MANAGEMENT ADVISORY SERVICES BY AN INDEPENDENT CPA

Management Accounting Review

/RCROQUE

Regardless of the type of an organization, profit oriented (e.g. manufacturers, retailers, service industry
firms, agri-business), not for profit and government agencies provide us with a vast array of goods and services.
All of these organizations have two things in common. A set of general GOALS and specific OBJECTIVES; These
are:

General Goals
➢ Profitability
➢ Growth
➢ Financial self sufficiency
➢ Cost minimization
➢ Product leadership
➢ Market diversification
➢ Product quality
➢ Environmental responsibility
➢ Community service.

Specific Objectives (Examples only)

➢ To provide responsive, market-oriented products and services to customers.
➢ To achieve superior performance in return on investment and growth in earnings per common share.
➢ To maintain the highest ethical standards
➢ To play a significant role in the development of position on regulatory, legislative, and environmental
issues
➢ To recognize employees and agents as its greatest assets and most crucial factors in achieving
success.

The Management Process

The management process is a series of activities in a cycle towards the achievement of the organizational
goals. Whatever the goals of an organization are, the task of management is to see that they are achieved. In
pursuing an organization’s goals, managers engage in four basic activities:

➢ Decision-making - the management must make a decision regarding the best way to bring their
products or services to the customers, which means choosing among the available alternatives.

➢ Planning – management must plan for running the organization, which means developing a detailed
financial and operations description of anticipated results of operations.

➢ Directing Operations - as the business has been set, some questions may be asked: How many
inventories must be on hand? How many production shifts must we have? How much cash balance must
be maintained? All of these questions fall under the general heading of directing operations, which
means running the organization on a day-to-day basis.

➢ Controlling – As the organization operates, the question is, “Is the organization's goal being
accomplished?” More specifically, have the organization’s operations adhered to the plans developed by
management for achieving the goal? In seeking to answer these questions, management is engaged in
control, which means ensuring that the organization operates in the intended manner and
achieves its goals.

In the above processes, management requires consistent review and analysis. The management
must make sure that these processes will continuously work and serve their purpose, and to find improvements,
if necessary, or even to change the whole system if needed. However, it is difficult to review and analyze own
work, thus, management needs somebody, an outsider, to do it. This somebody normally refers to
Management Consultants or Advisors. The management consultant, being an outsider could objectively
review firm's systems and procedures, identify managerial and operating problems and help them in the
implementation activities.

Management Advisory Services by an Independent Certified Public Accountant (CPA)

A management consultancy or advisory service is open to anybody or to any firm who is an expert in a
particular field. However, this chapter will focus only on the management advisory services rendered by an
independent certified public accountant (CPA). Since the role of an independent CPA or an independent
accounting firm is not only in the confines of expressing opinion regarding the presentation of financial
statements of a client. As the external auditor normally becomes management confidant, they usually entrust all
matters relating to business management. They consider external auditors (CPAs) as one of the most capable of
giving advises pertaining to their business operations because auditors are already familiar with their operations,
coupled with technical knowledge on the different managerial accounting tools and most importantly it is bound
by the code of professional ethics. See Code of Professional Ethics for CPAs at the end of this chapter.

Historical Development of MAS Practice:

The need for the professional services of management advisors is brought about by the increasing and
continuous demand by business managers' for assistance in improving their managerial, operating and economic
performance. The emergence and growth of management consultancy services could be attributed to the
following factors:

➢ Business grew in size and transactions became more complex.

➢ Development of different management styles/systems as well as complexities in conducting business.
➢ Trend towards industrialization and advancements of technologies as well as globalization of market.
➢ The need for timely and adequate information for management decision-making.
➢ Inadequate competent staff within the company, correspondingly the need for employees'
improvement in their performances.
➢ Improvement of the management science as an approach by management in solving business
problems.

