MAC 302: Management Reporting

• It refers to that practice of accounting concerned with providing advice and technical assistance to help management improve the use of resources in achieving organizational goals.

  Management Advisory Services (MAS)
• The certified public accountant who practices MAS work is called ____.

  Advisor or Consultant
• MAS principally serves the needs of the

  Top management
• Governance is the duty of ___.

  Board of Directors
• It is engaged in settting the strategic goals and policies of the enterprise.

  Governance
• It develops and executes operating standards and systems to delive the goals of the business.

  Management
• It is converted to machines, materials, men, methods, and market to make goods and services which serves as an incredible way of generating sales and, expectedly profit

  Cash
• The manager exercises his ______ power

  Decision-making
• He must be certain on what he is doing. He must be certain that he can increase the wealth of the organization and be equally certain that the wealth of the money providers would be protected using his know-how and experience in the fields of business, finance and accountancy.

  Manager
• The practice of management advisory services arise when an ______ is contracted by a manager to render his professional and business expertise to help define problems and subsequently recommend solutions, save in the fields of auditing and assurance services, tax services and legal services.

  Independent public accountant
• The job of an ____ is to provide advice and technical assistance to managers. He is an independent and competent professional accountant who enjoys the trust and confidence of the managers.

  Advisor
• The practice of advisory services is essentially _____ in nature

  Consultancy
• Identify, recommend

  the advisorÕs job is to ____ the clientÕs problem and _____ solutions accordingly

  Identify, recommend
• It involves more than an incident report devoted to combination of activities in determining client objectives, fact-finding opportunity, problem definition, evaluation of alternatives, formulation and follow-up

  Analytical Approach and Processes
• Counseling management in its analysis, planning, organizing, operating and controlling functions.

  Operational advice
• Conducting social studies, proposing plans and programs and providing

  guidance and technical assistance in their implementation

  Special studies
• Reviewing and suggesting improvement of policies,procedures, systems, methods, and organizational relationships

  Organizational analysis
• Introducing new approaches, methods, techniques, and concepts to management

  Ideas
• A ____ is guided by standards in the performance of his professional practice.

  CPA
• Are governed by CPA practitioners spiritual laws, canons, societal beliefs, and traditions that define acceptable relationship with his creator and his environment.

  Moral standards
• Relate to the practitionerÕs relationship with his client, his colleagues, his fellowmen, and the society in general

  Ethical standards
• Are meant to promote compliance, fairness, and justice to all men

  Legal standards
• Set the threshold for the personal quality of the practitioner and serve as

  guide in his work.

  Technical standards
• MAS Practice standards that include integrity, objectivity, and independence in mental attitude

  Personal Characteristics
• Means that the process applied in the engagement and the corresponding results thereof are free from deliberate distortions of information and misstatements.

  Integrity
• Refers to the fairness in approach in the conduct of the engagement and in the presentation of results. It involves impartially and freedom from bias.

  Objectivity
• Is the practitionerÕs ability to maintain impartiality and clarity in performing his task to attain his professional objective. He should not be unnecessarily influenced by his personal and related interests that may impair the integrity of his performance but always uphold the interests of his clients and the public in general.

  Independence
• It refers to the practitionerÕs technical qualification to perform the engagement. It measures intelligence, expertise and required skills to perform an act.

  Competence
• Engagements are to be adequately planned, supervised and controlled

  Planning, supervision, and control
• Involves preparation of a work program

  Planning
• Is to be exercised during the engagement. The quality, quantity and pacing of work is to be monitored with the defined engagement objectives

  Effective control
• Are needed to provide a reasonable basis in making conclusions and formulating recommendations to client.

  Sufficient relevant data
• All significant matters relating to the result of the engagement are to be communicated to the client

  Communication of results
• May be in oral, written or visual form

  Reports
• When no written report is to be issued, the practitioner should keep a ______ documenting the results and processes of the engagement and all his correspondence with the client.

  Memorandum file
• Characteristics of a MAS engagement

  Service is for Management, Scope is broad, Future orientation, Non-recurring, Highly qualified staff, Diversity
• MAS Engagement Process

  Engagement negotiation, Engagement planning, Engagement execution, Presentation of engagement results, Implementation of recommendation, if applicable, Post-engagement follow-up
• Investing outlays normally requiring large amount of money and resources having a long-term investment impact to business profitability

  Capital expenditures
• Outlays or consumption used to directly support the normal operating activities of the business

  Operating expenditures
• Related to the functional activities of the business

  Cost