Reviewer Mas

MANAGEMENT ADVISORY SERVICES (MAS) (ALSO CALLED MANAGEMENT CONSULTING SERVICES, BUSINESS ADVISORY SERVICES, MANAGEMENT SERVICES) Refers to that area of accounting work concerned with providing advice and technical assistance to help clients improve the use of their resources to achieve their goals.

CONSULTING SERVICES Professional services that employ the practitioner’s technical skills, education, observations, experience, and knowledge of the consulting process.

THE SIX (6) CONSULTING SERVICES ARE: 1. CONSULTATIONS The practitioner provides counsel in a short time frame, based mostly on existing personal knowledge about the client, the technical matters involved, the circumstances, client representations, and the mutual intent of the parties. Example: - Suggesting computer software for further client investigation.

THE SIX (6) CONSULTING SERVICES ARE: 2. ADVISORY SERVICES

The practitioner’s function is to develop findings, conclusions, and recommendations for client’s consideration. Example: - Defining requirements for an information system.

THE SIX (6) CONSULTING SERVICES ARE: 3. IMPLEMENTATION SERVICES

The practitioner’s function is to put an action plan into effect. Example: Executing steps to improve productivity.

THE SIX (6) CONSULTING SERVICES ARE: 4 . TRANSACTION SERVICES The practitioner’s function is to provide services related to a specific client transaction, generally with a third party. Example: - Insolvency services and analysis of a potential merger or acquisition.

THE SIX (6) CONSULTING SERVICES ARE: 5. STAFF AND OTHER SUPPORT SERVICES The practitioner’s function is to provide appropriate staff and other support to perform tasks specified by the client. The staff provided will be directed by the client as circumstances require. Example: - Data processing facilities management and controllership activities .

THE SIX (6) CONSULTING SERVICES ARE: 6. PRODUCT SERVICES The practitioner’s function is to provide the client with a product and related professional services in support of the installation, use, or maintenance of the product. Example: - Sale and delivery of packaged training programs and sale and installation of systems development methodologies.

CONSULTING PROCESS – THE ANALYTICAL APPROACH AND PROCESS APPLIED IN A CONSULTING SERVICE ACTIVITIES INVOLVED IN A CONSULTING PROCESS 1. Determination of client objectives 2. Fact – finding 3. Definition of the problems or opportunities 4. Evaluation of alternatives 5. Formulation of proposed action 6. Communication of results 7. Implementation 8. Follow - up

FACTORS FOR THE EMERGENCE AND GROWTH OF MAS CONSULTANCY 1. 2. 3. 4. 5.

Growth in size and complexity of business firms Complexities in managing and conducting a business Lack of competent staff Trend towards industrialization Need for adequate and timely information in management decision-making 6. Development of techniques for the solution of management problems, and businessmen’s awareness of their usefulness

CHARACTERISTICS OF MAS 1. Services are rendered for management rather than for third parties. 2. Involves problem solving. 3. Relates to the future. 4. Broad in scope. 5. 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.

STAGES IN MAS ENGAGEMENTS 1. 2. 3. 4. 5. 6. 7.

Negotiating the engagement Preparing for and starting the engagement Conducting the engagement Preparing and presenting the reports and recommendations Implementing the recommendations Evaluating the engagement Post engagement follow-up

These stages constitute the specific activities involved in the MAS engagement cycle which, in general terms are the following: 1. Pre-engagement considerations 2. Engagement planning 3. Engagement management and execution 4. Engagement conclusion

MAS CLASSIFICATION BASED ON REQUIRED EXPERTISE 1. Usual Service 1.1 Evaluation of form of business organization 1.2 Analysis of financial and operating statements 1.3 Design and installation of accounting systems 1.4 Design of filing systems for storing accounting records 1.5 Suggestions for improvements in internal control 1.6 Establishment of control to assist management and expedite the audit process 1.7 Preparation of insurance claims in case of business interruption

MAS CLASSIFICATION BASED ON REQUIRED EXPERTISE 1. Usual Service (continued) 1.8 Research and evaluation of alternative methods of handling a transaction for its effect on finance and tax consequences 1.9 Assistance in the preparation of forecasts and budgets 1.10 Presentation and explanation of statements 1.11 Assisting clients in purchase or sale of business 1.12 Testifying on client’s behalf 1.13 Determination of the effect of various employee compensation plans on net income 1.14 Aid in labor union negotiations

MAS CLASSIFICATION BASED ON REQUIRED EXPERTISE 2. Somewhat Specialized Services: 2.1 Assisting in the installation of a mechanized accounting system 2.2 Making a cost analysis of operations 2.3 Finding sources of capital and figuring the approximate cost of small business loans, bond issue, and stock issuance 2.4 Giving advice on dividend policy and plans for expansion 2.5 Calculations on government contracts and allocating costs in compliance with reporting requirements 2.6 Advising on accounting and tax matters relative to estate planning

MAS CLASSIFICATION BASED ON REQUIRED EXPERTISE 2. Somewhat Specialized Services (continued) : 2.7 Surveying credit losses 2.8 Assisting in bankruptcy and receivership proceedings 2.9 Recruiting accounting and bookkeeping personnel for the client 2.10 Preparing an analysis of paper flow 2.11 Presenting and analysing the pros and cons of various retirement and profit-sharing plans 2.12 Advising on various wage incentive plans

MAS CLASSIFICATION BASED ON REQUIRED EXPERTISE 3. Highly Specialized Services: 3.1 Reviewing the organization structure 3.2 Auditing management policies 3.3 Conducting motion studies 3.4 Surveying an industry of trade for current trends 3.5 Evaluating the desirability of a particular area for plant location 3.6 Preparing market analysis 3.7 Reviewing an insurance program 3.8 Advising on data processing allocation

REASONS FOR HIRING MANAGEMENT CONSULTANTS 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 5. Help improve intra-company communications 6. Render an independent opinion 7. Help get results

MANAGEMENT CONSULTANT A person who is qualified by education, experience, technical ability, and temperament to advise or assist businessmen on a professional basis in identifying, defining, and solving specific management problems involving the organization, planning, direction, control and operation of the firm.

MAS BY CPAs

CPAs performing management consulting and other advisory services are considered in the practice of professional accounting and are bound by the Code of Ethics for Professional Accountants.

