INTRODUCTION TO AIS databases which allows the data that is in the

AIS to be manipulated and retrieved for

Accounting Information System (AIS) reporting purposes.
 is a set of software, hardware,
procedures, and people that are
designed to collect,
record, process, store, and report financial
data.

What is the purpose of AIS?

 The purpose of an AIS is to provide

accurate and timely financial information
to internal and external stakeholders to
support
decision-making.
 AISs are used by businesses of all sizes
to automate financial processes, reduce
the risk of errors, and provide accurate
and
timely financial information to
stakeholders. The information provided by
an AIS is used for decision-making,
financial analysis, and compliance with
legal and regulatory requirements.
 An AIS can be customized to meet the
specific needs of a business and can
be integrated with other systems,
such as
Enterprise Resource Planning (ERP)
systems, to provide a comprehensive view
of the organization's financial data.

PRIMARY COMPONENTS OF AIS:

1.) INDIVIDUALS OR PEOPLE

 Also called as "AIS People", they are
considered as the system user. Various
professionals in an organization can make
use of an AIS including:

 Accountants, Auditors and Bookkeepers

 Consultants and Specialists

 CFO (Chief Financial Officer)

 Business Analysts and Project

Coordinators

 Managers

2.) PROCEDURE AND INSTRUCTIONS

 This includes all the methods used for
collecting, storing, retrieving and
processing data. The procedures and
instructions will be coded into the AIS
software and a series of documentation
and proper training will be "embedded"
into employees.
 The procedures and instructions must
be followed consistently in order to be
effective.

Manual Vs. Automated

Internal Vs. External

3.) DATA
 An AIS must have a database structure
to store information, an example for
this is called an SQL or a structured
query language.

SQL is a computer language commonly used for

  The data contained in an AIS is all of system, as well as a plan for the disposal of
the financial information pertinent to broken and outdated
the organization's business practices.
Any
business data that impacts the
company's finances should go into an
AIS. Depending on the nature of the
business.

The following data can be included in an

AIS:

 Sales analysis reports (including Sales

orders and Customer billing statements)
 Purchase Requisitions
 Vendor Invoices
 Check registers
 General Ledgers
 Inventory Data
 Payroll information (including
timekeeping)
 Tax information

Is there any form of data that cannot be

found/included in an AIS?
Yes, there is. A few examples can include
memos, correspondence, presentation and
company manuals. These documents might have
a
tangential relationships to the company's
finances, but, excluding the standard footnotes,
they are not really part of the company's
financial record- keeping.

4.) SOFTWARE
 Before the existence of computers and
how this industry has evolved, an AIS was
manual and a paper-based system, but
today, with the developments made,
most companies are using computer
software as the basis of the Accounting
Information System.
 The software components of an AIS is
the computer programs used to store,
retrieve, process, and analyze the
company's
financial data.

Examples of AIS Software used by different

organizations:
 Intuit's Quickbooks
 Sage's Sage 50 Accounting
 SAP Business One
 Microsoft Dynamics GP
 Oracle's PeopleSoft

5.) INFORMATION TECHNOLOGY

INFRASTRUCTURE
Known as the hardware used to operate the
accounting information system including:

 Computers
 Mobile Devices
 Servers and Routers
 Printers
 Storage Media
 Back-up power supply

Factors need to consider: Speed, Storage

Capability, Upgrading And Expansion

A good AIS should also include a plan for

maintaining, servicing, replacing, and
upgrading components of the hardware
hardware, so that sensitive data is completely investigate any discrepancy before it's too
destroyed. late. You can save millions of dollars by
6.) INTERNAL CONTROLS
 Internal controls are the mechanisms,
rules and procedures implemented by a
company to ensure the integrity of
financial and accounting information,
promote
accountability and prevent fraud.
 The internal controls of an AIS are
the security measures it contains to
protect sensitive data.