The involvement of CPAs in Management Advisory Services (MAS) practice is the profession’s respond to
the increasing demands of clients and not necessarily the concerted effort of the CPA profession itself, though
this actually rooted from the CPA's audit practice. In the course of audit engagement, the CPA may observe and
note some information that may lead him to identify some weaknesses of client's organizational structures,
procedures and controls. If such weaknesses require detailed study and evaluation, it could be covered by a
different engagement and not in his audit engagement routines; such engagement falls the category of
Management Advisory Services (MAS).

As this MAS engagement substantially increased, Republic Act 5166, known as

"Accountancy Act of 1967" included MAS among the subjects in the CPA Board Examinations. This
act delineated the coverage of MAS as principles and procedures involved in management
consulting services that may be rendered by CPAs. PD 692 or the Revised Accountancy Law
requiring the inclusion of MS among the CPA Board examinations superseded this Act in 1975.
Subjects and its coverage were principles, procedures, methods and techniques involved in
management consulting services that may be rendered by CPAs in areas such as managerial
accounting, planning and control of operations, design and evaluation of accounting systems and
financial management related services. In 1968, the PICPA formed its first Committee in
Management Advisory Services, and issued a paper entitled "Management Services: An Overview".
Many technical papers in MS were issued, and the CPA Profession conducted seminars and
workshops that contributed to the status of MAS practice of today. Likewise, many accounting
firms have organized their MAS Divisions that offer a systematic, organized and scientific
approaches to problem solving.
In the 2001 revision of the POLICIES AND STANDARDS FOR ACCOUNTING
EDUCATION, Management Accounting and Management Consultancy Services increased its
number of units from six (6) units to nine (9) units, particularly to a BSA Curriculum, where
Management consultancy services as a separate three-unit subject. This shows only that the
Management Consultancy Services rendered by CPAs is becoming a more and more comprehensive
and professionalized.
This new subject, Management Consultancy services covers basic considerations of
management consultancy engagement by CPAs; areas of management consultancy, professional
attributes of management consultants and consultancy practice, and organization, management
standards, and ethical considerations. It also covers project feasibility studies, aspects of project
development cycle, economic aspect, technical aspect, financial aspect (investment cost, financing
evaluation); information systems (IS) engagement, management/operations audits, and business
process improvements/re-engineering. Together with Management 4 Subject, particularly,
Business Policy and Strategy, where this course serves as an integrative course to be taken in the
last term/semester.

CPAs in MAS practice are in a better position over other MAS practitioners (as CPAs do not monopolize
MAS practice) as they are already familiar with the client and client’s business. CPAs enjoys clients' confidence,
as he or she is equipped with technical know-how in accounting, taxation and other business transactions which
he earned in his CPA practice. More importantly, CPA is a member of a profession with recognized ethical
standards that made him to be objective in dealing with his engagements.
Definition of Management Advisory Services (MAS)
MAS is an activity to provide professional services to help management use its capabilities and resources
to achieve its objectives.

Purpose of Management Advisory Services (MAS)

The primary purpose of Management Advisory Services (MAS) is to help improve the client's use of
its capabilities and resources in order to achieve its organizational objectives. In the conduct of MAS,
the CPA must maintain his position as an adviser and never as a manager who will make decisions or even as a
member of the management.

Nature of MAS Engagements

MAS engagement differs in its traditional audit engagements by CPAs in the following respects:
➢ Engagements vary widely in size, complexity, staffing and time requirements, and technical subject
matter. A practitioner may require the assistance of other qualified professionals to complete the
engagement.
➢ Engagements may involve gathering and analyzing appropriate information in order to develop
conclusions and recommendations. The information includes facts about client operating results, financial
conditions, and systems and procedures.