SCOPE OF MAS MAS are usually related to the services rendered by CPAs in the areas of auditing, tax and accounting, and may involve activities such as: 1. Counseling management in the analysis, planning, organizing, operating and controlling functions; 2. Reviewing and suggesting improvement in policies, procedures, systems, methods, and organizational relationships; 3. Introducing new ideas, concepts and methods to management; and 4. Conducting special studies, proposing plans and programs, and providing guidance and technical assistance to their implementation.

ADVANTAGES OF CPAs OVER OTHER PROFESSIONALS IN MAS PRACTICE

- They are already familiar with the client and his business, and enjoy the client’s confidence. - They are members of a profession with recognized standing and are equipped with technical know-how in accounting and taxation

ANALYTICAL APPROACH AND PROCESS 1. 2. 3. 4. 5.

Ascertaining the pertinent facts and circumstances Seeking and identifying objectives Defining the problem or opportunity for improvement Evaluating and determining possible solutions Presenting findings and recommendations

In case the client requests the consultant to proceed, the latter may also be involved in: 7. Planning and scheduling actions 8. Advising and providing technical assistance in implementing

ANALYTICAL APPROACH AND PROCESS THREE (3) BROAD STAGES 1. Analysis Stage - Consists of ascertaining the pertinent facts and circumstances, seeking and identifying objectives, and defining the problem or opportunity for improvement. 2. Design Stage - Consists of evaluating and determining possible solutions and presenting findings and recommendations. 3. Implementation Stage - Consists of planning and scheduling actions and advising and providing technical assistance in implementing.

BROAD AREAS OF MAS 1. AREAS NORMALLY RELATED TO THE ACCOUNTING AND FINANCE FUNCTIONS: 1.1. Financial Accounting Systems Design and Development 1.2 Management Accounting Systems Design and Development 1.3 Development and Establishment of Budgetary Controls

BROAD AREAS OF MAS 1. THE FIELD COVERS THE FOLLOWING: 1.1. Cost Accounting 1.1.1 Development of standard cost system 1.1.2 Cost analysis and control 1.1.3 Variance analysis 1.2 Financial Management 1.2.1 Establishment of capital budgeting procedures 1.2.2 Study of the cost of capital and cost of debt 1.2.3 Financial analysis for project studies 1.2.4 Establishment of operating and cash budgets 1.2.5 Valuation of common stocks for purposes of merger and sale

BROAD AREAS OF MAS AREAS NOT NORMALLY RELATED TO THE ACCOUNTING AND FINANCE FUNCTIONS: 1. General Management Consultation 1.1 Management or Operations Audit – examination of the manner in which an

organization conducts business with the objective of pointing out improvements that will increase its efficiency and effectiveness. 1.2 Measurement of Operating Performance – measuring results relative to the assets used to achieve those results (fixed asset turnover).

1.3 Mergers and Acquisitions Studies 1.4 Development of Compensation Programs 1.5 Pension Plan Review 1.6 Special Studies on Industry Potential 1.7 Long-Range Planning

BROAD AREAS OF MAS AREAS NOT NORMALLY RELATED TO THE ACCOUNTING AND FINANCE FUNCTIONS: 2. Project Feasibility Studies - Involves financial, technical, and marketing evaluation of proposed projects

BROAD AREAS OF MAS SIX (6) AREAS NOT NORMALLY RELATED TO THE ACCOUNTING AND FINANCE FUNCTIONS: 3. Organization and Personnel 3.1 Review of Existing Organization Structure 3.2 Organization and Administrative Manual Preparation 3.3 Job Evaluation and Salary Administration 3.4 Development of Personnel Rating Programs 3.5 Retirement Plan Studies 3.6 Studies of Office Cost Reduction Systems 3.7 Determining Cost of Alternatives in Collective Bargaining Agreements

BROAD AREAS OF MAS SIX (6) AREAS NOT NORMALLY RELATED TO THE ACCOUNTING AND FINANCE FUNCTIONS: 4. Industrial Engineering 4.1 Production, Planning, Scheduling, and Control 4.2 Plant Layout Studies 4.3 Inventory Management Studies 4.4 Materials Control System Design and Development 4.5 Preventive Maintenance System Design and Development 4.6 Development of Work Standards 4.7 Purchasing Management, including Value Analysis

BROAD AREAS OF MAS SIX (6) AREAS NOT NORMALLY RELATED TO THE ACCOUNTING AND FINANCE FUNCTIONS: 5. Marketing 5.1 Product Profitability Analysis 5.2 Pricing Policy Determination 5.3 Market Forecasting 5.4 Distribution Cost Analysis 5.5 Salesmen’s Incentive Compensation Evaluation

BROAD AREAS OF MAS SIX (6) AREAS NOT NORMALLY RELATED TO THE ACCOUNTING AND FINANCE FUNCTIONS: 6. Operations Research 6.1 Involves the use of mathematical techniques, such as linear programming, PERT/CPM, queuing theory, simulation, etc. to solve operational problems. The services listed above are not necessarily exhaustive nor complete. The practitioner may offer other services not mentioned above depending on the practitioner’s competence, experience, technical ability, and professional integrity to meet or deliver such other services he offers.

ROLE OF CONSULTANTS AND CLIENTS IN MAS ENGAGEMENTS

1. IN FULL SCOPE ENGAGEMENTS - These cover all the seven (7) phases in the analytical approach and process - Consultant: limited to that of an advisor; in the implementation stage, his role is merely to provide technical assistance.

ROLE OF CONSULTANTS AND CLIENTS IN MAS ENGAGEMENTS 2. IN SPECIAL STUDY ENGAGEMENTS

- The client seeks only an impartial and objective study of a case and the resulting recommendations. These involve only the first 5 stages in the analytical approach and process. - Consultant: to proceed through the first five phases of the analytical process, apply objective judgment to the facts, and present findings and recommendations to the client for decision and further action. - Client: to supply pertinent information and to make decision on the case. Any action beyond the point of decision is solely the responsibility of the client.

ROLE OF CONSULTANTS AND CLIENTS IN MAS ENGAGEMENTS

3. IN INFORMAL ADVICE - Its structure is informal and no presumption should exist that an extensive study has been performed. - Consultant: To respond as practicable at the moment and express the basis for the response.

MAS PRACTICE STANDARDS

- All CPAs engaged in MAS practice should observe a set of MAS Practice Standards, which are classified into general and technical standards.

