This document provides an overview of management advisory services (MAS) presented by FOB. It discusses the evolution of MAS, traditionally areas of CPA firms like auditing, accounting systems, and tax work. It also explains why CPA firms engage in management consultancy and developing trends in specialization, education, culture, and technology. The document outlines the consulting industry definitions and three main factors for its growth. It details the career structure in consulting and types of engagements. It also covers various areas of MAS practice and types of consultancy work. Finally, it discusses determining the scope of service, types of clients served, groups of clients that CPA can provide MAS to, and factors to consider in the

1. OVERVIEW OF MANAGEMENT
ADVISORY SERVICES
PRESENTORS: FOB

2. EVOLUTION

3. OVERVIEW OF MAS BY CPAS
Auditing
Accounting
system
design and
installation
Income tax
work
Management
consultancy
TRADITIONALAREAS OF CPA FIRM

4. WHY MANAGEMENT CONSULTANCY?
Management
consultancy
CPA firms
engage in
audit
Natural area of
development of
a public
accountant
Provide
extremely useful
services to
business
managers

5. DEVELOPING TRENDS

6. OVERVIEW OF MAS BY CPAS
Specialization
in different
areas
Improvement
of business
education
Change in the
management
culture
Technical
Development
DEVELOPING TRENDS

7. OVERVIEW OF MAS BY CPAS
FUTURE PROSPECT
 Management consulting will become even
more specialized
 Insight provider, creator and sharer of
information
 Management consultancy firms will tend to
remain small or quite large
 Sophisticated marketing
 Career attraction in management consulting

8. OVERVIEW OF MAS BY CPAS
THE CONSULTING INDUSTRY (definitions)
 Information Technology (IT)
 Consulting and system integration
 Corporate strategy
 Operations management
 Human resources management
 Outsourcing

9. 3 MAIN FACTORS IN GROWTH
 Increase demand
 Continued demand for information
technology spending

10. OVERVIEW OF MAS BY CPAS
IT Firms
Accounting
firms
offering
consultancy
Major
consulting
only firms
Independents
MAIN
TYPES OF
CONSULTI
NG FIRMS

11. OVERVIEW OF MAS BY CPAS
CAREER STRUCTURE
 Analyst
 Consultants
 Senior Consultants/Managers
 Business Development Managers
 Directors/Partners
•Data Gathering
•Evaluation and
recommendations of the
client business
•3-5 years of experience
•Leads a consulting team
•Dealing with the client team
•Ability to take
responsibility in running
small consultancy project
•5-10 years of experience
•Developing firms product
•Responsible for building
relationship with its client
•Involved in some large,
complex consulting
projects
•Most experienced
consultant
•Responsible for the
development of the
organization
•Leads strategic
development
•Over-all responsibility for

12. OVERVIEW OF MAS BY CPAS
MANAGEMENT CONSULTING
 Independent and objective advisory
service provided by qualified persons to
clients
 Recommend solutions or suggested
actions with respect to the issues involved
 Helps to effect constructive change in the
organization

13. OVERVIEW OF MAS BY CPAS
TWO TYPES OF ENCOUNTERS
1. Consultations
2. Engagements
•Providing advice and
information during a short
time frame
•Information provided is
orally
•Information are qualified to
limitations
•Analytical approach and
process is applied in a
study or project

14. OVERVIEW OF MAS BY CPAS
Independent
Viewpoint
• see the true
nature of the
problems
• distinguish
feasible and
infeasible
• unbiased
suggestion
Professional
Advisory
• possesses
special
knowledge,
skill and
variety of
personal
attributes
• introduce
new ideas
into the
organization
Agent of
Change
• catalyst for
change
Temporary
Professional
Service
• less
expensive
• temporary
professional
help
WHY USE MANAGEMENT
CONSULTANTS?

15. CHAPTER 2
Areas of Management
Advisory Services -
Part I

16. TYPES OF MAS ENGAGEMENTS
a) Nature of the Problem
b) Service Delivery Area
c) Phases of the Analytical Process
d) Techniques and Methodologies
Applied
e) Industry(or nature of
organization)
f) Geographical Area

17. NATURE OF THE PROBLEM
a. Corrective
b. Progressive
c. Opportunistic
Situation in which
conditions have
worsened.
Existing situation
that can be
improved.
Situation in which a
future opportunity
exists.

