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!
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