MAS PRACTICE STANDARDS AND

ETHICALCONSIDERATIONS
MAS Practice Standards (AICPA)
1. Personal Characteristics
2. Competence
3. Due Care
4. Client Benefit
5. Understanding with Client
6. Planning, Supervision and Control
7. Sufficient Relevant Data
8. Communication of Results Standard
No. 1.In performing MAS, a practitioner must act with integrity
and objectivity and be independent in mental attitude.
Integrity implies not only honesty but fair dealing and
truthfulness. A professional accountant should be straightforward
and honest in professional and business relationships.
An accountant should not be associated with information
where he believes that the information contains incorrect,
incomplete or misleading statements.
Objectivity the obligation of all professional accountant
to be fair, intellectually honest and free from conflict of interest.
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.
A professional accountant should not undertake any engagement
or accept an employment which he or she cannot reasonably
expect to discharge with professional competence. It has two
parts:

Attainment of professional competence formal

education, professional examination and period of experience.
Maintenance of professional competence being aware of
all developments affecting the profession and adopting a program
to ensure quality in the performance of professional services.
Competence in the professional work involves:
- Technical qualification of the practitioners
- Ability to supervise the personnel assigned
- To evaluate the quality of work performed
- To accept responsibility to the client for the successful
completion of the engagement. Engagements are to be
performed by a practitioner having competence in the
analytical approach and process, and in the technical
subject matter under consideration.

Standard no. 3. Due professional care is to be exercised in the

performance of a management advisory services engagement.
It is the exercise of caution or care in dealing with all matters in
the engagement.
It involves diligence and appropriate attention in carrying
out the assignment. Due care In performing management
advisory services, a practitioner must act with:
Integrity- It is a highly personal characteristics which
ensures that practitioners statement of findings and
recommendations are free of intentional distortions or

misstatement,
Objectivity- It is the ability to avoid bias and to maintain
an impartial attitude on all matters under review.
Independent mental attitude- A practitioner may
undertake only those engagements in which he can
maintain independent mental attitude. Personal
Characteristics Avoid not only professional improprieties
but also the appearance of improprieties, and never
commit an act discreditable to the profession.
Standard No. 4. Before accepting an engagement, a practitioner
is to notify the client of any reservations he has regarding
anticipated benefits.
Problem definition, identification of objectives, and
benefits to be derived should be considered in structuring
the engagement.
If during the course of the engagement the relationship
between anticipated benefits and costs changes
significantly, the client should be informed.
Standard No. 5. Before undertaking an engagement, a
practitioner is to inform his client of all significant matters related
to the engagement.
Standard No. 6. Engagements are to be adequately
planned, supervised, and controlled.
Planning is the translation of engagement objectives into
a structured set of activities and events within a targeted
time table. Engagement must be performed and
supervised by competent personnel. Effective control

requires measurement of progress in meeting the

engagement plan and objectives.
Standard No. 7. Sufficient relevant data is to
be obtained, documented and evaluated in developing conclusions
and recommendations.
Sufficient relevant data. Obtain sufficient relevant data
to afford a reasonable basis for conclusions or
recommendations in relation to any professional services
performed.
Sufficient relevant data is to be obtained, documented
and evaluated in developing conclusions and
recommendations.
- The evidential matter and its source
- The alternatives considered
- The analytical process leading to specific
recommendations
Standard no. 8. All significant matters relating to the result of
the engagement are to be communicated to the client.

Ethical Considerations
Code of Ethics for Professional Accountants in the Philippines
Integrity

Integrity implies not only honesty but fair dealing and

truthfulness. A professional accountant should be straightforward
and honest in professional and business relationships.
An accountant should not be associated with information
where he believes that the information contains incorrect,
incomplete or misleading statements.
Objectivity
The principles of objectivity imposes on all professional
accountants to be fair, intellectually honest and free of conflict of
interest. A professional accountant should be fair and not allow
prejudice or bias, conflict of interest or influence of others to
override objectivity.
Professional competence and due care
A professional accountant should not undertake any
engagement or accept an employment which he or she cannot
discharge with professional competence. A professional
accountant should continually strive to improve his knowledge
and skills to ensure that a client receives the advantage of
competent service based on up-to-date developments in practice,
legislation and techniques.
Confidentiality
A professional accountant should respect the confidentiality
of information acquired during the course of performing
professional services and should not disclose any such
information without specific authority unless there is professional
or legal right or duty to disclose.
Disclosure is not only a matter of disclosure of information. The
accountant shall not use nor appear to use that information for
personal advantage.
Disclosure of confidential information may be allowed:
1. If permitted by the client.

2. Required by law such as compliance with a subpoena

issued by courts in legal proceedings.
3. There is professional duty or right to disclose confidential
information. Example, the accountant may disclose
information to defend himself if sued by the employer.
4. Comply with quality assurance investigation conducted
by BOA.
Professional behavior
The accountant should comply with relevant laws and regulations
and refrain from any conduct which might bring discredit to the
profession.