Professional competence, due professional care, planning and supervision, and sufficient relevant data are general standards for MAS practice, including Role of MAS practitioner c. Association with forecasts Understanding with client d. Communication of results
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
1. Professional competence, due professional care, planning and supervision, and sufficient relevant data are general standards for MAS practice, including
Role of MAS practitioner c. Association with
Understanding with client d. Communication of results
2. Which of the following is not one of the steps in MAS engagement?
Implementation c. Analysis
Informal meeting with client d. Design
3. A certified public accountant’s scope of mgt. services is broad and covers all of the following except
audit engagement c. Re-engineering job
computerization engagements d. Change mgt. engagements
4. Which of the following is not an area in MAS practice
Conducting special studies
Reviewing and suggesting improvement of policies , procedures, systems and methods, etc.
Marketing and public relations work
Introducing new ideas, concepts and methods
5. The following characterize mgt. advisory services except
Broader in scope and varied in nature
Utilize more junior staff than senior members of the firm.
Involve decision in the future.
Relate to specific problems where expert help is required.
6. The form of communication with a client in MAS consultation should be
Either oral or written
Oral with appreciate documentation in the work papers.
Written and copies should be sent to both mgt. and the board of directors.
Written and a copy should be sent to mgt. alone.
7. Which of the following statements is not acceptable?
A CPA provides consulting services to an existing audit client.
A CPA provides consulting services to two major competing clients.
A CPA shares with a new and substantial client information regarding another client belonging to the same industry.
A CPA represents three major players in the industry in rationalizing the industry in rationalizing the industry’s incentives before government public hearings.
8. State if the following statements regarding the CPA’s practice of MAS are true or false.
Although MAS extend beyond the traditional acctg. services MAS practitioners are still bound by the rules of professional ethics in the practice of acctg. in general.
All the provisions of the code of Professional ethics for CPA’s in public acctg. without exceptions must be observed by those in MAS.
a. True, True b. True, False c. False, True d. False, False
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