28. Interim commu - su ease ee smmarize ‘Work accomplished in relation to plan © Tentative recommendation. if appropiate B Altoftne Above anon: ta 29. In MAS engegerant, sumciert relavert date shoud be obtained. dooumeres Sat evaluated In developing conclusions ‘end recommendations. In the course of tne engegernent: the following should be documented. excePt ‘A. the evidential matter obtained and ite source the alternative considered C the analytical process leading to specific recommendations B none of the above 30. Services that provide comprehensive, financial economic and strategic advice to companies with complex business: Ai financial advisory services: C. __ transaction services 8. Gosign and appreisal of accounting system B/financial management-related services 31. The PICPA Committee on Management Services has stated its belief that a CPA should not inderiake = management advisory services engagermert for plementation of the CPA recommendations unless J ihe client does not understand the nature and implications of the recommended courses of actions B The client has made a firm decision to proceed with implementation based on his complete finderstanding and consideration of alternatives. C' The client does not have sufficient expertise within his organization to comprehend the significance of the changes being made. ithe CPA withdraws as independent auditor for the client 32. Competence in management advisory services is acquired by ‘C. Actual performance of MAS. A. Education B Auditing and other experience B Allofthese 33. A personal attribute of a consultant that refers to his/her ability to anticipate human reactions to differing situations, A. Psychological maturity Courage B Empathy D. Judgment 34. Why do small companies need the services of management consultants? consultants to provide them with professional rounded ity of fnanagemert Frege gayi day operons ofthe company 20 Snagit services that are eevential 10 ‘japan and succes of he business. Sipacee 6 a © 6 > 13.4 practioner may accept an engagement £ required compelance of the job. Anyway, research wortws enc studies onal SS SoS ‘SShkttcang the ongegertem and besides, ha ean consider this job we anctiver ‘Str ennanee tis exposure to tne MAS practice. 14. All MS Pracitioner ace gevemed by the Code of Protessional Ethics for CPA® © 15.70 maintain hie mdependence: a CPA should init hie services te|sat of receeeneema SG nd instalation tothe chert = 16.MAS engagement should be adequately planned, supervised and controled 17: Documentation la not as easeriia in an MAS engagement se tie in'an/ Sim SAGSEST=S to furniah advice oF assistance to management through Planning, organizing or controlling any phase of business activity “\ 18. Ae an edvecry expen. ine CPA shoukl not take responsibilty tor making polcy and performed. management decisions in the management services engagement he has, 20. Before accepting an engagement, ihe practitioner need to notify the client of any reservations h has regarding anticipated benefits Ie MULTIPLE CHOICE: Write the letter that corresponds to the correct answer. Write your answer on the answer sheet 21. Under which ethical standard of conduct does the managenal accountant have the responsibility to refuse any gif. favor or hospitality that would influence or appear to influence hus or her decision? © Confidentiality —_D. Objectivity A Integrity 1B. Competence of conduct does the managerial accountant have © 22. Under which ethical standard responsibility to prepare complete and clear reports and recommendations after appropriate analyses of relevant and reliable information A. Confidentiality B. Integrity © Competence D. Objectivity 23. Under which ethical standard of conduct does the managerial accountant have the responsibility to refrain from either actively or passively subverting the attainment of an ‘organization's legitimate and ethical objectives? A. Competence B. Objectivity © Confidentiality 24. In performing management advisory services, a practitioner must act with integrity and under ‘Objectivity and be independent in mental attitude. This statement fal ©: Personal Characteristics _D. Understanding with client D. Integrity A Due Care B. client Benefit 25. Before undertaking an engagement, a practitioner is to inform his client of all significant matters related to the engagement. The following are considered significant matters except: A. Objectives B. Scope —_C. Approach D. Fees _E“ None of the Above 26.CPAs in management advisory services practice must observe the ethical requirements of the accountancy profession except as to: aleage55. Which of the folowing statements is TRUE? FO ERE ca tiaw nia heme to be associated with forecast of earings contingent upon future wansactons eee etn “pancipar is not-eynonymous to “partner” in the case of partnership of CPAS, eee er etnical tor a GPA to charge fees depending on the results of hie recommendalens Writ Sebtmea! tora GPA to include in an agreement for MAS an achievement award for beer than expected results tation due to lack of first hand jerlying technical aspects and Qbservation of the problem sit others & consultation © either (a) oF (b) B engagement D neither (a) nor (b) bled businesses by emphasizing on the implementation, Services rendered to 1rou ee 1s designed to rebuild value fationalization and recovery program: A Dispute analysis and investigation ‘accounting firm's purpose in engaging MAS is, a eifigations K has available to provide advice and wennesy