Consulting Services Flashcards
When was the new series of pronouncements on consulting services released?
January 1991 and the new series was the Statements on Standards for Consulting Services ( SSCS) - apply to CPAs in public practice who provide consulting services.
What did the new series of pronouncements replace?
The three Statements on Standards for Management Advisory Services.
What are consulting services?
Practitioner develops the findings, conclusions, and recommendations presented, generally, only for the use and benefit of the client; the nature of work is determined solely by agreement between practitioner and client.
Performance of consulting services for attest client requires independence.
What is a consulting services practitioner?
A CPA in public practice while engaged in the performance of a consulting service for a client.
What is a consulting process?
Analytical approach and process applied in a consulting service.
This does not include services subject to other AICPA technical standards on auditing (SAS), other attest services (SSAE), compilations and reviews (SSARS), most tax engagements, and recommendations made during one of these engagements as a direct result of having performed these excluded services.
What are consulting services?
Professional services that employ the practitioner’s technical skills, education, observations, experiences, and knowledge of the consulting process.
What is a consultation and an example?
This is a type of consulting service that provides counsel in a short time frame, based mostly, if not entirely, on existing personal knowledge about the client
-E.g. reviewing and commenting on a client business plan, suggesting software for further client investigation
What are advisory services and some examples?
Develop findings, conclusions and recommendations for client consideration and decision making.
-E.g. operational review and improvement study, analysis of accounting system, strategic planning assistance, information system advise
What are implementation services and some examples?
Plan an action plan into effect.
-E.g. installing and supporting computer system, executing steps to improve productivity, assisting with mergers
What are transaction services and some examples?
Provide services related to a specific client transaction, generally with a 3rd party
-E.g. insolvency services, valuation services, information related to financing, analysis of a possible merger or acquisition, litigation services
What are staff and other support services and some examples?
Provide appropriate staff and possibly other support to perform tasks specified by client
E.g. data processing facilities management, computer programming, bankruptcy trusteeship, controllership activities
What are product services and some examples?
Provide client with a product and associated support services.
E.g. sale, delivery, installation, and implementation of training programs, computer software, and systems development
What are the standards for Consulting Services?
The general standards are the same as Rule 201 of Code of Professional Conduct:
- Professional competence
- Due professional care
- Planning and supervision
- Sufficient relevant data
What are additional standards of the Consulting Services besides the general standards?
Subject to Rule 202:
- Client interest - must serve client interest while maintaining integrity and objectivity
- Understanding with client - Establish either in writing or orally
- Communication with client - Inform client of any conflicts of interest, significant reservations about engagement, significant engagement findings
What does personal financial planning engagements entail?
Involve developing strategies and making recommendations to assist a client in defining and achieving personal financial goals.
