An accountant lost his job the other day.

Here is what happened:

The Head of Operations walked in and asked the accountant to transfer a large payment to a vendor immediately.

He highlighted that it was critical that the transfer take place urgently or the company would lose a deal.

The HoO further said that the MD/CEO was aware of the transaction and that she would be devastated if the company lost the sale because of untimely payment.

So, on the instruction of the Head of Operations, our young accountant initiated the payment.

It was eventually discovered that there was a major issue with that supplier since they did not deliver the products. An internal review revealed that there were major reservations about working with that supplier. Indeed, the MD was taken aback about why the payment was made to such a problematic supplier.

The accountant was summoned to explain why he processed the payment and said it was per the HoO's instructions. The HoO strongly responded that he had never given such an order.

The accountant was sacked on the spot for negligence because there was no documentary evidence that he followed the HoO's directions.

While many things could have been managed better with adequate processes and controls in place, that is not the point of the story.

Yes, our accountant was a victim of unfortunate circumstances, but when you understand the type of atmosphere you operate in, you must take extra precautions to protect yourself.

1. Always require written or other recorded evidence for all transactions.

2. Verify whatever information you are provided to act on. Even if it comes from the MDs themselves. "Trust but verify." It is difficult to verify without documentation.

3. Finally, impose a system in which "nothing is urgent." There must be some processing time involved. That is the time when you calmly go over all the pertinent information and documents linked to what is on your desk. People use "urgent" and chaotic situations to commit all sorts of folly.

The above may be difficult to implement, especially in weak-control environments (read: one-man businesses), but they are necessary for your peace of mind.

Who can say? You could be the catalyst for change.