CHAPTER 2

1. a. interpersonal b. general knowledge c. business knowledge

d. creative thinking e. communication skills f. interpersonal skills
2. a. Auditor b. Tax consultant c. Management consultant
d. Budget officer e. Cost accountant f. Accounting officer
g. Controller h. Bookkeeper i. Accounting professor
. a. !overnment Accounting b. Bookkeeping c. Management Accounting
d. "inancial Accounting e. Auditing
#. a. $ecurities and %xchange Commission f. &nternational Accounting $tandard Council
b. 'rofessional (egulation Commission g. AC'A%
c. Board of Accountanc) h. %ducational Technical Council
d. '&C'A i. C'% Council
e. Accounting $tandard Council
*. The $takeholders Board of %nerg)+ ,i1 Companies+ 'ublic+ Transport Companies+ Commuters+ Business
who need to transport their products. The) are all addressing the problem of escalating oil prices. &t is a
given that if crude oil price increase+ oil companies have to increase prices of their products also. Transport
Companies have to increase fares which will affect not onl) the riding public but also the cost of products
being transported. B-% must monitor the price of crude oil+ make a stud) as to the fairness of the price
increase. Transport sector likewise must file a petition for the price hike. whether to increase fares+ how
much considering needs+ capacit) to pa) and the region.s development re/uirements. 'erformance levels
affected are0 financial and social performance levels. %nvironmental performance is also affected as the
government must find a substitute to crude oil so that countries will not be so dependent and at the same
time look for a substitute that will be environmental friendl).
&t is a matter of conducting a dialogue to find out what would be the proper balance or rate so that a 1ust or
fair price will be determined. This is the look out of the %nerg) Board+ the Consumer 2atch !roup and the
Transport !roups. The government 3thru the %nerg) Board4 must monitor prices+ review financial
statements of oil companies+ acts as arbiter in the conduct of the dialogue to see to it that both sectors.
interests are protected. 5oss or defeat of one sector will also result to loss or defeat of the other sectors.
6. The stakeholders are0 the schools+ parents+ government 37epartment of %ducation and Commission on
8igher %ducation4. $chools wold need to increase tuition to be able to pa) teachers properl) and increase
their wages+ too. The law re/uires that 6,9 of the tuition increase goes to the pa)ment of salaries and wages.
A school ma) not be able to operate properl) and maintain /ualit) education and good facilities without
sufficient funds+ hence the tuition increase. 'arents will have to content with increase in tuition or else
transfer their children to public schools. Again+ it is re/uired that there be a dialogue between parent s and
the school so school could explain reason for tuition increase. -f course with the government again
monitoring this sensitive activit) or situation. Be that as it ma)+ 7ep %d and Ched have to be properl)
informed of such tuition increase. 'erformance levels affected0 financial and social.
:. The accountant should not agree to this suggestion. &t violates the ethical standard of integrit) which
re/uires one to be honest and trustworth). "inancial statements should be free from intentional distortions
and manipulations.
;. Make a research 3local or foreign4 on similar cases and recommend that waste treatment programs be
seriousl) studied and adopted b) management citing the benefits that could be derived. &nvestment in anti<
pollution devices would also benefit the compan) in the long run considering its effect on efficienc) of
workers+ productivit)+ goodwill among its neighbors.
5aunching clean up drives+ contributing to civic pro1ects put up b) a communit)+ improving roads and
cleaning rivers and lakes.
=. 14 d. fraudulent disbursement > assets and liabilities of the compan) will decrease
24 c. phon) asset certificate > asset of the compan) will increase
4 a. window dressing+ increasing sales and profits and cash in 2,1,
#4 a. window dressing+ decrease in expenses and increase in profits.
b. fraudulent recording of assets+ increase in asset
1,. ?o+ for as long as )ou inform Bell $mith Compan) about )our client<consultant relationship and make a
recommendation onl) after a careful stud) involving two or more other computer companies from which
Bell $mith Compan) could choose from.
11. Mr. 'o@s integrit) will be /uestioned since his fees will be based on the compan)@s profits. As the compan)@s
auditor he can manipulate the profit in order to receive a higher fee.
12. 14 7uties < Aou have a dut) to inform clients of the high risk involved. Aou should also disclose the
commission involved. 'rotect the interest of )our clients and make sure that this is the best for )our
clients.
24 Aou should be honest+ ob1ective+ and trustworth).
4 The third alternative is best. $ee that )ou inform clients on all aspects of the compan) so that in the event
the) decide to go ahead and invest+ )our conscience is clear since the clients are full) aware of the
2
conse/uence. The last alternative is also acceptable speciall) if )ou have investigated and reviewed the
compan)@s standing and doubts the veracit) of the pro1ect then don@t recommend it.
#4 Being transparent and honest to clients will save )ou from an) adverse outcome of the investment as the
choice made b) )our clients false on their shoulders for as long as the) were guided properl) b) the
advices that )ou gave
CASE STUDY
a4 $ustainable productsB energ) efficienc)+ substance mgt+ %"M
$ustainable environment< environmental mgt+ efficient operation
$ustainable behaviorB clarit)+ cooperation+ eco declaration+ take back and rec)cle
$ocial responsibilit)B )outh development+ corporate giving and helping hands
e4 "uel (eduction 'rogram of Cebu 'acific
1. (educes carbon emission b) 1,,C
2. $ubstantiall) cutting cost of fuel which is a ma1or cost component of Cebu '
. Bought 1* aircrafts which are more fuel efficient<increasing fuel efficienc) b) 2*C which translates to a
consumption of 1*C to 2*C less fuel than before.
-ther wa)s of conserving fuel0
14 slower fl)ing speedD
24 fl)ing at higher altitude+ this reduces resistance which results to fuel efficienc)