1. How is this engagement considered as a Management Advisory Service?

Relate your answer to

the definition of MAS.

This engagement considered as a Management Advisory Service because it provides advisory service to
Memorial Hospital. It stated in the letter that their firm might help to achieve and maintain one of its
major goals. It relates to the purpose of management advisory service to improve the client’s use of its
capabilities and resources to achieve the objectives of the organization.

2. Why did Memorial Hospital opt to avail the service of Mr. Cabrera’s team rather than other

professionals who are not CPAs? What can they provide to the client?
Memorial Hospital opt to avail the service of Mr. Cabrera’s team rather than other professionals who
are not CPAs because CPA equipped with technical know how to in accounting and taxation. A CPA may
use their experience with a wide range of technical accounting issues as well as specialized reporting
and regulatory requirements to provide solutions. With their comprehensive industry expertise and
business process experience, Mr. Cabrera’s team may design techniques that help owners and
determine strategies to help owners and executives achieve their goals.

3. Is this considered a usual, somewhat specialized or highly specialized service provided by the

CPAs? Also, is this considered a full scope, special study or informal advice engagement?

Elaborate your answers.

It is a usual service, they evaluate the organization structure and give suggestion for the improvement of
internal control. This is considered a full scope the preliminary areas

of service, and participation by the member is expected to

continue through complete implementation include the seven steps of analytical procedure and they
analyze the facts and problems. Design possible solution and implementation. Client seek assistance in
achieving the desired result.

4. What are the specific objectives and the problems that the engagement is trying to address?
The specific objectives is to help memorial hospital to achieve and maintain one of its major
goals .progressive leadership in the community and the region in the delivery of quality health care
services at a reasonable cost. The problem that the engagement is trying to achieve are improve
communication , reduce paperwork and improve operational efficiency, It also stated that they will
examine in detail all currently used forms and documents and thoroughly analyze reports and records
covering hospital operations that a CPA can offer because his background.

5. What strategies will be employed by the engagement team to solve the problem? How are they

going to apply analytical approach and process?

The engagement team strategies they will make a careful comprehensive review of the full range
activities they identify the problem and evaluate it. Ask the cooperation of the employees and the
management and examine the forms and documents. Asking questions and understanding the
business ,examine the memorial hospital objective what the business want to achieve, diagnosing the
situation in order to know the problem and what need to improve. Knowing the past experience of
similar situation to evaluate and determine possible solution. Presenting findings and recommendation
make a presentation to discuss the recommendation for the client. Make schedules to achieve desired
result and assist the client and guide them in the implementation.

6. What are the responsibilities of the client from Memorial Hospital in this engagement?
The client's willingness to accept recommendations, and his ability to implement them. Understand the
nature and implication of recommendation. Allow the consultant to conduct interview to their
employees and to examine the forms and documents.

7. How do you think can the engagement team specifically practice integrity, objectivity and

independence in mind during the engagement?

In selecting the people who will be engaged in consulting, screening and background checking must be
done properly. The code of professional ethics has standards followed and practiced. They are
outsourced professional so they have independent point of view. When the management has no
connection or not related with the team.

8. What type of document is presented and what is its purpose? How will you classify the type of

billing arrangement mentioned in the document?

It is an engagement letter to establish a written contract between the auditors and the client. Thus, the
letter tends to prevent misunderstandings between those two parties. The type of billing arrangement
mentioned in the document is bracket quotation the practitioner quotes aminimum and maximum fee
which estimate from Php 100,000 to Php 250,000.

9. How can the practitioners communicate the significant matters, result and recommendations to the

client? Keep the Communication Concise, Clear and Context-driven .The purpose of keeping client
communication clear, concise, and context-driven is to avoid confusion while running the project. Be an
Active Listener you’ll be able to ask the right questions, clarify doubts promptly and ensure you have
understood the client accurately. Make presentation and written report.

10. Upon completion, what do you think will be the indicator of its success when both parties evaluate

the engagement? What post-engagement follow-up activities can be done by the practitioners?
The indicator of its success when both the parties evaluate the engagement when executed correctly
the problem is solved and no adjustment is needed. For instances in the implementation of the
recommendation there is something wrong, the help of a consultant is needed follow up assistance and
recommendation with regards to implementation.