GENERAL STANDARDS 1. Professional Competence - The MAS practitioner shall undertake only those engagements which he or his firm can reasonably expect to complete with professional competence. 2. Due Professional Care - The MAS practitioner shall exercise due professional care when performing professional services. 3. Planning and Supervision - The MAS practitioner shall adequately plan and supervise an engagement in a manner that provides reasonable assurance that the work is conducted in accordance with the understanding with the client and with the professional standards and rules of conduct. 4. Sufficient Relevant Data - The MAS practitioner shall obtain sufficient relevant data to complete the engagement in accordance with the understanding with the client and to provide a reasonable basis for making conclusions and formulating recommendations in relation to any professional services performed. 5. Forecasts - The MAS practitioner shall not permit his name to be used in connection with any forecast of future transactions in a manner that may lead to the belief that the practitioner vouches for the achievability of the forecast.

TECHNICAL STANDARDS 1. Role of MAS Practitioner - The practitioner should not assume the role of management or take any position which may impair the practitioner’s objectivity in performing an engagement. The practitioner should maintain his independence to enable him to render his professional judgment and opinions with objectivity. His main role is that of an adviser. 2. Understanding with the Client - Establish with the client a written or oral understanding about the responsibilities of the parties and the nature, scope, and limitations of services to be performed, and modify the understanding if circumstances require a significant change during the engagement. 3. Client interest - The MAS practitioner shall serve the client interest by seeking to accomplish the objectives established by the understanding with the client while maintain integrity and objectivity.

TECHNICAL STANDARDS

4. Communication with Client - The MAS practitioner should inform the client of: 4.1 Conflicts of interest that may occur pursuant to the ”Integrity and Objectivity Rule”. 4.2 Significant reservation concerning the scope or benefits of the engagement, and 4.3 Significant engagement finding or events.

TECHNICAL STANDARDS

4. Communication with Client (continued) - Integrity: Requires a member to be, among other things, honest and candid within the constraints of client confidentiality. Service and the public trust should not be subordinated to personal gain and advantage. Integrity can accommodate the inadvertent error and the honest difference in opinion; it cannot accommodate deceit or subordination of principle. - Objectivity: a state of mine, a quality that lends value to a practitioner’s services. It imposes the obligation to be impartial, intellectually honest, and free of conflicts of interest. - Independence: precludes relationships that may impair a practitioner’s objectivity in rendering attestation services.

TECHNICAL STANDARDS

4. Communication with Client (continued) - Conflict of interest: May occur if the practitioner or his firm has a relationship with another person, entity, product, or service, that, in the practitioner’s professional judgment, the client or other appropriate parties may view as impairing the practitioner’s objectivity. - A practitioner may perform the professional service if he or she determines that the service can be performed with objectivity because the threats are not significant or could be reduced to an acceptable level through the application of safeguards.

PROJECT FEASIBILITY STUDY (PROJECT STUDY OR FEASIBILITY STUDY)

- Refers to the systematic gathering and analysis of data which aims to find out the viability of the proposed business undertaking. Generally, it involves: a. collection of data which are relevant and necessary to all aspects of the undertaking; b. evaluation and analysis of the data gathered, and c. formulation of recommendation.

PROJECT FEASIBILITY STUDY (PROJECT STUDY OR FEASIBILITY STUDY)

BENEFITS - Specific advantages from preparing Project Feasibility Studies may be delineated, considering the different interested parties that may be benefited by the study: a. Proponents/Promoters/Organizers of new projects – it serves as a basis for ascertaining the practicability / workability of proposed projects. b. Creditors – it serves as a basis for the creditors to decide whether or not to provide financial assistance and to determine the appropriate terms and conditions of such assistance. c. Stockholders / Investors – to decide whether to invest in the project of not.

PROJECT FEASIBILITY STUDY (PROJECT STUDY OR FEASIBILITY STUDY)

BENEFITS (continued) d. Management of existing firms – to ascertain the feasibility of expansion programs. It also serves as a basis in deciding on the possibility of taking over existing business, as well as the extent of the capital outlay required. e. Government Instrumentalities – to evaluate the project’s social desirability and to check if the project meets the applicable legal requirements, as well as to determine the level or extent of incentives that may be granted. f. National Economy as a Whole – a project study assists in minimizing the risk of failure of business ventures. Thus, wastage of valuable resources is reduced, thereby accelerating economic growth.

MAJOR ASPECTS OF A PROJECT STUDY

- The major aspects of a typical Project Feasibility Study are briefly described as follows: a. Management - the study of management aspect assists in the selection of business structure, personnel setup, and internal policies of the enterprise for an effective operation. b Marketing – This ascertains the future demand for the product. It involves the study of current and projected supply and demand setup. c. Technical – The study of technical aspect aims to choose the process to be used, plant capacity, layout, machinery design, materials, and other technical facors to attain cost minimization and profit maximization.

MAJOR ASPECTS OF A PROJECT STUDY (continued)

d. Taxation – This covers the study of tax effects, as well as legal tax savings measures and other government incentives applicable to the project. e. Legal – Various legal aspects are studied to determine if requirements are met and possible incentives and protection are availed of. f. Financial – This quantifies the result of marketing, technical, management, taxation, and legal phases and expresses in peso terms the possible profitability of the project.

MAJOR ASPECTS OF A PROJECT STUDY (continued)

g. Sources of Financing – It provides a study of the possible sources of financing that can be tapped to carry out the project. h. Profitability – It weighs the ratio of capital outlay in relation to profit that can be obtained. i. Economic Benefits or Social Desirability – This involves a study of the project’s contribution to the nation, considering both the economic and environmental aspects.

FEASIBILITY STUDY GUIDELINE (from the University of the Philippines Institute of Small-Scale Industries)

I. Summary of Project A. Name of firm B. Location head office / factory C. Brief description of the project 1. History of business 2. Nature or kind of industry 3. Type of organization 4. Officers of the business and their qualifications

FEASIBILITY STUDY GUIDELINE (continued) (from the University of the Philippines Institute of Small-Scale Industries)

II. Economic Aspects A. General Market Description 1. Market Description – a brief description of the market to include the following: a. Areas of dispersion b. Methods of transportation and existing rate of transportation c. Channels of distribution and general trade practices 2. Demand a. Consumption for past ten years b. Major consumers of the product c. Projected consumption for the next five years

FEASIBILITY STUDY GUIDELINE (continued) (from the University of the Philippines Institute of Small-Scale Industries)

II. Economic Aspects (cont’d.) A. General Market Description (cont’d.) 3. Supply a. Supply for past ten years, classified as to source – imported or locally produced. For imports, specify the form in which goods are imported, the prices and the brand. For locally produced goods, the companies producing them, their production capacities, brands, and market shares shall be specified. b. Factors affecting trends in past and future supply. 4. Competitive Position a. Selling price – include a price study indicating the past domestic and import prices, the high and low prices within the year, and the effect of seasonality, if any. b. Competitiveness of the quality of the product.

