AGENDA

Date: October 16, 2013 6 pm to 7:30pm Location: Argosy University Attendees: B6029 BLA Class OBJECTIVE Assess the additional risks related with a tax and audit service that wants to organically grow into a consultancy service

SCHEDULE
6:00 to 6:15 Tax and Audit Service Risk Matrix (Slide 3) 6:15 to 6:30 Management Consultancy Service Risk Matrix (Slide 4) 6:30 to 6:45 Difference between Business Risks (Slide 5) 6:45 to 7:00 Three Biggest Risks (Slide 6) 7:00 to 7:15 Recommendations (Slide 7) 7:15 to 7:30 Questions and comments

TAX AND AUDIT SERVICES RISK

Description Catastrophic Category I Risks Associated with Tax and Audit Services The risk of litigation

Critical

II

The risk of audit failure Inherent risk Control risk Detection risk
Audit client portfolio risk Auditor business risk

Important Marginal

III IV

MANAGEMENT CONSULTING SERVICES RISK

Description Category Risks Associated with Management Consulting Services
Failure to honor contracts or misrepresentation about qualifications Negligent advice or instructions Failure to protect rights through negotiation and enforcement of effective contracts Copyright infringement Discriminatory training materials and curriculum Ineffective protection of your own product and proprietary interests Ineffective or nonexistent documentation

Catastrophic

Critical

II

Important

II

Marginal

IV

DIFFERENCES BETWEEN BUSINESS RISKS

The risks associated with a tax and audit service are primarily operational risks. The risks associated with a management consulting service are primarily legal risks.

THREE BIGGEST RISKS

In the business of management consulting a company must adept at protecting itself from litigation. The three biggest risks associated with management service are: I. Failure to honor contracts or misrepresentation about qualifications may result in loss of reputation II. Failure to protect rights through negotiation and enforcement of effective contracts may result in loss of income III. Ineffective protection of your own work product and proprietary interests may result in infringement or misappropriation of company work products

RECOMMENDATIONS
After careful analysis of the risk associated with operating a management consultancy service it is recommended that if this tax and audit firm wants to organically grow itself into a consultancy service it should consider retaining legal advisory to assist it in the evasion of litigation pitfalls.

REFERENCES
Eyres, P. S. (2006). Top seven legal risks for consultants. Consulting to Management 17(1), 9-10, 20. Retrieved from http://search.proquest.com/docview/215900229?accountid=34899 Folami, L. B. , Jacobs, F. (2013). A multidisciplinary approach to risk management for Accounting firms. The Journal of Applied Business Research 18 (4), 69-86