LA CONSOLACION UNIVERSITY PHILIPPINES

College of Business Entrepreneurship and Accountancy

Final Examination
Government Business Ethics, Risk Management and Internal Control

Name: DIONISIO, Kristine Paula B. Score:___________

I. Case Study: Read the situation carefully and answer the questions below. (50 points)

Outline of the case

Four years ago, the accounting firm you and your two partners own was appointed to a young yet
successful and fast-growing company as external accountants. Your firm was tasked to prepare financial
statements and tax returns. The business started with a few employees, the business now has a total of 198
workers, still remaining below the size of company requiring statutory audit at the same time.

Due to your close relationship with the directors of the company and a few of its staff, you
happened to know that staff purchases of goods manufactured by the company was allowed and
authorized by production managers, and then processed outside the accounting system. The proceeds from
these sales are used to fund the company’s Christmas party.

Question:
1. Discuss the key principles involved.
2. Identify relevant facts
3. What are the possible courses of action?

Prepared by:

Dr. Cecilia D. de Guzman, LPT

Professor-Strategic Management

Checked and Reviewed by

Evangeline P. Dayao, MBA, SMRIBA

Program Head-BSBA

Approved by:

Dr. Maria Corazon D. Segismundo, CPA, FRIACC

Dean-CBEA