scandal

The US has reported large and numerous accounting scandals which rocked the market. The Philippines have yet to report an accounting scandal which have impacted the stock market as to make SEC be really concerned with accounting fraud.

I have worked as accounting manager, external auditor, internal auditor, and tax auditor at one point in my working life. I would say that too many frauds happen which are not reported. As an auditor, it is our duty not to say that an occurrence is a fraud when we have not done so extensive work on it. Sometimes, the company’s organization makes actual fraud difficult to detect, as when there is lack of segregation of duties, lack of documentation, and presence of authorization from management.

In one case, two top executives were given a hefty pay without the knowledge of the board members by making it appear that the pay is for a valid marketing expense. As the accountant, I told my boss that I need the documents to support the payment, but I was told that it is not needed. I prepared financial reports for the board meeting showing the supposedly marketing expense, but was told to revise it to show summary figures for each line item of expense.  I am at lost on how to proceed with this management practice. After 3 months of working for them, I resigned. My 2 bosses then were not anymore connected with that company. I heard they were replaced when they cannot get a client.

In one of my works, we explicitly told the chairman that there is no fraud. My boss did not want us to report the badges or indicias of fraud like lack of segregation of duties. Instead, we advised the management to segregation the conflicting duties to determine if fraud exist. Indeed, after the duties of one section was segregated, kiting was found out.

As financial auditor, I also  noted several accounting practices which are not in accordance with standards. We let them pass when the top management promised the partner in-charge that they will change the method by next accounting year. If that year, the correct method is followed, the net loss figure would be 30% lower. That company is now in dire need of capitalization.