General Characteristics of MAS Engagements:

➢ Services rendered are intended for the use of the management and not for the third parties.
➢ It involves problem solving. MAS practitioners are hired by clients to solve problems at hand where the
management is not capable enough to solve.
➢ MAS activities involve actions at present but benefits will be taken or received in the future.
➢ MAS engagements covers variety of services. This may include accounting related or not accounting
related. This may not necessarily covers the traditional audit and tax activities.
➢ MAS engagements are usually non-recurring in nature. As the problem has been solved, the
engagements are considered completed.
➢ Engagements required highly qualified staff. Staffs must possess and be equipped with technical know-
how; has the experiences in data gathering and problem solving; has the ability to analyze data and
transform data into an information; and must be mentally mature and responsible.

Scope of MAS Engagements

This includes broad and specific services:

Broad Services may include:

➢ Counseling management in analyzing, planning, operating, and controlling functions.
➢ Conducting special studies and preparing recommendations.
➢ Reviewing and evaluating policies, procedures, systems, methods, etc and make suggestions, if
necessary.
➢ Introducing new ideas, concepts, techniques and methods.

Specific Services may include:

➢ Preparation of an accounting systems and procedure manuals as well as company reportorial
requirements.
➢ Budget preparation and budgetary controls. (Both operating and capital budgeting.)
➢ Cost determination methods and cost management (analysis and controls of costs.)
➢ Project feasibility studies.
➢ Short term decision making and problem solving. (Differential cost analysis)
➢ Operations research- management science such as the use of mathematical techniques to decision
making.

Areas of Management Services by a CPA

It is important to note that MAS rendered by CPAs does not cover only areas of accounting and finance
but it covers the areas beyond the field of accounting and finance. The PICPA MAS Committee has
categorized the most common management services rendered by CPAs. They are:

1. Those that are normally related to the accounting and finance functions:
• Design, installation, or review of accounting systems
• Design, installation, or review of budgetary systems
• Setting up, or suggesting improvements in internal control, particularly accounting control systems
• Cost analysis and cost control
• Analysis of financial statements
 • Cost analysis for major investment decisions (capital budgeting)
• Differential cost analysis for short term decision making
• Financial analysis for project feasibility studies
• Cost determination and cost analysis for special agreements such are merger and consolidations as well
as pension and retirement costs

2. Those that are not normally related to the accounting and finance functions:
• Management and performance audits
• Operations research
• Personnel recruitment process and training
• Job evaluation and salary administration
• Long-range planning or strategic planning
• Review of the existing organization structure
• Plant layout studies
• Production planning, scheduling and control
• Technical and marketing aspects of project feasibility studies
• Marketing forecasts

Ethical Standards for MAS Practice

CPAs engaged in the practice of MAS are bound by the Code of Professional Ethics for CPAs. All
provisions are applicable since it is considered to be an extension of public accounting practice, except the
provision for the expression of an opinion on the financial statements. The CPA must adhere to the following
standards of MAS Practice:

1. Personal Characteristics - in performing MAS, a practitioner must act with integrity and objectivity and be
independent in mental attitude.

2. Competence - Engagements are to be performed by practitioners having competence in the analytical

approach and process, and in the technical subject matter under consideration. The practitioner must only
accept engagements, which he can reasonably expect to complete.
Professional competence includes the ability to:
➢ Identify and define client needs.
➢ Select and supervise staff.
➢ Select and apply analytical process.
➢ Apply relevant technical knowledge.
➢ Effectively communicate and assist in the implementation of recommendations.
Competence could be developed through:
➢ Formal education
➢ Experience in the field of problem solving
➢ Continued professional education (CPE)

3. Due Professional care - a practitioner should always exercise due care in the performance of any MAS
engagements. Due care involves diligence and appropriate attention in carrying out the engagement. It’s
main concern is “what the practitioner does and how well he does it. Due professional care requires that all
work be done within the provisions of the Code of Professional Ethics and other standards of the profession.
However, he does not assume responsibility for infallibility.

