c. It is the ability to identify client’s needs, use analytical approach and
process, apply technical knowledge, communicate recommendations and assist in
implementation.
d. It must be retained in the rendition of MAS work and it can be impaired if the
CPA performs decision-making for the client or acts as employee of the client.
38-D
39.
Which of the following statements is True?
a. Adequate training and experience in both the analytical approach and process in
the particular undertaking are requisites for the CPA to be involved in a management
service engagement.
b. A CPA with MBA and PhD degrees is automatically qualified to render management
services.
c. Competence as a standard in the rendition of management services by a CPA may be
equated to having excellent scholarly preparation to include the usual baccalaureate
degree, an MBA, and other post graduate studies.
d. A certified public accountant by virtue of having the necessary academic
preparation and by hurdling the licensure examinations required to have a CPA
license can readily render management services to the public.
39-A
40.
These statements relate to MAS practice standards
1. A practitioner is to notify the client of any reservation he has regarding
anticipated benefits.
2. Throughout the engagement, there ought to be a systematic critical review of
accomplishments and work should be done within the framework of the code of ethics
and other professional standards.
3. During the engagement, should there be a significant change between cost and
anticipated benefits, the client should be informed.
4. Before the engagement, the practitioner must make arrangements with, and inform
the client on significant matters related to engagement, in writing.
Of these statements, which pertain to the practice standard on client benefit?
a. Statements 1 and 3 only.
c. Statement 1 only.
b. All statements.
d. Statement 1, 3 and 4 only.
40-A
41.
Which of the following is not a qualification of a CPA in MAS practice?
a. Familiarity with the client’s financial accounting and internal control systems
b. Analytical experience in problem solving
c. Professional independence, objectivity and integrity
d. Auditor of the client
41-D
42.
As a consultant, the CPA practitioner should
a. Exercise administrative control over the client’s staff to avoid unnecessary
delays in implementation.
b. Encourage dependence of client on the consultant’s staff so as to pinpoint clear
responsibility in implementing systems.
c. Not take responsibility for making decisions and policy judgments in MAS
engagements.
d. Conduct his engagement as if he is a member of the client’s organization.
42-C
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