OVERVIEW OF MANAGEMENT

CONSULTANCY SERVICES BY
CPAS

CHAPTER 1
Consultant
Expert on a specific area and offers unbiased opinion & advice
for a fee.

Reasons for becoming a consultant:

o Personal development
o Dissatisfaction on existing job
o Wish to work on a consulting firm
o Retired people who have expertise
o Want to have quality time with family while working
EVOLUTION

Management
consulting is a
profession whose
members provide
extremely useful
services to business
managers.
 INDEPENDENT ACCOUNTING FIRM’S ROLE
IN MAS

TO PROVIDE ADVICE AND TECHNICAL ASSISTANCE WHICH

SHOULD PROVIDE FOR CLIENT PARTICIPATION IN THE ANALYTICAL
PROCESS.
 NATURE OF MAS BY INDEPENDENT
ACCOUTING FIRMS

o MANAGEMENT ADVISORY SERVICES

o MANAGEMENT CONSULTING

TWO TYPES OF ENCOUNTERS

1. CONSULTATIONS
2. ENGAGEMENTS
 WHY USE MANAGEMENT CONSULTANTS

o INDEPENDENT VIEWPOINT
o PROFESSIONAL ADVISOR AND COUNSELOR
o TEMPORARY PROFESSIONAL SERVICE
o AGENT OF CHANGE
THE CONSULTING INDUSTRY
Operation
Corporate s
strategy managem
ent
Consultin
Human
g&
resources
system
managem
integratio
ent
n

CONSULTAN outsourci
IT CY ng
 IT
Fir
ms

Types of Accounti
Consulta ng Firms
Independ
Offering
ents
ncy Consulta
Firms ncy

Major
Consult
ing
Only
Firms
 CAREER STRUCTURE

An
aly
sts
Consultants
Senior Consultants /
Managers
Business Development Managers

Directors ( or Partners )
 AREAS OF MANAGEMENT
ADVISORY SERVICES – PART
I
CHAPTER 2
 TYPES OF MAS ENGAGEMENTS

a) NATURE OF THE PROBLEM

b) SERVICE DELIVERY AREA
c) PHASES OF ANALYTICAL PROCESS
d) TECHNIQUES AND METHODOLOGIES APPLIED
e) INDUSTRY ( OR NATURE OF ORGANIZATION )
f) GEOGRAPHICAL AREA
 NATURE OF THE PROBLEM

a) CORRECTIVE Situations in which

conditions have
worsened
b) PROGRESSIVE Existing situation
that can be
improved
c) OPPORTUNISTIC Situations in which
a future
opportunity exists.
 SERVICE DELIVER AREAS

EXAMPLE:

1. GENERAL MANAGEMENT
2. MANUFACTURING
3. PERSONNEL General
Accounting
4. FINANCE & ACCOUNTING Cost Accounting

Capital
Accounting
 PHASES OF ANALYTICAL PROCEDURE

a) IDENTIFYING OBJECTIVES

b) DEFINING THE PROBLEM

c) FINDING OUT THE FACTS

d) DEVELOPING THE SOLUTION

e) IMPLEMENTING THE SOLUTION

INDUSTRY OR NATURE OF
ORGANIZATION GEOGRAPHICAL AREAS
 TYPES OF CONSULTANCY WORK
a) BUSINESS PLANNING AND DEVELOPMENT OR PROJECT FEASIBILITY STUDY

b) INFORMATION SYSTEMS CONSULTING

c) INTERNAL AUDIT SERVICES

d) MANAGEMENT / OPERATIONS AUDIT

e) BUSINESS PROCESS IMPROVEMENT / REENGINEERING

f) OTHERS SUCH AS
1) MARKETING RESEARCH
2) MARKETING STRATEGY DEVELOPMENT
3) DEVELOPING PROMOTIONAL CAMPAIGN
4) PLANNING SALES FORCE ACTIVITY
5) NEW PRODUCT DEVELOPMENT
6) DEVELOPING PROPOSAL FOR FINANCIAL SUPPORT
7) STAFF RECRUITMENT
8) EXPORTING AND INTERNATIONAL MARKET
 AREAS OF MANAGEMENT
ADVISORY SERVICES – PART
II
CHAPTER 3
I. TRADITIONAL SERVICES:
PLANNING

a) MANAGERIAL ACCOUNTING CONTROLLIN

G
DECISION – MAKING
b) DESIGN AND APPRAISAL OF ACCOUNTING SYSTEM

c) FINANCIAL MANAGEMENT – RELATED SERVICES

d) PROJECT FEASIBILITY STUDY

II. EMERGING CONSULTANCY SERVICES
E. GLOBAL RISK MANAGEMENT SOLUTION
F. TRANSACTION SERVICES
G. FINANCIAL ADVISORY SERVICES
H. PROJECT FINANCE AND PRIVATIZATION
I. VALUATION SERVICES
J. BUSINESS RECOVERY SERVICES
K. DISPUTE ANALYSIS AND INVESTIGATIONS
L. COMPUTER RISK MANAGEMENT
 SCOPE OF SERVICE

1. RESPONSIBILITY TO ESTABLISH A SCOPE OF SERVICES

2. INDEPENDENCE
3. COMPETENCE
4. REQUIREMENT FOR SPECIALIZATION
5. IDENTIFICATION AND RESOLUTION OF CLIENT’S BASIC
PROBLEMS
6. REFERRALS
7. CODE OF PROFESSIONAL ETHICS
 Contact
clients

Intermedi
Ultimate
ate
clients
Types clients
of
client
s
serve
Indirect d Primary
clients clients

Unwitting
clients
 GROUP OF CLIENTS THAT CPA’S CAN
PROVIDE MAS

o PRIVATELY-OWNED BUSINESS FIRMS

o GOVERNMENTAL AGENCIES AND ORGANIZATION
o NOT-FOR-PROFIT NONGOVERNMENT ORGANIZATION
o PROFESSIONAL ASSOCIATION
o OTHERS
 PROVISIONS

1) PROVISION OF INFORMATION
2) PROVISION OF SPECIALIST EXPERTISE
3) PROVISION OF NEW PERSPECTIVE
4) PROVISION OF SUPPORT FOR INTERNAL ARGUMENTS
5) PROVISION OF SUPPORT IN GAINING A CRITICAL
RESOURCE
6) FACILITATING ORGANIZATIONAL CHANGE