This Assignment gives you the opportunity to learn about the different types of accounting firms you could work for upon graduation. You will also demonstrate your knowledge of the different standards setting and governing organizations that oversee the public accounting profession.
- In late 2001 through 2002, the accounting profession faced a â€œcrisis of credibility.â€ Describe the events that led up to the crisis.
2 Public accounting firms are sometimes grouped into categories of local firms, regional firms, national firms, and international firms. Explain briefly the characteristics of each. Include in your answer the type of services stressed in each group.
3. Evaluate the following quotation: If a CPA firms completes a non public company audit of Adam Companyâ€™s financial statements following AICPA generally accepted auditing standards and is satisfied with result of the audit, an unmodified audit report may be issued. On the hand, if no audit is performed of the current years financial statements, but the CPA firm has performed satisfactory audit in prior year, has confidence in the management of the company and makes a quick review of the current years financial statements, a qualified report may be issued.Do you agree? Give the reason to support your answer.
4 Various organizations develop standards for audits and regulate CPA firms. Compare and contrast the roles of the AICPA, the PCAOB, and the state boards of accountancy along the following dimensions.
- Standard setting
- Regulation of CPA firms.
- Source of authority
Whittington, O. R., & Pany, K. (2014). Principles of auditing & other assurance services (19th ed.). New York, NY: McGraw-Hill.
APA-formatted, and citation-style paper.