FEASIBILITY STUDY GUIDELINE (continued) (from the University of the Philippines Institute of Small-Scale Industries)

II. Economic Aspects (cont’d.) A. General Market Description (cont’d.) 3. Supply a. Supply for past ten years, classified as to source – imported or locally produced. For imports, specify the form in which goods are imported, the prices and the brand. For locally produced goods, the companies producing them, their production capacities, brands, and market shares shall be specified. b. Factors affecting trends in past and future supply. 4. Competitive Position a. Selling price – include a price study indicating the past domestic and import prices, the high and low prices within the year, and the effect of seasonality, if any. b. Competitiveness of the quality of the product.

FEASIBILITY STUDY GUIDELINE (continued) (from the University of the Philippines Institute of Small-Scale Industries)

II. Economic Aspects (cont’d.) B. Marketing Program 1. Description of present marketing practices of competitors 2. Proposed marketing program of the project describing the selling organization, the terms of sales, channels of distribution, location of sales outlets, transportation and warehousing arrangements, and their corresponding costs 3. Promotion and advertising plans, including costs 4. Packaging C. Projected Sales 1. Expected annual volume of sales for the next five years considering the demand, supply, competitive position, and marketing program

FEASIBILITY STUDY GUIDELINE (continued) (from the University of the Philippines Institute of Small-Scale Industries)

II. Economic Aspects (cont’d.) D. Contributions to the Philippine Economy 1. Net annual amount of pesos earned or saved, and basis used 2. Labor employed 3. Taxes paid

MULTIPLE CHOICE 1. It is the practice of helping organizations to improve their performance, primarily through the analysis of existing organizational problems and development of plans for improvement. a. Accounting c. Total Quality Management b. Management Consulting d. Auditing 2. A person who is qualified by education, experience, technical ability, and temperament to advise or assist businessmen on a professional basis in identifying, defining and solving specific management problems involving the organization, planning, direction, control, and operation of a firm is called a a. Management Accountant c. Accounting Technician b. Certified Public Accountant d. Management Consultant

MULTIPLE CHOICE 3. These are professional services that employ the practitioner’s technical skills, education, observations, experience, and knowledge of the accounting process. a. Professional services c. Technical Services b. Analytical process d. Consulting Services 4. Consulting services differ fundamentally from the CPA’s function of attesting to the assertions of other parties. In a consulting service, a. the practitioner expresses a conclusion about the reliability of a written assertion that is the responsibility of another party, the assertor. b. the work is generally performed only for the use and benefit of the client. c. the client develops the findings, conclusions and recommendations. d. the nature and scope of work is determined solely by the consulting services practitioner.

MULTIPLE CHOICE 5. Management consulting (or management consultancy) a. is limited to CPAs b. is not limited to CPAs c. may be practiced by anybody since it is not limited to CPA d. is regulated by law, such that an individual must pass a government licensure examination first before he could practice the same. 6. It is the analytical approach and process applied in Consulting Services. It typically involved some combination of activities relating to determination of client objectives, fact-finding, definition of the problems or opportunities, up to Implementation and follow up. a. Consulting Services c. Business Process b. Consulting process d. Problem Solving

MULTIPLE CHOICE 7. In Advisory Services, the practitioner’s function is to a. provide counsel in a short time frame, based mostly, if not entirely, on existing personal knowledge about the client, the circumstances, the technical matters Involved, client representations, and mutual intent of the parties. b. develop findings, conclusions, and recommendations for the practitioner’s consideration and decision making. c. put an action plan into effect. d. provide services related to specific client transaction, generally with a third party. 8. The definition of “Consulting Services” includes a. Services subject to the AICPA Technical standard, such as Statements on Auditing Standards (SASs), Statements on Standards for Attestation Engagements (SSAES), or Statements on Standards for Accounting and Review Services (SSARSs) b. Engagements specifically perform tax return preparations, tax planning / advice, tax representation, personal financial planning or bookkeeping services. c. Situations involving preparation of written reports or the provision of oral advice on the application of accounting principles to specified transactions or events. d. Staff and other support services, in which the practitioner’s function is to provide appropriate staff and possibly other support to perform tasks specified by the client.

MULTIPLE CHOICE 9. Consulting Services, or professional services that employ the practitioner’s skills, education, experience, observations, and knowledge of the consulting process includes Product Services. Examples of product services are the following, except: a. sale and delivery of packaged training programs. b. providing computer system installation and support c. sale and implementation of computer software d. sale and installation of systems development methodologies. 10. Generally, the emergence and growth of management consultancy may be attributed to the following factors, except a. growth in size and complexity of business firms. b. complexity in managing and conducting a business. c. the development of techniques for the solution of management problems and the businessmen’s awareness of how to solve such problems d. Need for adequate and timely information in management decision -making

MULTIPLE CHOICE 11. Some reasons for hiring management consultants are as follows, except a. to help define specific problems and implement solutions b. to provide specialized skills and experience c. to provide confidential service in which the identity of the client is concealed. d. to render an independent opinion. 12. Which of the following statements is correct? a. MAS practice actually stemmed from the CPA’s audit practice b. Overt symptoms need a more detailed study and a logical extension of the CPAs’ services. c. Covert symptoms are easy to perceive, call attention to, and / or remedy. d. Covert symptoms my simply be covered in the CPA’s usual letter to management prepared at the completion of audit

MULTIPLE CHOICE 13. The primary purpose of management advisory services is a. to achieve the objectives of the MAS firm. b. to help the client maximize its resources. c. To improve the client’s use of its capabilities and resources to achieve the objectives of such client’s organization d. to help the client identify its problems. 14. Management advisory services may be defined as a. the function of providing professional advisory services, the primary purpose of which is to improve the client’s use of its capabilities and resources to achieve the objective of the organization. b. the function of providing quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision. c. the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of a financial character, and interpreting the results thereof. d. the process of identifying, measuring and communicating economic information to permit informed judgment and decision by users of information.

