OVERVIEW OF

MANAGEMENT
CONSULTANCY SERVICES
BY CPAs
REFLECTION

When you become a certified public

accountant, what specific field do you
want to get into? Why?
TRADITIONAL AREAS OF EXPERTISE FOR CPA FIRMS

2
Audit Accounting system
Income tax
work
design and 3
1 installation
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
NATURE OF MAS BY INDEPENDENT
ACCOUNTING FIRMS
MANAGEMENT ADVISORY SERVICES

the function of providing professional

advisory (consulting) services,
the primary purpose of which is to
improve the client’s use of its
capabilities and resources to achieve
the objectives of the organization
MANAGEMENT CONSULTING

an independent and objective

advisory service provided by qualified
persons to clients in order to help them
identify and analyze management
problems or opportunities
CONSULTANT

is someone who has expertise in a

specific area/s and offers
unbiased opinion and advice for
a fee
- generally works in conjunction with the resources and
personnel of the client but uses employees, sub-consultants,
or others as required for a specific project and in
accordance with the agreement

- is not an employee but an independent contractor usually

self-employed, contracted to perform a short-term or long-
term task and may be paid on an hourly, daily or project
basis or other fee arrangement
MANAGEMENT CONSULTING

Management consultants also recommend

solutions or suggest actions with respect to these
issues and help, when requested, in their
implementation.
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
What are the reasons for becoming
consultants?

• People frustrated with their current careers, who see the

solutions for problems but are unable to effectively influence
decision-makers
• People who want a stimulating, dynamic, growing career that
satisfies the need for personal development
• People dissatisfied with the lack of challenge, opportunity, or
creativity in their existing jobs
• People graduating from school with training but little experience
who wish to work for a large consulting firm
• People who are between jobs and seeking new opportunities and
careers
• People who see that they may be laid off and wish to establish
themselves in a business to earn a livelihood; these people may start on a
part-time basis while still employed
• Retired people who have expertise and wisdom to offer
• People who wish to supplement their present income by using their
managerial expertise or technical and academic skills
• People with work experience and industry knowledge or other skills who
want to combine a family life with work at home
• People who understand government operations and the contract
process, or who have built up contracts in government, politics, or industry
over the years
Nonmonetary reasons for entering the
consulting field
1. sharing one’s knowledge to help clients
2. building business network and take a step up in one’s corporate
career
3. having no boss; being independent and making 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
RATIONALE FOR USING MANAGEMENT
CONSULTANTS
Professional advisor and Agent of change
counselor

01 03

02 04

Independent Temporary professional service

viewpoint
ESSENTIAL QUALIFICATIONS

Familiarity with the client’s

Technical finance and control systems
competence and his business problems

Analytical ability Professional

and experience in independence,
problem solution objectivity, and
integrity
CONSULTING CHALLENGE QUIZ

Read each question and encircle the

answer that comes closest to your
personal feelings.
1. Do you enjoy solving problems?

a. Yes, solving problems is my sole reason for being.

b. Yes, I like solving certain kinds of problems.
c. Can I trade one of my problems for one of yours?
d. Is there someone else who can solve them?
e. No. never.

2. Can you set your own goals and really work for their completion or realization?
a. I don’t know what I would do if I didn’t always have goals to pursue.
b. Yes, I set my own goals, but I don’t always follow up on them.
c. I haven’t tried before, but if you show me how, I will.
d. I don’t set my own goals; they set themselves.
e. Sorry, I don’t have any goals.

3. Are you an independent self-starter?

a. I don’t need anyone to tell me what to do; let’s get going!
b. I’m independent, but I sometimes have a hard time getting motivated to do
things on my own.
c. No one has ever let me make my own decisions before. I kind of like the idea of
doing things on my own, though.
d. Hum a few bars, and maybe I can sing it.
e. Do I have to be?
4. Are you confident about your ability to get the job done?
a. Without a doubt.
b. I’m fairly certain.
c. I’m not sure.
d. Can we discuss this some other time?
e. Absolutely, unequivocally not.

5. Do you like pursuing tasks to completion, despite the obstacles in your path?
a. I am very persistent.
b. Usually, although I sometimes avoid tackling problems directly.
c. As long as we understand upfront that no one is perfect.
d. Is any task ever truly complete?
e. Some things were just never meant to be done.