4. Planning, Supervision and control - every MAS engagement should be adequately planned and
supervised. Just like in any audit engagement, MAS Program should be prepared. As the objectives of the
engagement are set, the practitioner should develop an engagement plan and the objectives are translated
into a structured set of activities and events within a targeted time frame. Plans differ on the type of the
engagement; such plans depend largely on the complexity of the problem and on the number of persons
involved in the engagement. Some basic considerations in making an engagement plan:

➢ Practitioner should plan and supervise engagement in order to provide reasonable assurance that
work is in accordance with:
• understanding with client
• Professional standards and rules of conduct are followed.
➢ If staff is needed, determine the sufficient number of available skilled staff.
➢ Plan should be developed that:
• Guides conduct, supervision, control and completion of the engagement.
• Can be modified as necessary during engagement.
• Includes consideration of approaches and tasks required for completion.
➢ Level of documentation and amount of supervision is determined by professional judgment.
 ➢ Must indicate set of criteria for judgment which include the skills of individuals involved, time and
complexity of the engagement.
➢ The practitioner must have the ability to:
• supervise personnel and other staff
• evaluate quality and completeness of work performed
• accept responsibility for successful completion of engagement.

5. Sufficient relevant data - sufficient relevant data is to be obtained, documented and evaluated to afford
a reasonable basis for conclusions and recommendations. As in audit engagement, sufficient and relevant
evidential matter must be obtained to afford a reasonable basis of an opinion, conclusions and
recommendations must have a valid basis.
The following items should be documented:
➢ the evidential matter obtained and its source
➢ the alternatives under considerations
➢ the analytical process used to come up with specific recommendations
The amount and forms of documentation depends on the nature and scope of the engagement and
related circumstance. But in all cases, any limitations with respect to the source and reliability of the data should
be clearly indicated, and the documentation should show that due care has been exercised in the process.
Relevant data could be obtained through interview, observation, computation, research, analysis and
review of client documents. Professional judgment should be exercised in determining what constitutes sufficient
relevant data.

The practitioner should consider:

• Objectives, nature and scope of engagement.
• Cost of gathering data versus the benefits of sufficient data (cost –benefit relationship).
• Intended use of results.
• Reliability of sources and completeness of data

6. Understanding with client - before undertaking an engagement, the practitioner is to inform his client of
all significant matters related to the engagement. A written understanding should be reached concerning the
➢ Scope - this could be taken from the preliminary discussions and or investigation. The scope should
be broad enough to encompass matters likely to be significant in developing appropriate
recommendations and producing desired results.
➢ Objectives - reflects the expected results from the engagement. Objectives developed must be
clearly understood to both parties as well as the extent and nature of their involvement.
➢ Approach - the method to be used in reporting engagement status and achievements as well as the
timing of such reporting should be clearly defined and established by the practitioner before starting
an engagement. There must be a clear cut statement as to what will constitute completion of the
engagement as well as the contents of the output of engagement.
➢ Role of all personnel - The client and the practitioner's roles and responsibilities should be clearly
defined. In case a third party will be involved, an understanding must be made to clearly establish
who (the client or the practitioner) should be responsible for the performance of the third party.
➢ Manner of communicating results. (see communicating results standards for details.)
➢ Timetable - a program or schedule should be arranged to set the start as well as the estimated
completion date of the engagement.
➢ Fees - Professional fees and expenses arrangements should be properly discussed with the client
before an engagement is started.

All of the above negotiations and arrangements should be properly documented (recorded)
particularly if the engagement is complex and would take relatively long period of time. Preferably, a formal
engagement contract is prepared and conformed by both parties.

7. Client's Benefit - Before accepting an engagement, a practitioner should:

➢ Advise or notify the client of any reservations he has regarding anticipated benefits of the proposed
engagement.
➢ Inform the client that no specific results are guaranteed, implicitly or explicitly.
➢ Inform the client that any quantifiable results are estimated only. Though these estimates are made
with proper support and basis.
➢ Inform the client promptly especially if the practitioner feels that there is a significant change in the
relationship between costs and anticipated results.

