Prefinal Exams 1stsem SY2018-2019 MC

PREFINAL EXAMINATIONS
MANAGEMENT CONSULTANCY
1ST SEMESTER SY 2018-2019
NAME:_______________________________________________ Score: _____ Rating: _______

Part 1. Matching Type. Write the letter of your answers at the space provided.
I II
___ 1. Analysis strategy that recognizes the variation in one a. External Sources of Facts
variable occurs in step with that of another variable.
___ 2. Fact-gathering technique that provides a pictorial b. Internal Sources of Facts
representation of the client’s organization and/or
processes
___ 3. Source of information that includes market conditions, c. Consultant
corporate statistical comparisons and economic
forecasts
___ 4. Source of information that includes corporate plan, d. Contingent Fee
inventory status and product development schedules
___ 5. The primary source of MAS Engagements of the CPA e. Managerial Accounting
___ 6. Operational plan in conducting the management f. Financial Management Related Services
consultancy engagement
___ 7. A person who provides professional or expert advice in g. Philippine Institute of Certified Public
a particular field of science or business to either an Accountants
organization or individual
___ 8. Contract between the consultant and its client h. Institute of Management Accountants
___ 9. It is a written summary of what the consultant hopes to i. Business Plan
accomplish by being in business and how to organize
the resources to meet his/her goals.
___ 10. A fee that is dependent on the attainment of a specific j. Engagement Program
result for the client (i.e., a fee based on the amount of
a client's tax refund, or the amount of loan a client
receives from a bank.
___ 11. Traditional consultancy services provided by CPAs k. Audit Clients
that involves study of working capital requirements,
methods of financing asset acquisitions, credit and
collection practice studies and advice, etc.
___ 12. The process of obtaining, creating, and analyzing l. Proposal Letter
relevant information to help achieve organizational
goals
___ 13. National organization of CPAs in the Philippines m. Interview
___ 14. Worldwide association of management accountants n. Correlation
___ 15. One of the top financial consulting firm o. Charting
p. Classification
q. Mckinsey & Co.
r. KPMG
Part 2. Case Analysis. Answer as briefly as you can in a separate sheet of paper.
1. You are a trainee accountant in your second year of training within a small practice. A more senior
trainee has been on sick leave, and you are due to go on study leave. You have been told by your
manager that, before you go on leave, you must complete some complicated reconciliation work. The
deadline suggested appears unrealistic, given the complexity of the work.
You feel that you are not sufficiently experienced to complete the work alone. You would need
additional supervision to complete it to the required standard, and your manager appears unable to
offer the necessary support. If you try to complete the work within the proposed timeframe but fail
to meet the expected quality, you could face repercussions on your return from study leave. You feel
slightly intimidated by your manager, and also feel pressure to do what you can for the practice in
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what are challenging times.
Key fundamental principles affected:
a. Integrity: Can you be open and honest about the situation? Would it be right to attempt to
complete work that is technically beyond your abilities, without proper supervision?
b. Professional competence and due care: Is it possible to complete the work within the time
available and still act diligently to achieve the required quality of output?
c. Professional behavior: Can you refuse to perform the work without damaging your
reputation within the practice? Alternatively, could the reputation of the practice suffer if
you attempt to perform the work?
2. A junior member of staff has just returned to work after taking special leave to care for her elderly
mother. For financial reasons she needs to work full-time. She has been having difficulties with her
mother’s home care arrangements, causing her to miss a number of team meetings (which usually
take place at the beginning of each day) and to leave work early. She is very competent in her work
but her absences are putting pressure on her and her overworked colleagues. You are her manager,
and you are aware that the flow of work through the practice is coming under pressure. One of her
male colleagues is beginning to make comments such as “a woman’s place is in the home”, and is
undermining her at every opportunity, putting her under even greater stress.
Key fundamental principles
a. Professional behavior: How should you proceed so as not to discredit yourself, your
profession or the practice for which you work?
b. Integrity: How will you be fair to all those involved?
3. You are one of three partners in a firm of accountants. Five years ago the firm was appointed as
external accountants to a young, successful and fast-growing company, engaged to prepare year end
accounts and tax returns. The business had started trading with a handful of employees but now has
a workforce of 200, while still remaining below the size of company requiring a statutory audit. Due
to your close relationship with the directors of the company (who are its owners) and several of its
staff, you become aware that staff purchases of goods manufactured by the company are authorized
by production managers, and then processed outside the accounting system. The proceeds from
these sales are used to fund the firm’s Christmas party.
Key fundamental principles

a. Integrity: Would omitting income from staff sales result in the financial statements and
returns to the tax authority being misleading? Is the practice dishonest, and what should be
your involvement?
b. Objectivity: In view of the trust that has built up between you and your client, and the threat
brought about by the familiarity you have with the directors and staff of the company, how
will you maintain your objectivity when deciding on a course of action?
c. Professional behavior: How should you act in order to protect your reputation and that of
your firm and your profession?
Part 3. Enumeration.
A. What are the steps in the Analytical Process?
1. ____________________________________________________________________
2. ____________________________________________________________________
3. ____________________________________________________________________
4. ____________________________________________________________________
5. ____________________________________________________________________
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B. What are the five Fundamental Principles of CPAs under Section 100.4 of Philippine Code of
Ethics for CPAs
1. ____________________________________________________________________
2. ____________________________________________________________________
3. ____________________________________________________________________
4. ____________________________________________________________________
5. ____________________________________________________________________
C. What are the stages of Management Consulting Engagement

1. ____________________________________________________________________
2. ____________________________________________________________________
3. ____________________________________________________________________
4. ____________________________________________________________________
D. What are the stages of a Problem-Solving Process

1. ____________________________________________________________________
2. ____________________________________________________________________
3. ____________________________________________________________________
4. ____________________________________________________________________
5. ____________________________________________________________________
6. ____________________________________________________________________
7. ____________________________________________________________________
E. Give at least four areas of consideration in evaluating solution alternatives.
1. ____________________________________________________________________
2. ____________________________________________________________________
3. ____________________________________________________________________
4. ____________________________________________________________________
“Don’t study because you need to. Study because knowledge is power. Study because they can
never take it away from you. Study because you want to know more. Study because it enhances
you. Study because it grows you. –Anonymous”
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PREFINAL EXAMINATIONS

NAME:_____________________________________________ Score: _ Rating: _____

Key fundamental principles

C. What are the stages of Management Consulting Engagement

D. What are the stages of a Problem-Solving Process

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