Management Consultancy

Accounting 6c for BNSC CBME

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Management Consultancy by Mind Map: Management Consultancy

1. 1. Basic considerations MAS (overview)

1.1. 1.1. Evolution of MAS

1.2. 1.2. Developing trends

1.3. 1.3. Future prospects

1.4. 1.4. Nature of MAS by independent accounting firms

1.5. 1.5. Rationale for using management consultants

1.6. 1.6. Independent accounting firm’s role in MAS

1.7. 1.7. CPA’s objective in engaging in MAS

1.8. 1.8. Areas of management advisory services

2. 2. Areas of MAS

2.1. 2.1. Areas of MAS practice (traditional, emerging)

2.2. 2.2. Determining a scope of service

2.3. 2.3. Types of clients served

3. 3. Professional attributes of management consultants

3.1. 3.1. Technical skills

3.2. 3.2. Interpersonal skills

3.3. 3.3. Consulting process skills

4. 4. MAS practice standards & ethical considerations

4.1. 4.1. MAS practice standards

4.2. 4.2. Code of ethics for MAS in the Philippines

4.3. 4.3. Code of Ethics for Management Consultants (AICPA, Institute of Management Consultants and Association of Management Consulting Firms)

5. 5. Organization & Management of the MAS practice

5.1. 5.1. Staff Pyramid & Fee Structures

5.2. 5.2. Billing rates

5.3. 5.3. Defining the Target Level of Competence of Management Consultants

5.4. 5.4. Management of MAS Practice

5.5. 5.5. Sources of MAS Engagements

5.6. 5.6. Problem Areas in Rendering MAS by an Independent Accounting Firm

5.7. 5.7. Financial Management of an MAS Practice

6. 6. Stages of management consulting engagement – part 1

6.1. 6.1. Negotiating the Engagement (Approach to the Study, Project Organization, Fees and Billing Arrangement, Proposal Letter)

6.2. 6.2. Engagement planning (engagement program or work plan, staffing the project, scheduling tasks, project costing, detailed work plan review)

6.3. 6.3. Problem definition

6.4. 6.4. Data gathering and analysis (sources of data, data-gathering techniques, fact analysis techniques)

6.5. 6.5. Common barriers to effective communication between client and the consultant

7. 7. Stages of management consulting engagement – part 2

7.1. 7.1. Solution development (generation of alternative solution, evaluation of solution alternative, choice of the most preferred solutions)

7.2. 7.2. Preparation and presentation of the report and recommended solution

7.3. 7.3. Implementation of the recommendation

7.4. 7.4. Evaluating the engagement and post-engagement follow-up

8. 8. Areas of management consultancy

8.1. 8.1. Project feasibility studies

8.2. 8.2. Information systems (IS) consulting

8.3. 8.3. Management/operations audit

8.4. 8.4. Business process improvement / reengineering

8.5. 8.5. Others

9. 9. Management of the client relationship

9.1. 9.1. Selling of consulting service

9.2. 9.2. Client behavior & objectives

9.3. 9.3. Assessment of client needs

9.4. 9.4. Scoping of assignments & projects

9.5. 9.5. Qualification of business opportunities

9.6. 9.6. Proposals / bids

9.7. 9.7. Contracts & IPR

9.8. 9.8. Negotiation & the engagement

9.9. 9.9. Management of client/consultant relations

9.10. 9.10. Issues for clients in the effective use of professional advisers & consultants

9.11. 9.11. Issues for sole practitioners in client relationships

10. 10. Assignment structure, management & control

10.1. 10.1. Assignment methodologies – typical models in current use

10.2. 10.2. Project planning & project management principles

10.3. 10.3. Project delivery

10.4. 10.4. Progress monitoring, control & reporting

10.5. 10.5. Assignment testing, completion & handover

10.6. 10.6. Withdrawal from the assignment & from the client

10.7. 10.7. Evaluation, follow-up & business development

11. 11. Management of people & relationships

11.1. 11.1. People management & delegation

11.2. 11.2. Working in teams

11.3. 11.3. Motivation & development of the consultant

11.4. 11.4. Self development & personal learning

11.5. 11.5. Persuasion, selling & business development

11.6. 11.6. Special considerations for the sole practitioner operating as a management consultant

12. 12. Conducting a consulting assignment

12.1. 12.1. Problem identification & solution

12.2. 12.2. Identification of suitable & accurate sources of information

12.3. 12.3. Obtaining information – data collection

12.4. 12.4. Data analysis & diagnosis

12.5. 12.5. Creative thinking

12.6. 12.6. Solution selection & implementation

12.7. 12.7. Review & assessment of effectiveness

12.8. 12.8. Communications

12.9. 12.9. Meeting skills

12.10. 12.10. Listening

12.11. 12.11. Interviewing – questioning

12.12. 12.12. Presenting

12.13. 12.13. Writing

12.14. 12.14. Implementation of management consulting assignment recommendations

13. 13. Managing the quality of consulting engagements

13.1. 13.1. Quality management systems

13.2. 13.2. Project risk assessment

13.3. 13.3. Standards

13.4. 13.4. Plans

13.5. 13.5. Control

13.6. 13.6. Assurance

13.7. 13.7. Evaluating the consulting assignment in the light of the outcomes for the client

13.8. 13.8. Legislation, ethics, professional standards and consultancy code of practice

13.9. 13.9. Special considerations for the sole practitioner operating as a management consultant

