A Very Tempting Offer

Case Study

Your Name
5th December, 2022
Case Narrative
Project management accounting is where a project's costs, revenue, and billing are planned,
monitored, and analyzed to help meet the overall financial goals. Tracking every input and
output allows project managers to analyze every financial detail, no matter how big or small
the project is.
 
At the start of the current year, JYL Accounting and Business Solutions was commissioned
to conduct an audit on the fleet upgrading project of a shuttle companyoperating in science
parks in Laguna.
 
Jayceline Mendoza, one of the mid-level staff of the accounting firm, was assigned to do
project management accounting on the client-company.
 
Her audit showed that the shuttle company’s operating cost increased last year because of
acquisition of five new units of shuttle buses and repair of seven more units as part of the
project. The total company fleet is now at 32 shuttle buses. The shuttle company ended the
past year posting almost P6 million in net income loss.
 
Ruben Del Rosario, was the shuttle company’s manager for the fleet upgrading project and
he was able to convince the company President that the investment last year was to net a
200% turnaround in the company’s profits by the end of this year. 
 
On her three-member team’s financial projection however, the shuttle company will end up
with only a P2 million net income, P4 million short of the projection of the project manager.
But the net income for the following year will be P10 million based on their two-year
projection.
 
When Jayceline presented the financial projections to the project manager, his first action
was to ask her for a private audience. He told her to make some tweak on the projections to
ensure that the end result shall be P6 million net income for the current year. 
 
The project manager even told Jayceline that it would not hurt their team’s projections much
as it is only projection and not written in stone. He added that the following year’s net
income will still make the management happy with the result of the fleet upgrading project.
 
To spice up his offer, he said that he would recommend Jayceline and her two team
members to work on Ernst & Young, (former SGV) because his sister is the HR Manager in
the firm. Jayceline and her two team members have pending applications with E&Y and they
were previously interviewed indeed by the project manager’s sister when they applied with
the company before the pandemic. Their applications are active pending availability of
positions.

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 I. Time Context
January 2022

II. Viewpoint
Jayceline Mendoza, a mid-level staff of Accounting Firm in JYL Accounting and Business
Solutions.

III. Central Problem

Ruben Del Rosario, Shuttle company’s manager, is asking Jayceline Mendoza to lie about the
projections of the company for earning six (6) million, when in fact, it will only gain two (2)
million with an emphasis of them having a NET LOSS. She was being bribed by Ruben to lie for
this once.

IV. Statement of the Objectives

Must Objective:

1. To think of a solution that will help to minimize the reaction of the shuttle company’s net
loss.

2. To ensure that there would not be a riot in the company after having a net loss.

Want Objective:

1. To show and tell to Ruben that lying is unethical in the workplace .

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V. Areas of Consideration – SWOT Analysis

Strengths

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1. Promising accounting firm that helps companies to audit their financial statements.

2. Trusted for a credible performance.

3. Guaranteed skills to be offered for the client companies seeking for help.

Weaknesses

1. Cannot accept bribes or gifts.

2. Clients could be mad because of them being unable to accept some of their requests like lying
about what they audited.

Opportunities

1. To become a more credible company for a good service.

2. To become a transparent and highly trusted accounting firm by all client-companies.

Threats

1. Requests of some employees to lie about the projections and net loss they found.

2. Violence that employees may do to the accountants of JYL because of their refusal to be part
of their lies.

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VI. Alternative Courses of Action (ACA)
ACA1: Show and Tell the Truth

Advantage.

1. More credible.

2. Makes the company to trust JYL more.

3. Have a good conscience.

Disadvantage.

1. Lying is never a good solution.

2. Makes people trust the company less.

ACA2: Offer the company to make an action research proposal that can serve as a
response to the net loss and disappointing projects they will receive.

1. Have a plan B for the problem that happened.

2. Be able to recover the net loss fast.

Disadvantage.

1. Have another expenses.

2. Takes much of time.

ACA3: Report the manager to the administration of the shuttle company.

Advantage.

1. Have the lying manager of the client be disciplined.

2. Have no more bribes etc. going on in the JYL company.

Disadvantage.

1. Manager may hold grudges against JYL.

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 2. Bad review and more haters coming from the manager reported.

VII. Final Decision or Recommended Course of Action

The final decision of the problem is to show and tell the truth of what was found in the accounts.
Telling the truth is part of the job description of the accountants, so whatever the result may
reveal to the projections and financial statement should be treated as absolute. Tampering and
manipulating the results to be in favor of the manager will lose the whole point of the client-
company asking for JYL’s assistance to help in the finance management.

VIII. Detailed Action Plan

Activities Person Responsible Period Covered

1. Show the results of the financial Jayceline Mendoza, mid- Three (3) days
statements and projections. staff in accounting
department

2. General meeting with the shuttle Jayceline Mendoza Three (3) days
company to discuss about the results. Ruben Del Rosario
CEO/President of the
Shuttle Company

3. Talk about the strengths, Jayceline Mendoza Three (3) days

weaknesses, opportunities, and Ruben Del Rosario
weaknesses of the shuttle company CEO/President of the
that led to their net loss. Shuttle Company

4. Inform the manager that lying Jayceline Mendoza Three (3) days
about the results is not tolerated by Ruben Del Rosario
JYL.

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5. Educate the employees of JYL that Jayceline Mendoza Three (3) days
manipulating the results of the JYL employees
finance is never okay and tolerated in
the company.