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City Government of Manila

Universidad De Manila
College of Accountancy and Economics


Management Advisory Services (MAS) refers to that practice of accounting concerned with providing
advice and technical assistance to help management improve the use of resources in achieving
organizational goals.

The Certified Public Accountant (CPA) who practices an MAS work is called as an advisor or

The advisory services rendered by CPAs may be divided into two areas –

(1) Finance and accounting services;

(2) Non-finance and non-accounting services.

Professional standards and MAS Practice Standards

1. Professional Standards include the following:

a. Laws;
b. Constitution;
c. Accountancy Act;
d. Code of ethics for CPAs.

2. MAS Practice Standards as promulgated by AICPA’s Management Advisory Division include the
a. Personal Characteristics – In performing MAS, a practitioner must act with integrity and
objectivity and be independent in mental attitude.
b. Competence – Engagements are to be performed by a practitioner having competence in
the analytical approach and process, and in the technical subject matter under consideration.
c. Due Care – due professional care is to be exercised in the performance of MAS
d. Client Benefit – before accepting an engagement, a practitioner is to notify the client of any
reservations he has regarding anticipated benefits.
e. Understanding with client – before undertaking an engagement, a practitioner is to inform
his client of all significant matters related to the engagement.
f. Planning, Supervision and Control – Engagement are to be adequately planned,
supervised and controlled.
g. Sufficient Relevant Data – Sufficient relevant data is to be obtained, documented and
evaluated in developing conclusions and recommendations.
h. Communication of Results – All significant matters relating to the result of the engagement
are to be communicated to the client.

Characteristics of MAS Engagement:

1. Service is for management;
2. Scope is broad;
3. Future orientation;
4. Non-recurring;
5. Highly qualified staff;
6. Diversity.

MAS Engagement Process:

1. Engagement negotiation;
2. Engagement planning;
3. Engagement execution;
4. Presentation of engagement results;
5. Implementation of recommendation;
6. Post-engagement follow-up.