MAS Practice Standards-Sum

MAS Practice Standards
1. Personal Characteristics
In performing Management Advisory Services, a practitioner must act with
integrity and objectivity and be independent in mental attitude.
Integrity is a highly personal characteristic which ensures that a

practitioners findings and recommendations are free of intentional
distortions and misstatements.
Objectivity is the ability to avoid bias and to maintain impartial attitude
on all matters under review.
Independent mental attitude refers to the ability of the practitioner to
maintain his role as an objective adviser or consultant without making any
attempt to make decisions for the management.
In all aspects of the practitioners performance of management advisory

services, he must avoid assuming the role of management, limiting his
services to those of an objective researcher, analyst, or advisor rather than
a decision maker.
2. 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.
Competence in performing MAS is the ability to identify and define
client needs, utilize the analytical approach and process, to apply knowledge of
the technical subject matter under consideration, to communicate
recommendations
effectively,
and
to
assist
in
implementing
the
recommendations. It is acquired and maintained through education and
experience.
3. Due Care
Due professional care must be exercised in the performance of a
management advisory services engagement.
The concept of due care is concerned with what the practitioner does
and how he does it. It involves diligence and appropriate attention in
carrying out the assignment. Due professional care requires all work to be
done within the provisions of the Code of Professional Ethics and other
Professional Standards for CPAs.
4. Client Benefit Standard
Before accepting an engagement, a practitioner is to notify the client any

reservations he has regarding anticipated benefits.
Problem definition, identification of objectives, benefits to be
derived, the clients willingness to accept recommendations and ability to
implement the same should be considered in structuring the engagements.
5. Understanding with Client
Before undertaking an engagement, a practitioner is to inform his client of
all significant matters related to the engagement.
The significant matters related to an engagement generally include
a. The Engagement objectives reflect the results expected to be derived.
b. Its Scope -must be broad enough to encompass matters likely to be
significant in developing appropriate recommendations and producing
desired results.
c. The approach - The definition of major tasks to be performed, the methods
to be used in reporting engagement status and achievements should be
established.
d. The role of all personnel - The respective roles and responsibilities of the
practitioner and the client should be defined.
e. The manner in which results are to be communicated
f. The timetable; and
g. The fee
-There should be an expression of when work will commence the
estimated completion time and the fee and expense arrangements.
These matters should be recorded in writing particularly for
engagements of significant duration or complexity.
This could be done in:
Formal contract
Letter of understanding
File memorandum
-summarizing the terms upon oral agreement with the client.
6. Planning, Supervision and Control
Engagements are to be adequately planned, supervise and controlled.
Planning - the translation of engagement objectives into a structured

set of activities and events within a targeted time schedule. The
resultant engagement plan is to be used in supervising and controlling
the engagement.
Supervision The practitioner in charge must exercise judgment as
to the appropriate amount of supervision, based on the experience of
the persons involved and the complexity of the engagement.
Control requires measurement of progress in meeting engagement

plan and objectives.
7. Sufficient Relevant Data

Sufficient relevant data is to be obtained, documented and evaluated in
developing conclusions and recommendations.
It should record as appropriate the following:
a. The evidential matter obtained and its source
b. The alternatives considered; and
c. The analytical process leading to specific recommendations
The amount and formality of documentation depend on the nature and
scope of the engagement and related circumstances. In all cases, however,
any limitations with respect to the source and reliability of the data should be
indicated, and the documentation should demonstrate that due care has
been exercised.
8. Communication of Results
All significant matters relating to the results of the engagement are to be
communicated to the client.
The principal findings, recommendations, and accomplishments, and the
major assumptions relied upon, should be conveyed to the client, together
with any limitations, reservations, or other qualifications.
Reports to the client may be written or oral. When a practitioner does not
issue a written report to the client, he should prepare a file memorandum
documenting the significant recommendations and other pertinent
information discussed with the client.
Interim Communications
Interim communications encourages the involvement of management,
helps preserve managements role as decision-maker and keeps
management informed of progress towards the final conclusions,
recommendations and accomplishments.
Summarizes the following:
a. Findings to date
b. Work accomplished in relation to plan
c. When appropriate, tentative recommendations
Final Report
A final report should be made to the client upon completion of an
engagement to ensure that results and recommendations are communicated.

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MAS Practice Standards

Integrity is a highly personal characteristic which ensures that a

In all aspects of the practitioners performance of management advisory

Before accepting an engagement, a practitioner is to notify the client any

Planning - the translation of engagement objectives into a structured

Control requires measurement of progress in meeting engagement

7. Sufficient Relevant Data

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