6. Can you adapt to rapid changes?

a. My first name is change.
b. It’s easier for me to adapt to good changes than to bad changes.
c. If you’ve seen one change, you’ve seen them all.
d. As long as it’s you who changes and not me.
e. I am a rock.
7. Are you creative?
a. Just give me a pencil and a piece of paper, and you’ll have your solution in
five minutes.
b. Usually, but it depends on what mood I’m in.
c. Let me think about that for a while.
d. Why expend a lot of effort creating something that someone else has
probably figured out the answer to?
e. I like things the way they are.

8. Do you enjoy working with people?

a. Working with people is what makes work fun.
b. Definitely – some people more than others, however.
c. Yes – it definitely beats working with trained seals.
d. I really prefer my computer.
e. I want to be alone!

9. Are you trustworthy, loyal, honest, and brave?

a. All of the above and more!
b. Well, three out of four isn’t bad, is it?
c. How about two out of four?
d. I’d like to believe there are other, more important human qualities.
e. Next question, please.
10. Are you interested in making a decent living?
a. My opportunities are unlimited.
b. Sure, as long as I don’t have to work too hard at it.
c. I don’t know; I’m pretty comfortable the way things are now.
d. Just how do you define decent?
e. I’m going to win that lottery one of these days!
Analyzing your answers.
Give yourself the following rating for your answer:
A: 5 points
B: 3 points
C: 0 points
D: -3 points
E: -5 points
Analyzing your answers.
• 25 to 50 points: You are a born consultant. If you’re not already working for yourself as a
consultant, we strongly suggest that you consider quitting your job right not and start passing
out your business card to all your friends, acquaintances, and prospective clients.
• 1 to 24 points: You definitely have potential to be a great consultant. Consider starting your
own consulting practice in the very near future, but make sure you keep your day job until
you’ve got enough clients to keep you afloat.
• 0 points: You could go either way. Why don’t you try taking this test again in another month
or two?
• -1 to -24 points: We’re sorry to tell you, but consulting is not currently your cup of tea. We
strongly recommend that you read a consulting book and then take this test again. If you
don’t do better after all that, then maybe working for someone else isn’t the worst thing that
could happen to you.
• -25 to -50 points: Sorry. Your DNA just doesn’t have the consulting gene built into it.
Two types of encounter with clients
1. consultation – normally consists of providing advice and
information during a short time frame. This advice and/or
information is provided orally during one or more discussions
with the client

2. engagement – consists of that form of management

advisory or consulting service in which an analytical
approach and process is applied in a study or project
Engagement
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, and
6. implementing the solution, if appropriate
And following the client’s decision to proceed, the
independent accounting firm may also be involved in:
- planning and scheduling actions to achieve the
desired results, and
- advising and providing technical assistance in
implementing,
In combination with knowledge and experience in such
areas as:
- organization and management methods
- office and management functions
- systems and procedures
- data processing methods
- quantitative methods (mathematics, statistics, etc)
and
- financial management
To produce solutions such as:
- a management information system
- a sales reporting system
- a cost accounting system
- a work measurement program
- improved production control
- an organization plan with statement of duties and
responsibilities, or
- an electronic data processing system
Types of Consultancy Firms

1. IT firms
2. accounting firms offering consultancy
3. major consulting only firms
4. independents
Career Structure in Consulting Firms

1. analysts
2. consultants
3. senior consultants or managers
4. business development managers
5. directors (or partners)
Developing Trends
1. specialization in information systems, automated offices,
financial analysis and modelling, budgeting and cost
controls, organization structures, personnel compensation,
strategic planning, etc.
2. improvement of business education
3. change in management culture
4. growth in size and complexity of institutions
5. reengineering
6. delayering/ decentralization of organizations
Future Prospects
1. Management consulting will become even more
specialized.
2. The consultant’s orientation will be towards being an
insight-provider, creator and sharer of information.
3. Management consulting firms will tend either to remain
small or to become quite large.
4. Consultants will develop more sophisticated means of
marketing their services.
5. Bright graduates of accounting, management and
business schools will continue to be attracted to careers in
management consulting.