CPA - Is it for you?.
CPAs
in public practice are confronted with numerous
challenges and opportunities. State regulation requires
that audit, review, and compilation services may only be
provided by certified public accountants. Some practice
units devote a substantial portion of their practices to
these services; other specialize in taxation or some
other area. Many firms design their practices to offer a
combination of most or all services traditionally
provided by the accounting profession. The following
paragraphs briefly introduce some of the most common
services offered by CPA firms:
AUDIT
-
In an audit the CPA is charged with expressing an
opinion on the reliability of the financial statements
of a business. He or she must become familiar with the
operations, transactions, and environment of the entity
in order to decide whether the statements are fairly
presented in conformity with generally accepted
accounting principles.
REVIEW
-
A CPA who performs a review issues a report giving
limited assurance about the financial statements.
Analytical procedures are applied, and inquiries are
made about record keeping practices and various
accounting policies.
COMPILATION
-
No assurance is provided in a compilation as to the
reliability of the financial statements of the company.
The role of the CPA is to become familiar with how a
client's transactions are recorded and the general
culture of the company's business. Then the financial
data is compiled into financial statement format.
TAXATION
- These
services are far more comprehensive than the preparation
of tax returns. CPAs help businesses and individuals
comply with complex tax laws and represent their clients
before government agencies such as the Internal Revenue
Service. They also advise business owners about the tax
ramifications of their decisions and just about anything
else that affects taxpayers.
MANAGEMENT
ADVISORY
- A specialty area related to the above but focusing on
assisting businesses to improve their productivity,
efficiency, and achieving their objectives is Management
Advisory Services, or MAS. Many MAS engagements involve
problem solving of one or more critical elements of a
business's operations. Many business owners and
management are preoccupied with day-to-day operations
and find the expertise of a CPA who is able to evaluate
their company and make useful recommendations very
valuable.
CPAs also
help entrepreneurs start their businesses, set up
accounting systems, advise established companies about
business continuation issues, inventory management,
internal control, cash management, and others. Some
accountants specialize as personal financial planners.
These are
just a few of the many, many services CPAs in public
practice provide for their clients. Take a closer look.
Public accounting could be for you! |
