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Assignment #3
ACT 181 BAGOBUSX
What are the controls, you would have recommended as an internal auditor in this
situation to detect such malpractice?
Just like a normal government issue that is happening today, the overpricing of
some purchased goods are coming from an idea of an intelligent greedy soul. Fraud can
happen in many ways, the genius the fraudster, the more complex the crime may be. The
shipyard department did their very best in doing their jobs to conceal their illegal acts.
Behind that almost perfect project with the shipping company, little did Taki know that
the department managers of the shipyard conducted some black magic on their bill just to
make all of the project costs be overpriced unconsciously. The management of the
shipyard let that happen because they’re so blinded with the big figures of that project
and they try to make money with it while doing their job smoothly. In short, both the
shipyard and shipping department have that self-interest threat because they want to share
the profits from the multi-million dollar project.
What could have been the reason why the shipyard and the shipping department had little
to no outrage of discovering?
On the first time of reading this case, I suspected that collusion happened between
the department and the company itself. The main reasons why the shipping department
lacks outrage regarding that problem are the threats that can affect the company’s
reputation if this issue will be exposed to the public. Upon finding out the anomaly, if the
shipping company has high ethical principles, they can expose the shipyard department
quickly because of their bad deeds. But the self-interest and advocacy threat from that
multi-million dollar project conquered the ethical standing of Taki’s employer. As to
what I mentioned earlier, the both departments have the self-interest threat because of
their own interests to the huge profits they will receive. The second threat is the
'advocacy' one because the great project can sway the whole firm to the point that their
objectivity can be compromised in just one snap. That’s why without thinking carefully,
the shipping company almost ignored that kind of corruption because if they will unveil
this issue, their major client will pull-out their deal and worst, they will pay damages for
the suit filed by the client eventually.
If I were Taki, the first time I notice that the shipping department had little no
reaction about what happened to the overpriced billing of the shipyard department, I will
resign to that company. The company cannot let me to 'sign-off' the project which
addends to the reasons why I must withdraw from this company as early as possible.
Even I am not a business major student, it is normal to know that there are imperfections
to every company, and one of it is some ethical dilemmas that is difficult to avoid
especially there’s money that is involved. But as I earned my degree with high efforts, I
will not let a chance of ruining my reputation as an engineer by just letting that corruption
happen. As I dug into the web, I found out that a whistleblower has this protection by the
law so I will not hesitate to be one after I withdraw from that company. I am certain that
the hotlines that I will contact will practice a very high confidentiality regarding my
profile against the public. My protection of being a whistleblower includes on helping me
to practice my integrity until the end of the investigation. Every profession have its code
of ethics, hence it must not end when the oath-taking session is done. Thus, it must be
practiced no matter how huge the money is involve, as long as you’re with Him when
you get that degree ‘til you get that dream job of yours, you will be in a safe place
someday being a model to everyone.