The CPAs in the Accounting Profession Research Proposal

The CPAs in the Accounting Profession - Research Proposal ExampleIn smaller organizations, there is less strong point and more combining of responsibility for the various accounting functions. Larger business enterprise typically employs intimate auditors who review the work done by accountants and others within the enterprise and report their findings to anxiety. In addition to auditing monetary reports generated by the accounting system, they review the operational policies of the company and make recommendations for improving efficiency and effectiveness. Although internal auditors ar employees of the enterprise, they must be independent with respect to the employees whose work they review. Some accountant known as testify Public Accountants or simply known as CPAs, do not work for a sensation business enterprise. Rather, they provide a variety of services for many different individuals and business clients, which is categorized as remote fiscal reporting. certain Public Accountants perform public accounting and independent auditing. CPAs practice either individually or in firms. Due to the important of individual(prenominal) liability for professional conduct, public accounting firms argon generally organized as professional corporations. These corporations provide many of the benefits of the corporate structure, but retain personal liability for the professionals involved. Almost all big and publicly held corporations are audited by a few bounteous CPA firms and numerous small businesses and non-public entities are serviced by regional and local CPA firms, including a bighearted number of sole practitioners. In these firms, the role of auditing is often less important than the areas of tax reporting and readiness and systems consulting. A CPA in a smaller firm is expected to be something of an accounting generalist, as opposed to the more specialized positions of CPAs in large regional and national firms. With respect to external financial re porting, the most important service provided by the CPAs is the independent audit of financial statements. As independent auditors, Certified Public Accountants play a critical role in the reporting of financial information to external users who make their decisions concerning their relationship to the enterprise, such as creditors and potential creditors, investors and potential investors, financial analysts, government agencies, and other arouse parties. In performing an independent audit, the CPAs responsibility is to examine the financial statements to be furnished to external users and to extract an opinion as to the fairness of the statements in adhering to the generally accepted accounting principles (Nikolai and Bazely, p.10). The auditors opinion is communicated in a report that accompanies the financial statements. The opinion is based on evidence gathered by the auditor from the expatiate records and documents maintained by the company and from a review of the controls over the accounting system.The need for independent audits resulted from the process of the corporate form of business and the resulting separation of ownership and management. A significant proportion of the productive use in the United States is conducted by publicly held corporations that is, by corporations whose securities are sold to the general public. The stockholders who own the corporations are primarily investors and are generally not involved in the operations of the business. These investor-owners rely on management to operate the business and report periodically on the performance and financial