SIMBALA, Andi Te’a Mari O.

(2204965)

BS Accountancy – 2

LEGAL CASES INVOLVING CPAS

The article that I read is “Sole proprietress and her CPA charged with tax evasion for substantial
under declaration of sales”. The article is about ASLAM willfully attempting to evade or defeat tax and
deliberate failure to supply correct and accurate information in her ITR and VAT return for taxable years
2009 and 2010. This case stemmed from a preliminary investigation conducted by BIR on the alleged tax
evasion schemes being perpetrated by ASLAM.

This article made me realize that there are a lot of people who are willing to lose their integrity
for money. Instead of money being the slave to these people, they have become slaves to money – that
they are willing to give up the education and integrity that they have worked hard for.

The internal control weaknesses of the organization that left to the penetration of the fraud was
that there were no outside auditors that were hired by the organization that could easily find out the
fraud that was happening in the said organization. Another internal control weakness could possibly be
that those that they hired as CPAs didn’t have the kind of integrity that CPAs should have which is why
they have to do background checks or anything that could see whether the CPAs that they hired will
supply correct and accurate information or not.

I think that the entity could have not faced such problems if they had people working for them
that had integrity, and people who cannot be blinded by money. I also think that hiring multiple
accountants and auditors would have made this situation not even existing because there would always
be people who would have the integrity to supply what is correct and what is accurate even with the
temptation of money dangling in their faces.

This made me realize that we should always put our values first and that we shouldn’t get
blinded by money because it can dictate how people will see us.

References:

https://www.dof.gov.ph/sole-proprietress-and-her-cpa-charged-with-tax-evasion-for-substantial-
underdeclaration-of-sales/