MAS Overview (OK Na!)

UNIVERSITY OF SAINT LOUIS-TUGUEGARAO
School of Business Administration and Accountancy, 2013-2014

Junior Philippine Institute of Accountants
MEMORY AID IN MANAGEMENT ADVISORY SERVICES
Any form of reproduction of this copy is strictly prohibited!!!
________________________________________________________________________________________________________
CHAPTER 1:
MAS Overview
☛What is Management Advisory Services? examination yet for management consultants,

hence, it is not regulated by law.
 It refers to that practice of accounting
concerned with providing advice and ☛Characteristics of MAS engagement:
technical assistance to help clients
 Services are rendered for the management
(referring to management) improve the use
rather than for third parties
of resources in achieving organizational
 Scope is broad
goals.
 Future orientation
☛What is Managerial Accounting?  Involves problem solving
 Not repetitive nor recurring
 (also called Management Accounting or  Requires highly qualified staff(i.e., less
Internal Accounting) is a field of accounting junior staff)
that provides economic and financial  Varied in nature
information for internal users, particularly  does not adhere to GAAP
the managers or decision-makers in an  deals with specific organizational problems
organization.
☛Stages in MAS engagements:
☛Who is a Management Consultant or Advisor?
i. Negotiating the engagement
 a person who is qualified by education, ii. Preparing for and starting the
experience, technical ability, and engagement
temperament to advise or assist iii. Conducting the engagement
businessmen on a professional basis in iv. Preparing and presenting the reports and
identifying, defining, and solving specific recommendations
management problems involving the v. Implementing the recommendations
organization, planning, direction, control, vi. Evaluating the engagement
and operation of the firm. vii. Post engagement follow-up
 an independent CPA who is not a member
of the organization but has the trust and ☛Scope of MAS:
confidence of the manager.
 All services rendered to management
EXCEPT those in the areas of auditing, legal
 [NOTE:] A CPA-consultant or advisor should
services, and taxation are included in the
not take responsibility for making decisions and
professional service of MAS and may
policy judgments in MAS engagements. The
power to make decisions rests solely on the hand involve activities such as:
of the management and not of the advisor.  Counseling management in its
Management consulting is not limited analysis, planning, organizing,
to CPAs. There is no government licensure
1 Management Advisory Services (MAS) Committee : Hazeleen Martinez; Jimmy Joe Miranda; Cliff Mark
Confidente; Corina Bariuan; Kristina Gaddon; Rizalyn Taguibao ;Niῆo Rey Mangupag; Marjhon Maramag; Leo
Jay Labasan
Adviser: Mary Queen Ramos, CPA
________________________________________________________________________________________________________
operating, and controlling Controllership and treasurership constitute
functions; corporate finance. While controllership deals with
 Reviewing and suggesting records, systems, and processes to attain objectives
improvement in policies, of internal controls and good managing,
procedures, systems. methods, treasurership, on the other hand, deals with money,
and organizational relationships; cash, or wealth of an organization.
 Introducing new ideas, concepts,
and methods to management; and Controllership Treasurership
 Conducting special studies, -Planning and control -Provision of capital
proposing plans and programs, and -Reporting and -Investor relations
providing guidance and technical interpreting -Short-term financing
assistance in their implementation. -Evaluating and -Banking and custody
 The PICPA committee on MS classified the consulting -Credit and collections
broad areas of MAS into two groups -Tax administration -Investments
namely: (1) finance and accounting -Government -Insurance
services and (2) non-finance and non- reporting
accounting services. -Protection of assets
-Economic appraisal
Financial Accounting Management
Accounting
-Historical in nature -Deals with the future
☛Fundamental steps in decision-making process:
-Uses GAAP -Does not use GAAP i. Set objectives
-Reports are wholistic -Reports are ii .Identify constraints
segmentized iii. Gather appropriate information
-Reports are for -Reports are for iv. Identify alternative
general purpose management use only v. Evaluate alternative
-With unifying -No unifying equation vi. Choose the best alternative
equation A=L+C
-Focuses on accounting -Multidisciplinary, also ☛Analytical approach and process:
and finance deals with other areas
of knowledge and 1. Ascertaining the pertinent facts and circumstances
disciplines 2. Seeking and identifying objectives
-Focuses in the process -Focuses in the 3. Defining the problem or opportunity for
of preparing the FS usefulness of FS improvement
-Precision/Accuracy -Timeliness/ 4. Evaluating and determining possible solutions
Relevance 5. Presenting findings and recommendations
-Regarded as “the -Regarded as” the
process” product of the In case the client requests the consultant to proceed,
process” the latter may also be involved in:
6. Planning and scheduling actions
Jay Labasan
________________________________________________________________________________________________________
7. Advising and providing technical assistance in Management accountants have a responsibility to:
implementing
 Maintain an appropriate level of
professional competence by ongoing
MAS PRACTICE STANDARDS
development of their knowledge and skills.
 Perform their professional duties in
All CPAs engaged in MAS practice should
accordance with relevant laws, regulations,
observe a set of MAS Practice Standards, which are
and technical standards.
classified into general and technical standards.
 Prepare complete and clear reports and
recommendations after appropriate
GENERAL STANDARDS
analyses of relevant and reliable
1. Professional competence
information.
2. Due professional care
3. Planning and supervision CONFIDENTIALITY
4. Sufficient relevant data
5. Forecasts Management accountants have a responsibility to:
 Refrain from disclosing confidential

