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  • Services Provided by Cpas: Accounting Auditing

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    Certified public accountants provide accounting, auditing, tax and consulting services. Auditing involves determining if recorded economic events are presented accurately according to established criteria. The auditor evaluates evidence to assess if the information matches the criteria. Audits are typically done by CPAs and include financial statement, compliance and operational audits. To become a CPA requires education, passing the uniform CPA exam, and experience. Audits must follow generally accepted auditing standards for planning, supervision, evidence and reporting. The largest accounting firms that perform audits are the Big Four.

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    Certified public accountants provide accounting, auditing, tax and consulting services. Auditing involves determining if recorded economic events are presented accurately according to established criteria. The auditor evaluates evidence to assess if the information matches the criteria. Audits are typically done by CPAs and include financial statement, compliance and operational audits. To become a CPA requires education, passing the uniform CPA exam, and experience. Audits must follow generally accepted auditing standards for planning, supervision, evidence and reporting. The largest accounting firms that perform audits are the Big Four.

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    40 views2 pages

    Services Provided by Cpas: Accounting Auditing

    Uploaded by

    Peter Wagdy
    Certified public accountants provide accounting, auditing, tax and consulting services. Auditing involves determining if recorded economic events are presented accurately according to established criteria. The auditor evaluates evidence to assess if the information matches the criteria. Audits are typically done by CPAs and include financial statement, compliance and operational audits. To become a CPA requires education, passing the uniform CPA exam, and experience. Audits must follow generally accepted auditing standards for planning, supervision, evidence and reporting. The largest accounting firms that perform audits are the Big Four.

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    ```

    Accounting
    The recording,
    classifying, and
    summarizing of
    economic events for
    Auditing
    Determining
    whether recorded
    information
    properly reflects
    ‫الزتونة‬ Auditing accumulation and evaluation of
    evidence to report on the degree of
    correspondence between the information
    and established criteria

    the purpose of the economic Evidence is any information used by the


    providing financial events that auditor to determine whether the
    information used in occurred during information being audited is stated in
    decision making. the accounting accordance with the established criteria.
    period.
    Forms of Evidence:
    risk:
    InformationOral The risk that
    testimony the information
    Written in the
    communication
    Observations
    financial statements Electronic
    do not represent fairly (indata
    accurate)
     Auditing should be done by a competent,
    Independent person.
    Causes of Information Risk Reducing Information Risk
    Remoteness of information -1 1- User verifies information
    Biases and motives of the provider -2 2- User shares information risk with management
    Voluminous data -3 3- Audited financial statements are provided
    Complex exchange transactions -4

    Services provided by CPAs Types of Audits

    Assurance Services 1- Operational Audit: To


    evaluate whether operating
    An independent professional service that improves the information
    quality for decision makers. procedures are efficient and
    Can be performed by CPAs or by a variety of other professionals. effective.
    2- Compliance Audit: To
    Attestation Services Other Attestation determine whether client is following
    is a type of assurance service in which the  The CPA is not specific procedures set by higher
    CPA firm issues a report about the reliability required to issue a authority.
    of an assertion that is the responsibility of written report.
    .another party 3- Financial statements Audit:
    Attestation Services (5 Categories): 1- Compliance with
    To determine whether the overall
    1. Audit of historical financial statements trading policies and
    procedures financial statements are presented
    2. Internal Control over Financial Reporting
    in accordance with GAAP.
    3. Review of historical financial statements
    2- ISO 900
    4. Attestation services on information
    technology (WebTrust and SysTrust .
    certification Types of Auditors:
    5. Other attestation services 3- Environmental 1-Independent certified public
    audit accounting firms
    The CPA is required to issue a written 2-Governmental general
    report. accounting office auditors (GAO)
    3-Internal Revenue agents
    4-Internal auditors
    Non Assurance service Three Requirements for Becoming a CPA
    1- accounting and book keeping
    1-Educational requirement 2-Uniform CPA examination requirement
    2- Tax services
    3-Experience requirement
    3- Management consulting
    (can’t perform it with Audit) Financial Statements = GAAP
    Auditing = GAAS
    SOX = Public
    ```
    Certified Public Accounting Firms The legal right to
    perform audits is granted to CPA firms by each state.

    - Big Four international firms : “The four largest firms in united


    states”
    Deloitte , Ernest & young , Price water house Coopers, KPMG
     These four firms have offices in most major cities in the United
    States and in many cities throughout the world.

    - National firms large but smaller than Big four


    - Regional and large local firms
    - Small local firms do not perform audits and provide
    accounting and tax services to their clients

    Staff perform most of the audit field work.


    Seniors are responsible for the field work and supervise
    the staff.
    Managers help plan the audit, manage the audit, review
    the audit work and work with the client to resolve any
    issues identified.
    Partners review all audit areas and makes significant
    decisions.
    The partner signs the audit report.
    AICPA

    Generally Accepted Auditing Standards (GAAS)

    General Standards
    1. The audit is to be performed by a person or persons having adequate technical training and proficiency as
    an auditor.
    2.The auditor must maintain independence in mental attitude
    3.The auditor must exercise due professional care in the performance of the audit and the preparation of
    the report.

    Standards of Field Work


    1. Auditor must adequately plan work & properly supervise any assistants.
    2. The auditor must obtain a sufficient understanding of the entity..
    3.The auditor must obtain sufficient appropriate audit evidence

    Standards Of Report
    1. The report shall state whether the financial statements are presented in accordance with generally
    accepted accounting principles.
    2. The report shall identify those circumstances.
    3. Informative disclosures in the financial statements
    4. The report shall contain an expression of opinion.

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