Question
Manoj Ravjee, registered with SAICA as a chartered accountant in business, is the recently appointed financial accountant at Raintech (Pty) Ltd, a water purification and
Manoj Ravjee, registered with SAICA as a chartered accountant in business, is the recently appointed financial accountant at Raintech (Pty) Ltd, a water purification and irrigation company. The company is a wholly owned subsidiary of Hydroworks Ltd, a listed company. One of his duties is to prepare the annual financial statement for submission to the holding company. These annual financial statements are used in the calculation of bonuses which are paid to management including executive directors at the subsidiary. On presenting the March 2019 figures to Willy Hagen, the financial director of Raintech (Pty) Ltd, Wily Hagen suggested to Manoj Ravjee that he go and work on the figures to reflect a far better profit for the year, reminding him that the management bonuses depended on the profit reflected. On protesting that he could not manipulate the figures, Willy Hagen replied I suggest you do as I say. On his way back to his office Manoj Ravjee decided to discuss the matter with Dave Vance, also a chartered accountant employed by Raintech (Pty) Ltd. His response was Manoj, just do it. You are not in the profession now. Hagen will fire you if you dont do what he says just look on the bright side, our bonuses will be bigger. Besides its not as though you are stealing! In any event who will ever know the auditors they send here are pretty inexperienced and you can tell them anything you like! REQUIRED Based on the information provided above discuss: The situation in which Manoj Ravjee finds himself in relation to the SAICA Code of Professional Conduct. Dave Vances attitude to professional ethics. The action Manoj Ravjee could take assuming that he is not prepared to comply with Willy Hagens instructions.
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