Determining the Scope of Service

Determining the Scope of Service 1. Responsibility to establish scope of services The accounting firm has the responsibility to determine the scope of services it is competent to offer to the public.

2. Independence The accounting firm, when providing MAS should give a particular consideration to independence. It is suggested that a CPA rendering MAS and at the same time serving the same client as independent auditor should not make management decisions or take positions which might impair his objectivity and independence.

3. Competence Competence in professional work involves both the technical qualifications of staff personnel and the firm’s ability to supervise and evaluate the quality of the work performed.

4. Identification and resolution of client’s basic problems The scope of services should be adequate to identify and resolve the basic client’s problems and not just problem symptoms.

5. Referrals Referral of MAS work to other independent accounting firm is another way of developing that firm’s capability.

6. Code of Professional Ethics It is the responsibility of the firm to assure itself that the nature and scope of the MAS it elects to offer are in conformity with the code of ethics.

Types of Clients Served 1. Contact Clients The contact client is the person, who first approaches the consultant and proposes that the consultant addresses a problem or issue on behalf of the organization.

2. Intermediate clients These are the members of the organization who become involved in the consulting project.

3. Primary clients The primary client is the person or persons who have identified the problem or issue the consultant and who are the most immediately affected by it.

4. Unwitting clients These are the members of the organization who will be affected by the intervention of the consultant. They do not initiate the project and have no direct or formal control over it. They are not aware that they will be affected by the project.

5. Indirect clients These are the members of the organization who will be affected by the intervention of the consultant and who are aware that they will be affected.

6. Ultimate clients These are the total community that will be affected by the consultant’s intervention. This will include members of the organization

How Consulting Adds Value -

Provision of Information Provision of Specialist Expertise Provision of a New Perspective Provision of Support in Gaining a Critical Resource