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Angel Tan

Management Consultancy Services by CPAs can be categorized as

1) Traditional Services
Managerial Accounting
Design and appraisal of accounting system
Financial Management-related services
Project Feasibility Studies

2) Emerging Consultancy Services

Global Risk Management Solution
Transaction Services
Financial Advisory Services
Project Finance and Privatization
Valuation Services
Business Recovery Services
Dispute Analysis and Investigation
Computer Risk Management
Application Software Selection and Implementation
Traditional Services

Managerial Accounting
this engagement involves providing assistance to the management related to
planning and controlling business operations as well as decision making.

Examples are:

Financial statement analysis

Budgets and their preparation
Cost analysis planning and control
Variance analysis
Cost analysis for managerial decisions
Development and installation of responsibility accounting and evaluation of
responsibility center
Establishment of internal reporting system
Assistance in preparation of reports to employees, stockholders, SEC and others
Traditional Services

Design and Appraisal of accounting system

In designing the
This will involve:
accounting system, the
cost must be sufficient Development of an accounting system
and effective in providing for a newly organized firm
the needed information.
Revision, partial or complete, of an
existing accounting system

Extension of the present accounting

There are 3 criteria in system to cover new business activities
the utility value or the Accounting services in general
real value
the market value Accounting machines installation
the time.
Internal control studies and installation
Traditional Services

Financial Management-related services

Financial Management is concern with the management of all matters associated with the
cash flow of an organisation both shortterm and long term. How the company uses its
funds typically by buying noncurrent assets and funding its working capital and where the
funds came from typically from the shareholders or by borrowing money from third parties

Preparation of feasibility studies for
Study of working capital requirements
new projects
Study of methods of financing asset
Study of alternative methods of
financing expansion
Credit and collection practice studies
Survey of pension, retirement, and
and advice
profit sharing plans
Analysis of capital investment
Valuation of capital stock of
companies for purposes of merger
or sale
Traditional Services

Project Feasibility Studies

is an evaluation and analysis of the potential of a proposed project
which is based on extensive investigation and research to support the
process of decision making

an analysis of the ability to complete a project successfully, taking into

account legal, economic, technological, scheduling and other factors

rather than just diving into a project and hoping for the best, a
feasibility study allows project managers to investigate the possible
negative and positive outcomes of a project before investing too much
time and money
Emerging Consultancy Services

Global Risk Management Solution

It covers determination of critical risks that the firm faces, development of
recommendation to reduce risk exposure and identification of opportunities for
growth and expansion.

Areas of risk management services include:

Financial risk management

Strategic risk management

Operational and systems risk management

Compliance risk management

Internal audit services

Emerging Consultancy Services

Transaction Services Valuation Services

involves services related to mergers,

acquisition, divestitures, joint ventures,
these include service that guide clients
through complex business transactions
spin-off and strategic alliance. such as acquisition or divestiture of
investment, debt structuring and finance-
Financial Advisory Services raising entry to major stock exchange,
CPAs provide comprehensive, Business Recovery Services
financial, economic, strategic advice to CPAs provide services to troubled
companies with complex business businesses by emphasizing on the
problems and disputes. implementation and rationalization
and recovery program designed to
Project Finance and Privatization rebuild value.

this involves management advisory

services related to partnership between
the public and private sectors in
delivering infrastructure and services or
privatization and project finance.
Emerging Consultancy Services

Dispute Analysis and

Application Software Selection
Investigation and Implementation
most common types of services
under this are environmental analysis, the management consultant assists
real estate damage, investigative clients in prioritizing their needs,
services, construction disputes, identifying the right software, and
investigative services, economic and tailoring it to meet their specific
financial analysis. requirement.

Computer Risk Management

management consultants help

client understand and manage
their business risk relating to the
implementation and use of
Determining the Types of Clients
Scope of Service Served

Responsibility to establish scope of services
Contact clients
Intermediate clients
Primary clients
Requirements for specialization
Unwitting clients
Identification and resolution of clients basic
problems Indirect clients

Referrals Ultimate clients

Code of professional ethics

Groups of clients that The actual output of a consulting
CPAs can provide exercise centers on providing one or
MAS are: more of the following:

Privately-owned business firms Provision of information

Governmental agencies and Provision of specialist expertise

Provision of new perspective
Not for profit nongovernmental
organizations Provision of support for internal arguments

Professional associations Provision of support in gaining a critical

Facilitating organizational change
Provision of Information

The consultant can add value by analysing and presenting information in a way that
enables the business manager to make effective decisions from it.

Some areas of information that are critical to a business include:

The businesss customers

The businesss products

The markets in which the business operates

Outside organizations that can offer support

The businesss competitors

Provision of Specialist Expertise

Certain projects require the application of technical knowledge and an ability to use
specialist analysis techniques. Rather than have to learn these themselves managers will
often call upon the support of consultants.

Some important areas of management that can benefit from the insights and ideas of a specialist are:

Business strategy

Marketing strategy development Developing proposals for financial

Marketing research studies
Information system development
Promotional campaign
development Planning exporting and international
New product development
Provision of a New Perspective


Managers are human beings Consultants offer support in helping

who analyse complex individuals and groups become
environments, use well more innovative in their thinking.
developed but necessarily
limited cognitive skills and then They also contribute some
make decisions in the face of conceptual frameworks.

They use cognitive maps,

mindsets, or dominant logics
through which they see their
managerial words.
Provision of Support for Internal Arguments

A consultants opinion is of clear value here. It is presented as independent and
as coming from an expert. A few useful grounds are as follows:

Understand the politics of the consulting exercise

Be sensitive

Recognize who will benefit and lose from the opinion

Make sure that the objectives are clear and open

Make sure any information used can be legitimated and any analysis
undertaken justified

Build rapport with the client and be honest to them about their strengths
and weaknesses
Provision of Support for Internal Arguments

Introduce and explore options which reconcile different positions

Provide the client manager with information and insights but allow him
or her to make a particular case within the business

If put in a position where credibility might be lost, remind the manager

that a loss of impartiality and credibility will defeat the point of using
independent consultants in the first place
Provision of Support in Gaining a Critical Resource

Important resources for the business include:

The goodwill of customers

Capital of investors

Capital from government support agencies

People with particular skills and knowledge

Specialist materials, equipment, and services

Facilitating Organizational Change

Organization undergo change all the time. Sometimes this is a natural response to
the internal dynamics of organizational growth.

At other times it may be in response to an external impetus or shock that forces the

All of the types of project may, if they are to be implemented successfully, demand
some degree of change in the structures and operating practice of the business.