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Monday, November 7, 2011

Engagement Letter

The final draft of the engagement letter is on Thursday, November 10  for FMA 4A and 4C and November 11 for FMA 4B and BSA 4.

42 comments:

  1. LAURA JANE I. GENTICA FMA4B

    CASE 2

    There are times that the president has a large ownership with regards to bond, and in this situation it is very difficult to handle but in my part, I will discuss the matter with the president. If the president thinks that the result of the exhaustive study was right, and he think that the best way to improve the company is that he should resign,then the problem is over.If he is not conform to the result then, the problem should be discussed with the the board of directors.

    CASE 4

    As a professional you work with your client,your trying to help them as much as possible.You accept only those engagements which do you think would be beneficial to the client.In this situation there is a 50-50 chance of success.If the results of the study are favorable, the client will be benefited.But this is only 50 percent.The problem is,if the 50 percent is enough to pursue this expansion.Many consultants would answer yes to this question and accept the engagement because of the potential profit. But there are some consultant suggest to the client that they should use the money to other things in order to improve there operation.

    LAURA JANE I. GENTICA FMA4B
    Posted: November 12, 2011 12:50pm

    ReplyDelete
  2. LADYLYN N. ARSAGA FMA4B

    CASE 2

    i will call the attention of the president and talk to him in a nice way or manner, that after conducting exhausted study you come up to the conclusion that he should be removed from his position, and explain further why is it that the conclusion is like that. But you should assure to him that he will not be a blacklisted in any company he wish to apply. and ask him favor that any confidential matter in the company will be kept between them.

    CASE 6

    Even though the guy is the one who signs my paycheck, it is not necessary that i will not tell the truth. Because its is for the betterment of the company. any unethical behavior always bring negative outcome.

    LADYLYN N. ARSAGA FMA4B

    ReplyDelete
  3. JESSA C. MONTEPIO FMA4B

    CASE 5

    As a consultant, I will tell the President that my conclusion is independent to her expectation and what will come out to my findings will be base on the information of the company and not to her expectation.

    CASE 4

    Before I accept the contract, I should make necessary research about the economic conditions where they want to put up their business or the expansion. And if that happen I will take the risk and go for it and whatever problem may arise there is a corresponding solution that will exist. I will make some tactics and strategy to sell faster the bonds. And i will be very wise in planning and implementing my decisions to increase the percentage to sold the bonds, to come up in pursuing the expansion. and in that the contract will be very profitable.

    JESSA C. MONTEPIO FMA4B

    ReplyDelete
  4. CASE 5

    As a professional, i must undertake engagements that can only be completed with professional competence, independence and integrity.

    In case like this, i will tell the president that i must complete the study in a right way without any bias, conflict of interest or undue influence of others.


    CASE 7

    No, because i do not smoke and i know what will be its effects to people. Since i have that ability to develop marketing programs successfully, i know that there are still plenty of products to market aside from tobacco.

    It is not everyday that only money is all that counts. Sometimes, it is the right thing that you do.

    ReplyDelete
  5. CASE 2
    For me, I will talk to the president in a nice manner. I will call his attention regarding that after the exhaustive study, you come up to the conclusion that he should resigned from his position, and if the removal of the president is the better solution then go for it. But, the decision is still in the management.

    CASE 7
    No, because personally I don’t smoke. Even though they offered a very profitable consulting contract, it is not the money matters. The most important is your good reputation and you can help others to encourage that smoking is not good in their health. I know that there is an opportunity to come to market a good product aside from tobacco products.

    ReplyDelete
  6. Emirose Java FMA 4B


    CASE 6

    I must enjoy the given task assigned for me. Since I've been assigned as an internal consultant, I will be the one who evaluate and recommend reorganization of top management.

    In this case, I've assigned to recommend some changes and it involves the guy who signs my paycheck and keeps telling me to pull no punches in my report.In this case, I will notify him to the management and since its hard to believe he could be that objective, I will forward him or give notice to the management so that there will be no constraint in the organization instead, success will gain.


    CASE 7

    NO, First reason I do not smoke, secondly, I know the effect of it to the people and to the environment, lastly, other tried to abandoned it.So what the reason for i will accept the engagement for in the first place I know the harmful effects of it,even though it is profitable.


