CH2 - Cpa firm Except for certain governmental...

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Cpa firm Except for certain governmental organizations, the audits of all general use financial statements in the United States are done by CPA firms. The legal right to perform audits is granted to CPA firms by regulation of each state. CPA firms also provide many other services to their clients, such as tax and advisory services. More than 45,000 CPA firms exist in the United States, ranging in size from 1 person to 20,000 partners and staff. Accounting Today publishes an annual list of the LOO largest accounting firms. As Table 2-1 illustrates, most of these are CPA firms, although the list includes a few Four size categories are used to describe CPA firms: Big Four international firms, national firms regional and large local firms, small local firms. Big Four international firms. The four largest CPA firms in the United States are called the "Big Four" international CPA firms. These four firms have offices throughout the United States and throughout the world. The Big Four firms audit nearly all of the largest companies both in the United States and worldwide and many smaller companies as well. national firms . Three CPA firms in the United States are called national firms because they have offices in most major cities. These firms are large but considerably smaller than the Big Four. The national firms perform the same services as the Big Four firms and compete directly with them for clients. Each national firm is affiliated with firms in other countries and therefore has an international capability.
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Regional and large local firms. There are less than 200 CPA firms with professional staffs of more than 100 people. Some have only one office and serve clients primarily within commuting distances. Others have several offices in a state or region and serve a larger radius of clients. For example, Table 2-1 shows that the largest regional firms are not dramatically smaller than the three national firms. Regional and large local firms compete for clients with other CPA firms, including national and Big Four firms. Many of the regional and large local firms are affiliated with associations of CPA firms to share resources for such things as technical information and continuing education. Many of these firms also have international affiliations. Small local firms. More than 95 percent of all CPA firms have fewer than 25 professionals in a single-office firm. They perform audits and related services primarily for smaller businesses and not-far-profit entities, although some have one or two clients with public ownership. Many small local firms do not perform audits and primarily provide accounting and tax services to their clients.
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CPA firms provide audit services, as well as other attestation and assurance services . Additional services commonly provided by CPA firms include
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This note was uploaded on 03/23/2012 for the course ECONOMICS eco 403 taught by Professor Talatafza during the Spring '10 term at Aachen University of Applied Sciences.

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CH2 - Cpa firm Except for certain governmental...

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