FAR1C1 C Flashcards
Explain accreditation to practice public accountancy.
— — —, firms and — of — — accountants, including — and — members thereof, are required to — with the — of Accountancy and — — Commission for the — of public accountancy.
The — — Commission upon — — of the — of Accountancy shall — the Certificate of — to — public accountancy which shall be valid for — years and renewable every — years upon payment of — fees.
Certified public accountants, firms and partnerships of certified public accountants, including partners and staff members thereof, are required to register with the Board of Accountancy and Professional Regulation Commission for the practice of public accountancy.
The Professional Regulation Commission upon favorable recommendation of the Board of Accountancy shall issue the Certificate of Registration to practice public accountancy which shall be valid for 3 years and renewable every 3 years upon payment of required fees.
What are the three (3) main areas that Certified Public Accountants generally practice their profession?
1) Public accounting
2) Private accounting
3) Government accounting
It is composed of individual practitioners, small accounting firms and large multinational organizations that render independent and expert financial services to the public.
Public accounting
What are the three (3) kinds of services public accountants usually offer?
1) Auditing
2) Taxation
3) Management advisory services
It has traditionally been the primary service offered by most public accounting practitioners.
It is also known as external auditing is the examination of financial statements by independent certified public accountant for the purpose of expressing an option as to the fairness with which the financial statements are prepared.
Actually, external auditing is the attest function of independent CPAs.
The Bureau of Internal Revenue requires audited financial statements to accompany the filing of annual income tax return.
Banks and other lending institutions frequently require an audit by an independent CPA before granting a loan to the borrower.
Creditors and prospective investors place considerable reliance on audited financial statements on making economic decision.
Auditing
It has traditionally been the primary service offered by most public accounting practitioners.
Auditing
It is also known as external auditing is the examination of financial statements by independent certified public accountant for the purpose of expressing an option as to the fairness with which the financial statements are prepared.
Auditing
It includes the preparation of annual income tax returns and determination of tax consequences of certain proposed business endeavors.
The CPA not infrequently represents the client in tax investigations.
To offer this service effectively and efficiently, the public accountant must be thoroughly familiar with the tax laws and regulations and updated with changes in taxation law and court cases concerned with interpreting taxation law.
Taxation
To offer this service effectively and efficiently, the public accountant must be thoroughly familiar with the tax laws and regulations and updated with changes in taxation law and court cases concerned with interpreting taxation law.
Taxation
These have become increasingly important in recent years, although audit and tax services are undoubtedly the mainstay of public accountants.
This term has no precise coverage but is used generally to refer services to clients on matters of accounting, finance, business policies, organization procedures, product costs, distribution and many other phases of business conduct and operations.
Specifically, management advisory services include:
1) Advice on installation of computer system
2) Quality control
3) Installation and modification of accounting system
4) Budgeting
5) Forward planning and forecasting
6) Design and modification of retirement plans
7) Advice on mergers and consolidations
Management advisory services
These have become increasingly important in recent years, although audit and tax services are undoubtedly the mainstay of public accountants.
Management advisory services
This term has no precise coverage but is used generally to refer services to clients on matters of accounting, finance, business policies, organization procedures, product costs, distribution and many other phases of business conduct and operations.
Management advisory services
Specifically, management advisory services include:
1) Advice on installation of computer system
2) Quality control
3) Installation and modification of accounting system
4) Budgeting
5) Forward planning and forecasting
6) Design and modification of retirement plans
7) Advice on mergers and consolidations
What is the major objective of a private accountant?
The major objective of a private accountant is to — — in — and — the entity’s —.
It includes — the —, producing the — —, preparing the — and controlling and allocating the — of the entity.
It has also the responsibility for the — of the various — the entity is — to pay.
- The major objective of a private accountant is to assist management in planning and controlling the entity’s operations.
It includes maintaining the records, producing the financial reports, preparing the budgets and controlling and allocating the resources of the entity.
It has also the responsibility for the determination of the various taxes the entity is obliged to pay.
What is the highest accounting officer in an entity?
Controller or comptroller