18. SERVICE DELIVERY AREAS
o functions or activities in which the problem
exists.
Example:
1. General Management
2. Manufacturing
3. Personnel
4. Finance and Accounting
General Accounting
Cost Accounting
Capital Investment

19. PHASES OF
ANALYTICAL PROCEDURE
a. Identifying objectives
b. Defining the problem
c. Finding out the facts
d. Developing the solution
e. Implementing the solution

20. TECHNIQUES AND
METHODOLOGIES APPLIED
Example:
Capital Investment planning can
be aided by a discounted cash
flow model.

21. INDUSTRY OR NATURE OF ORGANIZATION
GEOGRAPHICAL AREAS

22. AREAS OF MS PRACTICE
1. Management functions of analysis, planning, organizing
and controlling.
2. Introduction of new ideas, concepts and methods to
management.
3. Improvement of policies, procedures, systems, methods
and organizational relationships.
4. Application and use of managerial accounting, control
systems, data processing, and mathematical techniques
and methods.
5. The conduct of special studies, preparation of
recommendation.

23. TYPES OF CONSULTANCY WORK
A. Business planning and development or Project
feasibility studies
B. Information systems consulting
C. Management / Operations audit
D. Business process improvement / reengineering
E. Others such as
1) Marketing Research
2) Marketing Strategy Development
3) Developing promotional campaign
4) Planning sales force activity
5) New product development
6) Developing proposal for financial support
7) Staff Recruitment
8) Exporting and international market

24. BUSINESS PLANNING AND DEVELOPMENT
(PROJECT FEASIBILITY)
o Effective consultant can use the project
proposal to establish exactly what the
client wants and to manage his or her
expectations about what can
realistically be achieved.

25. INFORMATION SYSTEMS CONSULTING
Information needed:
Business’s external situation and its
internal state.
Operational Audit are conducted to
evaluate the effectiveness and/or efficiency of
operations.
MANAGEMENT / OPERATIONS AUDIT

26. BUSINESS PROCESS IMPROVEMENT /
REENGINEERING
o It is the complete redesign of a process with
an emphasis on finding creative new ways to
accomplish an objective.
o It involves developing new ways to perform
existing activities and ways to stop
performing non-value adding activities.

27. OTHER TYPES OF CONSULTANCY WORK
o Process through which managers
discover the nature of the competitive
environment in which they are operating.
MARKETING RESEARCH
TWO TYPES:
1. Primary Research
a. Quantitative Research
b. Qualitative Research
2. Secondary Research

28. OTHER TYPES OF CONSULTANCY WORK
MARKETING STRATEGY DEVELOPMENT
 Defines the approach the business will take
in order to get the customer’s attention and
get them to spend their money on the
business’s products or services
DEVELOPING PROMOTIONAL CAMPAIGNS
 Any program of activities dedicated to
informing customers about a product,
stimulating their interest and encouraging
purchase.

29. OTHER TYPES OF CONSULTANCY WORK
PLANNING SALES FORCE ACTIVITY
 Overall organization of the team
 Sales team training
 Sales team motivation
 Planning sales campaigns

30. OTHER TYPES OF CONSULTANCY WORK
NEW PRODUCT DEVELOPMENT
 Understanding the customer’s needs through market
research
 Technical advice on product development
 Identifying and contacting suppliers of critical
components
 Development of marketing and PR campaigns to
support the launch
 Developing promotion campaigns to get distributors on
board
 Financial planning and evaluation of the return on new
product investment

31. OTHER TYPES OF CONSULTANCY WORK
DEVELOPING PROPOSALS OF FINANCIAL
SUPPORT
 Evaluation of the business’s investment
needs
 Identification of funding providers and how
they might be contacted
 Developing an understanding of the criteria
employed by funding providers and how
these might be addresses
 Developing communications with funding
providers

32. OTHER TYPES OF CONSULTANCY WORK
STAFF RECRUITMENT
 Assessing the firm’s human resource
requirement and identifying skill and knowledge
gaps
 Creating advertisements to attract the right
people
 Development assessment criteria, interview
procedures and psychometric testing of
candidates
 Advice on the reimbursement packages new
recruits will expect

33. OTHER TYPES OF CONSULTANCY WORK
EXPORTING AND INTERNATIONAL
MARKETING

34. IN PARTICULAR THE CONSULTANT CAN
SUPPLY:
 An overall insight into regional, social and
macroeconomic development
 An analysis of the growth and evolution of
specific markets
 An evaluation of consumer needs and
requirements and how these are being
satisfied currently

35. IN PARTICULAR THE CONSULTANT CAN
SUPPLY:
 Information on regulatory and legal issues
 Details of the existing supply structure and
competitors present
 An investigation into distribution channels and
possible partners
 Information on advertising and promotional
opportunities

