...Why are Certified Public Accountants Important to the Accounting Industry, and why their role is Important to Business, Industry, and Society? Virginia Commonwealth University Writing and Rhetoric April 15, 2011 Why are Certified Public Accountants Important to the Accounting Industry, and why their role is Important to Business, Industry, and Society? CPAs became prominent after the 1800s when America started into the industrial era. They mainly did the basic bookkeeping for businesses at that time. As the industrial age grew and the government started to impose taxes, CPAs became more important to businesses as they now had to handle the filing of taxes for businesses. Although many people don’t see how important CPAs are to business, industry, and the economy, as well as, society. With the many changes over the centuries that government and CPA societies have put on CPAs, there have been some big changes in educational requirements, as well as governmental regulations. But in today’s society ethics has become the biggest problem that CPAs have to deal with and yet have more control over in the economy, and especially in business and industry. History has shown just how business and industry has needed CPAs, from controlling payroll and taxes, auditing accounting journals at the local mom-and-pop stores, to auditing financial papers of big corporations in order to let the investors at banks and Wall Street have some sort of an...
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...profession with the convergence towards a globally accepted accounting reporting structure and a global ethics structure. Today’s economy is becoming globally smaller and more importantly the economy from all fronts is becoming more co-dependent on one another from a domestic and international perspective regarding finance, raw materials, IT, and labor talent. Some of the challenges facing the accounting profession as move towards a global standard is how do we ensure the information are reliable? Many companies in various parts of the world have different reasons/motives for how financial information is compiled and distributed due to things such as government or other political/social reasons and influences. Another large issue facing accountants would be what is acceptable in Country A may be unacceptable from an ethical standpoint to Country B. An example of this, IGAAP is less stringent than U.S. GAAP regarding certain disclosures, therefore, how will the information be disclosed in order for investors and creditors to make informed decisions. From an ethical standpoint will companies chose to use IGAAP because it is less stringent and the disclosure will be less disclosed than it is today. Finally the idea of enforceability, in certain countries, will the Commission actually have authority to hold companies accountable for misleading, fraudulent or inaccurate disclosures or unethical behavior. What jurisdictional powers will be given and will the Countries that the Companies...
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...Accounting Firm, LLC. Memo To: Firm Accountants From: Junior Accountant Date: 20/08/2012 Re: The New Statement of Accounting Standards (SAS) 112 Changes have been made regarding the rules auditors must follow. The purpose of this memo is to inform all the accountants about the new Statement of Accounting Standard (SAS) No. 112,Communicating Internal Control Related Matters Identified in an Audit issued by the American Institute of Certified Public Accountants (AICPA). Management considers SAS No. 112 an imperative accounting standard to know, understand, and communicate effectively and efficiently. SAS No. 112 establishes standards and provides guidance on communicating matters related to an entity’s internal control over financial reporting identified in an audit of financial statements (American Institute of Certified Public Accountants, 2011). SAS No. 112 replaces SAS No. 60 and is effective for periods ending on or after December 15, 2006. Consequently, the term “reportable condition” will become extinct. The terms “significant deficiency” and “material weaknesses” are used to describe control deficiencies that must be communicated to management and those charged with governance during audits. The underlying principle deals with identified control deficiencies and determines whether these deficiencies, individually or in combination, are significant deficiencies or material weaknesses (American Institute of Certified Public Accountants, 2011). Auditors are required...
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...Becoming a Certified Public Accountant The passion for accounting has run in my family for three generations. Both my father and grandfather have excelled in the field, setting a great example for me to emulate. The journey to become a certified public accountant like them will be challenging. It will be a tough and demanding expedition, but achievable with the right plan and tools. To reach my goal of becoming a certified public accountant like them I will need to study hard, dedicate myself to it, and not to procrastinate. The first step to reaching my goal of becoming a certified public accountant is to study the hardest I’ve ever studied in my life. The academic requirements will demand my entire attention and intellectual capabilities in order to achieve them. I must recognize that the only way to learn and become more knowledgeable in accounting is to become one with the books; not skimming through them, frantically searching for key words in an attempt to get the answers as quickly as possible. I have to devote myself to study my coursework strategically, slowly, looking to acquire a firm understanding of the subject. Next, to reach my goal, I need to dedicate myself to the cause. Hard study by itself is not going to be enough. I have to apply myself and understand the burden implied with achieving such a challenging goal. Eliminating distractions and temptations is needed in order to completely focus on the goal. Understanding that my free time is not free...
