An expense account is the right to reimbursement of money spent by

employees for work-related purposes.

Money advanced to a salesperson, or any other employee
or officer of a firm, for food, travel, accommodation, entertainment
of clients, and other such expenses considered necessary to
make sales or to get a job done.

An expense account is money paid to an employee (a

salesperson, executive, etc.) to cover travel, food, hotel rooms,
entertainment of clients, and other work-related purposes.

AN ACT TO AMEND SECTION 61 OF PRESIDENTIAL DECREE

NUMBERED ONE THOUSAND FOUR HUNDRED AND FORTY-FIVE
OTHERWISE KNOWN AS THE "GOVERNMENT AUDITING CODE OF THE
PHILIPPINES" AND FOR OTHER PURPOSES

Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twelfth Congress
First Regular Session

House Bill No. 988

Introduced by Honorable Narciso D. Monfort

EXPLANATORY NOTE

This bill seeks to exempt certain government expense accounts from the standard
auditing procedures and techniques to be followed and the extent of examination of
vouchers and other documents by government auditors.
During a period of calamity, epidemic, earthquake or national disaster, it is almost
impossible for those responsible in the disbursement of public funds to adhere to the
standard requirements authorized under the government auditing code, hence the
proposed exemption.
Likewise, expenditures chargeable against lump-sum appropriations are
authorized through a special budget itemizing said lump-sum appropriation. Upon the
approval of the special budget providing the details of the expenses to be incurred, the
said special budget shall serve as the exclusive legal authority and therefore the audit of
such expenditures shall be based on the approved special budget as itemized.
In view of the foregoing, the approval of this bill is respectfully recommended.

NARCISO D. MONFORT, M.D.

 Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twelfth Congress
First Regular Session

House Bill No. 988

Introduced by Honorable Narciso D. Monfort

EXPLANATORY NOTE

AN ACT TO AMEND SECTION 61 OF PRESIDENTIAL DECREE NUMBERED

ONE THOUSAND FOUR HUNDRED AND FORTY-FIVE OTHERWISE KNOWN
AS THE “GOVERNMENT AUDITING CODE OF THE PHILIPPINES” AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1. Sec. 61 of the Presidential Decree Numbered One Thousand One Hundred
and Forty-Five is hereby amended to read as follows:

“Sec. 61. Audit of Expense Accounts. – The examination of been dully

authorized; adequately funded and documented; properly recorded; all recorded
expenses have been actually incurred; and the classification of expenses are
appropriated and have been consistently followed; PROVIDED, THAT,
EXPENSE ACCOUNTS INCURRED DURING A PERIOD OF CALAMITY,
EPIDEMIC, EARTHQUAKE OR NATIONAL DISASTER SHALL BE
EXEMPT FROM THE ABOVE REQUIREMENTS AND/OR THE RIGID
AUDITING PROCEDURES AND TECHNIQUES FOLLOWED IN THE
EXAMINATION OF VOUCHERS AND OTHER DOCUMENTS; AND ,
PROVIDED, FURTHER, THAT EXPENSES ACCOUNTS CHARGEABLE
AGAINST LUMP-SUM APPROPRIATIONS, SUBJECT TO A SPECIAL
BUDGET, SHALL BE AUDITED BASED ON THE APPROVED ITEMIZED
IN THE SPECIAL BUDGET, WHICH SHALL SERVE AS THE AUTHORITY
AND LEGAL BASIS”.

Sec. 2. The Chairman, Commission on Audit, in coordination with the Secretary,

Department of Budget and Management, shall issue the necessary guidelines to
implement this Act.
Sec. 3. This Act shall take effect thirty (30) days after its publication in at least
two (2) newspapers of general circulation.
Approved,
Expense Account and ethics
Filed under: Miscellaneous — Tags: ethics, honesty, office — Ankur Aggarwal @ 12:29 pm

Company expense account is like a blank cheque. If your job responsibilities involve traveling
and client interaction, then one can ideally charge almost anything under this account. I have
known a few of my friends in sales and marketing who practically live off the expense account.

Almost everyone pays for hotels stay, fancy restaurants, taxis and designer gifts from the
expense account. However the problem comes when:
1. We over spend because we are not paying
2. We inflate the bills and expenses
3. Sometimes people even create fake bills. I have known so many people who can get
fictitious bills for fuel or medicines from the nearby shop.

What we fail to realize is that just because the expense was approved, does not mean that your
misdemeanor went un-noticed. Everyone knows how much a taxi ride from the airport to the
hotel costs. So just because one has the receipt, does not mean no one will be suspicious.

