Chapter 1
Overview of Management
Consultancy Services by
CPAs
Reported by: Maureen M. Castillo
5-BSA
Consultant
- An expert on a specific area and offers unbiased
opinion and advice for a fee
TRADITIONAL AREAS OF CPA FIRM
Accounting
system Income tax Management
Auditing design and work consultancy
installation
DEVELOPING TRENDS
Specialization Improvement Change in the
Technical
in different of business management
Development
areas education culture
Future Prospects
Management consulting will become even more specialized
The consultants’ orientation will be towards being an insight-provider, creator and sharer
of information
Management consulting firms will tend either to remain small or to become quite large
As consultants grow in number, they will develop more sophisticated means of marketing
their services
Career attraction in management consulting
INFORMATION CONSULTING AND CORPORATE STRATEGY
TECHNOLOGY SYSTEM INTEGRATION
Consulting
Industry
(most definition of consultancy would
include the following)
OPERATIONS HUMAN RESOURCE OUTSOURCING
MANAGEMENT MANAGEMENT
The Main Types of
Consultant Firms are as
follows:
– IT Firms
– Accounting Firms Offering Consultancy
– Major Consulting Only Firms
– Independent
The most compelling nonmonetary reasons
people enter the consulting field are:
1. Sharing their knowledge to help their clients
2. Building business network and take a step up in one’s corporate career
3. Having no boss, being independent and making their own decisions
4. No fear of being laid off
5. Having a flexible source of income
6. A means of giving back to the community by providing expertise and
assistance in community-based projects
Career Structure in Consulting
Firms
Analyst
Consultants
Senior Consultants or Managers
Business Development Managers
Directors (Or Partners)
Management Consulting
- is an 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
TWO TYPES OF ENCOUNTERS
1. Consultations • Providing advice and
information during a short
2. Engagements time frame
• Information provided is
orally
• Information are qualified to
limitations
• Analytical approach and
process is applied in a
study or project
Engagement
– Form of management advisory or consulting service in which an analytical
approach and process is applied in a study or project.
This approach typically involves:
1. Ascertaining the pertinent facts and circumstances
2. Seeking and identifying objectives
3. Defining the problem or opportunity for improvement
4. Evaluating and determining possible solutions
5. Presenting findings and recommendations
6. Implementing the solutions, if appropriate
Management Professional Temporary
Consultant is Agent of
Independent Advisory Professional
Viewpoint • possesses Service Change
• see the true nature special • less •
hired for at
catalyst
of the problems knowledge, expensive for
• distinguish skill and • temporary change
least 4
feasible variety of professional
and infeasible personal help
• unbiased attributes
Variable
suggestion • introduce
new ideas
into the
Reasons
organization
Independent Accounting Firm’s
Role in MAS
“to provide advice and technical assistance which should provide for client
participation in the analytical approach and process. Specifying this as the proper
role recognizes both the appropriate place of MAS and the realities of practice.
This is the only basis on which the work should permit it to be done.”
CPA’s Objective in Engaging in
MAS
“to utilize the essential qualifications it has
available to provide advice and technical
assistance which will enable client
management to conduct its affairs more
effectively”
