Chapter 2 Instructor's Guide - Chapter 2 The CPA Profession...

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Chapter 2 The CPA Profession In Chapter 1, students learned about the demand for assurance services and the different types of audits. Chapter 2 describes the CPA profession, and the standards that govern audit performance. Chapter Opening Vignette – “Good Auditing Includes Good Client Service” This vignette demonstrates that auditors are expected to provide value-added services to clients. The vignette also challenges preconceived notions about the role of auditors, and illustrates that students will be in a position to assist clients immediately upon entering the profession. We use this as an opportunity to discuss the performance expected of new auditors, and that students need to be familiar with real-world activities by reading such sources as the Journal of Accountancy and The Wall Street Journal . Certified Public Accounting Firms and their Activities (page 26, page 27) Many students will be familiar with the “Big 4” and the activities of these firms, but many will not. Most students will have little knowledge of other CPA firms. In a brief lecture, we tell students: The four categories of CPA firms The names of the Big 4, plus several major firms in the other categories that recruit at our universities Changes occurring in each category of firms We briefly discuss the demise of the Andersen firm, and then ask students for their perceptions about why there have been other changes among the Big 4 and National firms. We use this as an opportunity to discuss the forces affecting the profession. We are careful not to offer opinions about the desirability of these changes, or preferences for one firm or category of firm versus another. We briefly mention the major activities of the firms (audit and assurance services, taxes, and consulting). We also note the changes that have occurred in the Big 4 involving the sale or separation of consulting practices. Table 2-1 (page 26) is
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