Whats worse is that these days data is being stored for eternity and can be retrieved in a jiffy.
Back stabbing and office politics has gone so competitive that if someone wants to check the
honesty and integrity of an employee, the expense account is the place where they start. Few
of the British MP recently woke up to this embarrassing surprise recently.

Just because its allowed, does not mean it is permitted. Spend the corporate money like the
way you would spend yours and things will be OK.

Economics and business

Main article: Competition (economics)

Merriam-Webster defines competition in business as "the effort of two or more parties acting
independently to secure the business of a third party by offering the most favorable terms".[2]. It
was described by Adam Smith in The Wealth of Nations (1776) and later economists as allocating
productive resources to their most highly-valued uses.[2] and encouraging efficiency.
Later microeconomics theory distinguished between perfect competition and imperfect
competition, concluding that no system of resource allocation is more efficient than perfect
competition. Competition, according to the theory, causes commercial firms to develop new
products, services and technologies, which would give consumers greater selection and better
products. The greater selection typically causes lower prices for the products, compared to what
the price would be if there was no competition (monopoly) or little competition (oligopoly).

However, competition may also lead to wasted (duplicated) effort and to increased costs (and
prices) in some circumstances. For example, the intense competition for the small number of top
jobs in music and movie acting leads many aspiring musicians and actors to make substantial
investments in training which are not recouped, because only a fraction become successful.

Three levels of economic competition have been classified:

  The most narrow form is direct competition (also called category competition or brand
competition), where products which perform the same function compete against each other.
For example, one brand of pick-up trucks competes with several other brands of pick-up
trucks. Sometimes, two companies are rivals and one adds new products to their line, which
leads to the other company distributing the same new things, and in this manner they
compete.

 The next form is substitute or indirect competition, where products which are close
substitutes for one another compete. For example, butter competes with margarine,
mayonnaise and other various sauces and spreads.

 The broadest form of competition is typically called budget competition. Included in this
category is anything on which the consumermight want to spend their available money. For
example, a family which has $20,000 available may choose to spend it on many different
items, which can all be seen as competing with each other for the family's expenditure.

In addition, companies also compete for financing on the capital markets (equity or debt) in order
to generate the necessary cash for their operations. An investor typically will consider alternative
investment opportunities given his risk profile and not only look at companies just competing on
product (direct competitors). Enlarging the investment universe to include indirect
competitors leads to a broader peer universe of comparable, indirectly competing companies.

Competition does not necessarily have to be between companies. For example, business writers
sometimes refer to internal competition. This is competition within companies. The idea was
first introduced by Alfred Sloan at General Motors in the 1920s. Sloan deliberately created areas
of overlap between divisions of the company so that each division would be competing with the
other divisions. For example, the Chevy division would compete with the Pontiac division for
some market segments. Also, in 1931, Procter & Gamble initiated a deliberate system of internal
brand-versus-brand rivalry. The company was organized around different brands, with each
brand allocated resources, including a dedicated group of employees willing to champion the
brand. Each brand manager was given responsibility for the success or failure of the brand, and
compensated accordingly. This is known as intra-brand competition.

Finally, most businesses also encourage competition between individual employees. An example
of this is a contest between sales representatives. The sales representative with the highest sales
(or the best improvement in sales) over a period of time would gain benefits from the employer.
Shalev and Asbjornsen also found that success (i.e. the saving resulted) of reverse
auctions correlated most closely with competition. The literature widely supported the importance
of competition as the primary driver of reverse auctions success. Their findings appear to support
that argument, as competition correlated strongly with the reverse auction success, as well as
with the number of bidders.[3]

It should also be noted that business and economic competition in most countries is often limited
or restricted. Competition often is subject to legal restrictions. For example, competition may be
legally prohibited, as in the case with a government monopoly or a government-granted
monopoly. Tariffs, subsidies or other protectionist measures may also be instituted by
government in order to prevent or reduce competition. Depending on the respective economic
policy, pure competition is to a greater or lesser extent regulated by competition
policy andcompetition law.

Competition between countries is quite subtle to detect, but is quite evident in the world economy.
Countries compete to provide the best possible business environment for multinational
corporations. Such competition is evident by the policies undertaken by these countries to
educate the future workforce. For example, East Asian economies such as Singapore, Japan and
South Korea tend to emphasize education by allocating a large portion of the budget to this
sector, and by implementing programmes such as gifted education