REACTION PAPER

In Acctg 43 Management Consultancy

Managing the Quality of Consulting Engagements

A quality management system is a management technique used to communicate to employees what is required to produce the desired quality of products and services and to influence employee actions to complete tasks according to the quality specifications.

What Purpose Does a Quality Management System Serve?

Establishes a vision for the employees. Sets standards for employees. Builds motivation within the company. Sets goals for employees. Helps fight the resistance to change within organizations. Helps direct the corporate culture.

QMS process
Plancreate a time line, including all resources, activities, dates, and personnel training. Doimplement the plan and collect data. Checkanalyze the results of the plan. Actact on what was learned and determine the next steps.

Risk management
The systematic process of managing an organization's risk exposures to achieve its objectives in a manner consistent with public interest, human safety, environmental factors, and the law.

A process to identify, assess, manage, and control potential events or situations to provide reasonable assurance regarding the achievement of the organization's objectives.

Stages in the process of Project Risk Management

Risk Assessment o can take place at any time during the project, though the sooner the better

Risk Control o cannot be effective without a previous Risk Assessment

Risk Assessment has three elements:

Identify Uncertainties Analyse Risks Prioritise Risks

Standard
A professional pronouncement promulgated by the Internal Audit Standards Board that delineates the requirements for performing a broad range of internal audit activities, and for evaluating internal audit performance

Purpose of the Standards

Delineate basic principles that represent the practice of internal auditing. Provide a framework for performing and promoting a broad range of value-added internal auditing. Establish the basis for the evaluation of internal audit performance. Foster improved organizational processes and operations.
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The Standards are principles-focused, mandatory requirements consisting of:

Statements of basic requirements for the professional practice of internal auditing and for evaluating the effectiveness of performance, which are internationally applicable at organizational and individual levels. Interpretations, which clarify terms or concepts within the Statements.

Structure of the Standards

Attribute Standards o Address the attributes of organizations and individuals performing internal auditing.

Performance Standards o Describe the nature of internal auditing and provide quality criteria against which the performance of these services can be measured.

Professional Standards and Consultancy Code of Practice

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

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

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

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

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.

Planning, Supervision and Control

Standard No. 6. Engagements are to be adequately planned, supervised, and controlled.

Sufficient Relevant Data

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

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

Ethical Considerations Relevant to Management Advisory Services

Part A- Applicable to all Professional Accountants SECTION 1- Integrity and Objectivity SECTION 2- Resolution of Ethical Conflicts SECTION 3- Professional Competence SECTION 4- Confidentiality SECTION 8- Independence

Code of Ethics for Management Consultant

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. 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: 1. Basic responsibilities 2. Practice Standards. 3. Fee arrangements 4. Business Conduct

Conclusion and Recommendation

As for the over-all presentation of the chapter, the reporters were also prepared and they fully understand their assigned topics. They were able to summarize and give the most important concepts and information needed to learn more on Managing the Quality of Consulting Engagements. They too, presented the chapter in a way that it will be clearly seen and understood or by way that their audience can grasp the considerations they want to impart and be remembered. Moreover, they also interact with their audience which makes the report more comprehensible. Based on these, I would give their group a percentage of 98 for all the preparation and presentation of report.