    Since, I have the ability to develop programs successfully I will find some other products that can't give harmful to people and to the environment which it only really matters.

    November 13, 2011 10:18 PM

    ReplyDelete
  7. This comment has been removed by the author.

    ReplyDelete
  8. case #5

    the response should be that the firm maintains integrity. integrity implies not merely honesty but also fair dealing and truthfulness. it also include an attitude of straightforward and honesty in professional and business relationships. the firm should not be associated with information where they believe that the information contains incorrect, incomplete, or misleading statements..

    KLIA M. DELA TORRE FMA 4B

    case #6
    I should maintain objectivity. Because the principle of objectivity imposes the obligation of an internal consultant to be fair, intellectually honest, and free of conflicts of interest. An internal consultant should be fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity.

    KLIA M. DELA TORRE FMA 4B

    ReplyDelete
  9. Fma 4B Yunque,Glone Fhel

    case 2
    For me as a firm employed, I will talk to the president in a nice and sincere way about what conclusion ended after the exhaustive study. And that conclusion is to removed the president from his position for the better and effective company. But the decision is still in the management or member of the company if they want to be effective and organize organization.

    case 7

    For me as a firm specialty is marketing, I rather not to accept the offer of the tobacco manufacturers for some personal reason and for others wealth. As a non smoker person, I know that smoking is dangerous to our health and also it is one factor that destroys our environment. As long as possible love and value your health and environment.
    Since,I have outstanding reputation already develop. I know I can find other company to be the subject of my marketing expertise. That can't harm or destroy to our surroundings..^-^

    ReplyDelete
  10. Case 2
    I will call the attention or communicate the result of my study to the Board of directors for them to make necessary actions in terminating the president of the company and I will give a better and effective suggestion on ways on how to improve the over all policy of the business.

    Case 5
    I will not going to take her recommendation because it will affect and impaired my objective as an independent consultant/auditor in performing a specific service that is free from fraud,mistakes and error that will be communicated fairly and just to the public.

    ReplyDelete
  11. Case 2
    I will communicate the result or call the attention of the Board of Directors for them to make necessarily actions in terminating the president of the company and suggest an effective and better ways on how to improve or broaden the overall policy of the company.

    Case 5

    I will not take her recommendations for it will affect and impaired my integrity and objective as an independent consultant/auditor in performing a specific service that is free from fraud error and mistakes that will be communicated fairly and just to the public.

    ReplyDelete
  12. Mary Rose G. Despi BSBA-FMA 4B

    CASE 1
    ANSWER:
    The fair presentation of the financial statements in accordance with the Financial Reporting Standards is the responsibility of the clients management.The management must to establish a control environment and to implement internal control policies and procedures designed to ensure,among others,detection and prevention of fraud.

    CASE 2
    ANSWER:
    As stated in Standard No. 8,
    "All significant matters relating to the results of engagement are to be communicated to the client."

    I will tell the President in a good manner and nicely way of whatever results came out of the study that evidently conclude that he should be removed from his position.If it is for the betterment of the Company then he must accept it.

    ReplyDelete
  13. Arnold P. Esponilla BSBA-FMA 4B
    CASE 5
    As a consultant, I must be independent, responsible and true for my every job. In other words I will deny want the president of the company want me to do. For the reason that it could affect my independency as a consultant. If I follow what he/she said, and it will result not good to the company, the blame will go back to me, because they will said that I’m not a good consultant even though I just follow want the president said. The effect of it to me, my credibility will go down and some company will not hire me as their consultant.
    CASE 7
    Even it is ethical for me to accept the engagement. For the reason that I don’t smoke and it is wrong for other to smoke. Yet as a consultant for me it is only a job and this engagement will give me a big profit. And as consultant it should be separate your personal feelings from your job. But I believe that a person knows want is right and wrong. If they know that smoking is wrong, they must be responsible for the wrong they have made.

