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Profiles of Admirable Individuals INSTRUCTIONS: Analyze The Given Scenarios and Answer The Following Items in One (1) Whole Sheet of Paper

The document contains 4 profiles that describe different individuals and businesses. Each profile identifies the type of business, applicable accounting standards, and the CPA's area of practice. The businesses include a construction company, merchandising store, proposed school, and audit firm. The CPAs work in commerce/industry, ensure financial reporting and analysis, and conduct audits. The profiles demonstrate how CPAs apply accounting standards to different types of organizations and practices.

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Janrey Roman
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33 views

Profiles of Admirable Individuals INSTRUCTIONS: Analyze The Given Scenarios and Answer The Following Items in One (1) Whole Sheet of Paper

The document contains 4 profiles that describe different individuals and businesses. Each profile identifies the type of business, applicable accounting standards, and the CPA's area of practice. The businesses include a construction company, merchandising store, proposed school, and audit firm. The CPAs work in commerce/industry, ensure financial reporting and analysis, and conduct audits. The profiles demonstrate how CPAs apply accounting standards to different types of organizations and practices.

Uploaded by

Janrey Roman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BM1802

PROFILES OF ADMIRABLE INDIVIDUALS

INSTRUCTIONS: Analyze the given scenarios and answer the following items in one (1) whole sheet of paper.
Answers must be justified in accordance with the following:

• Identify the type of business;

• Distinguish the accounting standards applicable for the identified business; and

• Identify the type of practice the CPA is engaged in.

PROFILE 1

Mr. Janard Lindio is the owner of Clifford Construction Company. Ms. Regine Joy Develos, a CPA working for Mr.
Lindio, is tasked to do things such as financial reporting and analysis. She constantly reviews the source documents
and makes sure that the financial statement serves its purpose.
• In this scenario the type of business is manufacturing busines. This manufacturer develop their
own products of building materials and garden equipments.

• The Accounting standards that are applicable for this business are IAS 1,IAS 2, IAS 3, IAS 4, IAS
5, IAS 7, IAS 8, IAS 10, IAS 12, IAS 13, IAS, IAS 16, IAS 18, IAS 19, IAS 20, IAS 25, IAS 26, IAS
27, IAS 28, IAS 30, IAS 32, IAS 34, IAS 35, IAS 36, IAS 37, IAS 38, IAS 39, IAS 40, IAS 41. These
are all include in the line items that are necessary for the financial reporting and analysis. This will guide the
CPA on how to report and analyze the quantitative information’s in the entity to form the standard general
purpose financial reports.

• The CPA working for Mr. Lindio is tasked to do things such as financial reporting and analysis
which is in practice in commerce and industry. It is in a business or company in the private sector and the
person is involved in decision-making requiring professional knowledge in the science of accounting.

PROFILE 2

Baby Jane Justianiane is the owner of Boja General Merchandise, which is the main distributor of shoes and apparels
in all areas of Taguig. Her accountant Anjielica Cavs, who is a CPA, is assigned to monitor and ensure that their
products meet the desired criteria for quality. She also ensures that their cost coincides with the quality of their
products.
• The type of the business is merchandising business that earns profit from the sale of shoes and
apparels in all areas of Taguig.

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• The standards that are applicable for this business are IAS 2, IAS 4, IAS 6, IAS 16, IAS 23, IAS 40. This
standards can be associated with merchandising business specifically with the accountant
Anjielica Cavs, CPA that is assigned to monitor and ensure that their products meet the desired criteria for
quality. Also, she ensures that their cost coincides with the quality of their products. This standards will guide her
in achieving the uniformity of accounting principles which are used by business and other organizations.

• The type of practice engaged by this CPA is practice in commerce and industry that s/he is assigned to monitor
and ensure that their products meet the desire criteria for quality. In addition, she also ensures that their cost
coincides with the quality of their products.

PROFILE 3

Mr. Emmanuel Rivera, a wealthy businessman, is planning to put up a school called John Academy. Being a newbie
in the said industry, he approaches his friend who is a CPA, Mr. Nestor Tulang, to help him. In return, he will give
him a job as the school accountant. Assuming that Mr. Tulang accepts the offer, his job will be to ensure and forecast
the necessary strategies in maintaining the records of the financial performance of the school.
• Schools are service businesses. It offers services as its main product rather than physical goods. It
offers professional skills of teaching, governing, advice and similar service.

• Nestor Tulang, possible school accountant of John Academy if he accepts the offer he will have to comply with
the standards of PFRS specifically, IAS 3, IAS 4, IAS 5, IAS 7, IAS 8, IAS 10, IAS 11, IAS
12, IAS 13, IAS 16, IAS 18, IAS 19, IAS 26, IAS 27, IAS 30, IAS 34, IAS 35, IAS 37, IAS 38, IAS 39.
This standards provides the correct order research, discussion paper, exposure drafts and accounting standard.

• If Mr. Tulang accepts the offer of Mr. Rivera then he is in the practice in commerce and industry despite
being at an educational institution. It is a practice which requires the forward planning and forecasting as well as
the maintaining the records, producing the financial reports, preparing the budgets and controlling and allocating
the resources of the entity.

PROFILE 4

Cristian Punzalan and Jerone Gatdula are the owners of PGA and Company, a newly formed audit firm located in
Sta. Mesa. Wilmari Ocampo, a CPA, is assigned as the Audit Supervisor to one of their clients. Her task is to ensure
that the engagement is on time, to apply the necessary audit procedure, to manage the associates, and to come up
with the proper evaluation of the financial statement.
• This audit firm is a type of service business. Firms that generally use their employees to provide
intangible products or services to customers. In this profile it provide service of identifying inefficiencies, reduce
costs, and otherwise achieve organizational objectives.

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• CPA Wilmari Ocampo needs to follow the necessary guidelines and procedures of the PFRS. Specifically, IAS
3, IAS 8, IAS 9, IAS 28, IAS 29, IAS 31, IAS IAS 33, IAS 38, IAS 39, IAS 40. This
standards will help the audit supervisor in doing his job in a legal and high-quality accounting standard. It is a
necessity to ensure comparability and uniformity in doing their respective tasks.

• As a CPA that is assigned as the company Audit Supervisor he is in the practice of public accountancy. Wherein
he’s job is to ensure that the engagement is on time, to apply the necessary audit procedure, to
manage the associates, and to come up with the proper evaluation of the financial statements. This tasks are
include in the practice of public accountancy.

03 Activity 2 *Property of STI


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