Part 2: Decision Making - Minicase: Bidding on an Audit Engagement Proposal (Minicase Acct - 03)

1. Introduction & Problem Identification: A newly created accounting/auditing firm (owned by George and Sheila, the partners) is preparing a bid proposal for a potential new client, from the construction industry. The staff member drafting the proposal (Gary) produces a bid a little too pricy, according to the manager in charge (Joyce), so she asks him to cut down the costs by gathering accounting students for the field work, but Gary is concerned that said approach may be risky for a new client. 

Furthermore, pursuant to recently updated CPA guidelines for audit firms, auditors are required to be extra alert for cash flow problems for construction industry clients, hence no corners should be cut with this potential client. Joyce asks Gary to follow her suggestions though, promising she would handle any eventualities with either the client of the partners, further offering Gary a managerial position down the road if he follows along.

The problem, therefore, is whether to prioritize income generation for the new audit firm, regardless of quality and even ethics potentially being compromised, or to prioritize the well being of the client, and as a consequence, getting a boost to the reputation and reliability of the firm in the long run. 

2. Decision Criteria: Based on the facts of the case, the decision criteria should be based on factors such as budget constraints (weight is 2 out of 5), guidelines compliance (weight is 5 out of 5), firm reputation (weight 4 out of 5), and long-lasting reliability (weight is 3 out of 5).

3. Generate Alternatives: 

    (i) To lower the bid price by hiring accounting students for the audit engagement;

    (ii) To hire a mix of two accounting students and two experienced senior auditors, hence lowering the bid somewhat, yet offering the appropriate seniority to deliver pursuant to guidelines;

    (iii) To withdraw the bid and inform the construction industry client that the firm is not quite ready to             take on their account with the current constraints, but offering to be ready next year, hence                     protecting its reputation;

4. Evaluate Alternatives: If one of our solutions produces both a duly audit guidelines-compliant work and a middle-ranged bid price that leave both the audit firm and the client satisfied, then such shall be the chosen alternative.

5.Select the Best Alternative: Based on the evaluation carried out, the best alternative is the second one, which entails hiring a mix of two accounting students and two experienced senior auditors, in such a way that the proposed bid becomes more pricewise attractive, yet compliant enough to make sure all auditing guidelines are duly enforced and the well-being of the client is appropriately ensured, yielding a satisfied account, which as a consequence enhances the firm's reputation and reliability.

Management and Leadership Personal Learning Cloud / e-Portfolio Part 1: Planning

Vision

The personal vision of where I see my career ten years from now is to continue to be an online / remote three-type-freelance consultant (like what I currently do), but with even more freedom for mobility and constant / ever-lasting relocation, allowing myself to live three months per year in Canada, three months in Italy / Spain, three months in Peru, and three months in the United States, rendering my professional bilingual services as (1) External Auditor / Consultant for a Canadian mining company for their operations in Peru, (2) Bilingual Business Development / Admin / Commercial / Finance Counseling for an Automobile Dealership from Maryland in the United States and (3) English - Spanish Medical and Financial Interpreter for USA and Canadian Hospitals and Institutions (Service Canada, MPI, ICBC, CRA, Immigration Offices, IRS, etc.).

Mission

I am a Bilingual MBA / Finance / Commercial Executive (English-Spanish), with over fifteen years of international corporate experience in finance, shareholders and investors relations, corporate governance, B2B credit management, IFRS and GAAP reporting, budgeting, and C-suite level reporting in multinational companies in Canada, the United States, and Peru.

I am also a Voyce-Certified English-Spanish Medical Interpreter for Canadian and USA hospitals and health care providers, and proven expert in interpretation / translation of financial-technical English in the mining sector, in the medical industry and across business sectors in general.

In summary, I am a Business Administration / Finance / Commercial Professional and Interpreter, holder of a USA-issued Business Administration Bachelor college degree, and currently pursuing a Post Graduate Diploma in Business Management in Red River College Polytech, in Winnipeg, Manitoba, Canada, and I consider myself a bridge who enables the communication and mutual understanding among business stakeholders from different cultural backgrounds, and who also contributes to the wellbeing of Spanish-speaking patients seeking medical care in English-speaking countries.

S.M.A.R.T. Personal Goals:

Short Term: To successfully complete my Business Management Diploma program in May 2024.

Medium Term: To secure a mortgage-purchased apartment somewhere in Canada within the next three years (by mid 2026 at the latest) and a secondary home (purchased or rented) in Peru within the same time frame.

Long Term: To be able to continue performing my current consultancies, from the comfort of my laptop, from different physical locations throughout the year, including Canada (hopefully Vancouver), from Florida in the States, from Lima and Northern beaches of Peru, and from Angri (Italy) and Malaga and Barcelona (Spain), through Airbnb mode, from 2027 onwards.

Daniel's Biz Mgmt Blog - Introduction

My name is Daniel, I am from Lima, Peru, and hold a Bachelor's Degree in Business Administration. Currently work remotely as a Bilingual Business Development Consultant for an Automobile Dealership in Maryland, USA, and also as a Freelance Online Medical Interpreter (English Spanish). Twice a year I also conduct Inventory Auditing work for Silver X Mining (a Canadian Mining company with operations in the Peruvian highlands).

I am pursuing the Business Management CE program at RRC to acquire updated knowledge and to expand my networking in Canadian businesses in general, as well as in its mining and medical interpreting industries in particular.