    ReplyDelete
  14. Ariane Galor, FMA4B


    Case 2:
    The company aims for more, rather high productivity in order to make it run through as time goes. Now, your task is to improve efficiency, and efficiency is an important factor in determination of productivity. If the only solution to obtain higher efficiency is to removed the president, then, as a professional, you should seek first the attention of the president. He therefore should be the first to know about the study's final solution to the firms problem. If he himself is not satisfied with the outcome and he will not step down on his position, then the matter should be discussed with the board of directors.





    Case 7

    I rather not accept the engagement. First reason is that personally, I don't smoke and everyone knows that smoking is hazardous to oneself. Second, being on an engagement that you do not want is difficult for you to perform well because you only take it as a work but your heart is against it. It is much easier to take an engagement with no personal attachment for it will come up to a successful one.

    ReplyDelete
  15. Julie Marie Tarrazona FMA4B

    CASE 2

    You should try to get replies to the following questions. Do the clients feel satisfied with the performance of your company? Have you started a system of obtaining feedback from your clients at regular intervals and whether prompt action is taken on such feedback's? • Have you put in place a proper Complaint Resolution Procedure in your Company?


    CASE 8

    No, because like product of 10% lower, equal to, or up to 10% higher than the competition can be considered "competitive pricing". A small company with little overhead may be able to charge less while a larger company with more overhead may have to charge more.

    ReplyDelete
  16. Maria chritina pasaporte said…..

    CASE 7
    No, it is not ethical to accept the engagement because it will be bias on my part and to my client having that feeling and personal interest with regards to smoking. On the other hand, I can still accept the engagement provided I will assign it to my other consultant having the same expertise.
    CASE 10
    1. The first affected party is the consulting firm and the two clients.
    2. Yes, because whatever decision Leo's will make, it will bring up the name of the consulting firm for he is employed on that institution.
    3. Maybe no. because even though they were working in the same consulting firm, they have different commitments and responsibility as to their clients.
    4. If I were in that situation, i will divi9de the total expenses by two (2) to come up into equal amount subject for the reimbursement from my two clients.
    5. To be an effective consultant, you should be honest to yourself and to you prospective clients to build up a good relationship and reputation of your work. Therefore, I will only get what is the exact amount from each my client.

    ReplyDelete
  17. case # 2.

    If our firm employed by the to be a management consultant of their company to make an overall policy of the business and its org structure to determine wat action to be taken to improve efficiency. and after the exhaustive study we come to a conclusion that we need to remove the president from his position, the action we should take is first aside from removing him we provide him an information as our client that his also one of the problem of the company and it is based on the exhaustive study we made. to solve that problem we will recommend him an action he should take and also follow an overall policy we make for a better company. and after that make an corrective action to his action. and if he made it. it will result to a efficient company but he will still follow the policy for improvement and he is still doing an appropriate thing in the company that's the time we should provide the information that he should remove in his position as a president.

    ReplyDelete
  18. Ma. Jonabel Bajo

    Case 2

    I will talk the President in a nice way and explain to him my conclusion after an exhaustive study. I will tell him that the only way to improve efficiency is to remove him from his position and it is the only way to make the company reach his goal.


    Case 7

    No, it is not ethical to accept the engagement because first reason is that I do not smoke, and then it will destroy my reputation for being an outstanding ability to develop marketing programs to accept this engagement because first thing I know that it is Dangerous to our Health. I will not accept the engagement although it is profitable but the most important to me is my reputation rather than the money.

    ReplyDelete
  19. KIM ABUYON FMA4B

    CASE 5

    As a consultant I must be independent in all manners and fair to the result. Whatever outcomes should prevail and whatever information should not be in the decision of the president.

    CASE 6
    It is very ethical and important to be honest. It is management responsibility to ensure that the entity’s operation is conducted in accordance with laws and regulation of the entity. Any mischief will bring bad reputation and any unethical behavior should not be practiced.

    ReplyDelete
  20. NERIZA TIBA

    Case 7

    No,because since my birth I did not smoke and I know it is bad for our health. I am willing to help people in a good way and not in bad because I know that it is hazardous in health even though it is money matters I will not accept the engagement.

    Case 1

    We have to tell the client all the findings like the illegal payments, fraud and other questionable management practices for the client to know and discover also and of course we need to be policeman for us to discover all illegal actions that are happening in the company and we need to be father confessors to our client.

