Current Events > Wow, just came across MASSIVE fraud at my new job.

(+) Yeah! (+)

Today is the start of my second week at my new job (jr staff accountant for a midsized company).

My first week was mostly onboarding, training, etc so I didnt get a chance to dig into the systems side until today. Obviously with COVID-19 I've had to do a lot of remote training etc but was still excited to get going.

This morning I logged in and started playing around in the system and familiarizing myself. It didnt take long before I noticed something was very wrong.

I began looking at the day to day transactions, the individual journal entries, and noticed something very strange - the transactions were listed twice.

I thought this must be an error, a one off thing, but sure enough when I checked every journal entry I found the same thing. If the company purchased something, theyd credit one account, but then at the same they would debit another in that same transaction. This went on for millions upon millions of dollars worth of transactions.

I immediately freaked out when i saw this, obviously. I got up from my desk, phoned my boss, and told him I had to log off ASAP because I was feeling very sick. I paced around the room for a bit and then I called the companys anonymous misconduct line and reported what I had found.

Now Im calmed down a bit and I dont know wtf to do. Im debating writing an email to the CFO but Im not sure how complicit he is. Obviously Im going to quit tomorrow (dont want to get wrapped up in this and have my career ruined).

Anyone ever been in a similar situation?

---

i like bananas

---

lmfao I remember this

---

But it isn't you, I hope they can find out who it is.

---

NinjaBreakfast posted...

Anyone ever been in a similar situation?

right now actuakky

---

lmao

---

Never get tired of this
---

har har, double entry accounting, so funny

---

NinjaBreakfast posted...

Anyone ever been in a similar situation?

You'd be surprised, but yes.

My first week was mostly onboarding, training, etc so I didn't get a chance to dig into the systems side until later on.

One morning I logged in and started playing around in the system and familiarizing myself. It didn't take long before I noticed something was very wrong.

I began looking at the day to day transactions, the individual journal entries, and noticed something very strange - the transactions were listed twice.

I thought this must be an error, a one off thing, but sure enough when I checked every journal entry I found the same thing. If the company purchased something, theyd credit one account, but then at the same they would debit another in that same transaction. This went on for millions upon millions of dollars worth of transactions.

I immediately freaked out when i saw this, obviously. I got up from my desk, phoned my boss, and told him I had to log off ASAP because I was feeling very sick. I paced around the room for a bit and then I called the companys anonymous misconduct line and reported what I had found.

Eventually I calmed down a bit, but I didn't know wtf to do. I debated writing an email to the CFO but I was not sure how complicit he was. Obviously I had to quit (didn't want to get wrapped up in that and have my career ruined).
---

Hairistotle posted...

no hate, but where's the comedy/fun in this?

Probably a copypasta.

Too bad because i want to know what happens next.

---

Alright, maybe I am just pissy because I just finished a two hour intermediate financial accounting final.


---

Hairistotle posted...

no hate, but where's the comedy/fun in this?

If you've ever taken an accounting class, you'll get it. If not

all transactions are logged into a balance sheet with a credit from 1 account and a debit from another account


---

FLAMING EVIL HOMER posted...

Probably a copypasta.

Too bad because i want to know what happens next.

It is a copypasta. He tried to post it a few minutes earlier but I think accidentally pasted something else

---

lol i remember reading this a while ago. i think he was serious then? haha

btw, how many accountants are there here? I got my cpa passing grade march 18th, but haven't even been able to go out and celebrate with friends and family )=

---

NeonOctopus posted...

If you've ever taken an accounting class, you'll get it. If not

all transactions are logged into a balance sheet with a credit from 1 account and a debit from another account

So it's an internal transaction? I don't get why they would need to log it that way. Is it just listed as their own account that they're debiting and the payee that they're crediting? just logging that we paid this company and these are the two accounts involved?

---

I always wonder if this was a real thing or a joke.

---

berlyman101 posted...

So it's an internal transaction? I don't get why they would need to log it that way. Is it just listed as their own account that they're debiting and the payee that they're crediting? just logging that we paid this company and these are the two accounts involved?

No. Every transaction must balance, aka the debits in a transaction must equal the credits. What you are thinking of is a ledger, aka a customer ledger, which flows through to accounts payable/receivable when combined with the other individual ledgers.

---

krazychao5 posted...

No. Every transaction must balance, aka the debits in a transaction must equal the credits. What you are thinking of is a ledger, aka a customer ledger, which flows through to accounts payable/receivable when combined with the other individual ledgers.

I believe you but I don't get it, nor do I understand why anyone could hilariously misread that as fraud. unless they were inflating sales like Ryan did in The Office.

---

Ah, so they're pulling the "Double Books" con.

---

berlyman101 posted...

I believe you but I don't get it, nor do I understand why anyone could hilariously misread that as fraud. unless they were inflating sales like Ryan did in The Office.

Because it's a joke. No one who took an accounting class, or would be hired into a position that includes accounting, would ever think of that as a fraud.

---

malenz posted...

lmfao I remember this

---

berlyman101 posted...

krazychao5 posted...

No. Every transaction must balance, aka the debits in a transaction must equal the credits. What you are thinking of is a ledger, aka a customer ledger, which flows through to accounts payable/receivable when combined with the other individual ledgers.

I believe you but I don't get it, nor do I understand why anyone could hilariously misread that as fraud. unless they were inflating sales like Ryan did in The Office.

This is next level having-the-joke-explained-to-you
---

I work for a bank that does this. Am I going to jail?

---

UnholyMudcrab posted...

This is next level having-the-joke-explained-to-you

https://bench.co/blog/bookkeeping/debits-credits/

is this different from what I said? I'm overthinking it now.

---

bump

---

malenz posted...

lmfao I remember this

---

I'll take double entry accounting for 200 Alex.
---