MULTIPLE CHOICE 15. MAS can relate to the following areas, except a. the management functions of analysis, planning, organizing, and controlling. b. the introduction of new ideas, concepts, and methods to management. c. the improvement of policies, procedures, systems, methods, and personal relationships. d. the application and use of managerial accounting, control systems, data processing, and mathematical techniques and methods. 16. In providing advisory services, the CPA, or the independent accounting firm, applies an analytical approach and process, which typically involves the following, except a. ascertaining the pertinent facts and circumstances. b. seeking and identifying objectives. c. defining the problem or opportunity for improvement. d. evaluating and implementing possible solutions.

MULTIPLE CHOICE 17. Following are possible end-products of an MAS engagement, except a. management information system b. a sales reporting system c. a cost accounting system d. none of the above. 18. Following are possible end-products of an MAS engagement, except a. an organization plan with statements of duties and responsibilities b. blue print of a construction project c. an electronic data processing system. d. None of the above

MULTIPLE CHOICE 19. Which of the following is a characteristic of management advisory services? a. Services rendered are for third parties. b. Engagements are usually recurring. c. Human relations do not play a vital role in each engagement. d. It involves problem solving. 20. Which of the following statement(s) is (are) true? 1. MAS relates to the future. 2. MAS covers a wider area than the usual audit and tax work. 3. Because of the broad scope covered by MAS, a wider variety of assignments are usually encountered. 4. MAS engagements require highly qualified staff. a. All the statements are true. b. Only three statements are true. c. Only two statements are true. d. Only one statement is true.

MULTIPLE CHOICE 21. MAS areas which are normally related to the accounting and finance functions may include a. establishment of budgetary controls. b. preparation of organization and administrative manuals. c. plant layout studies. d. development of preventive maintenance systems. 22. MAS areas which are not normally related to the accounting and finance functions may include a. preparation of accounting systems and procedure manuals. b. development of management oriented accounting and reporting systems. c. cost reduction studies. d. operation research.

MULTIPLE CHOICE 23. Among the MAS areas which are not related to the accounting and finance functions is marketing, which may include the following, except a. product profitability analysis. b. determination of pricing policy. c. inventory management studies d. evaluation of salesmen’s incentive compensations. 24. It is an area of management science which uses mathematical techniques like linear programming, queuing theory and simulation to solve complicated operational problems. a. Operation Research c. Industrial Engineering b. PERT / CPM d. Sensitivity analysis

MULTIPLE CHOICE 25. The fields of cost accounting and financial management are among the MAS areas that are normally related to the accounting and finance functions. Financial management cases may involve the following, except: a. establishment of capital budgeting procedures. b. study of the cost of capital and cost of debt. c. variance analysis d. establishment of operating and cash budgets. 26. MAS may be classified according to the practitioners’ ability and /or expertise. The services which may be offered readily by the practitioner based on his basic training and background are called a. Usual services. b. Somewhat specialized services. c. Highly specialized services. d. Unusual services.

MULTIPLE CHOICE 27. MAS may be classified according to the practitioners’ ability and/or expertise. Those services which are considered extensions of he usual accounting work and require additional training and/or experience a. usual services b. somewhat specialized services. c. Highly specialized services. d. unusual services. 28. MAS may be classified according to the practitioners’ ability and /or expertise. The services which may be offered readily by the practitioner based on his basic training and background are called a. Usual services. b. Somewhat specialized services. c. Highly specialized services. d. Unusual services.

MULTIPLE CHOICE 29. Management advisory services classified as usual services include a. giving advice on dividend policy and plans for expansion. b. analysis of financial and operating statements for management, stockholders, banks, and others. c. advising on accounting and tax matters relative to estate planning in cooperation with legal and insurance counsel. d. Calculations on government contracts and allocating costs in compliance with reporting requirement.

30. An MAS/CPA practitioner may be engaged by a client to design and install an accounting system. This engagement is under the practitioner’s a. usual services b. somewhat specialized services c. highly specialized services d. exclusive services.

MULTIPLE CHOICE 31. MAS classified as somewhat specialized services include a. design and installation of accounting systems. b. suggestions for improvements in internal control system. c. assistance in the preparation of forecasts and budgets. d. assisting in bankruptcy and receivership proceedings. 32. MAS classified as highly specialized services include the following, except a. research and evaluation of alternative methods of handling a transaction for its effect on finance and tax consequence. b. auditing management policies for their effectiveness. c. conducting motion studies for standard cost system. d. evaluating the desirability of a particular area for plant location.

MULTIPLE CHOICE 33. MAS classified as usual services include the following, except a. evaluation of form of business organization b. design of filing system for storing the accounting records. c. establishment of control for cash, receivables, inventory, plant, property and equipment, and other items to assist management and expedite the audit process. d. preparing market analysis of products and services. 34. CPAs are in a more advantageous position than members of other professions to render MAS because a. most CPAs are highly educated. b. only |CPAs may render MAS. c. a CPA is a person with recognized standing d. the CPA is already familiar with the client and his business and enjoys his client’s confidence.

MULTIPLE CHOICE 35. In determining the scope or type of service to be rendered, the consultant a. has the responsibility to determine the scope of services he is competent to offer, subject to the pronouncements of his profession. b. is expected to maintain his independence to enable him to render his professional judgment and express his opinions/conclusions with honesty and objectivity. c. Both a and b d. Neither a nor b .

MULTIPLE CHOICE 36. Which of the following statement(s) is (are) correct? 1. The scope of services offered by consultants should be adequate to identify and resolve the client’s basic problems and not just problem symptoms. 2. Should a consultant feel that he cannot effectively handle the proposed engagement because of limitations in skills, competence, and economic requirements, the consultant may refer this to another practitioner whom he thinks can effectively do the job. 3. It is the responsibility of a practitioner to be sure that the nature and scope of the management advisory services he elects to offer are in conformity with the Code of Professional Ethics. 4. Each consultant has the responsibility to evaluate his ability to render MAS of a professional quality in each specific area, and refrain from representing himself as qualified and willing to accept work in areas where he does not possess the required competence. a. Statements 1, 2, 3, & 4 c. Statements 2, 3, & 4 b. Statements 1, 2 & 4 d. Statements 1 & 4 .

