e is desirable but not necessary that in performing MAS, a practitioner must het with integrity and objectivity and be independent in mental attitude. Engagements may be performed by practitioners even if they have no compe- tence in the analytical approach and process and in the technical subject matter under consideration. MAS may be defined as those services which are designed primarily to furnish advice or assistance to management through a professional relationship with respect to planning, organizing, or controlling any phase of business activity. W It is unethical for a CPA to accept an MAS engagement for a company that is not an audit client. Unlike in external auditing, a CPA's fee for rendering MAS is based on the size, capitalization or earnings of the client company. Marketing is an area which is beyond the scope of MAS by CPAS. * Documentation is not as essential in an MAS engagement as it is in an audit engagement. er There are some areas of MAS which require training in professions or fields of knowledge other than that of a CPA. One of these is industrial engineer- ing. 4 Documentation or recording of work done in MAS engagements facilitates measurement of progress based on engagement plans. O An MAS practitioner provides advice and technical assistance to clients and limits the latter's participation. p Once the problem of the client organization is defined, it is already half-solved. economics of using mechaniz The following are the different phases in the analytical approach and process. Ind k. Establishment of budgetary c h Evaluation of the applicability Preparation of accounting syt d. The primary purpose of MAS is to improve the client firm's use of its capabal Exercise 2: Classification of Services and finance funetions: a Job evaluation and administration Industrial engineering e. Development of management-oriented accounting reporting system d Operations research e Investment management E Development of compensation programs g. Management or operations audit equipment i. and procedures manual i Revision of pension plans of 1. Marketing Cost reduction studies m. Exercise 3: Phases in the Analytical Approach and Process the sequence in which they are performed by writing the corresponding number of If it is not included, write NA. Advising and providing technical assistance in implementing recommendations Seeking and identifying objectives Evaluating and determining possible solutions Implementing the recommendations Planning and scheduling actions to achieve the desired results Ascertaining the pertinent facts and circumstances Defining the problem or opportunity for improvement Presenting findings and recommendations Training client personnel Exercise 4: True or False If your answer is false, explain. a Per Philippine Accountancy Act of 2004, a non-CPA is prohibited to eng professional management advisory services. b. The overriding consideration for MAS engagement is competence so that MAS practitioner need not be concerned with independence in his relatios his client. s. CPAS have historically been business consultants to their clients. and resources to achieve the objectives of the firm.