Why is there a need for the presence of an

Internal Control?
 An AIS contains confidential information
belonging not just to the company but
also to its employees and customers
such as:
- Social Security numbers
- Salary and Personnel Information
- Banking and Credit Card
information
- Customer-related Data
- Company Financial Reports

Financial information of supplier and vendors

ACCOUNTING INFORMATION SYSTEM
FUNCTIONS:

1.) Collect and process information

 This phase involves accumulation of
data from areas such as cash sales,
cash
purchases, receivables, payables, payroll,
invoices and more. (dr and cr) d.i....

2.) Generate reports for Management

 Decision making procedures of the
individuals from the management such as
sales and production managers, financial
analyst and other department heads make
use of generate reports from an AIS to
arrive at a final settlement.

3.) Interconnect multiple departments

 An AIS can create a common dashboard
for multiple departments that are
interrelated. For example, the sales
department can upload their sales budget
for the inventory team. Then they can
take steps to stock products or purchase
materials. Then the respective
department will create invoices. This
information will be available to any
department that needs it.

4.) Have control over the circulation of

data
 An AIS helps an organization define
who gets how much access to the
company's
financial data. Hence, getting a complete
internal control over the data available
across the AIS.

5.) Detect fraudulent activities

 Since an AIS keeps track of all the
financial transactions of a company, you
can easily detect any unauthorized and
unnatural flow of money. This allows
businesses to
 investing in a quality accounting
information system.

ADVANTAGES OF ACCOUNTING
INFORMATION SYSTEM
1.) Automated and streamlined work process
2.) Efficient collection and storage of
financial information
3.) Intelligible data to be used in
decision- making
4.) Internal control over all
accounting information
5.) Better communication
among interconnected
teams
6.) Improved customer experience
7.) Prevention of loss of sensitive information

LIMITATIONS AND DISADVANTAGES OF

ACCOUNTING INFORMATION SYSTEM:
1.) Cost of installment and training
2.) Obsoletion
3.) Manual Intervention
4.) Confidentiality
5.) Virus Attack

AIS ARCHITECTURE AND INFRASTRUCTURE

AIS ARCHITECTURE
 AIS architecture refers to the structure
and arrangement of components within
an
Accounting Information System (AIS),
which includes data input, processing,
storage, and output mechanisms
designed to support financial data
management and reporting within an
organization.

Components of AIS Architecture

Data Input is the process of capturing and

entering transactional data into the AIS.

Data Storage involves storing transactional

data in databases or other storage systems.

Data Processing encompasses various

operations performed on transactional data to
generate meaningful information,

Information Output involves presenting

processed data in a meaningful format for
decision-making purposes.

DATA INPUT

 It involves various methods such as

manual data entry, barcode scanning,
electronic data Interchange (EDI), and
automatic identification technologies
(e.g., RFID).

Data validation and verification

procedures are often implemented to
ensure the accuracy and integrity of
input data.

Examples:

Point-of-Sale (POS) Systems: Retail

businesses use POS systems to record sales
transactions, capturing data such as items sold,
quantities, prices, and payment methods.
Online Forms: Websites and e-commerce  Reports, dashboards, and data
platforms collect customer information through visualizations are common output formats
online forms, including orders, registrations, used to
inquiries, and feedback. communicate financial and operational
information to stakeholders.
Barcode Scanners: Warehouses and distribution
Information output should be timely,
centers use barcode scanners to input data
accurate, and relevant to support
quickly and accurately by scanning barcodes on
effective decision-making.
products or inventory items.
Examples:
DATA STORAGE
Financial Statements: AIS systems generate
 Relational databases are commonly
financial reports such as balance sheets, income
used for storing structured data, while
statements, and cash flow statements to provide
data warehouses may be used for
insights into an organization's financial
storing and
performance.
analyzing large volumes of historical data.
Management Dashboards:
Data storage solutions must provide security, Executives and managers use
scalability, and efficient retrieval mechanisms to dashboards to visualize key
support the needs of the AIS.
performance indicators (KPIs), trends, and
Examples: metrics related to sales, operations, finance, and
other areas.
Relational Databases: Organizations use
Alerts and Notifications: AIS systems send
relational database management systems
alerts and notifications to stakeholders for critical
(RDBMS) like MySQL, PostgreSQL, or Oracle to
events,
store structured transactional data in tables with
predefined exceptions, or threshold breaches, enabling
timely responses and corrective actions.
schemas.