36. CHAPTER 3
Areas of Management
Advisory Services-
Part II

37. I. TRADITIONAL SERVICE
Managemenc
untingManagement
Accounting
Decision
Making
Controlling
Planning

38. I. TRADITIONAL SERVICE
B. Design and Appraisal of Accounting System
1. Development of an accounting system for newly-organized
firm
2. Revision, partial or complete, of an existing accounting
system
3. Extension of the present accounting system to cover new
business activities.
4. Accounting service in general
5. Accounting Machines installation
6. Internal Control Studies and Installation
C. Financial Management- related services
D. Project Feasibility Studies

39. II. EMERGING CONSULTANCY SERVICES
Global Risk Management Solution
 Managing totality of risks-financial, operational
and systems, and strategic to improve financial
and business performance.
1. Financial Risk Management
2. Strategic Risk Management
3. Operational and Systems Risk
Management
4. Compliance Risk Management
5. Internal Audit Services

40. II. EMERGING CONSULTANCY SERVICES
Transaction Services
 Involves services related to mergers, acquisition,
divestitures, joint ventures, spin-off and strategic
alliance
Financial Advisory Services
 CPA’s provide financial, economic and strategic
advice to companies with complex business
problems and disputes.

41. II. EMERGING CONSULTANCY SERVICES
Project Finance and Privatization
 Involves management advisory services related to
partnership between the public and private sectors in
delivering infrastructure and services or privatization
and project finance.
Valuation Services
 Guide clients through complex business
transaction such as acquisition or divestiture of
investment, debt structuring and finance-raising,
entry to major stock exchange, mergers.

42. II. EMERGING CONSULTANCY SERVICES
Business Recovery Services
 CPA’s provide services to troubled business by
emphasizing on the implementation and
rationalization and recovery programs designed
to rebuild value.
Dispute Analysis and Investigations
 Environmental analysis, real estate damage,
investigative services, construction disputes,
investigative services, economic and financial
analysis.

43. II. EMERGING CONSULTANCY SERVICES
Computer Risk Management
 Help client understand and manage their
business risks relating to implementation and use
of technology
Application Software Selection and
Implementation
 Assist clients in prioritizing their needs, identifying
the right software and tailoring it to meet their
specific requirement.

44. DETERMINING SCOPE OF SERVICE
1. Responsibility to establish scope of
services
2. Independence
3. Competence
4. Requirement for specialization
5. Identification and Resolution of client’s
basic problems
6. Referrals
7. Code of Professional Ethics

45. TYPES OF CLIENTS SERVED
Types of
Clients
Served
Contact
Clients
Intermediate
Clients
Primary
Clients
Unwitting
Clients
Indirect
Clients
Ultimate
Clients

46. GROUP OF CLIENTS THAT CPA’S CAN
PROVIDE MAS
1. Privately-owned Business firms
2. Governmental Agencies and Organization
3. Not-for-Profit Nongovernment Organization
4. Professional Association
5. Others

47. THE DECISION TO USE AN
ACCOUNTANCT
A. What can I offer the client business that will
enhance its performance and help achieve its
objectives?
B. Why will my contribution be more valuable than
that which existing managers and potential
recruits can contribute?
C. How can I communicate to the client business
than what I offer is valuable?

48. Provision of Information
• Information is valuable to a business
• It has a cost
• Information is a resource that must be managed
Provision of Specialist Expertise
• Require the application of technical knowledge and
an ability to use specialist analysis techniques
Provision of a New Perspective
• Managers are not decision making automata
• 'cognitive maps', 'mindsets', or 'dominant logics' are
used by managers to see their managerial world
• Consultant can offer a fresh mind to an issue
PROVISIONS

49. PROVISIONS
Provision of Support for Internal Arguments
• Disagreements arise over a wide range of issues
• Conflicts of opinion take a variety of form
Provision of Support in Gaining a Critical
Resource
• Organization must attract resources in order to
survive
• One of the manager's most critical function is
attracting resources on behalf of the firm
• Consultant can be of great value in structuring a
proposal and advising on how it might be delivered

50. PROVISIONS
Facilitating Organizational Change
• Organizations change all the time
• Managers change their roles and responsibilities
• Change usually meets resistance
• Sometimes organizations call for change as the
primary goal of the consulting exercise

51. FACILITATING
ORGANIZATIONAL CHANGE
Organizations
change all the
time
Managers
change their
roles and
responsibilities
Change
usually meets
resistance
Sometimes
organizations
call for change
as the primary
goal of the
consulting
exercise

52. Dayag, Daisy
Dela Cruz, Hazel
Manongdo, Rudith Ann
Padilla, Jefferson
Zambrano, Judy Mae