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Being a hero in real situation

Naveen Singh (Practice) (76 Points)

03 February 2013  

 

We watch the movie so much . In every movie a hero fights with their enemies who are evil and do injustice in our society . But in real, the situation could be differ from the movie. I’m sharing one of the story which happened with me where I did not know what do?

It was January 2007. I started my training. There  was first assignment given to me for statutory audit of a big company. The company was the biggest client of my firm among the other clients. I and my team went for the audit. In the beginning they were asking me too many questions like, Do you know about the audit?,Have you ever done the audit?, You can not do the audit. I asked to my employer for dealing with  this situation. He told me all the procedure.

The next day when I went to the client office. I called to the cashier and demand for the cash book. He said, “ Sir books are not ready”. I said, “ bring the books right now. He brought the books and all the voucher’s files. I started my audit. I observed each and every transaction carefully. I got that cash was short by 11 lacs rupees and so many fake vouchers were attached in the file. I called to the accountant and said to him, “What is this where is the remaining amount. He was shocked and unanswered. I told him again then he started  to pretend that these were expenses and vouchers has been misplaced. I said, “If you will not produce all the vouchers and disclosure I will mention in my report that there is an embezzlement in cash. He said, “Ok sir”.

 The 3rd day of my audit. I went client’s office took my morning tea. I called to accountant from the first floor where  he used to work he said that he was coming. I waited around 1 an hour and called again but he didn’t come. I went down and asked for him to come up. He came slowly towards me and said with whispering, “ Sir I am very sorry sir. I said, “ where is the vouchers. He said, “sorry sir I took that money for my personal purpose for urgent need of money. Please sir don’t report this otherwise the company will expel me from the office . I have been working for 9 years. My reputation will finish so please don’t report I have two children. If I will terminate from here no will give me a job now.

I was silent when he was speaking. I did not get  understand what to do. I was just 18 years old and very much younger for giving right decision. After a few minutes I answered, “You have to deposit all the remaining amount what you have taken for your personal use in two days. He said tearing eyes , “ definitely sir  I will” .

After two days I audited the accounts of cash balance. The accountant had deposited the mismatched account. I gave him a clean chit. But still a think that the decision which was taken by me was right or wrong .

 


 14 Replies

@VaibhavJ (Believe!! Live your dreams!)   (33496 Points)
Replied 03 February 2013

Hey Navin...

 

1st of all thanks for sharing your experience.. This will help you ither to take decision if they come across such situation...

 

As far as decision taken by you is judgemental.. This may vary individual to individual... It depends upon many things.. Here i dont see an integrity from accountant...Even though he was in need of money he would have taken loan from company, using official money for personal use should not in any way barred him from punishing..

 

Lets here what others have to say..

 

Thanks!! 

1 Like

CA Ashish Pathak (Employed at Cipla Ltd.) (2779 Points)
Replied 03 February 2013

Of course You did the right. You would have been wrong only if you had taken bribe or some favour from the cashier but you didn't. I can understand that you were quite young and inexperienced (it being your 1st audit assignment) to decide what to do in such critical situation. Yet, you asked the cashier to deposit the embezzeled amount and the best thing is that he did deposit it. The poor cashier might have lost his job, if you had complained about it to the management. All's well that ends well. So cheers!
1 Like

jitendra (article trrainning) (105 Points)
Replied 03 February 2013

Hillarious haha ........What a dummy story.
1 Like

Naveen Singh (Practice) (76 Points)
Replied 03 February 2013

Thank you , Jitender I am not saying it is dummy story or ture story ....

Just, I shared a momment ,,

You did not even know the history the articles what they use to do ..

I'll just enjoy article as you things..

1 Like

CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 03 February 2013

hmmmmmmmm.......... No answer..! Think what to do if he was not depositing Money in next 2 days! There is no space for emotion in our profession!

1 Like

@VaibhavJ (Believe!! Live your dreams!)   (33496 Points)
Replied 03 February 2013

Originally posted by : ASHISH PATHAK
Of course You did the right. You would have been wrong only if you had taken bribe or some favour from the cashier but you didn't. I can understand that you were quite young and inexperienced (it being your 1st audit assignment) to decide what to do in such critical situation. Yet, you asked the cashier to deposit the embezzeled amount and the best thing is that he did deposit it. The poor cashier might have lost his job, if you had complained about it to the management. All's well that ends well. So cheers!