jent to conduct its affairs more imtement technical management it has available to provide. ‘and technical ‘chent management to conduct its effectively. BirageMIDTERM Examination ACCM457 MANAGEMENT CONSULTANCY Name: WU. kiTWey 8 TRUE OR FALSE: von @ “Tit the statement is True and “Fis otherwise, ane jally trained 1. Management Consutancy refers to the professional service performed by speciaty ‘ciperlenced penere in ging ssamance to management in improving TWarairera ‘operating and economic performance of the various institutions of the society 2. Objectivity is @ highly personal characteristic which ensures that the practitioners statements Of findings and recommendations are free from intentional distortion or misstatements. Integrity Is the ability to avoid bias and to maintain an impartial attitude on all matters under review 3. A CPA. as a consultant,(and therefore not a member of the client organization) should not and cannot take the responsibility for making management and policy decisions in MAS engagements nor can he exercise absolute administrative control of client personnel tudy has been 4. In rendition of informal advice, ne presumption should exist that an extensive st performed to identify and consider pertinent facts and alternatives 5. All practitioners whether CPAs or not are obliged to observe MAS Practice Standards Moress. these are applicable only to structured or organized MAS Practice Engagements, These are also applicable to informal advice 6. Effective participation by the member in full-scope engagement requires the appropriate composition of management participants. Client representation should include only the decision-level participants who are representative of the functions particularly affected by the matter 7. Independence rather than competence is the underlying quality that a CPA must possess in MAS engagement 8 It is unethical for a CPA to accept an MAS engagement for a company that is not his audit client. 9. Marketing is an area which is beyond the scope of MAS by CPAs. * 40. A CPA-MAS practitioner need not be concerned with independence in his relations with his lients since the overriding consideration for MAs engagement is competence. * 411. Especially under time pressure, it is not so necessary that sufficient relevant data has to be obtained, documented and evaluated in developing conclusions and recommendations. 5 perform management services by @ client who has would violate an MAS Practice results of each, he decides to 12. A practicing CPA was asked to ‘accounting and management experience. The CPA solutions and the expected and assumes full responsibility for which the clientA 39. The following are among the ground rules that a consultant should observe in providing Support for internal arguments in @ client except A introduce and explore options which reconcile different positions in a win-win way B. Be sensitive to who is supporting different positions in the organizatior © Build rapport with the client about the strengths and weaknesses of his or her arguments D Provide the cient manager information and insights that will strengthen his position against his adversaries in the organization 40. Ability of the consultant to focus and direct the individuals in an organization in a way that brings the whole organizations benefits A. Ability to develop selling strategies & Ability to demonstrate leadership C. Ability to work effectively as a team member D. Ability to build rapport and trust with the client 41. Ability to define objectives and outcomes is example of a consultant's ‘A. Rapport-building skills |B Project management skills C. Analysis skills D Interpersonal skills.42. A conaumant's ability to Ktentty what information Ie needed in a particular stuation ean cs A. Ability to understand technical language B Adequate background or knowledge of the subject matter being diac now-it-al-attitude and/or prejudice of some personnel of the ©. Positive attitude to possible changes D 45. The following are reasons why physiological equilibrium Is needed by the consultant except ‘and emotional activities B. To enable him/mer to withstand pressure and frustration ©. To avoid physical iline: B To enable him/her to accept as many clients as possible D 46. Project management skilis require the following exce; KAumy deine secavesan eames B. Ability to develop formal plans ©. Ablity to sequence and prorize tasks 5 Abilty to accept nurmerous cliente that will enable him/her to generate more income thereby Spreading himscitinersel too thinty C47. These are enterprises involved in varied business endeavors such as merchandising, mantfactunng. nancial services and are potential consultancy clients A. Professional Association &. Not-for-profit nongovernmental organizations, & Prvately-owned business firms D. Government agencies 48. Which of the following professionals is/are allowed to render MAS? D Mcpa B. Lawyer C. Engineer B. Any or all B49. Which of the following Is not essential to for purposes of rendering MAS? sett tte & possession of CPA certificate Fe a re eae Senin renee The sone ae art ts eng 8. Fh Senos nt rhe ite are tuner no ma hve rane cn in the organization 1. The services are of highly specialized naturehia Dusiness protiems ‘conducting management services integrity ‘solution ‘systems and Which of the following refers to the giving of professional advice or assistance 10 ‘and contro! ‘are essential qualifications needed In 1 ‘ability and expenence, wath the clients: ‘ail of these