A study of management consulting services and the decision factors used by financial executives in their retention

The performance of management consulting services can be segregated into two groups: CPA (Certified Public Accountant) firms and non-CPA firms. Prior studies have dealt primarily with the nature of these services within CPA firms and its related effects on independence and the attest function. The primary purposes of this study are to determine: (1) the nature and differences between the management consulting services performed by CPA firms and non-CPA firms, and (2) the decision factors used by financial executives in retaining management consulting services. The information collected in this research was gathered using a mail questionnaire sent to selected samples of the groups of CPAs, non-CPAs, and financial executives. The data were analyzed using t-tests and factor analysis. The results clearly indicate a difference in the nature of management consulting services performed by CPA firms and non-CPA firms. Although some services performed were similar, the relative weighting scale indicated a difference in emphasis. [...]