MANAGER AS THE MAS CLIENT

Management vs Governance

Management- develops and executes operating standards and systems to deliver the goals of
the business

Governance- is engaged in setting the strategic goals and policies of the enterprise.

THE CPA AS ADVISOR OR CONSULTANT

Advisor- provides advice and technical assistance to managers. He is an independent and

competent professional accountant who enjoys the trust and confidence of the manager.

CPAs may also be involved in activities such as

Operational advice- counseling management in its analysis, planning, organizing, operating and
controlling functions.

Special studies- conducting social studies, proposing plans and programs and providing guidance and
technical assistance in their implementation.

Organizational analysis- reviewing and suggesting improvement of policies, procedures, systems,

methods, and organizational relationships.

Ideas- introducing new approaches, methods, techniques, and concepts to management.

The advisory services rendered by CPA may be divided into two:

1. Traditional consultancy services

2. Emerging consultancy services

MAS Practice Standards

1. Personal characteristics- In performing MAS, a practitioner must act with integrity and objjectivity
and be independent in mental attitude

Integrity- process applied in the engagement and corresponding results are free from deliberate
distortions of information and misstatements.

Objectivity- fairness in approach in the conduct of the engagement and in the presentation of
results. Involves impartiality and freedom from bias.

Independence in mental attitude- ability to maintain impartiality and clarity in performing his
task to attain his professional objective.

2. Competence- technical qualification to perform the engagement. Measures intelligence, expertise,

and required skills to perform an act. Acquired through formal and programmed training and through
experiences.

3. Due Care- ability of the practitioner to exercise competence and utmost care from the date the
engagement is being negotiated with the client up to the post evaluation stage.

4. Client Benefit- The practitioner should determine what the client wants to achieve from the
engagement before initiating an engagement.

5. Understanding with the client- a practitioner is to inform the client of all significant matters
relating to the engagement
6. Planning, Supervision, and Control- engagements are to be adequately planned, supervised and
controlled.

7. Sufficient relevant data- to be obtained, documented, and evaluated in developing conclusions

and communications

8. Communication of results- All significant matters relating to the results of engagement are to be
communicated to the client.

MAS final report shall include the ff

-Principal findings

-Conclusions

-Recommendations

-Major facts and assumptions

-Limitations

-Reservations and other qualifications

-Other results of the engagement

Forecast- intellectual approximation of expected outcomes and conditions. Estimates are measured
results of future actions and events.

Role of a MAS Practitioner

Role of a MAS Practitioner is that of an advisor. He must not assume the role of the manager in
making decisions.

Characteristics of a MAS Engagement

-Service is for management- not to third or other parties

-Scope is broad- beyond the nromal domain of finance, accounting, auditing, and tax services.

-Future orientation- geared towards the future benefits of the client

-Non recurring- non repetitive in nature

-Highly qualified staff- with required level of expertise to be applied in the MAS engagements

-Diversity- vary in scope,nature, and problem to be identified and opportunities to be studied.