MULTIPLE CHOICE 37. Which of the following statements is incorrect? a. A CPA engaged in the practice of MAS is bound by the Code of Ethics for Professional Accountants. b. Management consulting and other advisory services are among the assurance engagements performed by professional accountants. c. Not all MAS practitioners are bound by the Code of Ethics for Professional Accountants. d. It is the responsibility of a practitioner to b sure that the nature and scope of the management advisory services he elects to offer are in conformity with the Code of Ethics for Professional Accountants. 38. The role of an independent accounting firm (or consultant) in performing Management Advisory Services is a. to provide advice and technical assistance, and should provide for client participation in the analytical approach and process. b. to provide advice and technical assistance, but should not provide for client participation in the analytical approach and process. c. to improve the client’s use of its capabilities and resources to achieve the objectives of the organization. d. To provide advice and technical assistance and should provide for the consultant’s participation in the implementation of the recommendation.

MULTIPLE CHOICE 39. In cases where clients seek to engage the services of a consultant to provide solutions and results on a basis wherein the client expects to be involved only to a limited extent. a. there may be a tendency to apply a packaged solution indiscriminately, which inhibits client participation. b. the client might get solutions that do not meet actual needs, and the consultant might be placed in a position inconsistent with his objective advisory role. c. the consultant must fully inform the client of the limitations and risks inherent n these types of undertaking. d. All of the above. 40. It refers to the systematic, objective, and rational method of solving business problems a. Analytical approach and process b. PERT/CPM c. Simulation method d. Sensitivity analysis

MULTIPLE CHOICE 41. The analytical approach and process may be summarized into three broad stages – analysis, design, and implementation. He analysis sage consists of a. Planning and scheduling actions to achieve the desired results, as well as advising and providing technical assistance. b. Ascertaining the pertinent facts and circumstances, seeking and identifying objectives, and defining the problem or opportunity for improvement. c. Evaluating and determining possible solutions and presenting findings and recommendations. d. All of the above 42. The analytical approach and process may be summarized into three broad stages – analysis, design and implementation. The design stage consists of a. Planning and scheduling actions to achieve the desired results, as well as advising and providing technical assistance in implementation. b. Ascertaining the pertinent facts and circumstances, seeking and identifying objectives, and defining the problem or opportunity for improvement. c. Evaluating and determining possible solutions and presenting findings and recommendations. d. All of the above

MULTIPLE CHOICE

43. The analytical approach and process may be summarized into three broad stages – analysis, design, and implementation. The implementation stage consists of a. Planning and scheduling actions to achieve the desired results, as well as advising and providing technical assistance. b. Ascertaining the pertinent facts and circumstances, seeking and identifying objectives, and defining the problem or opportunity for improvement. c. Evaluating and determining possible solutions and presenting findings and recommendations. d. All of the above 44.. Which of the following statements is incorrect? a. Full scope engagements require client representations from both the working and decisionmaking levels. b. The consultant’s role in full scope engagement should be limited to that of an objective adviser; and in the implementation stage, his job is merely to provide technical assistance, degrees of which depend on the knowledge and experience available in the client’s organization.

c. In carrying out full scope engagements, the consultant should participate up to the implementation stage and should see to it that the client management accepts overall responsibility for implementation of the chosen course of action. d. Once implementation is concluded, the consultant’s personnel remain to carry on the solution.

MULTIPLE CHOICE 45. In special study engagements, a. The consultant’s contribution is to give advice on the overall program and the organization and composition of the participating groups, to provide technical assistance to the working level, to monitor progress and to report on this and other important matters to the senior management group. b. The client does not seek the consultant’s assistance in achieving the desired result, but only his professional judgment. c. Client representations from both the working and decision making levels are required. d. Any action beyond the point of decision is solely the responsibility of the consultant. 46.. In informal advice, a. The nature of the services rendered is informal and therefore, no presumption should exist that an extensive study has been performed to identify and consider pertinent facts and alternatives. b. Any action beyond the point of decision is solely the responsibility of the consultant. c. Once the implementation is concluded, the client’s participation is concluded, and only the consultant’s personnel remain to carry on the solution. d. the consultant need not be independent in mental attitude.

MULTIPLE CHOICE 47. Which of the following is incorrect. a. Before accepting an engagement, a practitioner is to notify his partner of any reservations he has regarding anticipated benefits. b. Before undertaking an engagement, a practitioner is to inform his client of all matters related to the engagement. c. The MAS practice standards are applicable not only to structural or organized MAS engagements, but also to “informal advice” d. All of the above 48.. Which of the following statements is incorrect? a. Sufficient relevant data are to be obtained, documented, and evaluated in developing conclusions and recommendations. b. All significant matters relating to the results of the engagement are to be communicated to the client. . c. Engagements are to be adequately planned, supervised, and controlled. d. In performing MAS, a practitioner must act with maturity and objectivity and be independent in mental attitude.

MULTIPLE CHOICE 49. It requires a practitioner to be, among other things, honest and candid within the constraints of client confidentiality. a. Integrity c. Maturity b. Objectivity d. Independence in mental attitude

50.. The principle imposes the obligation on all professional accountants to be impartial, intellectually honest, and free of conflict of interests. a. Integrity c. Maturity b. Objectivity. D. Independence in mental attitude

51. It refers to the ability of the practitioner to maintain his role as an objective adviser or consultant without making any attempt to make decisions for the management. a. b.

Maturity Objectivity

c. Integrity

d. Independence in mental attitude

MULTIPLE CHOICE 52. It refers to the practitioner’s ability to identify and define client needs, select and supervise appropriate staff, apply an analytical approach and process appropriate to the engagement, apply knowledge of the technical subject matter under consideration, communicate recommendations effectively, and when required, assist in implementing recommendations. a. Due professional care c. Professional competence b. Planning and supervision d. Client benefit 53. The Practitioner, before starting an engagement, should first make written communications to inform the client of all significant matters related to the engagement. Examples of such significant matters are the following, except a. b. c. d.

Objectives of the engagement Scope of engagement. Role of all personnel who will be involved in the engagement. None of the above.

MULTIPLE CHOICE 54. This stage of MAS engagement involves various activities which may generally be classified as gathering of information and analysis/evaluation of information gathered. a. Negotiating the engagement b. Preparing for the engagement c. Conducting the engagement d. Preparing and presenting the reports and recommendations 55. In MAS engagements, sufficient relevant data should be obtained, documented, and evaluated in developing conclusions and recommendations. In the course of the engagement, the following should be documented, except a. b. c. d.

