A Case of Misapplied Accountability Principle

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A Case of Misapplied Accountability Principle
Earl Rommel Aniag, Director, Philippines, Member
Please give your comments on the following case:

Following corporate accountability principle, when there is fund misappropriation perpetrated by a liaison officer assigned in the Vehicle Registration department of an auto dealership company, up to what level should the financial accountability (i.e. who pays for the loss?) for the said financial loss of the company go up to? Up the level of the CFO only, or up to the level of the President?

Additional information:
1. The President is the wife of the owner of the Company, and thus owns the Company as well.
2. When the CFO joined the Company (10 months ago), he immediately worked towards converting the in-house vehicle registration processing service for customers, to an outsource service provider, thereby eliminating the need for the liaison officers.

3. Immediately upon converting to the new system (i. E outsourced the service), the CFO discovered the elaborate fund "kiting" activity of the l...Sign up



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