Though he gave happy ending, but I m sorry to say that as a professional he failed & didnt stick to ethics of profession..

 

We should learn to balance & distinguish personal life & profession while doing our work.

CA Bharat Hirde (SAP Functional Consultant)   (134 Points)
Replied 04 February 2013

Well i heard a similar story from one of my ex colleagues during his articleship. He caught a cashier of a banker doing embezzlement of cash. Once he was confronted, he drank fynael from the banks bathroom and commited suicide. So you don't know how the person would react in such a situation. I think what you did in that situation was correct. It was a good decision to wait for 2 days. Even though professionally it may seem unethical.

ka@meeni (a learner) (272 Points)
Replied 04 February 2013

Originally posted by : CA Bharat Hirde

Well i heard a similar story from one of my ex colleagues during his articleship. He caught a cashier of a banker doing embezzlement of cash. Once he was confronted, he drank fynael from the banks bathroom and commited suicide. So you don't know how the person would react in such a situation. I think what you did in that situation was correct. It was a good decision to wait for 2 days. Even though professionally it may seem unethical.

as a professionaly may be unethical!

we are alwz separeted personal  feelings n professional ethics n logics bt still we cnt separated both things frm  human being tats y after a long ago navin shares his real lyf trainee situation.so many tym we faces such situations.
 

1 Like

CA Suresh Choudhary (Practicing Chartered Accountant)   (2949 Points)
Replied 04 February 2013

Hi Navin...   1st of all thanks for sharing your personal experience..

In my view the decision taken by you was out of your emotions, which is quite obvious when you are very young and new to this profession. But... Here i dont see an integrity from accountant...Even though he was in need of money he would have taken loan from company, using official money for personal use is totally wrong. What would have been the sitution if you would have not raised the query? I thing at that time you should have reported this to your principle so he could have taken the note of it. Because what happen if a person escape from such activity what is the guarantee that he will not misuse his right in future....Sorry to say but on professional fronts the decision was wrong.

 


(Guest)

Hai Naveen ji..............

 

Thanx 4 Sharing ur experience wid us................

 

I jst wnt to say dat ki as every coin have two sides.....

 

similarly to see d things or situation r also same..............

 

Dat tym whtver u feel u hv done dat...........  

 

so dnt be confuse between right or wrong..........

 

 

 

2 Like

Milind M. Kulkarni (Practicing CA) (542 Points)
Replied 05 February 2013

I agree with comments given by CA Suresh Choudhary. As a junior most team member (that too, just 18 years old), you are not supposed to take decisions, but report such observations immediately to your seniors. We do not know if you ever reported this to your seniors and how many such hidden frauds lied in that company one of which, was discovered by you. Morale of this should be, don't think you are the sole decision makers. Immediately report this to your supevisors. They know the client well and can look at it from diverse angles and can devise the audit process accordingly.

1 Like

sathianarayanan.t (chartered accountant) (267 Points)
Replied 05 February 2013

Dear Naveen,

 

According to me what you did is wrong.  It is your duty to report it to your boss and he has to decide whether to report it to the company or not.  I am sorry to say that you have failed as an audit assistant and your age factor can not support you.  It will give a bad impression to your employer.   When you do the audit don't be sentimental.  The accountant may misappropriate the money later.  By doing a wrong act, you can not correct the wrong act done earlier.  If the same mistake find out by some other person in your team at the later stage or find out by some other auditors, you can not save your skin by narrating this incident.  Careful in future.

1 Like

Naveen Singh (Practice) (76 Points)
Replied 05 February 2013

Thanks to all who invested his precious time in this article,

my articleship has  over and I will not get any chance to rectify my mistake.

but may be in practice I will be aware of it. 

 

80% anwer is unfavourable to this article and I am also agree with it.

ali (Student CA IPC / IPCC) (224 Points)
Replied 11 February 2013

Originally posted by : Naveen Singh

Thanks to all who invested his precious time in this article,

my articleship has  over and I will not get any chance to rectify my mistake.

but may be in practice I will be aware of it. 

 

80% anwer is unfavourable to this article and I am also agree with it.

 

keep sharingcool


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