    ReplyDelete
  21. Sheryl Osorio
    Case 3
    As a consultant hired by the board of directors, it is my responsibility to give honest, truthful, reliable and relevant information about the problem. Since I found the system as antiquated, I could recommend changing the system into modernized and efficient system. This way, the business can be as competitive and in conformity with GAAP. As a consultant, I should act with integrity, object5uvity and independent in mental attitude.
    Case 5
    A practitioner should act with integrity and objectivity and be independent in mental attitude. I should not follow the dictations made by the president as to what be the result of my feelings. A practitioner with integrity and objectivity should make recommendations free from bias, any intentional distortions, and misstatements and maintain an impartial attitude under review. I should avoid impairment of my public confidence in the profession.

    ReplyDelete
  22. Case 2
    First, I should talk to the president in a closed door manner, and tell him that the only way to improve efficiency is to remove him from the position. Of course I should bring with me the documents that supports the results of my study as a proof and if he insist to stay, I should get the opinion of the board and the decision of the majority.

    Case 7
    No, because in the first place, I myself does not smoke, we have to consider that what you market is what you are, I know that smoking is not good for the health, so why would I market it and persuade people to do so? Money is not the only thing that could make the business going, at some point we also have to consider what we could share to people especially our reputations could help the business gain positive feedbacks from customers and clients.

    ReplyDelete
  23. Jean T. Badoy FMA IV-B
    Case#1
    For me because you are engaging as consultant therefore, you doing as professional adviser who specialize in giving advice to organization on ways of improving their business efficiency and profitability. And because it is a fraud practices your responsibility although the annual discover of financial statement may act as deterrent to fraud. You are to design the audit to obtain reasonable assurance that the FS are free from material misstatements whether caused by illegal payment or error.

    Case#2
    Knowledge of the clients business is a frame of reference within you exercise professional judgment. Understanding the business and using the information appropriately assists of identifying potential problems to make effectively and efficiently. You need to obtain reasonable assurance an should conduct the audit without bias. Impartial attitude must be maintained by the auditor when evaluating evidence and formulating his conclusion.

    ReplyDelete
  24. Cherry Ann Francisco FMA IV-B
    Case 2:
    If I finished my exhaustive study and I conclude that the president need to removed his position I will tell the truth that base on the data and evidential matter that are being evaluated he must need to removed his position and he must accept it.

    Case 7:
    Before we engage in business think first if it is good or not? As we all know that a cigarette is dangerous in our health. For me I will not accept the engagement because it brings harmful effect to other people. It can cause different sickness that make people death .I’m not comfortable to do this work because I know it’s not good to the people. So, for those businessman/woman to put up a business analyze first what is the effect of the business in our marketplace if it is can help or not don’t think that you can received more income is enough.

    ReplyDelete
  25. KRIS A. GAWAN FMA 1V-B

    Case 2:
    I must consult to the board of directors regarding the study. They should make necessary actions to the result. The study showed that the President of the company is not capable for the improvement of the business.

    Case 7:
    I will accept the offer. Firstly, because we say business whether we use it or not, it yields money for the company. Our business is concern about management accounting practices. And for accepting it my business is not coerce to use their products in order to us to assessment to them. As our business is dealing with developing marketing program. We are intended to so and not for the products they introducing. Lastly, we’re intended to give them proper steps that will makes their business successful.

    ReplyDelete
  26. CRISTINA MAPADA


    CASE 4
    I would not accept the offer of studying the expansion of the hospital,and may have a commitment in studying the selling of bonds.

    case 6
    As the internal consultant i would confidently present my conclusions based on what I have studied.

