BASIC CONSIDERATIONS IN MAS & CONSULTANCY Management Advisory Services – refers to the function of providing professional advisory (consulting) services, the primary purpose of which is to improve client’s use of its capabilities and resources to achieve the objectives of the organization. Characteristics of MAS Engagements
1.
Services are rendered for the management
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Involves problem solving
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Relate to the future
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Broad in scope
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Involves varied assignments
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Engagements are usually non-recurring
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Engagements mostly require highly-qualified staff
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Human relations play a vital role in each engagement Management Consultant – refers to a person who is qualified by education, experience, technical ability, and temperament to advise/assist businessmen on a professional basis in identifying, defining, and solving specific management problems involving the planning, direction, control, and operation of the firm. Management Consultancy is not limited to CPAs. Any professional may practice the same, as long as he has the required competence, experience and technical ability to solve business problems. The practice as well as the practitioners are not licensed or regulated by the law, and there are neither admission requirements nor a board which certifies practitioners. Reasons for Hiring Management Consultants:
1.
A consultant is considered independent, objective and detached to the problems faced by the organization.
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An experienced consultant possesses special knowledge and skills required to undertake the engagement.
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Hiring consultants will usually be less expensive to the company than hiring full-time managers.
4.
A management consultant serves a catalyst for change. Consultation vs. Engagement Consultation – consists of providing advice and information during a short-time frame.