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Mas Practice Standards and Ethical Considerations PDF
Mas Practice Standards and Ethical Considerations PDF
AICPAs Management Advisory Services Division promulgated and recommended the eight standards which
will serve as guidelines to all MAS practitioners. Standards 1, 2 and 3 are general standards that set the
personal qualifications for the practitioner and his orientation in the professional practice while Standards
5, 6, 7 and 8 establish the practitioners relationship with his client and his attitude towards work.
Integrity and Objectivity. Any personal interest and other events or special relationship must be eliminated
in order to achieve integrity and dont intentionally misinterpret facts to your advantage.
Independence. The consultant must be away from the influence of the enterprise served because there
must be integrity in the rendered service.
Confidential Information. The only time that the information must be disclosed is by the consent of the
client. Keeping the information makes a good relationship with client. Disclosing information for you own
interest results in service without integrity.
Standard No.1: Personal Characteristics. In performing Management Advisory Services, a practitioner must
act with integrity and objectivity and be independent in mental attitude. He/she must avoid assuming the
role of management, limiting his services to those of an objective researcher, analyst, or advisor rather than
a decision maker.
Integrity ensures that statements of findings and recommendations are free of intentional distortions or
misstatements.
Objectivity is the ability to avoid bias and to maintain an impartial attitude on all matters under review.
Independent mental attitude is based on the practitioners obligation to the client and on the need to avoid
impairment of public confidence in the profession.
Standard No.2: Competence. Engagements are to be performed by a practitioner having competence in the
analytical approach and process, and in technical subject matter under consideration. Competence is
acquired and maintained through a combination of education and experience. Undertake only those
professional services that the member or the member's firm can reasonably expect to be completed with
professional competence.
Competence involves the technical qualifications and ability to supervise the personnel assigned, to
evaluate the quality of work performed, and to accept responsibility to the client for successful completion
of the engagement. It is the ability to identify and define client needs, to 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 a combination of education and experience. Competence may be augmented by
research and by consultation with others.
Standard No.3 Due Care. Due professional care must be exercised in the performance of a management
advisory services engagement. It involved diligence and appropriate attention in carrying out the
assignment. It involves diligence and appropriate attention in carrying out the assignment. It does require
systematic critical review by the practitioner, throughout the engagement of work accomplished and
judgement exercised. Due professional care requires that all work be done within the provisions of the
Code of Professional Ethics and other Professional Standards for CPAs.
Understanding with Client - Establish with the client a written or oral understanding about the
responsibilities of the parties and the nature, scope, and limitations of services to be performed, and modify
the understanding if circumstances require a significant change during the engagement.
Communication with Client - Inform the client of (a) conflicts of interest that may occur pursuant to
interpretations of Rule 102 of the Code of Professional Conduct, 2 3(b) significant reservations concerning
the scope or benefits of the engagement, and (c) significant engagement findings or events.
Professional judgment must be used in applying Statements on Standards for Consulting Services in a
specific instance since the oral or written understanding with the client may establish constraints within
which services are to be provided. For example, the understanding with the client may limit the
practitioner's effort with regard to gathering relevant data. The practitioner is not required to decline or
withdraw from a consulting engagement when the agreed-upon scope of services includes such limitations.
Standard No.6: Planning, Supervision and Control. Engagements are to be adequately planned, supervise
and controlled.
Planning translation of engagement objectives into a structured set of activities and events within a
targeted time schedule.
Supervision practitioner must exercise judgement as to appropriate amount of supervision.
Control requires measurement of progress in meeting the engagement plan and objectives.
Standard No.7: Sufficient Relevant Data. Sufficient relevant data is to be obtained, documented and
evaluated in developing conclusions and recommendations.
It should record the following:
The evidential matter obtained and its source
The alternatives considered
Analytical process leading to the specific recommendations
Reports to the clients 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.
ETHICAL CONSIDERATIONS
Code of Ethics for Professional Accountants in the Philippines Relevant to Management Consultancy Services
Fundamental Principles
Integrity
All professional accountants should be straightforward and honest in professional and business
relationships. Integrity also implies fair dealing and truthfulness.
A professional accountant should not be associated with reports, returns, communications or
other information where they believe that the information contains a materially false or misleading
statement contains statements or information furnished recklessly or omits or obscures
information required to be included where such omission or obscurity would be misleading.
Mitigate actual conflict of interest, regularly communicate with business associates to
avoid apparent conflicts of interest. Advise all parties of any potential conflicts.
Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
Refuse any gift, favor, or hospitality that would influence or appear to influence their
actions.
Refrain from either actively or passively subverting the attainment of the organizations
legitimate and ethical objectives.
Communicate unfavorable as well as favorable information and professional judgements
and opinions.
Abstain from engaging in or supporting any activity that might discredit the profession.
Objectivity
A professional accountant should not allow bias, conflict of interest or undue influence of others
to override professional or business judgements. He should not compromise their professional or
business judgement because of bias, conflict of interest or the undue influence of others.
Communicate information fairly and objectively
Disclose all relevant information that could reasonably be expected to influence an
intended users understanding of the reports, analyses, comments, or recommendations
presented.
Disclose delays or deficiencies in information, timeliness, processing, or internal controls
in conformance with organization policy and/or applicable law.
Confidentiality
A professional accountant should not disclose any such information to third parties without proper
and specific authority unless there is a legal or professional right or duty to disclose.
Keep information confidential except when disclosure is authorized or legally required.
Inform all relevant parties regarding appropriate use of confidential information.
Monitor subordinates activities to ensure compliance.
Refrain from using or appearing to use confidential information for unethical or illegal
advantage either personally or through third parties.
Professional Behavior
A professional accountant should comply with relevant flaws and regulations and should avoid any
action that discredits the profession. He should not bring the profession into disrepute in marketing
and promoting his self and his work.
Fees charged from the client must be reasonable with the basis of the service performed, the time required
to complete, benefits of the clients and experience of the consultant. Any fees charged without
reasonableness will result into a conflict of interest.