TECHNICAL STANDARDS information acquired in the course of their
1. Role of MAS practitioner work except when authorized, unless legally
2. Understanding with the client obliged to do so.
3. Client benefit
 Inform subordinates as appropriate
4. Communication of results
regarding the confidentiality of information
acquired in the course of their work and
Standards of Ethical Conduct for monitor their activities to assure the
Management Accountants maintenance of that confidentiality.
 Refrain from using or appearing to use
Management Accountants have an obligation to confidential information acquired in the
the organizations they serve, their profession, the course of their work for unethical or illegal
public, and themselves to maintain the highest advantage either personally or through
standards of ethical conduct. In recognition of this third parties.
obligation, the Institute of Management
Accountants, formerly the National Association of INTEGRITY
Accountants, has promulgated the following
standards of ethical conduct for management Management accountants have a responsibility to:
accountants. Adherence to these standards is
integral to achieving the Objectives of Management  Avoid actual or apparent conflicts of
Accounting. Management Accountants shall not interest and advise all appropriate parties
commit acts contrary to these standards nor shall of any potential conflict.
they condone the commission of such acts by others  Refrain from engaging in any activity that
within their organizations. would prejudice their ability to carry out
their duties ethically.
COMPETENCE
Jay Labasan
________________________________________________________________________________________________________
 Refuse any gift, favor, or hospitality that accountants should consider the following course of
would influence or would appear to action:
influence their actions.
 Refrain from either actively or passively  Discuss such problems with the immediate
subverting the attainment of the superior except when it appears that the
organization’s legitimate and ethical superior is involved, in which case the
objectives. problem should be presented initially to the
 Recognize and communicate professional next higher managerial level. If satisfactory
limitations or other constraints that would resolution cannot be achieved when the
preclude responsible judgment or problem is initially presented, submit the
successful performance of an activity. issues to the next higher managerial level.
If the immediate supervisor is the chief
 Communicate unfavorable as well as
executive officer, or equivalent, the
favorable information and professional
acceptable reviewing authority may be a
judgments or opinions.
group such as the audit committee,
 Refrain from engaging in or supporting any
executive committee, board of directors,
activity that would discredit the profession.
board of trustees, or owners. Contact with
OBJECTIVITY levels above the immediate supervisor
should be initiated only with the
Management accountants have a responsibility to: supervisor’s knowledge, assuming the
superior is not involved.
 Communicate information fairly and  Clarify relevant concepts by confidential
objectively. discussion with an objective advisor to
 Disclose fully all relevant information that obtain an understanding of possible courses
could reasonably be expected to influence of action.
an intended user’s understanding of the  If the ethical conflict still exists after
reports, comments, and recommendations exhausting all levels of internal review, the
presented. management accountant may have no
other recourse on significant matters than
 RESOLUTION OF ETHICAL CONFLICT to resign from the organization and to
submit an informative memorandum to an
In applying the standards of ethical conduct, appropriate representative of the
management accountants may encounter problems organization.
in identifying unethical behavior or in resolving an
ethical conflict. When faced with significant ethical Except where legally prescribed, communication of
issues, management accountants should follow the such problems to authorities or individuals not
established policies of the organization bearing on employed or engaged by the organization is not
the resolution of such conflict. if these policies do considered appropriate.
not resolve the ethical conflict, management
Jay Labasan

MAS Overview (OK Na!)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MAS Overview (OK Na!)

Uploaded by

Copyright:

Available Formats

UNIVERSITY OF SAINT LOUIS-TUGUEGARAO

School of Business Administration and Accountancy, 2013-2014

☛What is Management Advisory Services? examination yet for management consultants,

6. Planning and scheduling actions

 Refrain from disclosing confidential

You might also like