Data Warehouses: Companies aggregate and DBMS IN AIS (Database Management

store large volumes of historical transactional System in Accounting Information System)
data in data warehouses for analysis, reporting,
DEFINITION AND PURPOSE:
and
decision-making purposes. Database Management System (DBMS)
No SQL Databases: Some AIS architectures  is a software that enables users to
leverage NoSQL databases like MongoDB or create, manage, and manipulate
Cassandra to store unstructured or semi- databases.
structured
transactional data, such as log files or social In the context of AIS, DBMS serves as the
media interactions. foundation for storing and managing
transactional data related to business processes.
DATA PROCESSING
 DBMS provides features such as data
 This includes data manipulation, storage, retneval, manipulation,
calculation of financial metrics, secunty, and concurrency control to
aggregation, summarization, and ensure the
generation of reports. integrity and consistency of the data.

Data processing may be performed in real- DATA MODELING AND DESIGN:

time or in batches, depending on the
requirements of the organization.  DBMS facilitates the creation of logical
and physical data models that define the
Examples: structure and relationships of the data
stored in the database.
Financial Calculations: AIS systems process
transactional data to calculate financial metrics Data modeling techniques such as Entity-
such as revenue, expenses, profits, and cash Relationship (ER) modeling and normalization are
flows. used to design efficient and scalable databases.

Inventory Management: AIS systems update DBMS supports the implementation of database
inventory levels, track stock movements, and schemas, tables, indexes, and constraints based
generate reports on stock levels, reorder points, on the data model.
and stock outs. JIT – just in time inventory,
allows the business to not overstock and buys Entity Relationship Modeling (ERM)
what it needs at the right time limiting stocks just
 A Method to visually represent
needed in the production
the relationship between entities
Customer Relationship Management (CRM): and a database system.
AIS systems analyze customer transaction data to
Normalization This involves braking down a
identify patterns, preferences, and trends,
database in to smaller manageable tables, and
enabling personalized marketing campaigns,
structuring them in a way that reduces
targeted
duplication and ensures data integrity.
promotions, and customer segmentation.
DATA STORAGE AND RETRIEVAL:
INFORMATION OUTPUT
 DBMS stores transactional data in tables
organized into rows and columns,
following the database schema.
 Users can query the database using
Structured Query Language (SQL) to
retrieve specific data based on predefined
criteria.
  Indexes and optimization techniques are 2000's-Present
employed to enhance the performance
The ongoing development of Al and machine
of data retrieval operations.
learning technologies is driving innovation in
SECURITY AND ACCESS CONTROL: database management systems, with a focus on

 A DBMS implements security measures

to protect sensitive data from
unauthorized access, modification, or
disclosure.
 Role-based access control,
authentication mechanisms, encryption,
and auditing are common security
features of DBMS.
 DBMS ensures data integrity by enforcing
constraints, validation rules, and
transaction management mechanisms.
 Role based access control A method
restricting system to access authorize
users base on their role within an
organization

DEFINITION, PURPOSE AND SIGNIFICANCE

OF DBMS

 DBMS is a software application that

allows users to efficiently create,
manage, and access databases.

In the realm of Accounting Information Systems

(AIS), DBMS plays a critical role in storing,
organizing, and manipulating financial and
transactional data

 DBMS provides a structured framework

for storing data, ensuring data integrity,
and facilitating efficient retrieval and
manipulation of information.
 For AIS, accurate and reliable data
management is crucial for
generating
financial reports, conducting analysis, and
supporting decision-making processes.