The evidential matter obtained and its source. The alternative considered. The analytical process leading to specific recommendations. None of the above.

MULTIPLE CHOICE 56. To avoid possible misunderstanding in the future, the practitioner should put in writing every term agreed upon with the client during negotiation. This may be done through any of the following, except a. Proposal letter c. contract b. Confirmation letter d. none of the above 57. It is an offer of service. When accepted or approved, it becomes a contractual agreement a. Proposal letter c. engagement letter b. Confirmation letter d. contract 58. It may be considered as the master plan for the engagement which serves as a framework for controlling its progress. It can be used as a planning tool that documents how the engagement will be carried out, organizes the engagement into scheduled and logical sequences, and indicates the various tasks necessary to achieve the objectives of the engagement. a. Engagement work program c. Engagement blueprint b. Master budget d. Engagement plan

MULTIPLE CHOICE 59. Engagements should be adequately planned, supervised, and controlled. Controlling involves the measurement of progress in attaining the engagement plan and objectives. At significant engagement points, progress should be measured in terms of a. Time schedule, accomplishments, and quality of work b. Accomplishments, time schedule and expenses incurred. c. Quality of work, number of reports prepared, and time schedule d. Accomplishments, number of personnel who played a role in the engagement, an attendance of the participants in the engagement. 60. One of the activities involved in information gathering is recording the information and documenting the process. This can be accomplished with the use of engagement working papers, which are considered very useful for the following reasons, except a. They provide documentation of the engagement b. They provide a historical record of the services to the client. c. They serve as source of ideas and research material for future engagements. d. They serve as contractual agreement when accepted and approved by the client.

MULTIPLE CHOICE 61. Final written reports in MS engagements may be classified as either long form or short form report. a. Contains all the circumstances about the engagement, including the practitioner’s findings and recommendations. b. Is issued to the client when he decides to do the implementation phase without requesting assistance from the consultant. c. Is usually issued when, during the execution stage of the engagement, interim reporting was extensively used, and there was a close and continuous coordination between the consultant / team members and the client. d. Summarizes the finding to date, work accomplished in relation to plan, and, when appropriate, tentative recommendations.

62 which of the following statemens is true? a. A “management letter”is a report submitted by the CPA to management after the review of the management controls stating the coverage of the review of the management controls stating the coverage of the review and the deficiencies noted during the review b. Management advisory services include the consultative services to management in its decision-making c. Expertise in management advisory services is acquired by education, auditing and other experience, and actual performance of management advisory services. d. Management advisory services include decision –making services performed by the practitioner for management.

MULTIPLE CHOICE 63. Which of the following statements is incorrect? 1. A CPA firm’s primary purpose for performing MAS is to enable the staff members to acquire the necessary continuing education in all areas of business. 2. MAS consultation, unlike MAS engagement, generally involves giving of advice or information by a CPA in which an analytical process is applied. 3. Management consultancy is an exclusive field of practice for CPAs and is regulated by law. 4. An area of MAS which is directly related to the acco9unting and finance functions is project feasibility study. a. b. c. d.

Only one statement is incorrect. Only two statements are incorrect Only 3 statements are incorrect All the statements are incorrect.

MULTIPLE CHOICE 64. Which of the following statements is false a. Before accepting an engagement, a practitioner should notify the client of any reservations he has regarding anticipated benefits. b. MAS serves only in the areas of accounting and finance. c. In the rendition of MAS, independence must be observes so as to maintain the essential requisites of impartiality and objectivity. d. All provisions of the Code of Professional Ethics are applicable to the practice of MAS, except those related to the expression of an opinion on financial statements. 65. Which of the following relate(s) to management advisory services by CPAs? a. b. c. d.

Cost analysis of major investment decisions Design and / or installation of accounting systems Financial analysis for project feasibility studies All of the above

MULTIPLE CHOICE 66. Which of the following is not a characteristic of MAS? a. In MAS engagements, the nature of work involved requires a lesser need for junior assistance. b. A wider variety of assignments are encountered in MAS than in audit engagements. c. MAS engagements are recurring d. In MAS, actions to be taken are identified, the benefits of which will be received in the future. 67. Which of the following is not an area related to the performance of MAS by independent accounting firms? a. b. c. d.

Improvement of existing policies, methods, and procedures. Introduction of new ideas, concepts, and methods to management Performance of management functions and making decisions. Conduct of special studies, preparation of recommendations, and formulation of plans and programs.

MULTIPLE CHOICE 68. Which of the following will not impair the independence of a CPA in the rendition of MAS? a. The CPA performs decision-making functions for the client. b. The CPA does not extend his services beyond the presentation of recommendations or giving of advice. c. The CPA loses his objectivity and acts in a manner as if he is advocating for the interest of his client. d. The CPA performs services wherein he is in effect acting as an employee of the client. 69. Which of the following statements is correct? a. MAS is confined only to such areas as financial accounting, auditing, and tax services. b. Because the MAS practitioner must be independent, he must not allow the client to participate in any phase of his engagement. c. Although MAS extends beyond the traditional accounting services, MS practitioners are still bound by the rules of professional ethics in the practice of accounting in general. d. In management audit, a team with a mix of members who are accountants and nonaccountants will provide a desirable combination of specialists and will offer a crossfertilization of ideas from different business fields.

MULTIPLE CHOICE 70. The following statements refer to competence of CPAs in management services, except: a. It is the ability to identify client needs, use analytical approach and process, actual experience in MS work, and research. b. In concept, it refers to the technical qualifications of the practitioner and his ability to supervise and evaluate the quality of work of his staff assigned to the engagement so as to be responsible for the successful completion of the project. c. It must be retained in the rendition of MS work and it can be impaired if the CPA performs decision-making for the client or acts as employee of the client. d. It is acquired by education, self-study, attendance to professional development courses, actual experience in MS work, and research. 71. The following characterize management advisory services, except a. b. c. d.

MAS utilizes more junior staff than senior members of the firm MAS involves decision for the future. Mas is broader in scope and varied in nature. MAS relates to specific problems where expert help is required.

