Modify a report to "look better" 4

[dgillz]

I have a prospect that wants me to modify an A/R report to ignore credit memos, which will of course increase A/R. This is simple to do, but the prospect let it slip that he was doing this so he could hand a larger AR aging to his bank monthly.

He has an assets based line of credit, and he can borrow up to 80% of his AR. So if my modification increases his AR by $50k, he can then go out and borrow $40K.

So to bottom line it, I do not want to be a party to providing misleading information to his bank. The sad thing is that I would normally never know the logic behind a report modification, but he let it slip, and I am very tempted to pass altogether.

Can anyone think of a way for me to ethically take this project?

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"If you have a big enough dictionary, just about everything is a word"
--Dave Barry

 

[SantaMufasa]

You don't want to touch the project, and here's why:

He is coming to you (or someone) so that he retains Plausible Deniability -- "I didn't produce these results...dgillz produced them."

In this way, if the bank ever demanded an audit, and his books showed different results, then you become the culprit...a potentially liable party!

Question: If all he wants you to do is to 'Modify a report to "look better",' then why can he not do that himself?

Answer: He is attempting to dodge responsibility for the data and lay responsibility/accountability off on some pigeon...You.

No one should be so desperate for work that they place themselves in a legally/ethically questionable situation...Remember, this is the Information Technology Ethics in the Workplace forum.

Mufasa
(aka Dave of Sandy, Utah, USA)
[I provide low-cost, remote Database Administration services: www.dasages.com]

 

[dgillz]

Dave,

He needs me - or someone - because it is not in his skillset to modify the report.

I even though about a written disclaimer that the report should never be used for purposes of a asset-based line of credit, but I know that is why he wants it. That being the case I see no ethical way to continue. I don't need the money that bad.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"If you have a big enough dictionary, just about everything is a word"
--Dave Barry

 

[CajunCenturion]

I wouldn't do it.

--------------
Good Luck
To get the most from your Tek-Tips experience, please read
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As a circle of light increases so does the circumference of darkness around it. - Albert Einstein

 

[KornGeek]

No one should be so desperate for work that they place themselves in a legally/ethically questionable situation...

Yet, sadly, many of us (myself included) have been there. I once interviewed at a company that engages in a legal practice that is regarded by many as a scam. I justified it because I would be doing an honest day's work (internal IT) for an honest day's pay. Because I was desperate to pay my mortgage and put food on the table, I decided to overlook how they got much of their income. Fortunately, a better offer came along and I didn't have to take the job.

dgillz,
Because you say that you don't need the work that bad, I would politely excuse myself from the project, explaining why you are uncomfortable with it. You might also want to inform this person about the concept of GAAP (Generally Accepted Accounting Principles), and some examples of companies that used "creative" accounting and resulted in criminal charges for those involved. Such practices as intentionally overbilling then issuing credits to correct the issue would drastically inflate in AR, and if I were the bank manager, I would consider this fraud.

If you did need the work bad enough to place yourself in an ethically ambiguous situation, I would suggest doing something such as modifying the title of the report and/or adding a footnote to state that the report excludes credit memos. Above all else, CYA.

 

[LadySlinger]

I take it you are free-lance? Then just say no if you don't need the project.

 

[dgillz]

Yeah I have pretty much already decided to pass on this project.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"If you have a big enough dictionary, just about everything is a word"
--Dave Barry

 

[philhege]

He needs me - or someone - because it is not in his skillset to modify the report.

Now there's a case of cluelessness keeping someone out of trouble.

You can be sure he'll find someone as sleazy as he to do it for him. Good thing it's not you.

Man, this thread is practically a defining moment for this forum! Great job, all.

Phil Hegedusich
Senior Programmer/Analyst
IIMAK

http://www.iimak.com

-----------
Pity the insomniac dyslexic agnostic. He stays up all night, wondering if there really is a dog.

 

[mattKnight]

He is coming to you (or someone) so that he retains Plausible Deniability -- "I didn't produce these results...dgillz produced them."

In this way, if the bank ever demanded an audit, and his books showed different results, then you become the culprit...a potentially liable party!

Whilst I don't disagree. How does plausible deniability work if you have a written (or other provable) change request / specification etc?










Take Care

Matt
If at first you don't succeed, skydiving is not for you.

 

[dgillz]

I could put something in my engagement contract restricting the use of the report if it is to be used for any unethical purpose. That would surely take me off the hook legally and liaility wise.

However I am going to pass anyway, as I know what he is up to.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"If you have a big enough dictionary, just about everything is a word"
--Dave Barry

 

[LNBruno]

I could put something in my engagement contract restricting the use of the report if it is to be used for any unethical purpose. That would surely take me off the hook legally and liaility wise.

I wouldn't bet the house on that without consulting an attorney. And even then, I wouldn't be comfortable with it.

Just say no, IMHO.

< M!ke >
I am not a hamster and life is not a wheel.

 

[SQLSister]

I would consider passing on any future work from this person. You have no idea what kind of legal trouble he could create for you. I've noticed that people who have no trouble with requesting one illegal thing are not concerned about any other pesky laws either.

"NOTHING is more important in a database than integrity." ESquared

 

[dgillz]

Update: I officially turned down this project this morning, for all the reasons discussed in this thread. I did not give a reason, I just declined to bid.

I then got an email asking why I would not bid, and I cited "ethical concerns about providing misleading data to a financial institution". No elaboration.

So far I have not heard back. If I do I will update the thread.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"If you have a big enough dictionary, just about everything is a word"
--Dave Barry

 

[LNBruno]

Nicely done. And I would be very surprised if you get a reply back.

< M!ke >
Your right to an opinion does not obligate me to take you seriously.
- Winston Churchill

 

[philhege]

A star for your high standards, sir. I salute you.

I imagine any reply from the client would be the written equivalent of a stammer.

 

[kmcferrin]

I could put something in my engagement contract restricting the use of the report if it is to be used for any unethical purpose. That would surely take me off the hook legally and liaility wise.{/quote]

I know that you already passed on this project, but I just wanted to say that this sort of disclaimer isn't likely to help you at all. All it does is telegraph that you know that what you were doing was questionable. And all he would have to do is remove that single statement and nobody would know that you had ever issued it.

The most important thing to remember is an example from the Enron case. Yes, the Enron people got in a lot of hot water. But the people at Arthur Anderson (who did the auditing and looked the other way) also got in a lot of hot water. Anyone else in a similar situation would do well to look elsewhere.

 

[monkeylizard]

Just wanted to add a reminder that modifying a report to be non-compliant with GAAP is not wrong in and of itself. It's called Management Accounting and there are very few (if any) standards. MA allows a company to make reports for internal use in managing operations. They can show or exclude anything that management wants. They are NEVER intended to be used as accounting reports by external parties.

dgillz did the right thing. Having the knowledge that the change was intended for external use and fraud changed the game. Good decision.

Monkeylizard
Sometimes just a few hours of trial and error debugging can save minutes of reading manuals.

 

[gbaughma]

dgillz:

Good job. The situation can be summed up in one word.

Fraud.

You did the right thing.



Just my 2¢
-Cole's Law: Shredded cabbage

--Greg

http://parallel.tzo.com