NOTABLE DATES AND INDIVIDUALS 1960's-

1970's

1960's-1970's

Edgar F. Codd, an English computer scientist,

introduced the relational model for database
management in his landmark paper "A Relational
Model of Data for Large Shared Data Banks"
published in 1970.

1970's-1980's

The development of Structured Query

Language (SQL) as a standard language for
interacting with relational databases.

1980's-1990s

Oracle Corporation, founded by Larry

Ellison, Bob Miner, and Ed Oates in 1977,
grew to become a dominant player in the
database market with its Oracle Database
product.

1990's-2000's

The rise of enterprise resource planning

(ERP) systems led to increased demand for
robust and scalable database solutions to support
integrated business processes.
predictive analytics, real-time processing, and and respect for individuals' rights and dignity.
automation.
How can this be applied in AIS?
ERP (ENTERPRISE RESOURCE PLANNING)
 Ethical issues in AIS refer to dilemmas or
DEFINITION AND SCOPE:
concerns related to moral principles,
Enterprise Resource Planning (ERP) values,

 systems are integrated software

solutions designed to streamline and
automate core business processes across
departments and functions within an
organization.
 ERP systems typically cover areas such
as finance, accounting, human
resources,
supply chain management,
manufacturing, and customer relationship
management.

KEY FEATURES AND MODULES:

 ERP systems offer a suite of modules or

applications that address specific
functional areas of the organization.
 Common ERP modules include financial
management, procurement, inventory
management, production planning,
sales and distribution, and customer
relationship management (CRM).
Integration among modules enables
seamless data flow and
process automation across the
organization.

BENEFITS OF ERP SYSTEMS:

 ERP systems help improve operational

efficiency, visibility, and collaboration by
providing a unified platform for managing
business processes.
 Benefits include streamlined
workflows, reduced data
redundancy, improved
decision-making through real-time
insights, and enhanced customer
satisfaction.
 ERP systems enable standardization of
business processes and compliance
with regulatory requirements.

IMPLEMENTATION AND CONSIDERATIONS:

 ERP implementation is a complex

undertaking that requires careful
planning, stakeholder engagement, and
organizational change management.
 Successful ERP implementation requires
alignment with organizational goals,
strong executive sponsorship, and
effective
communication throughout the process.

AIS ETHICS AND PROFESSIONALISM

1.) ETHICAL ISSUES IN AIS

What are "ethical issues"?

Ethical issues refer to situations or dilemmas

that involve questions of right and wrong,
moral
principles, or conflicting values. These issues
often arise when individuals or organizations
must make decisions that impact others, and
they involve
considerations of fairness, honesty, integrity,
 and professional conduct that arise in the documents related to Enron audits.
design, implementation, and use of
Accounting Information Systems. These
issues involve questions of right and
wrong, fairness, integrity, and the
appropriate use of information and
resources within the
context of accounting practices and
systems.
 "Ethical behavior is doing the righ thing
when no one else is watching-even
when doing the wrong thing is legal." -
Aldo Leop
 This section will covers the ethical
dilemmas that arise in the design,
implementation, and use of Accounting
Information Systems (AIS). It includes
discussions on issues like manipulation of
financial data,
misrepresentation of information, conflicts
of interest, and the misuse of AIS for
personal gain.

ISSUES IN AIS

1.) MANIPULATION OF FINANCIAL DATA

 This ethical dilemma involves the
intentional alteration or manipulation of
financial data within an AIS for various
purposes, such as
inflating profits, hiding losses, or
misleading stakeholders.

2.) MISREPRESENTATION OF
INFORMATION
 Misrepresentation occurs when individuals
or entities provide false or misleading
information through an AIS, leading
stakeholders to make decisions based on
inaccurate data.

3.) CONFLICTS OF INTEREST

 Conflicts of interest arise when individuals
or organizations have competing interests
that may compromise their objectivity or
integrity in making decisions related to
AIS.

