Classifications of MAS engagements

according to six dimensions

1. Nature of the problem

2. Service delivery area
3. Phase(s) of the analytical process
4. Techniques and methodologies applied
5. Industry to which the client belongs
6. Geographical area(s) where the engagement
takes place
 1. Nature of the Problem

A. Corrective-involves a situation in which conditions

have worsened. Arises suddenly and demands urgent
action. Example is a sudden drop in productivity
within a critical department. The consultant is
expected to suggest corrective action that will bring the
situation to its previous state.
 Nature of the Problem

2. Progressive-involves an existing situation that can

be improved. Example is when a firm continues to
employ old procedures in spite of significant growth in
transactions and development in technology. In this
case, the consultant may determine that computer
based transaction processing systems are likely to
provide considerable improvements.
 1. Nature of the problem

3. Opportunistic- involves a situation in which future

prospect exists. Example is when a firm has surplus of
cash and cash equivalents available and the consultant
maybe hired to search out and recommend
opportunities for more effective use of the excess
funds.
 2. Service Delivery Areas

- the functions or activities in which the problem

situation exists and maybe classified in a number
of groupings :
1. general management 6. procurement
2. manufacturing 7. research and development
3. Personnel 8. packaging
4. finance and accounting 9. administration
5. marketing 10. international operations
 3. Application of the Analytical Process

1. Identifying the objectives

2. Defining the problem
3. Finding out the facts
4. Developing the solution
5. Implementing the solution
 4. Techniques and Methodologies Applied

⚫ Engagements can be aided by technical models or

methodologies like the use of discounted cash flow
models in capital budgeting or a structured
methodology in information systems planning and
design.
 5. Industry or Nature of Organization

-maybe a privately owned business firm, a

government agency, a not for profit organization, a
professional association or some other type of
organization.
 6. Geographical Areas

- Maybe restricted to a single location, such as the

home office of the client. It may also involve multiple
locations such as the several production plants and
warehouses of a large manufacturing firms. It may also
involve location in foreign countries.
 AREAS OF MAS PRACTICE

1. The management function of analysis, planning,

organizing and controlling
2. The introduction of new ideas, concept and methods to
management.
3. The improvement of policies, procedures, system,
methods and organizational relationships.
4. The application and use of managerial accounting,
control systems, data processing, and mathematical
techniques and methods, and
5. The conduct of special studies preparation of
recommendation.
 Most sought after Consultancy work

1. Business planning and development

2. Information system consulting
3. Management/Operations audit
4. Business process improvement/reengineering
 Most Sought after types of Consultancy Work

5. Others such as
a. marketing research
b. Marketing Strategy Development
c. Developing promotional campaign
d. Planning sales force activity
e. New product development
f. developing proposal for financial support
g. Staff recruitment
h. Exporting and International market
 Traditional Services

1. Managerial Accounting
a. Financial statement analysis
b. Budget and their preparation
c. Cost analysis, planning and control
d. variance analysis
e. Cost analysis for managerial decisions
f. Development and installation of responsibility accounting
system and evaluation of responsibility centers
g. establishment of internal reporting system
h.Assistance in preparation of reports
 Traditional Services

2. Design and Appraisal Of Accounting System

a. Development of an accounting system for a newly
organized firm
b. revision, partial or complete of an existing
accounting system
c. Extension of the present accounting system to
cover new business activities
d. Accounting service in general
e. Accounting machine installation
f. Internal control studies and installation
 Traditional Services

3. Financial Management Related Services

a. Study of working capital requirements
b. Study of methods of financing asset acquisitions.
c. Credit and collection practices and advice.
d. Analysis of capital investment proposals.
e. Study of alternative methods of financing expansion
f. Survey of pension, retirement and profit sharing plans
g. Preparation of feasibility study for new projects
h. Valuation of capital stocks for companies under
merger or sale
 Traditional Services

⚫ 4. Project feasibility Studies

 Emerging Consultancy Services

5. Global Risk Management Solution

a. Financial risk management
b. Strategic risk management
c. Operational and system risk management
d. Compliance risk management
e. Internal audit services
 Emerging Consultancy Services

6. Transaction services
7. Financial Advisory Services
8. Project Finance and Privatization
9. Valuation services
10. Business recovery services
11. Dispute analysis and investigation
12. Computer risk management
13. Application Software Selection and
Implementation
 Types of Clients Served

1. Contact clients
2. Intermediate clients
3. Primary clients
4. Unwitting clients
5. Indirect clients
6. Ultimate clients
 How Consulting adds Value

The actual output of a consulting service centers on

one or more of the following:
1. provision of information
2. provision of specialist expertise
3. provision of new perspective
4. provision of support for internal arguments
5. provision of support in gaining a critical resource
6. facilitating organizational change
 Professional Attributes of Management
Consultants
⚫ Technical skills- include understanding and
experience in a technical discipline such as
information technology, marketing, engineering and
organizational behavior.
⚫ Interpersonal skills- include personal attributes that
make an individual amiable among people and
effective in accomplishing desirable objectives
through people.
 Professional Attributes of Management
Consultants

⚫ Consulting process skills- involve the ability to

understand and use the following approach in solvinf
business problems:
a. identify the cause of problems or inefficiencies
b. identify alternative solutions
c. Select the most desirable alternative
d. Implement the chosen solution
 MAS PRACTICE STANDARDS

1. Personal Characteristics. In performing MAS, a

practitioner must act with integrity and objectivity and be
independent in mental attitude.
2. Competence. Engagements are to be performed by a
practitioner having competence in the analytical approach
and process, and in the technical subject matter under
consideration
3. Due Care. Due professional care is to be exercised in the
performance of MAS.
4. Client Benefit. Before accepting an engagement, a
practitioner is to notify the client of any reservation he has
regarding anticipated benefits.
 MAS Practice Standards

5. Understanding with client. Before undertaking an

engagement, a practitioner is to inform his client of all
significant matters related to the engagement.
6. Planning, Supervision and Control. Engagements are to
be adequately planned, supervised and controlled.
7. Sufficient Relevant Data. Sufficient relevant data is to be
obtained, documented, and evaluated in developing
conclusions and recommendations.
8. Communication of results. All significant matters
relating to the result of the engagement are to be
communicated to the client
 ETHICAL CONSIDERATIONS

⚫ A professional accountant is required to comply with

the following fundamental principles :
1. Integrity
2. Objectivity
3. professional Competence and Due Care
4. Confidentiality
5. Professional Behavior
 ETHICAL CONFLICT RESOLUTION

⚫ When initiating either a formal or informal conflict

resolution process, a professional accountant should
consider the following as part of the resolution
process :
-relevant facts
-ethical issues involved
-fundamental principles related to the matter in
question
-established internal procedures
-alternative courses of action
 Ethical Conflict Resolution

⚫ When a matter involves a conflict with, or within an

organization, consider consulting with those charged
with governance such as the BODs or the audit
committee.
⚫ If a significant conflict cannot be resolved, seek
advice from the relevant professional body or legal
advisors.
⚫ If after exhausting all relevant possibilities, the
ethical conflict remains unresolved, the professional
accountant should where possible, refuse to remain
associated with the matter creating the conflict.