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...bookkeepers, accountants and certified public accountants (CPAs). It's not surprising since many of their duties overlap, but the overall responsibilities of each role and the level of authority held by the positions differ. They all share fiscal responsibility – in degrees – for the company or organization for which they work. Bookkeepers Often considered by accountants and CPAs as just technicians or clerks, bookkeepers perform some of the same daily tasks as do accountants and certified public accountants. Many bookkeepers work as freelancers for small businesses in need of financial recordkeeping. Bookkeepers maintain daily accounting records, posting debits and credits, generating invoices for clients and checks for vendors as well as handling payroll. Many small business owners often double as bookkeepers. Bookkeepers typically lack the education of an accountant or CPA, as they gain on-the-job experience. Professional organizations for bookkeepers help to improve professional recognition for bookkeepers by accounting professionals as well as providing certification programs of abilities and skills. Accountants Accountants have a four-year college degree. While many accountants have an educational background in accounting, some are more general business majors. Companies that generate more than a million dollar in sales each year might have an accountant on staff or hire the services of a professional accountant from an accounting firm managed by a certified public accountant...
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...in an organization? Answer: Accurate financial information is critical to a business, according to the Accounting principle text, information allows informed judgements and decisions by the users of this information such as owners and partners. * Distinguished-level: * What are the three groups of functions performed by accountants? Answer: According to the text, Accountants observe, identify and measure financial terms and are often referred to as analyze. * Discuss the activities that are part of each group. Answer: the economic events are recorded, classified into meaningful groups and then summarized. They (accountants) report on economic events by preparing financial statements and reports, they also interpret these reports for management, investors, and creditors. Question 2: * Proficient-level: * There are many opportunities available for careers in the accounting profession. Select five from the many presented in the Accounting Principles: A Business Perspective, Financial Accounting text and fully describe the nature of the work performed. Answer: Certified public Accountant (CPA), Certified Management...
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...liabilities and owner’s equity. The most effective way to communicate the financial stability of a company is through the balance sheet summary. The balance sheet allows the company to keep a steady track of their spending and what is outstanding on their books; this can eliminate financial surprises and allows the company to make preparations to recover in a positive way. Major Functions of an Accountant and Certified Public Accountant An accountant and certified public accountant plays a vital role to a company’s financial success, their main duty is to monitor and keep track of the company’s financial records. The role of an accountant is slightly different than a certified public accountant, an accountant for a corporation will manage the finances, purchasing and business transactions with outside firms. They are the financial gatekeepers for their organization; they have the ability to prevent harm by having a strong grasp of their financials. A certified public accountant is an accountant that has a special accreditation earned by passing the certified public accountant examination. A CPA inspects the financial statements of a company and presents their current financial state. This is determined through careful...
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...Business Research: Characteristics and Skills of the Forensic Accountant Ellen Lapid LeBlond RES/351 June 15, 2015 Dr. Jennie Wagner Business Research: Characteristics and Skills of the Forensic Accountant I have long been interested in Forensic Accounting, I find this field of accounting very fascinating and in this article the authors are researching what are the important specialized skills and technical abilities of Forensic Accountants. The authors conducted the business research by surveying three groups of individuals: (1) CPA’s who are working as forensic accountants, (2) lawyers who employ the services of forensic accountants, and (3) academics in the field, which are accounting professors. The survey was given to the three groups in a questionnaire format and it was divided into eight sections, which are demographics, areas of specialty for forensic accountant, traits and skills of forensic accountant, credentials for forensic accountants, protocols and abilities, effectiveness of forensic accountants, the need for additional specialization, and educational issues. The authors surveyed these particular groups because they wanted viewpoints from the forensic accountants, who provides the services and the lawyers, who employs their services. They also surveyed the academics because they develop the curricula of auditing and forensic accounting. The authors utilized an online survey program to field out the questionnaire to the three groups...