8. Communicating results - all significant information, including any limitations, qualifications, or

reservations, should be presented to the client.
The practitioner should convey to the client:
 ➢ Major/principal findings, recommendations and accomplishments with regards to the engagement, as
well as the major assumptions considered.
➢ Interim communication is desirable but not required especially during lengthy engagements. This
encourages client involvement and decision making.
➢ Final reports should be communicated depending on:
• Understanding with the client.
• Degree to which progress is reported during the course of the engagement.
• Intended use of the results.
• Sensitivity of information covered.
• Need for a formal report.
A written report must be submitted to the client indicating all these significant recommendations
and other relevant information discussed with the client.

Stages in a Management Consulting Engagement

The following general stages involve management engagement:

➢ Analysis - concerned with ascertaining facts and circumstances, seeking and identifying objectives
and defining the problems or opportunities for improvement.
➢ Design - concerned with determining and evaluating possible solutions and presenting findings and
recommendations.
➢ Implementation - concerned with planning and scheduling actions to achieve the desired results and
advising and providing technical assistance in implementing the recommendations. Steps must be
taken to see that the client:
• Understands the implications of implementing recommendation.
• Makes a firm decision to proceed with implementation
• Accepts overall responsibility.
• Has expertise to handle implementation.
• Has knowledge to maintain the systems.

Guidelines to Assist CPA or a CPA Firm in Defining Scope and Conduct of MAS

➢ Qualifications of a CPA :
• Professional and technical competence.
• Familiarity with the client's financial accounting and internal control systems.
• Analytical experience in problem solving.
• Professional independence, objectivity and integrity.

➢ Analytical approach involves:

• Ascertaining the pertinent facts and circumstances.
• Identifying objectives.
• Defining the problem or opportunity for improvement.
• Evaluating possible outcomes/results.
• Presenting findings and recommendations.
• If recommendations were adopted, practitioner may also be involved in:
 Planning and scheduling implementations.
 Advising and providing technical assistance for implementation.

➢ Involvement in the engagement. The client must be in a position to assume complete responsibility for the
changes in his organization and carry on the program after implementation.

➢ The practitioner should not assume role of management or any position that might impair his objectivity.

➢ Practitioner's name shall not be used in any manner which may lead to the belief that he vouches for the
achievability of a forecast.
I. TRUE OR FALSE STATEMENTS

1. MAS reports are primarily intended to facilitate management decision rather than decisions by third parties.
2. When rendering MAS, the CPA must not discuss with his clients his findings and recommendations.
3. After presenting a report in MAS engagement, the CPA may accept further engagements to render advice and
technical assistance in the implementation of his recommendations.
4. Managerial accounting draws heavily on economics, statistics, operations research and other disciplines as
necessary in providing accounting and financial information.
5. CPAs are expected to be experts in all areas of MAS
6. Performing MAS to an audit client impairs the independence of a CPA.
7. Competence rather than independence is the underlying quality CPAs must possess in MAS engagement.
8. MAS reports are seldom uniform in presentation.
9. When a CPA is certain about the validity of his actions, he may perform decision making to his client in MAS.
10. A CPA firm engaged in MAS should accept only those engagements which it is qualified to perform.
11. The practice of MAS in nonrecurring in nature.
12. All provisions of the Code of Professional Ethics for CPAs are applicable to the practice of MAS without
exceptions.
13. In MAS engagement, the CPA must emphasize client participation in the analytical approach and process.
14. Independence in mental attitude is not necessary in performing MAS.
15. The practice of MAS is licensed and regulated by laws.
16. Non-CPA specialist may be admitted as a partner in a CPA firm for purposes of rendering MAS.
17. Performing decision-making services for a client would not impair the independence of a CPA engaged in
MAS.
18. Hiring a non-CPA specialist may be allowed for CPA firm engaged in MAS.
19. A MAS practitioner may perform MAS service in a specific area although he lacks competence in that
particular are.
20. Results of MAS engagement should not be guaranteed either implicitly or explicitly by the practitioner.

