Lecture Notes Ch. 2 (ACCT-422)

Lecture Notes Ch. 2 (ACCT-422) - Chapter 2: The CPA...

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Chapter 2: The CPA Profession You should be familiar with the types of CPA firms, the types of activities performed by CPA firms, and the structure and hierarchy of CPA firms, as discussed on pages 26 – 30 of the text. The American Institute of Certified Public Accountants (AICPA) is a national professional organization whose membership consists of CPAs. The AICPA serves many roles including setting professional requirements for CPAs, conducting research and publishing materials on accounting, auditing, attestation and assurance services, taxes and management consulting, serving as an advocate for the accounting profession, writing and grading the CPA exam, and providing continuing education courses for CPAs. However, the main function of the AICPA consists of setting standards and rules to be followed by members and other practicing CPAs. AICPA has authority to set standards and make rules in 5 major areas: 1. Auditing Standards a. The Auditing Standards Board (“ASB”) is responsible for issuing pronouncements (called Statements on Auditing Standards or SASs) on auditing matters for all entities other than publicly traded companies. b. Post Sarbanes-Oxley Act, the Public Company Accounting Oversight Board (PCAOB) is responsible for setting auditing standards for public companies. 2. Compilation and review standards - the Accounting and Review Services Committee is responsible for issuing pronouncements called Statements on Standards for Accounting and Review Services (SSARS) that provide guidance for performing compilation and review services. 3.
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Lecture Notes Ch. 2 (ACCT-422) - Chapter 2: The CPA...

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