4.) MISUSE OF AIS FOR PERSONAL GAIN

 This ethical issue involves using AIS
resources or information for personal
benefit or gain, such as embezzlement,
insider trading, or unauthorized access to
confidential data.

Kenneth Lay and Jeffrey Skilling (2001)

 Former CEOs of Enron, convicted of

securities fraud and other charges
related to the Enron scandal.

Bernie Ebbers (2002)

 Former CEO of WorldCom, convicted of

orchestrating the accounting fraud that
led to WorldCom's collapse.

ARTHUR ANDERSEN (Involved in Enron

scandals)

 The accounting firm implicated in the

Enron scandal, which was found guilty of
obstruction of justice for shredding
JEROME KERVIEL ON:

 Trader, engaged in unauthorized Confidentiality in AIS Involves ensuring the

trading activities. secrecy and restricted access of sensitive
business information such as financial records,
PRIVACY, CONFIDENTIALITY AND SECURITY trade secrets, and proprietary data.
PRIVACY

PRIVACY IMPORTANCE
DEFINITION:
Maintaining confidentiality is essential for
Privacy in AIS pertains to safeguarding protecting competitive advantages, preserving
individuals' personal information stored or the integrity of financial reporting, and building
processed within the system. This includes data trust with stakeholders
such as social security numbers, financial
records, and other personally identifiable EXAMPLES:
information.
Employing role-based access controls to restrict
IMPORTANCE: access to confidential data based on users rales
and responsibilities, Implementing encryption
Protecting privacy is crucial for maintaining techniques to protect data from unauthorized
individuals rights and preventing unauthorized disclosure, and establishing policies and
access or misuse of sensitive personal data. It procedures for handling confidential Information.
also helps organizations comply with regulations
such as the General Data Protection Notes:
Regulation (GDPR) and the Health Nazis used encryption & code-breaking. They
Insurance Portability and used ENIGMA MACHINE as decryption tool to
Accountability Act (HIPAA). communicate their allies in the battlefield.

EXAMPLES:

Implementing access controls to limit who can PROFESSIONAL STANDARDS AND CODE OF
CONDUCT
view or modify personal data, encrypting data
during transmission and storage, and regularly What you need to know? Professional
auditing systems to identify and address privacy Standards
risks.  Guidelines set by professional bodies to
regulate behavior and practices in fields
like accounting.
SECURIT
 Professional standards are guidelines
Y and criterial established by professional
organizations to regulate the behavior,
DEFINITI
practices, and responsibilities of
ON: individuals within a particular profession.
In the field of accounting, professional
Security in AIS encompasses measures and
standards provide frameworks for
controls implemented to protect the integrity,
conducting audits, preparing
availability, and confidentiality of information. It
involves safeguarding against threats such as financial statements, and
unauthorized access, data breaches, malware, maintaining
and cyberattacks. ethical conduct.

IMPORTANCE Eg. International Financial Reporting

Standards (IFRS)
Ensuring security is critical for preventing data
Philippine Institute of Certified Public
breaches, financial fraud, reputational damage,
Accountants (PICPA)
and regulatory non-compliance.
Control Objectives for Information and
EXAMPLES: Related Technologies (COBIT) – provides
Implementing firewalls, intrusion detection guidelines for governance & management of
systems, and antivirus software to detect and enterprise IT.
prevent unauthorized access and malicious Information Technology Infrastructure
activities, conducting regular security Library (ITIL) – a framework that provides best
assessments and vulnerability scans to identify practices for IT service management
and remediate security weaknesses, and
providing ongoing security awareness training to Principles of Professionalism
educate users about security best practices.  Core values ensuring honesty
Notes: Bug bounty program – they are hackers impartiality, competency.
that identify the weaknesses of the company/ies. Confidentiality, and ethical behavior in
professional endeavors

Confidentiality
CONFIDE  Respecting the confidentiality of client
NTIALITY information and refraining from disclosing
sensitive or proprietary data without
DEFINITI proper authorization.
Integrity EMERGING TRENDS and ADVANCEMENTS