    ReplyDelete
  27. ARMIE JOY M. BALATERO FMA IV-B
    CASE 2:
    Being a president means having great responsibilities. If the study really assures that the president is incapable or incompetent in performing his duties in the organization, I will suggest to the board that he must remove from his position. What is the purpose of being a president when he cannot comply his obligations? If ever he will remain in his position, he can no longer make appropriate decisions when there are uncertainties and inefficiencies happen in the organization.
    Case 7:
    Ethics is also important in the Business World. It helped to weigh things and to determine whether it is right or wrong. For me, I will not accept the engagement even though I can generate a higher income. I do not smoke and even just inhale the smoke from a cigarette can cause a bad effect in my breathing. Aside from that, it brings a harmful effect to other people and, it is impractical to buy a stick or a pack of cigarette even when you are starving for food just to tolerate your vice.
    So, as a businessman or woman do not be selfish and greedy in money. You must keep in mind that before doing a certain act, analyze first the effects to other people because they are your clients whom the key for the success of your business.

    ReplyDelete
  28. mayda M. Jamora fma 4b

    case 2:

    Based on the study that they made,the President should be removed in His position because He can no longer give His best for the company in order for it to stay standing in the business industry.

    Case7:

    In this case, Ethical means doing the right thing.So, If I am the one who will made the decision. I won't accept his offer although it can give me a higher income because it is not good for the health of those people that will used it.

    ReplyDelete
  29. Jhenelyn Sangco FMA 4B

    Case 7
    In this case my decision is not accepting the offered because smoking is very harmful to used. Yet, my marketing programs are successful but, the felling I had is long time suffered and it is Emotionally strike to my conscience. I will wait the other opportunity.

    Case 15
    Where there is a third party involved, the role which the practitioner in a management advisory service engagement is fundamental to his maintaining integrity, objectivity and an independent mental attitude. In All aspects practitioner's performance of management advisory services, he must avoid assuming the role of management, limiting his services to those of an object of researcher, analyst, or advisory, rather than decision maker.

    ReplyDelete
  30. Regine Remorosa 4A
    Case 7

    It is not ethical to accept the engagement. As a sole owner of my own engagement,I know smoking is not good for the health. And it is not good for the people who are using cigarettes as it is already warned by the government. Eventhough cigarettes business is in demand in the market, still I won't accept that engagement because that product will just harm anf ruin the health of the people who are still using it.

    Case 15

    At first, Ju & Grace is already aware that the staff they hired to assist in the installation of a new computerized production system has no sufficient supervision about the the system. So as a result for that, they incurred significant losses to their sales. If they continue to assign those newly hired staff to their production system, there is a possibility that the Wonder Inc. willcontinue incurring losses and nay result to insolovency and bankruptcy.

    ReplyDelete
  31. Mary Joy Esclamada FMA 4C

    Case 6
    Having consider this issues, a professional accountant should determine the appropriate course of action that is consistent. The professional accountant should also weigh the consequences of each possible course of action. If the matter remains unresolved, the professional accountant should consult with other appropriate persons within the firm or employing organizations for help in obtaining resolution. If the matters involves a conflict with or within, an organization, a professional accountant should also consider consulting with those charged with governance such as board of directors or audit committee.

    Case 7
    It depends on the sole owner of the management to accept or not the engagement, because a professional accountant should be honest and truthful in terms of marketing and promoting themselves into work. Professional accountant should not bring the profession into disrepute. A professional accountant should consider the advantages and disadvantages of the recently offered contract and the effect to the people who are willing to buy the product.

    ReplyDelete
  32. Jance Poblador FMA 4C
    Case 2
    The action should i take is to tell the management that the president is not efficient to handle this firm. Because I see the evidence that he is not the one to improve the efficiency of the firm. He must be fire out. He must need to comply to the professional accountant because this professional accountant is entitled to prior experiences acquired.

    Case 7
    If I were the sole owner of my own management consulting practice I will accept the engagement. Tobacco is the major selling in the business. Most people in this country are smoking. So, I gain more profit,Investors, Investment. I will not mind that i'm not smoking but for the sake of my business.

    ReplyDelete
  33. rowena mahusay bsa4

    Case 1:
    As a professional accountant you should respect the confidentiality of the information acquired as a result of professional and business relationships. Being hired to be a consultant of a public known enterprise together with your junior consultant you both possess the qualifications of being a management consultant. However, during the course of your engagement such ethical dilemmas were found. Bearing in mind that you promised privities and those were confidential and it is a conflict within the organization you have the right to present it to those in charge with governance of the organization such as the BOD or the audit committee. Since that you were chosen among the many consultants, the company believes that you will do what is expected from you. You have the right to disclose this information to those who were affected by this conflict, but follow what standard and ethics tells you to do.

