Essay

-What is MAS?

Management advisory services are consulting services performed by a specialist organization for its
clients. These services are intended to provide advice regarding the operations and finances of
clients. A CPA firm may provide management advisory services if this group is separated from the
auditing and tax functions.

BOOK:

Management advisory services is a function of providing professional advisory (consulting) services, the
primary purpose of which is to improve the client's use of its capabilities and resources to achieve the
objectives of the organization

-About working paper

How long and where should client work papers be retained?

 Retention period should be based on internal requirements, client requirements, or legal

requirements.
 It should be retained by the firm since it is support for client recommendations.

Purpose

 Provide historical substantiation of work performed and basis for developing conclusions
 Consultants source of reference
 Support for recommendations

Contents

 Names  Basic facts

 Sources of information  Opinions regarding the source and
 Purpose of documentation impact of the document information

Identification

Types of Clients (Chap 3)

1. Contact Clients – first approaches the consultant

2. Intermediate Clients – members of the organization who become involved in the consulting
project; may be actual recipients of the final report
3. Primary Clients – persons who have identified the problem or issue the consultant has been
called in to address and who are most immediately affected by it; willing to pay to resolve issue
4. Unwitting Clients – members of the organization who will be affected by the intervention of the
consultant; do not initiate the project and have no direct or formal control over it; unaware that
they are affected
5. Indirect Clients – affected by the intervention of the consultant; aware that they are affected;
consultant is unaware that the project will have an impact on them
 6. Ultimate Clients – total community that will be affected

Groups of clients that CPAs can provide MAS are:

1. Privately-owned business firms – manufacturing, merchandising, banking, transportation,

insurance, food services, education
2. Governmental agencies and organizations
3. Not-for-profit nongovernmental organizations – hospitals, research institutions, and charitable
institutions
4. Professional associations – lawyers, medical doctors, etc.
5. Others – labor unions, sports organizations, religious organizations

Final Report – made upon completion of an engagement to ensure that results and recommendations are
communicated; should be responsive to the objectives and scope of the engagement

Unsynchronized Time of System

Consensus(proposal letter?)

1. Objectives and benefits of the engagement

2. The scope of the work and the role of CPA
3. The approach to the study
4. The project organization
5. Fees and billing arrangement
6. Firm qualifications, where appropriate

ENUMERATION(19)

Practice Standards (Chap 5)

1. Personal Characteristics
2. Competence
3. Due Care
4. Client Benefit
5. Understanding with Client
6. Planning, Supervision and Control
7. Sufficient Relevant Data
8. Communication of Results

Emerging Consultancy Services (Chap 3)

1. Global Risk Management Solution

2. Transaction Services
3. Financial Advisory Services
4. Project Finance and Privatization
5. Valuation Services
 6. Business Recovery Services
7. Dispute Analysis and Investigation
8. Computer Risk Management
9. Application Software Selection and Implementation

When disclosures may be appropriate (Chap

1. Disclosure is permitted by law and is authorized by the client or the employer

2. Disclosure is required by law:
3. There is professional duty or right to disclose, when not prohibited by law:

Kinds of Project Controls

1. Administrative Controls
2. Time Reporting Procedures
3. Independent Quality Assurance Reviews

Types of Controls

1. Preventive Controls
2. Feedback Controls

Risk Controls

1. Financial Risk Management

2. Strategic Risk Management
3. Operational and System Risk Management
4. Compliance Risk Management
5. Internal Audit Services