 Acting with honesty, fairness, and 1.) Al (Artificial Intelligence)

transparency in all professional and
business dealings. Includes OCR (Optional Character
Recognition)
Objectivity
This is Al-powered and can extract data from
 Remaining impartial and free from SCANNED DOCUMENTS, INVOICES, RECEIPTS &
bias, conflicts of interest, or undue UNSTRUCTURED SOURCE +(This allows
automation of data entry)
influence in decision-making
processes.
2) Block chain.
Professional Competence
Immutable Ledger-provides a decentralized,
 Maintaining the knowledge, skills, and distributed ledger that records transactions in a
expertise necessary to perform secure & TAMPER-PROOF MANNER
professional duties effectively and
ethically. Smart Contracts = self-executing contracts with
the terms up agreement directly written into
Professional Behavior code.

 Upholding ethical standards and

professional conduct in interactions with 3) Data Analytics
clients, colleagues, and the public.  FS Analysis
 Auditing & Assurance
Code of Conduct  Predictive modeling & Forecasting

 Ethical principles guiding professional

behavior and interactions within a specific IMPACT OF TECHNOLOGY
profession.
 Technologies like Al, blockchain, and
 A code of conduct outlines the
data analytics are revolutionizing AIS by
ethical principles, values, and
automating routine tasks, enhancing
behavioral
data security and integrity, and
expectations. That individuals within a
providing
profession are expected to adhere to. It
provides guidance on appropriate valuable insights for decision-making.
conduct, integrity, objectivity, Exploring the potential benefits and
confidentiality, and challenges of implementing these
professional behavior. technologies is crucial.

Application to AIS CAREER OPPORTUNITIES

 Upholding professional standards and  There are various career paths available
using accounting information systems to in AIS, including roles in auditing,
ensure accuracy reliability, consulting, forensic accounting, and
confidentiality and security of systems
financial information and data. implementation. Each role offers unique
opportunities for specialization and
 Professionals working with AIS are advancement within the field.
expected to apply these standards
SKILLS AND COMPETENCIES FOR SUCCESS
and principles to their activities
involving the design, implementation,  Success in AIS-related careers
and use of accounting information requires a combination of technical
systems. This includes ensuring the skills, such as proficiency in
accuracy, reliability, and integrity of accounting software and
financial information, protecting the data analysis tools, as well as soft skills
confidentiality and security of data, like communication, problem- solving, and
critical thinking. Professionals should also
and making ethical decisions that
possess a strong understanding of
align with professional standards and
accounting principles, regulations, and
codes of conduct.
ethical standards.
 Professionals must also consider the
potential ethical implications of their EVOLVING LANDSCAPE IN AIS
actions within AIS, such as data
manipulation, unauthorized access, or  The field of AIS is constantly evolving in
conflicts of interest, response to technological
and apply ethical reasoning to address advancements, regulatory changes, and
these issues appropriately. shifting business landscapes.
Professionals need to stay updated on
FUTURE TRENDS AND CAREER industry trends, best practices, and
OPPORTUNITIES IN AIS emerging issues to remain relevant in
their careers.
This includes the IMPACT of technologies and
UNDERSTAND the EVOLVING LANDSCAPE of Als
PROFESSIONAL DEVELOPMENT AND
and its implications for the accty. profession.
GROWTH
 o The fraud collapsed when Ernst &
To succeed in AIS-related careers, Young (EY) auditors found no
individuals should continuously invest in proof of the missing funds.
their professional development by pursuing
certifications, attending training programs,  Ethical Issues:
o Manipulation of Financial Data
and staying updated on industry
(falsified revenue reports)
developments. Developing a plan for
o Misrepresentation of
career advancement and acquiring new
Information (deceiving regulators
skills is essential for long-term growth in and investors)
the field. o Conflicts of Interest (executives
benefiting from fraudulent
activities)
o Misuse of AI for Personal Gain
(possible manipulation of fraud
detection systems)
Reports ng mga bading