    Case 7:
    In performing Management Advisory Service a practitioner must act with integrity and objectivity and be independent in mental attitude. Personal issues should be disregarded. The Tobacco manufacturer picks you as a consultant not because they know you personally but because of your competence and qualifications. Besides, you have several consultants who work for you on a full time basis; you can still assign them if you don’t want to prejudice the would-be service you’ll give. Your personal opinions should not affect the management consulting service you will offer the market, since he is professional he must abide the standard of field works and code of ethics.

    ReplyDelete
  34. Case study 5
    As a consultant of the manufacturing firm and being directed by our president regarding the conclusions of my study, I will probably based it on my observations. As a consultant, it is my duty to make recommendations and conclusions based on what I discover during the entire period of the study. I should be fair to my client and should not overall take the directions of our president because in the first place during the engagement I did the study. As a consultant I should be independent in mental attitude. I should follow the objectives of my study to provide fair judgment to my client for decision making.

    ReplyDelete
  35. case study
    case study 1
    The Junior consultant as part of the engagement has the obligation to tell to the client what they have discovered during the engagement like illegal payments, fraud and other questionable practices.They have also responsibilities to make all their observations confidential to provide protection to the clients privacy. However, if the clients has been informed already about their questionable practices and do not make necessary actions, then the management will be responsible for it. The mistake is that the junior consultant do not directly pinpointed the problem of the client and discussed it with them. So therefore, all observations whether good or bad should be discussed to them properly/professionally.
    Ipinaskil ni madelyn maasin sa 02:46 0 (mga) puna

    ReplyDelete
  36. Case #2: The You firm has been done the study exhaustively and they come into conclusion that the president should remove from his position. So, the action that I should take is that remove the president if it is necessary. We know that the president is the one who has a powerful command on the company and all his follower should follow him. In this case I think the president is not good in administering the overall policy and organizational structure of the company that's why the you firm come into conclusion to remove him from his position. So, therefor if the president will continue to his position the said improvement might not be happen because the firm has already their conclusion.

    ReplyDelete
  37. Case #6: The first thing that I should do is that do what is right or correct. Be true to myself and be responsible for what I'm doing. I should also be fair. As a consultant my obligation is to help the Company to improve their business and not just to accept payment without doing or conducting a study which can be helpful to a Company. If I'm going to listen to a guy who is involve in signing my paycheck it can give s result that can ruin my reputation and my profession as a consultant. That's why do what is right.

    ReplyDelete
  38. Case 7:

    As a sole owner, though I have developed an outstanding reputation to develop a marketing programs, in my own opinion it is not ethical to accept the engagement offered to me by tobacco manufacturers for the reasons that if I will accept the engagement it means that I am also promoting it to the public which is in the first place is that I don’t smoke and I feel that it is wrong for other people to smoke. Since I am a sole owner of management consulting practice, I do believe that there are still many companies that will offer to me to develop a marketing program and by rejecting the tobacco manufacturers even though they are offering to me a very profitable consulting contract it doesn’t matter because I don’t want to get involved in such company that promotes an unethical to us.

    Case 1:

    As a consultant in a largely publicly held corporation, we should have to perform our obligation as a practitioner with respect to the confidentiality of information acquired as a result of professional and business relationships. Since we have discovered illegal payments, fraud and other questionable management practices, we should have to practice all eight standards which will serve as our guidelines in order for us to be free from bias and misstatements. We don’t need to be a policemen as well as father confessors because we are a consultants and our role is to give right information based on our discoveries and most especially we should not disclose any such information to third parties without proper and specific authority from our client.

    ReplyDelete
  39. mayda M. Jamora fma 4b

    case 2:

    Based on the study that they made,the President should be removed in His position because He can no longer give His best for the company in order for it to stay standing in the business industry.

    Case7:

    In this case, Ethical means doing the right thing.So, If I am the one who will made the decision. I won't accept his offer although it can give me a higher income because it is not good for the health of those people that will used it.
    November 14, 2011 6:32 PM

    ReplyDelete
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