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...Republic Act No. 9298 The Philippine Accountancy Act of 2004 I. Objectives: a. The standardization and regulation of accounting education; b. The examination for registration of certified public accountants; and, c. The supervision, control, and regulation of the practice of accountancy in the Philippines. II. Scope of Practice a. Practice of Public Accountancy – b. Practice in Commerce and Industry – c. Practice in Education/Academe – d. Practice in Government – The Professional Regulatory Board of Accountancy III. The Professional Regulatory Board of Accountancy – the Body authorized by law to promulgate rules and regulations affecting the practice of accountancy profession in the Philippines. –it is under the supervision and control of the Professional Regulation Commission. Compositions and Term of Office: – Shall be composed of a Chairman and 6 Members. – The Chairman shall be the presider in all the meetings of the Board, In case of vacancy, the Vice-Chairperson shall do his duties. – The Chairman and Members of the Board shall hold a term of 3 years. – No person who has served 2 successive complete terms shall be eligible for reappointment until a lapse of one year. Powers and Functions of the Board –The Board shall exercise the following specific powers, functions and responsibilities, as stated in Art. 2 Sec. 9 of RA 9298 – The policies resolution, rules and regulations issued or promulgated by the Board...
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...Code of Regulations, Title 16, Division 1, § 58 | failure to perform audit | Revocation of CPA Certificate | No.AC-2007-20 | Baisden, Lowell A. | 1/8/2008 | Business and Professions Code, Division 3, Chapter 1, §§ 5100 (c), (i) and (j), and 5062. California Code of Regulations, Title 16, Division 1, § 58. | provide false tax advice | Revocation of CPA Certificate | No.AC-2006-13 | Baka, John Edward | 10/20/2006 | Business and Professions Code, Division 3, Chapter 1, § 5100 (c). | participated in the audit under the supervision of George Alan Fisher | Revocation of CPA Certificate | No. AC-2007-18 | Adamic, Jonathan Ernest | 6/17/2007 | Business and Professions Code, Division 3, Chapter 1, § 5100 (h). | failure to practice as an accountant | Revocation of CPA Certificate | No. AC-2009-3 | Affonso, Dale Albert | 10/26/2008 | Business and Professions Code, Division 3, Chapter 1, § 5100 (c) and (g). | implement fraudulent tax shelters | Surrender of CPA certificate | NO. AC-94-14 | Alas, Benigno Bercasio J. | 10/29/1997 | Business and Professions Code, Division 3, Chapter 1, §§ 5062, 5100(c) and (f). California Code of Regulations, Title 16, Division 1, § 58. | failed to obey all Federal, state, and local laws, and to timely file quarterly reports | Revocation of CPA Certificate | No. AC-2014-15 | Arding III, Arthur James | 7/5/2014 | Business and Professions Code, Division 3, Chapter 1, §§ 5062, 5097 (a), (b), (c) and 5100 (c). California Code of Regulations,...
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...Certified Public Accountant Process Jenna M. Stienstra Southwest Tech Abstract A certified public accountant (CPA) is an individual who has passed the very difficult CPA Exam and been licensed by one of the 50 United States or one of five other jurisdictions. The CPA license is renewed if the individuals continue to follow the state's requirements, including professional education credits. Following the process, knowing the salary difference, and understanding what CPAs do from day-to-day are all important factors. Many changes are being made to the CPA Exam in the near future, so individuals who are planning to take the exam should be aware of the changes that will be incorporated into the upcoming versions. Keywords: CPA, process, advantages and disadvantages, exam, license, salary. CPA Process Anyone who has known a CPA has probably heard how much he/ she had to study and how difficult it was to obtain a CPA license. However, even though it takes additional college education and studying to pass the CPA Exam, it is worth the effort because of the promotions, increased pay, and more credibility that are given to individuals with a CPA license. The CPA Exam is not like any other exam, and the profession does have its pros and cons, just like any other business. What is the CPA Process? Becoming a CPA requires the individual to follow four steps in a sequence. First, the person must graduate from high school. Having a General Education Development (GED) is...
