The accounting profession
The accounting profession is a responsible and accountable profession.
Accountants adhere to very high standard of professional ethics and
professional conduct. A medical doctor is only accountable to the
patients that he treats.
"Accountant Daddy Profession Blanket"His accountability and responsibility is limited to the patients who engaged his services. In the same manner, a lawyer is only accountable to the clients that he represents. He is obligated to defend his clients alone, and his services are limited to the clients who come to him for legal services. What about the CPA? The scope of the CPA's responsibility seems to be unlimited. Firstly, he is accountable to the business entity that engaged his professional services. When a CPA expresses an opinion on the financial statements of a business entity, the financial statements become audited financial statements and oftentimes the external users of the financial statements require audited financial statements when they evaluate the financial health of a business entity. In addition to his clients, the CPA is accountable to the general public, which means anybody who relied on the audited financial statements in making business decisions. If the decision maker feels that he was misled in making a decision using the audited financial statements and he feels that the CPA did not exercise due professional care and diligence in the performance of the audit, he can sue the CPA even though he did not engage the professional services of the CPA, he simply used the audited financial statements in his decision making. The word public in the title Certified Public Accountant carries a lot of responsibility and accountability on the part of the CPA. That is why the CPA adheres to generally accepted auditing standards when he audits the financial records and when he expresses an opinion on the financial statements of a business entity. It must be noted though that the financial records and the financial statements are owned by the business entity and the representations are done by the business entity.
In the United States, the American Institute of Certified Public Accountants (AICPA) is the national governing membership body that oversees this responsibility. The AICPA establishes ethical and auditing standards to be adhered to by CPAs in the performance of audit. It also conducts and administers the licensing examination for CPAs, which is essential before an accountant can discharge the function of a CPA (which is to issue an auditor's report). Under the AICPA umbrella, there are two separate bodies that issue pronouncements about accounting standards, the Financial Accounting Standards Board (FASB) and the Government Accounting Standards Board (GASB). The FASB issues pronouncements on accounting principles from 1974 to the present. From 1959 to 1973, the predecessor of FASB, the Accounting Principles Board (APB) of the AICPA, through its various accounting technical committees issued pronouncements on accounting principles. The GASB issues pronouncements about accounting principles and accounting standards concerning the accounting in the government sector. With globalization and the advancement in information technology and telecommunications, the world is now the marketplace for many businesses. These business changes offer challenges to the accounting profession, as more and more people all over the world will now be relying on the financial statements in making business decisions. As a consequence, it is not unusual for professional associations of accountants and auditors from all over the world to be consulting each other on various accounting and auditing principles, standards and procedures.
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"Accountant Daddy Profession Blanket"His accountability and responsibility is limited to the patients who engaged his services. In the same manner, a lawyer is only accountable to the clients that he represents. He is obligated to defend his clients alone, and his services are limited to the clients who come to him for legal services. What about the CPA? The scope of the CPA's responsibility seems to be unlimited. Firstly, he is accountable to the business entity that engaged his professional services. When a CPA expresses an opinion on the financial statements of a business entity, the financial statements become audited financial statements and oftentimes the external users of the financial statements require audited financial statements when they evaluate the financial health of a business entity. In addition to his clients, the CPA is accountable to the general public, which means anybody who relied on the audited financial statements in making business decisions. If the decision maker feels that he was misled in making a decision using the audited financial statements and he feels that the CPA did not exercise due professional care and diligence in the performance of the audit, he can sue the CPA even though he did not engage the professional services of the CPA, he simply used the audited financial statements in his decision making. The word public in the title Certified Public Accountant carries a lot of responsibility and accountability on the part of the CPA. That is why the CPA adheres to generally accepted auditing standards when he audits the financial records and when he expresses an opinion on the financial statements of a business entity. It must be noted though that the financial records and the financial statements are owned by the business entity and the representations are done by the business entity.
In the United States, the American Institute of Certified Public Accountants (AICPA) is the national governing membership body that oversees this responsibility. The AICPA establishes ethical and auditing standards to be adhered to by CPAs in the performance of audit. It also conducts and administers the licensing examination for CPAs, which is essential before an accountant can discharge the function of a CPA (which is to issue an auditor's report). Under the AICPA umbrella, there are two separate bodies that issue pronouncements about accounting standards, the Financial Accounting Standards Board (FASB) and the Government Accounting Standards Board (GASB). The FASB issues pronouncements on accounting principles from 1974 to the present. From 1959 to 1973, the predecessor of FASB, the Accounting Principles Board (APB) of the AICPA, through its various accounting technical committees issued pronouncements on accounting principles. The GASB issues pronouncements about accounting principles and accounting standards concerning the accounting in the government sector. With globalization and the advancement in information technology and telecommunications, the world is now the marketplace for many businesses. These business changes offer challenges to the accounting profession, as more and more people all over the world will now be relying on the financial statements in making business decisions. As a consequence, it is not unusual for professional associations of accountants and auditors from all over the world to be consulting each other on various accounting and auditing principles, standards and procedures.
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Accounting profession is one of the best profession, accounting jobs also consider in the highest paying jobs.
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