1. The Collapse of Lehman Brothers (2008) 3. Satyam Computer Services Scandal

(2009)
 When It Started:
o Founded: 1850  When It Started:
o Financial problems intensified: o Founded: 1987
2007 (Subprime mortgage crisis) o Scandal surfaced: January 7,
o Bankruptcy filed: September 2009 (CEO admitted fraud)
15, 2008
 Nature of the Business:
 Nature of the Business: o IT services and consulting
o Investment banking, financial
services
 Cause of the Case:
o CEO B. Ramalinga Raju
 Cause of the Case: confessed to inflating Satyam’s
o Lehman Brothers engaged in risky financial statements by $1.47
subprime mortgage lending and billion over several years.
used “Repo 105” transactions o Falsified bank balances,
to hide liabilities. revenue, and profits to attract
o When the housing market investors.
collapsed, the firm’s overexposure o The fraud was uncovered after
to bad loans caused liquidity an attempted acquisition deal
problems.
exposed financial
o The U.S. government refused to discrepancies.
bail out Lehman, leading to its
bankruptcy.
 Ethical Issues:
o Manipulation of Financial Data
 Ethical Issues: (falsified financial reports)
o Manipulation of Financial Data o Misrepresentation of
(hiding liabilities) Information (deceiving investors
o Misrepresentation of and regulators)
Information (misleading o Conflicts of Interest (executives
investors) benefiting from fraud)
o Conflicts of Interest (executives
benefiting despite the crisis)
4. RCBC Money Laundering Case (2016)
2. Wirecard Scandal (2020)
 When It Started:
o Founded: 1960 (RCBC as a bank)
 When It Started: o Cyber theft occurred: February
o Founded: 1999
4, 2016 ($81M stolen from
o Suspicious activities noticed: Bangladesh Bank)
2015 (Financial Times investigative o Money entered RCBC: February
reports) 5, 2016
o Scandal surfaced: June 18, o Investigations began: March
2020 (Wirecard admitted €1.9 2016
billion was missing)
o Bankruptcy filed: June 25, 2020
 Nature of the Business:
o Banking and financial services
 Nature of the Business:
o Digital payments and financial
services  Cause of the Case:
o $81 million stolen from
Bangladesh Bank through
 Cause of the Case: fraudulent SWIFT transactions.
o Wirecard executives falsified o The stolen money was laundered
revenue and profits using fake via RCBC’s Jupiter branch in the
transactions and offshore accounts. Philippines.
o €1.9 billion "cash reserves" did o Bank manager Maia Deguito
not exist, but were reported in was accused of facilitating the
financial statements. transactions despite red flags.
 Ethical Issues:
o Misuse of AIS for Personal Gain
(exploiting banking systems for
illegal transactions)
o Conflicts of Interest (bank
officials aiding money laundering)

5. Case of Claudia Clemeña Varquez vs.

Rider Levett Bucknall, Philippines, Inc.
(RLBPI)

 When It Started:
o Company Founded: RLBPI is part
of Rider Levett Bucknall (global
construction consultancy).
o Paluwagan scheme started:
2005
o Misconduct investigation:
December 2, 2015 (Varquez was
asked to explain her actions)
o Final decision by Supreme
Court: April 24, 2023 (Her
dismissal was upheld)

 Nature of the Business:

o Construction consultancy, project
management

 Cause of the Case:

o Finance manager Claudia
Varquez used the company's
payroll system for a paluwagan
(informal savings scheme).
o Her actions blended company
finances with personal
activities, leading to trust and
integrity concerns.
o She was dismissed for serious
misconduct, and the Supreme
Court upheld the decision.

 Ethical Issues:
o Misuse of AIS for Personal Gain
(using payroll for non-official
activities)
o Conflicts of Interest (mixing
personal and company finances)