Recording of Income

[cliveant]

A friend is doing the accounts for a company where the owner is on occasion taking cash from customers and so it cant be recorded. The income on these contracts does not therefore tie in with the paperwork.
The auditors have asked for some of the contracts to try and vouch income. My friend told the owner if these contracts are given to the auditors the missing cash will come to light.
He has been told to be evasive and ask them to specify what contracts they want instead of giving carte blanc access to the records.
The auditors are now saying that they cannot tie in income and my friend is being made to look incompetent in that they are implying he has not kept the books tidy enough to make vouching of income straightforward.
My friend is uncomfortable and feels he is being dragged intona situation where he is covering up someones , in effect, fraud.
He is planningon tipping off the auditor off the record but is worried about his jb as it wold be hard to find another one in this climate.
what should he do

 

[MyAccountantOnline]

Is your friend an accountant or bookkeeper?

If so presumably he/she will be aware of the legal implications of this ie Money Laundering rules.

 

[cliveant]

yes ...he is....which is why he is worrying.
It is not just the odd £10 or £100 it is starting to mount into several thousands.
He knows morally he should report it but is worried that the boss will know it has come from him and doesn't want to put his job in jeopardy.

 

[MyAccountantOnline]

yes ...he is....which is why he is worrying.
It is not just the odd £10 or £100 it is starting to mount into several thousands.
He knows morally he should report it but is worried that the boss will know it has come from him and doesn't want to put his job in jeopardy.

I would strongly advise your friend to seek some legal advice and if he/she is a member of one of the professional bodies to seek guidance from them.

 

[David Griffiths]

yes ...he is....which is why he is worrying.
It is not just the odd £10 or £100 it is starting to mount into several thousands.
He knows morally he should report it but is worried that the boss will know it has come from him and doesn't want to put his job in jeopardy.

Not sure from the posts if he is a paid employee of the company, in which case the ML regulations don't apply, or a freelance bookkeeper, in which case they do.

Either way it isn't just morally wrong - he would be guilty of false accounting and possibly a load of other offences. Just saying "he made me do it" is no defence.