ALDERSGATE COLLEGE

MANAGEMENT CONSULTANCY
SCHOOL OF BUSINESS AND ACCOUNTANCY

MODULE 1 OVERVIEW OF MANAGEMENT CONSULTANCY SERVICES BY CPAS

Posttest

I. Multiple Choice Questions

A 1. Which of the following statements is false?

a. New developments and transformations could result to management consulting becoming

more specialized.
b. It is predicted that a consultant's orientation will be towards being an insight-provider,
creator and sharer of information.
c. As consultants grow in number, they tend to develop more sophisticated means of
marketing their services.
d. Because of the more stringent and technical qualifications required in management
consulting, more not-sobright graduates of accounting, management and business
schools will be attracted to careers in this area.

2. Most definitions of consultancy would include such services related to the following except:
C

a. information technology
b. corporate strategy
c. legal advisory
d. systems & operations management

3. Which of the following statements is incorrect?

C

a. A consultant is hired because generally he is considered independent, objective and

detached to the problems faced by the organization.
b. An experienced management consultant possesses special knowledge, skills and a
variety of personal attributes that make him the most desirable candidate to undertake
management consulting engagement involving his area of expertise.
c. The use of consultants is generally much more expensive to the company than hiring full
time new managers and employees to provide professional advisory services.
d. A consultant is considered a catalyst for change that can assist management in the
administration of the business entity.

A 4. The actual output of a consulting engagement centers on providing the business

organization with:

a. valuable information
b. support for internal arguments
c. support in acquiring a critical resource

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MANAGEMENT CONSULTANCY
SCHOOL OF BUSINESS AND ACCOUNTANCY

d. support for contesting tax assessments by the BIR

B 5. Which of the following statements is false?

a. CPAs have historically been business consultants to their clients

b. Management consultants are licensed and regulated by laws
c. The primary purpose of management consultancy is to improve the firm's use of its
capabilities and resources to achieve its objectives
d. Management consultancy services are provided not only to big business enterprises but
also to mediumsize and small companies

II. Essay Questions

1. What are some of the factors that contributed to the emergence and growth of
management consultancy?

New trends, New developments and transformations could result to management

consulting becoming more specialized.

2. Why do small companies need the services of management consultants?

The primary purpose of management consultancy is to improve the firm's use of its
capabilities and resources to achieve its objectives

3. What are the objectives of management of a business organization?

The actual objective of management is providing the business organization with valuable
information, support for internal developments, and support in acquiring new and
acceptable resources that would enhance performance of subordinates.

4. Distinguish between consultation and engagement.

Consultation result to positive output while engagement refers to either positive or negative
output.

5. What advantages do CPAs have over other professionals in so far as providing business
advisory services to their clients are concerned?

They are licensed consultants and are regulated by laws. Helps to achieve and improve
the firm's use of its capabilities and resources to achieve its objectives.

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ALDERSGATE COLLEGE
MANAGEMENT CONSULTANCY
SCHOOL OF BUSINESS AND ACCOUNTANCY

6. What role should the CPA who is also the external auditor of a client, assume when he
provides advisory services to the same firm?

Business Development Managers within the consulting business are responsible for
developing the firm's products and building its relationship with clients. They are
experienced consultants providing complex consulting information at a strategic level.

7. What impact on management consulting practice would technological developments and

globalization have on management consultancy profession?

It provides developments and transformations that could result to management consulting

becoming more specialized and reliable.

8. Describe briefly the main types of consultant firms.

Analysts – they are the freshman in the industry or firm. they are responsible for gathering
information and processing it for the consulting team.
Consultants – they undertake the evaluation of the client business and make
recommendations on its behalf.
Senior Consultants or Managers - More experienced consultants have responsibility for
leading a consulting team undertaking a project on behalf of a client. They would also be
more involved in dealing with members of the client team.
Business Development Managers – they are responsible for developing the firm's products
and building its relationship with clients. Most at this level would have 5-10 years of
consulting experience.
Directors (or Partners) - Directors (or partners if a private firm) are the most experienced
consultants, who take on responsibility for the development of the organization as a whole
and who lead its strategic development. They will also maintain contacts With senior
personnel in the client companies and will have overall responsibility for projects. As the
most senior in the organization, it would be expected that they would have 10+ years of
experience in this field.

9. Describe briefly the nature of responsibilities of the following personnel in a consulting

firm:
a. Analysts - they are responsible for gathering information and processing it for the
consulting team
b. Consultants - they undertake the evaluation of the client business and make
recommendations on its behalf
c. Managers – they are consultants that have responsibility for leading a consulting team
undertaking a project on behalf of a client.
d. Business Development Managers - are responsible for developing the firm's products
and building its relationship with clients
e. Partners or Directors -they take on responsibility for the development of the organization
as a whole and who lead its strategic development.

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ALDERSGATE COLLEGE
MANAGEMENT CONSULTANCY
SCHOOL OF BUSINESS AND ACCOUNTANCY

10. Give and explain briefly at least four reasons for using management consultants.

They are more complex consultant than that of a CPA. They are not governed with laws.
They are cheaper to hire.
They develop more sophisticated means of marketing their services.
The consultants' orientation will be towards being an insight-provider, creator and sharer
of information.

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