PET: Maam, nandito na po ang mga auditors.

LORE: Sige papasukin mo na sila. Thank you Pet.

A1: Good Morning Maam, Im Lodi.

A2: And Im Werpa. Were the auditors sent by Kalerki Firm.

(Tatayo si Lore para makipag- shakehands)

LORE: Good morning! Come in, sit. Thank you for granting my request. Anyway enough with the
formalities you can call me Lore. And please lang manonose bleed naman ako sainyo eh. Kalerki talaga
kayo eh.

A1: Yes Maam thats true we really are from Kalerki.

LORE: Ay oo pala. (Awkward laugh) But really, I dont mind if you speak in tagalog. I wont really mind at
all, so please magtagalog na kayo.

A2: Ok Maam, I mean Lore.

LORE: So ano nang balita?

A1: Sa radio at TV?

LORE: Kanta yan eh.

A1: Ow. Sorry Lore.

LORE: So ano na ang resulta ng inyong imbestigasyon? Ano nang dapat naming gawin? Akoy litong lito
na. Pinagkatiwalaan ko siya. Ito pala ang feeling ng isang UTI, umibig tapos iniwan.

A2: Lore, pinagnakawan po kayo hindi iniwan.

LORE: Ay, oo pala. So back to business tayo.

A1: So it is obvious that you have experienced an employee fraud, were in Betty, one of your employees
was caught to have been stealing thousands of money from your entity.

A2: To prevent this to happen once more and to avoid other complications, we have conducted a study
about your business and other things relating to it.

A1: Upon evaluating how you conduct your business: observing how you process transactions, how you
manage your inventories and the role of your employees in the entity.

LORE: Te (hindi matutuloy ang sasabihin)

A2: Also, we interviewed some of your employees to acquire necessary information to give you
recommendations so the issue you are facing right now wont be repeated.

LORE: Ok.

A1: Through the investigation we have had, we conclude that the fraudulent act was mainly a result of
having a weak internal control.
A2: You lack one of the most important features of an Internal Control, that is, segregation of duties.

A1: When we interviewed your employees, we have discovered that Betty, the one caught because of
stealing, is responsible for recording the sales transactions and at the same time, she holds the
payments and deposits the collections. And O, she is also a sales lady.

A2: These responsibilities given to her are intended to be done by different persons. Giving her these
roles, also gave her the opportunity to do such fraud. Recording of transactions should be assigned to
your Accountant. Also, to organize your records you can use Accounting Information System.

LORE: Ok. What other things you have discovered? (Hahawak sa ilong. Ichecheck kung may tumulo. XD)

A1: Well, we have observed that you only maintain small number of inventories but they are of high
values. Since these are the characteristic of your inventory, we suggest that you conduct physical count
often; once a week, or even daily.

A2: These things are what you need to look into in your company. So just to remind you, first you need
to divide the responsibilities of selling, recording, holding payments and depositing collections, to
different persons. Recording should be assigned to your accountant.

A1: Next, you need to shift from manual recording to using an Accounting Information System. And
Lastly Inventory count/ Physical count should be done often.

A2: So that would be all Lore.

LORE: Thank you so much for your recommendations Lodi and Werpa. Ill make sure that your
suggestions will be of used.

A1: Thank you so much too Lore.

LORE: Alam niyo Kalerki talaga kayo eh. Nag oo kayong magtagalog pero heto kayo at nagenglish pa rin.
Nakakalerki talaga.

(Actions na nagkukwentuhan)

Narrator: The recommendations have been followed by the company and so they have become more
successful. And that ends the story.