Determining the Scope of Service

1. Responsibility to establish scope of services

The accounting firm has the responsibility to determine the scope of services it is
competent to offer to the public.

2. Independence
The accounting firm, when providing MAS should give a particular consideration
to independence. It is suggested that a CPA rendering MAS and at the same time serving
the same client as independent auditor should not make management decisions or take
positions which might impair his objectivity and independence.

3. Competence
Competence in professional work involves both the technical qualifications of
staff personnel and the firms ability to supervise and evaluate the quality of the work
performed.


4. Identification and resolution of clients basic problems
The scope of services should be adequate to identify and resolve the basic clients
problems and not just problem symptoms.

5. Referrals
Referral of MAS work to other independent accounting firm is another way of
developing that firms capability.

6. Code of Professional Ethics
It is the responsibility of the firm to assure itself that the nature and scope of the
MAS it elects to offer are in conformity with the code of ethics.


Types of Clients Served
1. Contact Clients
The contact client is the person, who first approaches the consultant and proposes
that the consultant addresses a problem or issue on behalf of the organization.
2. Intermediate clients
These are the members of the organization who become involved in the
consulting project.

3. Primary clients
The primary client is the person or persons who have identified the problem or
issue the consultant and who are the most immediately affected by it.

4. Unwitting clients
These are the members of the organization who will be affected by the
intervention of the consultant. They do not initiate the project and have no direct or
formal control over it. They are not aware that they will be affected by the project.

5. Indirect clients
These are the members of the organization who will be affected by the
intervention of the consultant and who are aware that they will be affected.

6. Ultimate clients
These are the total community that will be affected by the consultants
intervention. This will include members of the organization

How Consulting Adds Value
- Provision of Information
- Provision of Specialist Expertise
- Provision of a New Perspective
- Provision of Support in Gaining a Critical Resource