Washington Sycip Reaction Paper (Santos - 3A7)

Name: Paulo Emmanuel S.
Santos Date: November 12, 2021

Section: 3A7 Course: Accounting for Business
Combination
The COVID-19 global pandemic has posed several obstacles to society. The gravity of
issues that it presented to us was shockingly overwhelming. It has tested our strengths
and beliefs, pushed us to our limits, and undermined the system as a whole. Last year,
we faced multiple obstacles in most national sectors, including health, finance, education,
resource supply, order, and security. As the number of positive cases rose each day,
people started to feel worried and anxious, given the worsening of the situation. Even
though we are already experiencing signs of recovery, this does not mean anything
severe or wrong will cease to happen anytime soon. Even as we speak, we can still feel
some of the negative impacts of this pandemic.
Every single one of us must work to hasten the world's recovery from this worldwide
pandemic. This situation challenges us to use our knowledge and skills to help our
countries successfully battle the challenges presented by this situation. I feel bound to
contribute to this essential purpose as a college student and future professional. In our
field or industry, we must note that accountants and auditors have a huge role in the
nation's recovery. In the lecture given by Former COA Commissioner Heidi Mendoza, she
pointed out some key concepts that we should consider and ponder upon as we formulate
solutions and decisions. One of these critical concepts discussed was the fraud triangle.
Fraud has been one of the issues most frequently occurring during the pandemic.
Because of the continuous losses and rise of uncertainty, businesses feel more pressure
and burden to maintain stable operations and performance. These economic risks
experienced lead to increased chances of fraudulent schemes. Given Cressey's concept
of the fraud triangle (AGA – Fraud Triangle, n.d.), the global pandemic created
opportunities, presented pressures, and increased rationalizing to commit fraud. Fraud
does not only occur in the professional world. In the government, we are aware that fraud
and corruption also exist. Taking advantage of the problematic situation, many
government officials have committed horrific atrocities to further their agendas. Because
of these, challenges arise for accountants and auditors to ensure security and compliance
among these sectors. We must be completely aware of these issues so we can properly
assess the circumstances happening around us. Accountants and auditors should display
a combination of professional knowledge, technical skills, and ethical behavior to combat
fraud. If fraudulent activities continue, no meaningful economic growth and development
will take place in our nation. Our mission also directs us always to protect the interest of
the public. Thus, we must keep a keen eye for fraud and misconduct in this global
pandemic situation we are experiencing.
Another concept tackled in the lecture was the competencies that accountants and
auditors must possess and practice unendingly. Accountability was one of the
competencies stressed in the talk. In the financial world, this competency implies that a
person or department is held responsible for executing a given duty or function (University
of Dakota, 2020). In today's world, where fraud exists, accountants and auditors must be
firm in performing their duties diligently. Auditors must detect any traces of material
misstatements and instances of fraud in their client's financial statements. Accountants
must also avoid carelessness in performing their duties.
Another competency highlighted was integrity. Based on one of the policies imposed by
the Organization for Economic Co-operation and Development last year (Public Integrity
for an Effective COVID-19 Response and Recovery, 2020), integrity is vital for an effective
COVID-19 response and recovery. Accountants must exercise honesty to gain the trust
of their clients in managing their highly confidential financial information. On the other
hand, auditors follow this competency to make judgments in their engagements properly.
Auditors must not be influenced by their interests or by others in formulating these
judgments. These measures will ensure trust among the auditors and their respective
clients. These two competencies are vital in helping accountants and auditors to focus on
favoring the public's interests and carrying out their ethical responsibilities in society.
Not only accountants and auditors face these challenges by society due to the pandemic.
Former COA Commissioner Heidi Mendoza also challenges the government to stop
corruption and fraud during these difficult times. Going back to the concept of the fraud
triangle, the three elements (opportunity, pressure, and rationalization) are present in the
government. Because of these elements, government officials can perpetuate fraudulent
activities without the knowledge of the public. In these situations, the government must
exercise the competency of accountability and integrity as well. Government officials must
be accountable and responsible for their wrong behavior, which they must address and
resolve. Leaders have a sworn duty to protect the public's interests and serve the people
with the power vested upon them. People elect these officials because they want the
country to be in better condition. And as elected officials, they are responsible for utilizing
the nation's resources to implement projects that will benefit society. Integrity must also
be present in these officials. This pandemic must serve as a wake-up call for officials to
strengthen their response to these calamities and eliminate corruption in the government.
As an accounting student, I feel challenged to hone my knowledge, skills, and ethical
behavior, especially during these difficult times. These skills and competencies will be
helpful not only in my professional life but also in my daily life. Any malpractices exercised
should not be tolerated. Instead, I should focus on studying well and improving my ethical
behavior. This pandemic creates an opportunity for all of us to rise above all challenges
of these uncertain times. As an example, it is essential to practice honesty at all times.
When taking tests, students feel pressured to achieve high grades. But it is important not
to tolerate cheating always. By studying well and focusing on achieving our goals, we can
find the motivation to strive harder for a better future despite the adverse situation arising.
Another example is the right attitude towards the current national elections. We should
never forget to know the facts and base our decision on verified information. We must
exercise our power to vote wisely. We are about to elect the future leaders of our country.
Let us be responsible for this big decision we will make. This pandemic brought about
many difficult situations in our lives. But we must be aware also that we can always get
something positive from all of this negativity. Nothing is wrong with being hopeful about a
better and brighter future. We should always be optimistic.
And along with that positive mentality, we should also consider doing the right actions like
studying well and voting wisely. As Brazil President Jair Bolsonaro said after testing
positive for COVID in July 2020 (Reuters Staff, 2020), "This is the fact: the virus exists.
We must address it, but as men, not as children. We will meet the virus with reality. That's
life. We will all die one day."
References:
AGA - Fraud Triangle. (n.d.). Association of Government Accountants.
https://www.agacgfm.org/Intergov/Fraud-Prevention/Fraud-Awareness-
Mitigation/Fraud-Triangle.aspx
Public integrity for an effective COVID-19 response and recovery. (2020, April 19). OECD.
https://www.oecd.org/coronavirus/policy-responses/public-integrity-for-an-
effective-covid-19-response-and-recovery-a5c35d8c/
Reuters Staff. (2020, September 29). Selected quotes as COVID-19 pandemic reaches
new milestone. U.S. https://www.reuters.com/article/health-coronavirus-quotes-
idINKBN26K0E4
University of North Dakota. (2020, May 19). Importance of Personal Accountability and
Ethics in Accounting. University of North Dakota Online.
https://onlinedegrees.und.edu/blog/importance-of-personal-accountability-and-
ethics-in-
accounting/#:%7E:text=Accountability%20in%20the%20financial%20arena,perfor
mance%20of%20a%20specific%20function.&text=An%20auditor%20reviewing%
20a%20company’s,misstatements%20or%20instances%20of%20fraud.

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Name: Paulo Emmanuel S.

Santos Date: November 12, 2021

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