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Management Advisory Services

Management advisory services (MAS) provide advice and technical assistance to help clients improve their capabilities and resources to achieve organizational objectives. MAS involves problem solving, relates to the future, has a broad scope, and requires highly qualified staff. Certified public accountants (CPAs) are well-positioned to offer MAS due to their technical expertise, client familiarity, and reputation. The goals of a CPA engaging in MAS are to utilize their qualifications to provide advice that enables clients to operate more effectively.

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Kyla Bautista
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518 views17 pages

Management Advisory Services

Management advisory services (MAS) provide advice and technical assistance to help clients improve their capabilities and resources to achieve organizational objectives. MAS involves problem solving, relates to the future, has a broad scope, and requires highly qualified staff. Certified public accountants (CPAs) are well-positioned to offer MAS due to their technical expertise, client familiarity, and reputation. The goals of a CPA engaging in MAS are to utilize their qualifications to provide advice that enables clients to operate more effectively.

Uploaded by

Kyla Bautista
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MANAGEMENT ADVISORY

SERVICES
-THE AREA OF ACCOUNTING WORK THAT IS
CONCERNED WITH PROVIDING ADVICE AND
TECHNICAL ASSISTANCE TO HELP CLIENTS
IMPROVE THE USE OF THEIR CAPABILITIES
AND RESOURCES TO ACHIEVE THE
OBJECTIVES OF THEIR ORGANIZATION
-ALSO CALLED CONSULTING SERVICES OR
BUSINESS ADVISORY SERVICES
..
CHARACTERISTICS OF MAS

1. Services rendered are for management


2. It involves problem solving
3. MAS relates to the future
4. It is broad in scope.
5. It involves varied assignments.
6. Engagements are usually non recurring.
7. Engagements require highly qualified staff.
8. Human relations play a vital role in each
engagement.
MANAGEMENT CONSULTANT
- A PERSON WHO IS QUALIFIED TO ADVISE OR ASSIST
BUSINESSMEN ON A PROFESSIONAL BASIS IN
EDUCATION, EXPERIENCE, TECHNICAL ABILITY, AND
TEMPERAMENT IN DEFINING AND SOLVING SPECIFIC
MANAGEMENT PROBLEMS INVOLVING THE
ORGANIZATION, PLANNING. DIRECTION, CONTROL
AND OPERATION OF THE FIRM.

- A person with a marketable skill, a perceptive mind, a


need for independence and challenge, an ability to
communicate with others and persuade them to follow
advice, a desire to help others in an effective way and a
wish to be an agent of positive change.
ADVANTAGES OF CPAS OVER
OTHER PROFESSIONALS IN
RENDERING MAS
1. The CPA is already familiar with the client and his
business .
2. The CPA enjoys his client’s confidence.
3. The CPA is a member of a profession with
recognized standing.
4. The CPA is equipped with the technical know-how
in accounting and taxation and his accounting practice
offers an advantageous position upon which to build
an MAS practice.
DETERMINATION OF THE
SCOPE OF SERVICE
The consultant should consider the following
guidelines:
1. Responsibility to establish scope of service.
2. Independence
3. Competence
4. Requirements for specialization
5. Attention to the client’s basic problems.
6. Referral arrangements
7. The Code of Professional Ethics
EMERGENCE AND GROWTH OF MANAGEMENT CONSULTANCY

Attributed to the following factors:


1. Growth in size and complexity of
business firms
2. Complexities in managing and
conducting a business
3. Lack of competent staff
EMERGENCE AND GROWTH OF
MANAGEMENT CONSULTANCY
4. Trend towards industrialization
5. Need for adequate and timely
information for management decision
making
6. Development of techniques for the
solution of management problems, and the
businessmen’s awareness of their
usefulness
REASONS FOR HIRING
MANAGEMENT CONSULTANTS
To:
1.help define specific problems and develop
solutions
2. provide specialized skills and experience
3. provide confidential service in which the
identity of the client is concealed
4. train client personnel
REASONS FOR HIRING
MANAGEMENT CONSULTANTS

5. provide temporary personnel


6. help improve intra-company
communications
7. render an independent opinion
8. help get results
RATIONALE FOR HIRING
MANAGEMENT CONSULTANTS
Four variable reasons:
1. Independent viewpoint
2. Professional advisor and
counselor
3. Temporary professional service
4. Agent of change
DEVELOPING TRENDS IN MAS

-CHANGED DRAMATICALLY IN THE


MID 90S
-MAS NOW SPECIALIZES IN
INFORMATION SYSTEM, AUTOMATED
OFFICES, FINANCIAL ANALYSIS AND
MODELING BUDGETING AND COST
CONTROLS, ORGANIZATION
STRUCTURES,PERSONNEL
COMPENSATION, STRATEGIC
PLANNING AND HOST OF OTHER
FUTURE PROSPECTS
1. Management consulting will become even more
specialized.
2. The consultant’s orientation will be towards being an
insight-provider, creator and sharer of information
3. Small consultancy firms may prosper by focusing upon
narrow areas of specialization while larger firms will have
to develop and offer a wide range of services .
4. As consultants grow in number they will develop more
sophisticated means of marketing their services.
5.Bright graduates of accounting, management and
business schools will continue to be attracted to careers in
management consulting.
CAREER STRUCTURE IN
CONSULTING FIRMS
1. Analysts
2. Consultants
3.Senior Consultants or Managers
4. Business Development Managers
5. Directors (Partners)
TYPES OF ENCOUNTERS WITH
CLIENTS
1. Consultation- consists of providing advice
and information during a short time frame.
This advice and/or information is provided
orally during one or more discussions with the
client.
2. Engagement- consists of that form of
management advisory or consulting service in
which the analytical approach and process is
applied in a study or project.
INDEPENDENT ACCOUNTING
FIRM’S ROLE IN MAS
The role of an independent accounting firm in
performing management advisory services is
“to provide advice and technical assistance
which should provide for client participation in
the analytical approach and process. Specifying
this as the proper role recognizes both the
appropriate place of MAS and the realities of
practice. This is the only basis on which the
work should permit it to be done.”
CPA’S OBJECTIVE IN ENGAGING
IN MAS

An independent accounting firm’s purpose


in engaging in MAS is;
“to utilize the essential qualifications it
has available to provide advice and
technical assistance which will enable
client management to conduct its affairs
more effectively”
CPA’S OBJECTIVE IN ENGAGING
IN MAS
These essential qualifications are based in part on
attributes acquired in conducting other aspects
of practice and include :
1. technical competence
2. familiarity with the client’s finance and control
systems and his business problems.
3. Analytical ability and experience in problem
solution
4. professional independence, objectivity and
integrity

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