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CHAPTER 7

STAGES OF MANAGEMENT CONSULTING ENGAGEMENT - PART I

1. Describe the analytical approach and process as applied to MAS engagement.

* Analytical approach and process refers to the systematic, objective and rational method of solving business problems. It involves a professional-level ability to ascertain pertinent facts and circumstance, define problem, evaluate the alternative courses of action and present conclusions and recommendations to solve the problem.

2. What are the basic stages of a management consulting engagement?

* I. Negotiating the engagement

II. Engagement planning

III. Conducting a consulting assignment

A. Problem identification and solution

B. Identification of suitable and accurate sources of information

C. Data analysis and diagnosis

D. Solution development

E. Preparation and presentation of the report and recommended solution

F. Implementation

G. Follow-up evaluation of the implemented solution

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

3. What is an MAS proposal letter? What are the content of this letter?

* It is an advisable first step in most MAS engagement. It is written communication between the CPA and the client setting forth the terms and conditions of a proposed consultancy work.

* Its contents generally include:

1. Objectives and benefits of the engagement.

2. Scope of the work and the role of CPA.

3. Approach to the study.

4. Project organization.

5. Fees and billing arrangements.

6. Firm qualifications, where appropriate.

4. What are the uses of an engagement plan?

a) Provide a means for arranging, distributing and assigning responsibility for various segments of an engagement.

b) Provide a means of control for determining g whether all segments of the engagement have in fact been completed.

c) Provide the framework for reporting progress of an engagement....