Areas of
Management
Advisorry
Services- Part 1
1
Management
consultancy
services can be
categorized as
follows: Emerging
Traditional Consultancy
Services Services
2
○ Managerial Accounting
Traditional
Providing assistance to management related to
Services
planning and controlling business operation as well as
decision making.
Examples:
- Variance analysis
- Financial statement analysis
3
○ Design and appraisal of accounting system
Traditional
Services
Examples:
- Development of an accounting system for a
newly-organized firm
- Revision, partial or complete, of an existing
accounting system.
4
○ Financial Management- related services
Traditional
Services
Examples:
- Study of methods of financing asset acquisitions.
- Credit and collection practice studies and advice.
○ Project Feasibility Studies
5
○ Global Risk Management Solution
Emerging
Consultancy Involves managing the totality of risks.
Services (financial, strategic, operational and system, compliance,
and internal audit services)
Examples:
- Development of an accounting system for a newly-
organized firm
- Revision, partial or complete, of an existing accounting
system.
6
Emerging ○ Transaction services
Consultancy
These involve services related to mergers,
Services
acquisition, divestitures, joint ventures, spin-off, and
strategic alliance.
○ Financial Advisory Services
Providing comprehensive, financial, economic
and strategic advice to companies with complex
business problems and disputes.
7
○ Project Finance and Privatization
Emerging
Consultancy This involves management advisory services related
Services to partnership between public and private sectors in delivering
infrastructure and services or privatization and project finance.
○ Valuation Services
These include services that guide clients through
complex business transactions such as acquisition or
divestiture of investment, debt, structuring and finance raising,
entry major stock exchange, and mergers.
8
○ Business Recovery Services
Emerging
Consultancy CPAs provide services to troubled businesses by
Services emphasizing on the implementation and rationalization and
recovery programs designed to rebuild value.
○ Dispute Analysis and Investigations
- environmental analysis - construction disputes
- real estate damage - economic and financial
- investigate services analysis
9
○ Computer Risk Management
Emerging
Consultancy This involves management advisory services related
Services to partnership between public and private sectors in delivering
infrastructure and services or privatization and p.
○ Application Software Selection and
Implementation
The management consultant assists clients in
prioritizing their needs, identifying the right software and
tailoring it to meet their specific requirement.
“
10
Determining the Scope of Service
CPA’s may perform the entire range of MAS as long as it is consistent with their
professional competence, ethical standards, and responsibility. Depth of knowledge and
experience required should also be considered.
1. Responsibility to establish scope of 5. Identification and resolution of client’s basic
services problems
2. Independence 6. Referrals
3. Competence 7. Code of professional ethics
4. Requirements for specialization
Types of Clients Served
11
Contact clients
The person who first approaches the consultant and proposes that the
consultant addresses a problem or issue on behalf of the organization.
Intermediate clients
Members of the organization who become involved in the consulting
project. They will word with the consultant and provide information.
Primary clients
The one who have identified the problem or issue the consultant has been
called to addressed and who are most affected by it. It is day who will be willing to pay
in order to have issue resolved.
Types of Clients Served
12
Unwitting clients
Members of the organization who do not initiate the project and have no
direct or formal control over it. They are not aware that they will be affected by the
project.
Indirect clients
Members of the organization who will be affected by the intervention of
the consultant and who are aware that they will be affected. However the consultant is
not aware that the project will be an impact on them.
Ultimate clients
Total community that will be affected by the consultant’s intervention.
Group of Clients That CPAs Can 13
Provide MAS
Privately-owned business firms
Governmental agencies and organizations
Not-for-profit nongovernmental organizations
Professional associations
Others
How Consulting
Adds Value
15
The Decision to Hiring a Three Fundamental questions
management consultants must ask:
Use a consultant a. What can I offer the client business that
Consultant involves: will enhance its performance and help it
achieve its objectives?
- An immediate b. Why will my contribution be more
valuable than that which existing managers
financial cost
and potential recruits, can contribute.
- Disruption of
manager’s How can I communicate to the client
routine business that what I offer is valuable?
16
The actual output of a consulting exercise
centers on providing one or more of the
following:
• Provision of Information
• Provision of specialist expertise
• Provision of new perspective
• Provision of support for internal arguments
• Provision of support in gaining critical resource
• Facilitating organizational change