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...Chapter 1 THE PROBLEM AND ITS SETTING Background of the Study The business world changes in every tick of the clock. As a result, businesses tend to rise or fall and the stability of the business enterprise is always at stake. But, business sustainability depends on its financial performance and the people governing the business. And to measure whether companies are capable of handling potentially unexpected corporate risks, companies’ accounting transactions are reported through financial statements. These financial statements are the masterpieces of accountants who analyze the transactions and measure the financial stability of the company if they are sustainable enough to defray any business risks. However, in presenting these statements, some accountants may mislead owners or decision makers through financial mistatements which affect the business itself. Because of this accounting malpractice, it may cause to a major problem that will put CPAs into grave misconduct such as allegation of fraud and engangement in corporate accounting scandals. Accounting malpractice are affecting the businesses globally. It decays the economy of the country and slowly creeps into different industry until they are no longer outlive in the business world. In fact, the Report to the Nations on Occupational Fraud and Abuse in Asia-Pacific Region led by Wells (2010) found out that the Asia Pacific median has a loss that was significantly higher than the global median loss of $160...
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...volatile economic environment. CPAs are relied upon so much because of not only their keen analytical and decision-making skills but also their objectivity, integrity and dedication to service. Many CPAs provide services well beyond accounting, auditing and reporting. The consumer often expects a CPA to be proficient at many specializations, even those just indirectly related to the traditional role of an accountant. The CPA's role has been quickly expanding, and one leading CPA proposed that the term CPA more appropriately stand for Certified Professional Advisor. (www.picpa.org) A CPA is much more than its definition of Certified Public Accountant. The term certified refers to the licensing to carry on business as a CPA and meeting the standards as promulgated by the American Institute of CPAs and the various state societies. The term public accountant refers to the role as an accountant, who handles recordkeeping and reporting matters for the public. However, the term CPA, in sum, means to most people much more than these parts of certified and public accountant. A CPA is a very trusted advisor of both individuals and of businesses. (www.txcpa.net) Enumerating the roles of CPAs will lead the researchers...
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...organizations portfolio. The American Institute of Certified Public Accountants (AICPA) enables an organization to follow appropriate guidelines and regulations that govern ethical accounting practices. Organizations conforming to the practices of the AICPA can ensure healthy accounting practices conducted in their organization. American Institute of Certified Public Accountants The AICPA is considered the foundation of ethical reasoning in accounting because According to Mintz and Morris (2011), the principles guide members in the performance of their professional responsibilities and call for an unyielding commitment to honor the public trust, even at the sacrifice of personal benefits. (Chapter Chapter 1, Ethical Reasoning: Implications for Accounting). The AICPA is founded on three underlining principles or fundamentals. They consist of public interest, integrity, and responsibilities. These principles as stated previously allow and guide professionals in delivering ethical practices for clients. It allows them to perform ethically sound actions even when no one is looking or observing. Public Interest Working in light of the public carries a sound profile. A trusted profile which defines an organization or profession that provides a service. The members of the AICPA strive to perform the utmost services for the public. The accounting profession’s public consists of a multitude of patrons. As a certified public accountant it is of the essence that the members perform and...
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...abilities, and how the association to an organization can impact a career in the accounting field of business. In order to do this I must define accounting, its purpose and its four major types of accountants first. The American Institute of Public Accountants defines accounting as “The art of recording, classifying, and summarizing in a significant manner and in te rms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof (Wikipedia.org 2010)”. In other words, accounting is basically about keeping track of the money, and is what businesses use to monitor their income, expenses, and assets over a period of time. Accounting is crucial to the functioning of all organizations it plays the important role in maintaining and processing all relevant financial information that a company requires for its managing and reporting purposes. There are many sectors in accounting one can focus their career on. The four major Accountants are Public, Management, Government, and Internal Accountant. Public Accountants perform a large variety of accounting, auditing, tax, and consulting activities for their clients, which can be corporations, governm ent, non-profit organizations, or individuals. Management Accountant record and analyze the financial information of the companies, and some of the responsibilities are budgeting,...
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