Chapter

Management Consultancy
Principles and Engagements
Ma. Elenita Balatbat Cabrera

MAS Practice Standards and Ethical Considerations

MAS Practice Standards

Personal Characteristics
Standard No.1 In performing Management Advisory Services, a practitioner must act with integrity and objectivity and be independent in mental attitude.

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MAS Practice Standards

Competence
Standard No.2 Engagements are to be performed by a practitioner having competence in the analytical approach and process, and in technical subject matter under consideration.

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MAS Practice Standards

Due Care
Standard No.3 Due professional care must be exercised in the performance of a management advisory services engagement.

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MAS Practice Standards

Client Benefit
Standard No.4 Before accepting an engagement, a practitioner is to notify the client any reservations he has regarding anticipated benefits.

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MAS Practice Standards

Understanding with Client
Standard No.5 Before undertaking an engagement, a practitioner is to inform his client of all significant matters related to the engagement.

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MAS Practice Standards

Planning, Supervision and Control
Standard No.6 Engagements are to be adequately planned, supervise and controlled.

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MAS Practice Standards

Sufficient Relevant Data
Standard No.7 Sufficient relevant data is to be obtained, documented and evaluated in developing conclusions and recommendations.

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MAS Practice Standards

Communication of Results
Standard No.8 All significant matters relating to the results of the engagement are to be communicated to the client.

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Ethical Considerations
1. Integrity

2. Objectivity
3. Professional Competence and Due

Care
4. Confidentiality

5. Professional Behavior
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Ethical Conflict Resolution

Resolve Consider Consult Document Obtain Withdraw
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Ethical Issues

Do the right thing. You cant do much better than consistently try to do the right thing.

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Ethical Issues
1. Should you change the highest fees you can

get away with?

2. Should you travel first class and bill the client? 3. Should you bill more than one client for the

same basic expenses?

4. Should you accept on assignment from a

clients competitor?
5. Should you use tickets supplied by your client

to bring your spouse along?

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Ethical Issues
1. 2. 3. 4. 5.

Does the activity improve the clients condition or merely his own? Is the activity something that one will be comfortable explaining to the client? Is the activity something that the consultant could be proud of and would publicize as a trait? Is there harm being done to anyone without their being able to respond? Is this treatment something the consultant would willingly subject himself to?
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Code of Ethics for Management Consultants

I. Basic Responsibilities

II. Practice Standards

III. Fee Arrangements

IV. Business Conduct

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