II. MULTIPLE CHOICE QUESTIONS

Encircle the letter that corresponds to the best answer of the following statements.

1. A practitioner should reject a MAS engagement if

a. It would require him to make management decisions for audit client.
b. His recommendations are to be subject to review by the client
c. He audits the financial statements of a subsidiary of the prospective client.
d. The proposed engagement is not accounting related.

2. ACPA firm's primary purpose for performing MAS services is to

a. Prepare the CPA firm for the changing needs and requirements of the business community.
b. Establish the CPA firm as a consultant, which enable the CPA firm to ensure future viability and growth.
c. To provide advice and technical assistance which will enable a client to conduct its business more
effectively.
d. Enable staff members of the CPA firm to acquire the necessary continuing education in all areas of
business.

3. Which of the following items is not requisite in MAS practice?

a. Familiarity with the client's financial accounting and internal control system.
b. Professional independence, integrity and objectivity.
c. Technical competence
d. Membership in professional organizations.
4. Competence in MAS engagement is derived from the following, except
a. Experience and specialized training
b. Technical and supervisory skills
c. Research capability
d. Frequent communications with client.

5. In performing MAS engagements, CPAs should not take any positions that might
a. Constitute advice and assistance
b. Provide technical assistance in implementation
c. Result in new organizational policies and procedures
d. Impair their objectivity

6. Which of the following is not a MAS practice standard?

a. In performing MAS a practitioner must act with integrity, objectivity and independence in mental attitude.
 b. MAS engagement is to be performed by a person or persons having adequate technical training as a
management consultant.
c. MAS engagement is to be performed by a practitioner having competence in the analytical approach and
process, and in the technical matter under consideration.
d. Before undertaking a MAS engagement, the practitioner is to notify the client of any reservations
regarding anticipated benefits.

7. An MAS practitioner should not undertake an MAS engagement for implementation of the recommendations
unless
a. The client has made a firm decision to proceed with the implementation based on a complete
understanding and consideration of alternatives.
b. The client does not understand the nature and implications of the recommended course of action.
c. The client does not have sufficient expertise with its organization to comprehend the significance of the
changes.
d. The CPA withdraws as independent auditor of the client.

8. CPAs in MAS practice must observe the ethical requirements of the accountancy profession except
a. Independence
b. Contingent fees
c. Integrity and objectivity
d. Expression of an opinion on the financial statements

9. Which of the following is not an area in MAS practice?

a. Conducting special studies.
b. Revising and suggesting improvement of policies, procedures, systems, and methods.
c. Marketing and public relations work.
d. Introducing new ideas, concepts and methods.

10. Which of the following is not an analytical approach in MAS engagement?

a. Ascertaining the pertinent facts and circumstances.
b. Defining the problem or opportunity for improvement.
c. Presenting findings and recommendations.
d. Counseling management in planning, operating, and controlling functions.

11. A letter written by the CPA and constitutes the CPA's understanding of the work to be done in an MAS
engagement is:
a. Representation letter
b. Management letter
c. MAS letter of proposal
d. Comfort letter

12. An MAS practitioner should not undertake an MAS engagement that included continued participation through
implementation, unless
a. The practitioner accepts overall responsibility for implementation of the course of action.
b. The practitioner acquires an overall knowledge of the client's business that is equivalent to that of
possessed by management.
c. Upon implementation, the client's personnel will have the knowledge and ability to adequately maintain
and operate the systems as may be involved.
d. Upon implementation, a new study and evaluation of the system of internal control is performed.

