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Pamela Kaye L. Tandoc LOGO

What is a consultant?
Has expertise in a specific area/areas
Offers unbiased opinion and advice for a fee
review, analysis, recommendation and
Independent contractor (short term or long-term)
successful consultants should have
good business skills
Reasons of Becoming a Consultant

1. Marketable skill
2. Perceptive mind
3. Need for independence and challenge
4. Ability to communicate with others and
persuade them to follow advice
5. Desire to help others in an effective way
6. Agent of positive change
(see page 5-1)
Nonmonetary reasons
1. Sharing their knowledge to help others.
2. Building business network and take a step up
in ones corporate career.
3. Being independent and making their own
4. No fear of being laid off.
5. Having a flexible source of income.
6. A means of giving back to the community .
Do I have what it takes to become a
Evaluating Strengths and
Identify your skills, attributes and talents
Determine the following:
specialty areas and target market
ability to package and sell your services
How to take advantage of opportunities

See page 7 to 9
Self Assessment : Guideline to Develop a Realistic
Framework For Consulting Business
Evolution of MAS
1. Discovery of problems during audit engagement
and making suggestions for corrective action.

1. Natural development in the public practice

because it involves planning and control systems
that relied heavily on accounting and statistical

2. MAS Division includes:

Accountants -Statisticians -Industrial engineers
Lawyers -Psychologist
Evolution of MAS
SMEs also seeks services (ex. controllership) of
management consultant because:
Increasing complexity of business

However, accounting firms limits itself in providing

advice and technical assistance to clients.
Developing Trends
Improvement of business education

Catalyst of better management concepts and

Developing Trends
Change in management culture including
growth in size and complexity increased the
need for management consultants
Re-engineering of business process and re-training
Flattening or delayering of organizational chart
Technological advancement
Future Prospects
1. Management consulting will become even more specialized.

2. The consultants orientation will be towards being an

insight-provider, creator and sharer of information.

3. Management consulting firms will tend eother to remain

small or become quite large.

4. Consultants will develop more sophisticated means of

marketing their services

5. Bright graduates of accounting, management and business

schools will continue to be attracted to careers in
management consulting.
The Consulting Industry
A. IT Firms
Ex. IBMs purchase of PWC Consulting leads to
increased in revenue
B. Accounting Firms
narrow focus on financial and transactions
(mergers and acquisition)
C. Major Consulting Only Firms
Ex. McKinsey & Co. , Accenture and Mercer
Management Consulting, IBM, etc
D. Independents
Career Structure in Consulting Firms
1. Analyst: Gather information and process it for the
consulting team.
2. Consultants: Evaluates the client business and
make recommendations
3. Senior Consultants or Managers:
Leading a consulting team
3-5 yrs of consulting expeerience
Dealing with members of client team
4. Directors or Partners
Most experienced consultant
Responsible for the development of organization
Lead strategic development
Nature of MAS by Independent
Accounting Firms

Management advisory Management Consulting

services Independent and
objective advisory
Function: Provides provided by qualified
professional advisory persons to clients to help
(consulting) services them identify and
analyze management
Primary purpose: problems or
improve the clients opportunities.
use of its capabilities
and resources to Recommend solutions or
achieve the objectives suggested action.
of the organization
Two Types of Encounter with Clients

Providing advice and information (orally)
during a short time frame
definitive or limited
Two Types of Encounter with Clients


Analytical approach and process is applied that

1. Ascertaining the pertinent facts and circumstances
2. Seeking and identifying objectives
3. Defining the problem or opportunity for
4. Evaluating and determining possible solutions
5. Presenting findings and recommendations and
6. Implementing the solution, if appropriate.
Two Types of Encounter with Clients

Following the clients decisions to proceed, the
independent accounting firm may also be
involved in producing solutions by
Planning and scheduling actions to achieve the
desired results, and
Advising and providing technical assistance in
Rationale for Using Management

1. Independent viewpoint

2. Professional advisor and counselor

3. Temporary professional service

4. Agents of change
Independent Accounting Firms Role
in MAS
To provide advice and technical assistance which
would provide for client participation in the
analytical approach and process. Specifying this as
the proper role recognized both the appropriate place
of MAS and the realities of practice. This is the only
basis on which the work should permit it to be time.

Accounting firm should avoid making

management decisions or taking positions that
impair the firms objectivity.
CPAs Objective in Engaging in MAS
to utilize the essential qualifications it has available to
provide advice and technical assistance which will
enable client management to conduct its affairs more

Essential qualifications includes:

1. Technical competence
2. Familiarity with the clients finance and control
systems and his business problems
3. Analytical ability and experience in problem solution
4. Professional independence , objectivity and integrity.
That in all things,
God may be glorified!