Chapter Management Consultancy

Principles and Engagements

5 Ma. Elenita Balatbat Cabrera

“MAS Practice Standards

and Ethical Considerations”
 MAS Practice Standards

Personal Characteristics
Standard No.1 “In performing Management
Advisory Services, a practitioner must act with
integrity and objectivity and be independent in
mental attitude.”

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 MAS Practice Standards

Competence
Standard No.2 “Engagements are to be performed
by a practitioner having competence in the
analytical approach and process, and in
technical subject matter under consideration.”

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 MAS Practice Standards

Due Care
Standard No.3 “Due professional care must be
exercised in the performance of a management
advisory services engagement.”

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 MAS Practice Standards

Client Benefit
Standard No.4 “Before accepting an engagement,
a practitioner is to notify the client any
reservations he has regarding anticipated
benefits.”

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 MAS Practice Standards

Understanding with Client

Standard No.5 “Before undertaking an
engagement, a practitioner is to inform his
client of all significant matters related to the
engagement.”

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 MAS Practice Standards

Planning, Supervision and Control

Standard No.6 “Engagements are to be adequately
planned, supervise and controlled.”

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 MAS Practice Standards

Sufficient Relevant Data

Standard No.7 “Sufficient relevant data is to be
obtained, documented and evaluated in
developing conclusions and recommendations.”

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 MAS Practice Standards

Communication of Results
Standard No.8 “All significant matters relating to the
results of the engagement are to be
communicated to the client.”

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 Ethical Considerations

1. Integrity
2. Objectivity
3. Professional Competence and Due
Care
4. Confidentiality
5. Professional Behavior
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 Ethical Conflict Resolution

 Resolve
 Consider
 Consult
 Document
 Obtain
 Withdraw

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 Ethical Issues

“Do the right thing. You can’t do

much better than consistently try
to do the right thing.”

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 Ethical Issues
1. Does the activity improve the client’s condition or
merely his own?
2. Is the activity something that one will be comfortable
explaining to the client?
3. Is the activity something that the consultant could be
proud of and would publicize as a trait?
4. Is there harm being done to anyone without their being
able to respond?
5. Is this treatment something the consultant would
willingly subject himself to?

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Code of Ethics for Management
Consultants
I. Basic Responsibilities
II. Practice Standards
III. Fee Arrangements
IV. Business Conduct

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