Management Advisory

Services
AE117
Characteristics of MAS
• Service is for management
• Involves problem solving
• Relates to the future
• Broad in scope
• Varied assignments
• Usually non-recurring
• Highly qualified staff
• Human relations is important
Consulting Process
• Analysis stage
• Design (Evaluation) stage
• Implementation stage
MAS Practice Standards
• Professional competence
• Due professional care
• Planning, supervision, and control
• Sufficient relevant data
• Forecasts
Standards of ethical Conduct for
Management Accountants
• Competence
• Confidentiality
• Integrity
• Objectivity
Resolution of Ethical Conflict
• Discuss the issue with the immediate supervisor except when it appears that
the supervisor is involved
• Clarify relevant issues by initiating a confidential discussion with an impartial
advisor to obtain a better understanding of possible courses of action
• Consult a lawyer as to legal obligations and rights concerning the ethical
conflict
• If the ethical conflict still exists after exhausting all levels of internal review,
there may be no other recourse on significant matters than to resign from
the organization and to submit an informative memorandum to appropriate
representative of the organization.
Contemporary Developments in Managerial
Accounting
• Factors that contributed to changes in the workplace
• Globalization of the business
• Technological advancements
• New management practices (General objectives)
• To enhance the quality of products
• To reduce costs
• To increase output
• To increase profit
• Prompt delivery of products
New Management Practices
• Just in time (JIT) system
• Total quality management
• Business process re-engineering
• Theory of constraints
• Kaizen costing