MAS ENGAGEMENT vs.

MAS
CONSULTANCY
Definition

 The function of providing service and

technical assistance

Purpose

 To help improve the use of its capabilities and

resources to achieve its objective
 Counseling management in analyzing,
planning, operating, and controlling
functions.
 Conducting special studies and preparing
recommendations.
 Reviewing and suggesting improvement of
policies, procedures, methods, etc.
 Introducing new ideas, concepts and
methods.
 MAS ENGAGEMENT MAS CONSULTANCY
Analytical approach and process is applied to Is based on existing personal
a study or project. knowledge about;

a. Ascertaining the pertinent facts and a. Its client

circumstances b. Its circumstances
b. Seeking and identifying objectives c. matters involved
c. Defining the problem or opportunity d. mutual intent of the parties
d. Evaluating and determining possible
solutions
e. Present findings and recommendations

If client request consultant to proceed, the

latter may involved;
f. Planning and scheduling actions
g. Advising and providing technical
assistance in implementing
 MAS ENGAGEMENT
1. Gathering and analyzing appropriate
information (facts about client
operating results, financial conditions,
and systems and procedures)
2. Engagement vary widely in size,
complexity, staffing and time
requirements and technical subject
matter.
3. Where a practitioner is asked to
respond to any inquiry on MAS matter
that is not the subject of the
engagement, both the inquiry and
response may fall within the definition
of an MAS Consultation and the
standards for that type of service
would apply.
MAS CONSULTANCY
1. Consultation may occur
concurrently with other services
such as audit, review, or
compilations of financial
statements, tax services or an
MAS engagement.
2. Consultations may involve a
single matter, or cover a wide
variety of items.
3. Interaction maybe via
telephone, non-business
setting, periodic meetings or
formal writings.
 General Standards

 Technical Standards
 Professional Competence
 Due Professional Care
 Planning and Supervision
 Sufficient Relevant data
 Forecast
 MAS ENGAGEMENT
Includes ability to;
a. Identify and define client needs
b. Select and supervise staff.
c. Select and apply analytical process
d. Apply relevant technical knowledge
e. Effectively Communicate and assist in
implementation of recommendation
MAS CONSULTANCY
a. Evaluate his ability
b. Refrain from representing himself as
qualified and willing to accept the
work
 MAS ENGAGEMENT MAS CONSULTANCY

a. Apply knowledge and skill with a. Advice is clearly communicated and

reasonable care and diligence. that it does not generate a degree of
reliance that is inappropriate in light of
b. Does not assume responsibility for qualifications that apply to the advice.
infallibility
 MAS ENGAGEMENT MAS CONSULTANCY

a. Plan and supervise engagement, in a. The nature of planning depends on

accordance with the complexity of the inquiry.
• Understanding the client b. Planning is based on an understanding
• Professional Standards and Rules of of the inquiry and nature of services
Conduct on Code of Ethics asked by client
b. Determine the numbers of skilled c. Supervision required is dependent
individual available upon their qualifications and
c. Plan should be developed that: experience.
• Guides conduct, supervision, control
and completion of the engagement
• Can be modified as necessary during
engagement.
• Includes consideration of approach
and task required for completion
 MAS ENGAGEMENT MAS CONSULTANCY
a. Should be obtained in order to complete a. Client should be advised that such
the engagement advice is based on the accuracy of
• Interview, observation, computation, the information supplied.
research, analysis and review of client b. Practitioner should consider
document qualifying his advice or refraining
• Nature and quantity of information vary from giving any advice.
with scope and circumstances of
engagement
b. Professional judgment. Practitioner
should consider
• Objectives, nature and scope of
engagement
• Cost of gathering data vs. benefits of
added data
• Intended use of results
• Source, reliability, and completeness of
data
 Role of MAS Practitioner
 Understanding with Client
 Client Benefit
 Communication of results
 MAS ENGAGEMENT
a. Assume role of “Objective Advisor”
• Should not assume role of management
• Roles of all parties be clearly defined
b. Management should always be able to
make decisions by reviewing and
approving the findings, conclusions,
recommendations and other result.
MAS CONSULTANCY
a. Must be careful to avoid misleading
the client that the practitioner;
• Assumes responsibility for making
decisions
• Guarantees the benefit client seeks
• Full consideration of all relevant
informations
 MAS ENGAGEMENT
a. In reaching an understanding with the
client, practitioner should consider:
• Objectives and scope and engagement
• Relationships, roles and responsibilities
of practitioner, client and third parties
• Major task and activities
• Manner which the results are to be
reported
• Work schedule and fee arrangements
MAS CONSULTANCY
a. Attention should be given to make
sure both parties understand;
• Specific or General nature of advice
• Financial significance
• Complexity of inquiry, advice or
qualification

b. There must be a documented

understanding with the client

c. Understanding should be modified where

circumstances requires.
 MAS ENGAGEMENT MAS CONSULTANCY
a. Practitioner should obtain an
understanding, before beginning the
engagement.
b. Results should never be guaranteed by
practitioner
c. Qualified potential benefits; Estimated
and proper support should be provided.
 MAS ENGAGEMENT MAS CONSULTANCY
a. Major findings, conclusions and a. Nature and form of communication
recommendations is a matter of professional
b. Assumptions obtained from major judgment.
findings, conclusions and b. Advice may be written or oral,
recommendation depending on the circumstances.
c. Interim client communication
d. Final reports may be written oral,
depending on;
• Understanding with the client
• Degree to which progress is reported
• Intended use of results
• Sensitivity of material covered
• Need for a formal report
e. Practitioner should prepare for a
memorandum, if report is not issued
THANK YOU!! 