14. 14. Financial management-related engagements

14.1. 14.1. Working capital & the financing decision

14.2. 14.2. Management of current assets

14.2.1. 14.2.1. Objectives of current assets management

14.2.2. 14.2.2. Cash conversion cycle

14.2.3. 14.2.3. Cash management (objective, reasons for holding cash, managing cash flows, techniques for lessening cash needs)

14.2.4. 14.2.4. Marketable securities management (objective, reasons for holding marketable securities, factors influencing the choice of marketable securities)

14.2.5. 14.2.5. Receivable management (objective, factors in determining accounts receivable policy, costs associated with accounts receivable, summary of trade-offs in credit and collection policies, marginal or incremental analysis of credit policies)

14.2.6. 14.2.6. Inventory management (objective, functions of inventories, inventory management techniques, inventory control systems)

14.3. 14.3. Short-term credit for financing current assets

14.4. 14.4. Sources of intermediate & long-term financing

14.5. 14.5. Principal sources of funds

14.6. 14.6. Debt financing

14.7. 14.7. Hybrid financing: preference shares, leasing, options, warrants and convertibles

15. 15. Project feasibility study

15.1. 15.1. Types of research and their purposes and characteristics

15.1.1. 15.1.1. By purpose (basic research, applied research, action research)

15.1.2. 15.1.2. By method [historical research, descriptive research, experimental research, correlation research, ex-post facto research (cause and effect)]

15.1.3. 15.1.3. Basic steps in conducting research

15.2. 15.2. PFS: project background and economic aspect

15.3. 15.3. PFS: Technical Aspect

15.4. 15.4. PFS: Financial Aspect – Investment Cost

15.4.1. 15.4.1. Determination of Total investment cost [initial investment cost (fixed investments, pre-operating expenditures, net working capital), steps in the calculation of net working capital]

15.5. 15.5. PFS: Financial Aspect – Project Financing and Evaluation

15.5.1. 15.5.1. Determining funds requirement and profitability (projected income statement, projected balance sheet statement, projected cash flow statement)

15.5.2. 15.5.2. Source of financing

15.5.3. 15.5.3. Economic evaluation (break-even analysis, net present value, internal rate of return, break-even time or discounted payback method, payback period, simple or accounting rate or return, financial analysis, sensitivity analysis)

16. 16. Information system engagements

16.1. 16.1. MIS engagements

16.1.1. 16.1.2. Non-accounting information system engagement (e.g. human resources, logistics, marketing)

16.1.2. 16.1.1. Accounting information system (AIS) engagement (basic concepts, role of consultants, objective, essential elements, characteristics of an effective AIS, basic components of a Manual accounting system, overview of a computerized accounting information system, comparison of the accounting cycle in a computerized and manual system, difference between computerized data processing (EDP) and manual processing, principle of accounting information systems design, common business applications of computers (MIS, TPS, OAS, DSS, spreadsheet programs, AI e.g. Expert Systems, Neural networks, Case-based reasoning systems)

16.2. 16.2. Fundamentals of computer-based data processing

16.2.1. 16.2.1. Basic data processing operations

16.2.2. 16.2.3. Overview of computer-based data processing (EDP defined, advantages/ disadvantages)

16.2.3. 16.2.2. Methods of data processing (manual data processing, electro-mechanical data processing, electronic data processing)

16.2.4. 16.2.4. Components of the computer system (hardware, software, personnel, procedures, data)

16.2.5. 16.2.5. Flowcharts

16.2.6. 16.2.6. Hierarchy of computer processes

16.2.7. 16.2.7. Modes of computer operations (batch processing, on-line processing, in-house, non in-house)

16.2.8. 16.2.8. Computer information systems (small computers, computer networks – LANS and WANS)

16.2.9. 16.2.9. Telecommunications (electronic commerce, electronic data interchange, database management systems, end-user computing, computer service bureau, internet, intranet, extranet, e-mail, groupware, and electronic conferencing)

16.3. 16.3. Systems controls & security measures in a computerized AIS engagement

16.3.1. 16.3.1. Controls for computerized accounting information system

16.3.2. 16.3.2. General controls (organizational or personnel controls, file security / software controls, hardware controls, access to computer and data files controls, other data and procedural controls)

16.3.3. 16.3.3. Application controls (input controls, processing controls, output controls)

16.3.4. 16.3.4. Computer fraud

17. 17. Operational audit / management audit

17.1. 17.1. Nature of operational audit

17.2. 17.2. Objectives of operational audit

17.3. 17.3. Differences between operational & financial auditing

17.4. 17.4. Effectiveness versus efficiency

17.5. 17.5. Criteria for evaluating efficiency & effectiveness

17.6. 17.6. Relationship between operational auditing & internal control

17.7. 17.7. Types of operational audit

17.8. 17.8. Who performs operational audit

17.9. 17.9. Independence and competence of operational auditors

17.10. 17.10. General approach to operational audit

17.11. 17.11. Illustrative operational audit report

18. 18. Business process improvement / reengineering

18.1. 18.1. Fundamentals of work simplification

18.2. 18.2. Process mapping

18.3. 18.3. Project definition

18.4. 18.4. Data collection

18.5. 18.5. Data organization

18.6. 18.6. Process analysis

18.7. 18.7. Reducing process time

18.8. 18.8. Detailed improvement

18.9. 18.9. The bottom line: calculating benefits & costs

18.10. 18.10. Obtaining approval

18.11. 18.11. Installation