Mas Practice Standards and Ethicalconsiderations

MAS PRACTICE STANDARDS AND ETHICALCONSIDERATIONS MAS Practice Standards (AICPA)

Personal Characteristics 2. Competence 3. Due Care 4. Client Benefit 5. Understanding with Client 6. Planning, Supervision and Control 7. Sufficient Relevant Data 8. Communication of Results Standard 1.

No. 1.In performing MAS, a practitioner must act with integrit and o!"ectivit and !e independent in mental attitude.

 Integrity – implies – implies not onl honest !ut fair dealing and truthfulness. A professional accountant should !e straightforward and honest in professional and !usiness relationships. r elationships.  An accountant should not not !e associated with information information  where he !elieves that the information information contains incorrect, incorrect, incomplete or misleading statements. p rofessional accountant Objectivity # the o!ligation of all professional to !e fair, intellectuall honest and free from conflict of interest. No. 2. $ngagements are to !e performed ! a practitioner having competence in the analtical approach and process, and in the technical su!"ect matter under consideration.

 A professional accountant accountant should not underta%e an engagement engagement or accept an emploment which he or she cannot reasona!l e&pect to discharge with professional competence. It has two parts'

 Attainment of professional competence # formal education, professional e&amination and period of e&perience.  Maintenance of professional competence – !eing aware of all developments affecting the profession and adopting a program to ensure (ualit in the performance of professional services. Competence in the professional work involves: - Technical qualication of the practitioners - Ability to supervise the personnel assigned - To evaluate the quality of work performed - To accept responsibility to the client for the successful completion of the engagement. ngagements are to be performed by a practitioner having competence in the analytical approach and process! and in the technical sub"ect matter under consideration.

Standard no. 3 . Due professional care is to !e e&ercised in the performance of a management advisor services engagement. It is the e&ercise of caution or care in dealing with all matters in the engagement.

#t involves diligence and appropriate attention in carrying out the assignment. $ue care #n performing management advisory services! a practitioner must act with: Integrity - #t is a highly personal characteristics which ensures that practitioner%s statement of ndings and recommendations are free of intentional distortions or

misstatement! Objectivity - #t is the ability to avoid bias and to maintain an impartial attitude on all matters under review. Independent mental attitude- A practitioner may undertake only those engagements in which he can maintain independent mental attitude. &ersonal Characteristics Avoid not only professional improprieties but also the appearance of improprieties! and never commit an act discreditable to the profession. Standard No.  . Before accepting an engagement, a practitioner is to notif the client of an reservations he has regarding anticipated !enefits. &roblem denition! identication of ob"ectives! and benets to be derived should be considered in structuring the engagement.

#f during the course of the engagement the relationship between anticipated benets and costs changes signicantly! the client should be informed. Standard No. !.  Before underta%ing an engagement, a practitioner is to inform his client of all significant matters related to the engagement. Standard No. ".  $ngagements are to !e ade(uatel planned, supervised, and controlled.

&lanning is the translation of engagement ob"ectives into a structured set of activities and events within a targeted time table. ngagement must be performed and supervised by competent personnel. 'ective control

requires measurement of progress in meeting the engagement plan and ob"ectives. Standard No. # . Sufficient relevant data is to  !e o!tained, documented and evaluated in developing conclusions and recommendations. Sufcient relevant data .

(btain su)cient relevant data to a'ord a reasonable basis for conclusions or recommendations in relation to any professional services performed. *u)cient relevant data is to be obtained! documented and evaluated in developing conclusions and recommendations. - The evidential matter and its source - The alternatives considered - The analytical process leading to specic recommendations Standard no. $. All significant matters relating to the result of the engagement are to !e communicated to the client.

Et%ica& Considerations

 Code of $thics for Professional Accountants in the Philippines  Integrity

Integrit # implies not onl honest !ut fair dealing and truthfulness. A professional accountant should !e straightforward and honest in professional and !usiness relationships.  An accountant should not !e associated with information  where he !elieves that the information contains incorrect, incomplete or misleading statements. )!"ectivit *he principles of o!"ectivit imposes on all professional accountants to !e fair, intellectuall honest and free of conflict of interest. A professional accountant should !e fair and not allow pre"udice or !ias, conflict of interest or influence of others to override o!"ectivit. Professional competence and due care  A professional accountant should not underta%e an engagement or accept an emploment which he or she cannot discharge with professional competence. A professional accountant should continuall strive to improve his %nowledge and s%ills to ensure that a client receives the advantage of competent service !ased on up+to+date developments in practice, legislation and techni(ues. Confidentialit   A professional accountant should respect the confidentialit of information ac(uired during the course of performing professional services and should not disclose an such information without specific authorit unless there is professional or legal right or dut to disclose. Disclosure is not onl a matter of disclosure of information. *he accountant shall not use nor appear to use that information for personal advantage. Disclosure of confidential information ma !e allowed' . If permitted ! the client.

-. Re(uired ! law such as compliance with a su!poena issued ! courts in legal proceedings. . *here is professional dut or right to disclose confidential information. $&le, the accountant ma disclose information to defend himself if sued ! the emploer. /. Compl with (ualit assurance investigation conducted  ! B)A. Professional !ehavior *he accountant should compl with relevant laws and regulations and refrain from an conduct which might !ring discredit to the profession.