MULTIPLE CHOICE 72. The following statements relate to MAS practice standards. 1. A practitioner is to notify the client of any reservations he has regarding anticipated benefits. 2. Throughout the engagement, there ought to be a systematic critical review of accomplishments and work should be done within the framework of the Code of Ethics and other professional standards. 3. During the engagement, should there be significant changes between cost and anticipated benefits, the client should be informed. 4. Before the engagement, the practitioner must make arrangements with, and inform the client on significant matters related to the engagement. Which of the statemts pertain(s) to the MAS practice standard on Client Benefit? a. All the statements b. Statements 1, 3 & 4only b. Statements 1 & 3 only c. Statement 1 only

MULTIPLE CHOICE 73. As a consultant the CPA/MAS practitioner should a. Conduct his engagement as if he is a member of the client’s organization. b. Exercise administrative control over the client’s staff to avoid necessary delays in implementation. c. Encourage dependence of client on the consultant’s staff to as to pinpoint clear responsibility in implementing systems. d. Not take responsibility for making decisions and policy judgments in MAS engagements. 74. Management services of certified public accountants cover all of the following, except a. audit, tax and legal services b. Organizational development c. Systems design, development, and implementation d. Project feasibility studies and planning

MULTIPLE CHOICE 75. Which of the following statements is true? a. A certified public accountant by virtue of having the necessary academic preparations and by hurdling the licensure examination required to have a CPA license can readily render management services to the public. b. Competence as a standard in the rendition of management services by a CPA may be equated to having excellent scholarly preparation to include the usual baccalaureate degree, an MBA, and other post graduate studies. c. A CPA with MBA and PhD degrees is automatically qualified to render management services. d. Adequate training and experience in both the analytical approach and process in the particular undertaking are requisites for the CPA to be involved in a management services engagement.

MULTIPLE CHOICE 76. Which of the following statements is false? a. CPAs performing management services may be considered to be in the practice of management consulting. b. Included in the practice of consulting is the provision of confidential service in which the identity of the client is concealed. c. Business firms hire management consultants to help define specific problems and develop solutions. d. CPAs provide management services to go around the ethical constraints as mandated by the Accountancy Act.

77. Which of the following statements is not acceptable?

a. A CPA represents three major players in rationalizing the industry’s incentives before the government public hearings. b. A CPA shares with a new client substantial information regarding another client belonging to the same industry. c. A CPA provides consulting services to an existing audit client. d. A CPA offers and provides consulting services to two major competing clients.

MULTIPLE CHOICE

78. Mr. X, a CPA firm’s partner-in-charge of quality assurance and review, is arguing with Mr. Y, the consulting partner, regarding the question on independence as Mr. Y is presently rendering consulting services to Kambal Co., an audit client of the firm. Related to this issue of independence, all of the following statements are not valid, except: a. Independence is never sacrificed for as long as the auditor/consultant is correct in his decisions for the client. b. The client is the ultimate decision-maker and the auditor and/or consultant should not make decisions for the client. c. A CPA who renders both audit and consulting services to a client by virtue of his competence/expertise and extensive knowledge of the client’s business is in the best position to render decisions for the client and should do so. d. It is up to professional judgment and discretion of the auditor/consultant to render decisions for the client for as long as his professional fees are commensurate to the benefits that the client will derive from the engagement.

MULTIPLE CHOICE 79. A CPA should reject an MAS engagement if a. He audits the financial statements of a subsidiary of the prospective client. b. The proposed engagement is not accounting related. c. His recommendations are to be subjected to a review by the client. d. It would require him to make management decisions for the prospective client. 80. After making the preliminary audit arrangements, an engagement confirmation letter should be sent to the client. The letter usually would not include a. A statement that management letter will be issued outlining comments and suggestions as to any procedures requiring the client’s attention. b. An estimate of the time to be spent on the audit work by audit staff and management. c. A statement that advisory services would be made available upon request

d. A reference to the auditor’s responsibility for the detection of errors or irregularities.

MULTIPLE CHOICE 81. A CPA engaged in MS practice may not a. Disclose confidential information unless authorized or legally obligated. b. Act as independent auditor of the same client-firm c. Accept other employment while serving as management consultant. d. Be independent in mental attitude. 82. A CPA in public was engaged by a client who has little accounting and management experience to perform MAS. After presenting several alternative solutions and the probable outcome each, the CPA decided to implement the best alternative solution and assumed full responsibility for which the client agreed. a. The CPA dis just the right thing b. The CPA should have asked the client first if he (the client) is capable to implement the solution before doing it himself. c. The CPA should not have implemented the best alternative solution and should not have assumed full responsibility even if the client agreed, for these should have been done by the client. d. The CPA was correct in implementing the solution, but full responsibility should have been assumed by the client.

MULTIPLE CHOICE 83. M and S are partners in an MAS firm. One of the firm’s clients is X Corporation, wherein M is a board member. X corporation is not an audit client. X Corporation is negotiating an MS engagement with the MAS firm. a. It is unethical for the MAS firm to accept the engagement because it is a violatin of the Standards on Independence. b. It is unethical ofr the MAS firm to accept the engagement because S has financial interests in X Corporation, hence he loses his independence as practitioner.

c. It is not unethical for the MAS firm to accept the engagement since X Corporation may not be considered as a sister company of the MAS firm d. It is not unethical for the MAS firm to accept the engagement, as long as there is a full disclosure of the relationship to all parties at the outset of the engagement and in any written final report.

MULTIPLE CHOICE 84. An MS client asked for internal control system evaluation. During evaluation, the practitioner suggests that certain changes are necessary in handling some accounts. The client agrees. However, he (the client) requests that his former consultant supervise the installation. The practitioner knows that such former consultant lacks sufficient experience to provide the necessary technical direction and supervision, In this case, the practitioner should a. Tell the client everything he knows about the former consultant so he could be prevented from supervising the installation. b. Prevent the former consultant to supervise the installation, but he should not tell the client anything abut his (former consultant’s) capabilities. c. Should encourage the former consultant to attend a seminar/workshop to learn the basics of engagement supervision. d. Decline the engagement if the client insists that the former consultant supervise the installation, and the necessary technical competence would not be provided even through other means.

MULTIPLE CHOICE 85.Which of the following statements is correct? a. The performance of consulting services for an attest client does not, in and of itself, impair independence. b. The understanding with the client may limit the practitioner’s effort with regard to gathering relevant data. In this case, the practitioner is required to decline or withdraw from a consulting engagement when the agreed upon scope of services includes such limitations. c. In a consulting service, the client develops the findings, conclusions and recommendations presented. d. Implementation services involve putting into operation a plan or recommendation the practitioner has accepted.