13. An audit independence issue might be raised by the auditor's participation in MAS engagements. Which of
the following statements is most consistent with the profession's attitude towards this issue?
a. Information obtained as a result of MAS engagement s confidential to that specific engagement and
should not influence the performance of the attest function.
b. The client based upon the facts of the particular case must make the decision as to loss of independence.
c. The auditor should not make management decisions for an audit client.
d. The auditor who is asked to review management decisions is also competent to make these decisions
and can do so without the loss of independence.
14. Which of the following is not a qualification of a CPA in MAS practice?
a. Professional and technical competence.
b. Analytical experience in problem solving
c. Auditor of the client
d. Professional independence, objectivity and integrity.
15. Which of the following is not one of the steps in MAS engagements?
a. Analysis
b. Design
c. Implementation
d. Informal meeting with client.

16. MAS consultation, as opposed to a MAS engagement, generally involves advice or information by a CPA that
is based upon
a. Existing personal knowledge about the client.
b. An analytical approach and process.
c. Information obtained during an examination of the client's financial statements.
d. The results of an operational audit.

17. The CPA who undertakes the performance of a MAS engagement should bear in mind that the results should
a. Increase the client's earnings capabilities
b. Be communicated in quantitative terms.
c. Not be se forth as quantitative estimates.
d. Not be explicitly or implicitly guaranteed.

18. An MAS engagement, as opposed to an MAS consultation, generally involves advice or information given by a
CPA that is based upon
a. An analytical approach and process.
b. Existing personal knowledge about the client.
c. An incidental effort devoted to a combination of activities.
d. The CPA's ability to implement management's recommendation.

19. First Statement:

The primary purpose of Management Advisory Services is to help improve the client’s use of its
capabilities and resources in order to achieve its objectives.
Second Statement:
In conduct of MAS, the CPA should function in the capacity of advisor and as decision maker or member
of management.

a. First statement is true; second statement is false

b. First statement is false, second statement is true
c. Both statements are true
d. Both statements are false

20. First statement: MAS are recommendations and comments as direct result of observations during audit or
review.
Second Statement: MAS engagement is the form of MAS in which analytical process is applied to a study or
project.
a. First statement is true; second statement is false
b. First statement is false, second statement is true
c. Both statements are true
d. Both statements are false.

21. First statement:

MAS letter of proposal should contain the objectives, scope, approach, role of personnel, timing and fees,
benefits of the proposed plan, and the manner in which the end-results are to be communicated.
Second statement:
MAS letter of proposal is written by the CPA and client and constitutes the CPA’s and client’s
understanding of the work to be done in a Management Advisory engagement.

a. First statement is true; second statement is false

b. First statement is false; second statement is true
c. Both statements are true
d. Both statements are false

22. In determining what constitutes sufficient relevant data, an MAS practitioner should exercise professional
a. Training
b. Knowledge
c. Education
d. Judgment
23. The role of practitioner in MAS engagements should assume the role of
a. Subjective advisor
b. Implementer
c. Decision maker
d. Objective advisor

24. Which of the following is not an MAS technical standard?

a. Role of MAS practitioner
b. Sufficient relevant data
c. Understanding with client
d. Communication of results

25. According to the profession standards, which of the following would be considered consulting services?
Advisory services Implementation services Product services
a. Yes Yes Yes
b. Yes Yes No
c. Yes No Yes
d. No Yes Yes

I TRUE OR FALSE

1 TRUE 11 TRUE
2 FALSE 12 FALSE
3 TRUE 13 TRUE
4 FALSE 14 FALSE
5 FALSE 15 FALSE
6 FALSE 16 FALSE
7 TRUE 17 FALSE
8 TRUE 18 TRUE
9 FALSE 19 FALSE
10 TRUE 20 TRUE

II MULTIPLE CHOICES QUESTIONS

1 a 14 c
2 c 15 d
3 d 16 a
4 d 17 d
5 d 18 d
6 b 19 a
7 a 20 b
8 d 21 c
9 c 22 d
10 d 23 d
11 c 24 b
12 c 25 a
13 c