CPAs play a vital role in helping businesses improve the use of their resources, increase their efficiency and achieve their objectives. Management advisory services (MAS) is the general term used to describe these consulting services provided by CPAs. MAS can take the form of brief consultations with a client or longer studies or projects. When providing management advisory services, the CPA can be an important source of advice and assistance for the entire management team. MAS does not impair a CPA's independence as an auditor, but it helps CPAs better understand a company's operation, which can result in a better audit.

One example of MAS is assisting clients in developing an information system. A CPA firm was engaged by its client, a manufacturer of a consumer product, to help select a small business computer and to computerize certain office systems. The project included determining which systems should be computerized, preparing requests for proposals, detailing the client's business and office procedures, analyzing the vendors' proposals, and working with the client to ensure that the computer was installed successfully.

As management advisors, CPAs can also identify, evaluate and recommend ways to increase revenue and reduce operating costs; analyze operations; suggest changes in structure and individual responsibilities; conduct special studies; prepare recommendations, plans and programs; and provide advice and technical assistance in their implementation. The breadth of management advisory services reflects a clear response by CPAs to apply client's changing needs.

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Reprinted with permission of The Ohio Society of CPAs.