MAS Practice Standards

September 5, 2017 | Author: Marc Eric Redondo | Category: Confidentiality, Profession, Professional Ethics, Consultant, Conflict Of Interest
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Management Advisory Services Practice Standards and Code of Ethics...


Redondo, Marc Eric B. BSA – 4

Management Consultancy June 19, 2014

MAS PRACTICE STANDARDS 1. Personal Characteristics. In performing Management Advisory Services, a practitioner must act with integrity and objectivity and be independent in mental attitude. 2. Competence. Engagements are to be performed by a practitioner having competence in the analytical approach and process, and in the technical subject matter under consideration. 3. Due Care. Due professional care is to be exercised in the performance of a Management Advisory Services engagement. 4. Client Benefit. Before accepting an engagement, a practitioner is to notify the client of any reservations he has regarding anticipated benefits. 5. Understanding with Client. Before undertaking an engagement, a practitioner is to inform his client of all significant matters related to the engagement. 6. Planning, Supervision and Control. Engagements are to be adequately planned, supervised, and controlled. 7. Sufficient Relevant Data. Sufficient relevant data is to be obtained, documented and evaluated in developing conclusions and recommendations. 8. Communication of Results. All significant matters relating to the result of the engagement are to be communicated to the client.

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CODE OF ETHICS FOR MANAGEMENT CONSULTANTS Code of Conduct for management consultants represents the attitude, principles and approaches that have been found to contribute most to success and make for equitable and satisfactory client relationship. A summary of the Code of Ethics developed by the AICPA, Institute of Management Consultants and Association of Management Consulting Firms, to promote the highest quality performance in the practice of management consultancy is presented below. The common principles found in the Code of Ethics can be broadly classified into four areas: I. Basic responsibilities II. Practice standards III. Fee arrangements IV. Business conduct

I. BASIC RESPONSIBILITIES OF MANAGEMENT CONSULTANTS Integrity and objectivity 1. Do not knowingly misrepresent facts and never subordinate judgment to others. 2. Place the interests of clients ahead of personal interests and serve the client with integrity. 3. Inform the clients of any special relationships, circumstances, or interests that might influence judgment or impair objectivity. 4. Do not assume the role of management or take any positions that might impair objectivity.

Independence 1. Take an independent position with the client, making certain that advice to a client is based on impartial considerations of all pertinent facts and responsible opinions. 2. Do not serve an enterprise without independence with respect to that enterprise. 3. Do not serve a client under terms or conditions that might impair objectivity, independence, or integrity. Reserve the right to withdraw if conditions develop that interfere with the successful conduct of the assignment. MAS Practice Standards and Code of Professional Ethics

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4. Do not serve two or more competing clients in areas of vital interest without informing each client.

Confidential Information 1. Guard as confidential all information concerning the affairs of a client that is gathered during the course of a professional assignment. 2. Do not take advantage of material or inside information resulting from a professional relationship with a client. 3. Do not disclose any confidential information obtained in the course of a professional engagement except with the client's consent.

II. PRACTICE STANDARDS FOR MANAGEMENT CONSULTANTS Professional competence 1. Undertake only engagements that can be completed with professional competence. 2. Accept only assignment for which the necessary qualifications are possessed. 3. Present qualifications for serving a client solely in terms of competence, experience, and standing.

Planning, supervision, and due care 1. Before accepting an assignment, confer with the client or prospective client in sufficient detail and gather sufficient facts to gain an adequate understanding of the problem, the scope of study needed to solve it, and the possible benefits that may accrue to the client. 2. Accept only assignments believed to be beneficial to the clients, and do not accept any assignment of such limited scope that the client cannot be served effectively. 3. Adequately plan and supervise an engagement. 4. Assign personnel qualified by knowledge, experience, and character to give effective service in analyzing and solving the particular problem or problems encountered.

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5. Provide the client with a written proposal that outlines the objectives, scope, approach, and - where possible - the estimate fee or fee basis for the proposed services, except where client relationships make it unnecessary. 6. Exercise due professional care in the performance of an engagement. 7. If conditions change during the engagement, discuss with the client any changes in the objectives, scope, and approach or other aspects of the engagement and obtain the client's agreement (preferable in writing) to such changes before taking action on them. 8. Obtain sufficient relevant data to afford a reasonable basis for conclusions or recommendations in relation to an engagement. 9. Do not knowingly without permission use proprietary data, procedures, materials, or techniques that others have developed but not released for public use.

Reporting results 1. Perform each assignment on an individual basis and develop recommendations designed specifically for the solution of each client's problems. 2. Develop solutions that are realistic and practical and that can be implemented promptly and economically. 3. Acquaint client personnel with the principles, methods, and techniques applied, so that the improvement suggested or installed can be properly managed and continued after completion of the engagement. 4. Maintain continuity of understanding and knowledge of client’s problems, and the work that has been done to solve them, by maintaining appropriate files of reports submitted to clients. 5. Do not guarantee any specific result, such as the amount of cost reduction or profit increases. 6. Do not permit your name to be used in conjunction with any forecast of future transactions in a manner that could lead to the belief that you vouch for the achievability of the forecast.

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1. Charge reasonable fees that are commensurate with the nature of services performed and responsibility assumed. Reasonableness is based on services performed, time required, experience, ability, reputation, responsibility assumed, and benefits that accrue to the clients. 2. Do not offer or render professional services under an agreement whereby no fee will be charged unless a specified finding or result is obtained, or whereby the fee is otherwise contingent on the findings or results of the services. 3. Where feasible, agree with the client in advance on the fee or fee basis. 4. Do not pay a fee or commission to obtain a client or franchise a business practice; do not accept a commission, fee, or other valuable consideration for recommending products or services. 5. Do not structure pricing or charging practices in a way that impairs independence or objectivity or contributes to a conflict of interest with the client.


1. Strive continuously to advance and protect the standards of the consulting profession. 2. Contribute to the development and understanding of better ways to manage corporations, governmental organizations, and other institutions in our society. 3. Share methods and techniques used in serving clients. 4. Avoid not only professional improprieties but also the appearance of improprieties, and never commit an act discreditable to the profession. 5. Do not advertise services in a manner that is false, misleading, deceptive, self-laudatory, or in any other manner derogatory to the dignity of the profession. 6. Do not concurrently engage in any business or occupation that would create a conflict of interest in rendering professional services.

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7. Do not accept an assignment for a client while another management consultant is serving that client unless satisfied that any conflict between the two engagements are recognized by, and have the consent of the client. 8. Do not make offers of employment to consultants on the staff of another consulting firm without first informing the other firm. 9. Do not solicit employees of clients, for the purpose of employing them, except with the client’s consent. 10. Do not associate, in a responsible capacity respecting client work, with any consultant who does not adhere to the code of professional ethics.

Each consultant has a responsibility to himself or herself, to the profession to live by this code of ethics and encourage others to do the same. Enforcement of the code is everyone’s responsibility.

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