![]() ![]() The firm should also only undertake engagements that can be completed with professional competence. These policies and procedures should minimize the risk of associating with a client whose management lacks integrity. Acceptance and continuation of client relationships and engagements - Policies and procedures should be established for deciding whether to accept or continue a client relationship or specific engagement. ![]() Relevant ethical requirements - All personnel on engagements should maintain independence in mind and in appearance, perform all professional responsibilities with integrity and maintain objectivity in performing their professional responsibilities.Leadership responsibilities for quality within the firm - The firm should promote a culture that quality is essential in performing engagements and should establish policies and procedures that support that culture.In making judgments about the presence of a material misstatement, auditors are responsible for applying relevant training, knowledge, and experience in making informed decisions about the courses of action that are appropriate in the circumstances of the audit engagement. Professional skepticism is an attitude that includes a questioning mind, being alert to conditions that might indicate possible misstatements due to fraud or error, and a critical assessment of audit evidence. Maintain professional skepticism and exercise professional judgment. The Code and auditing standards stress the need for independence in audit engagements.ģ. The AICPA Code of Professional Conduct outlines the ethical requirements for CPAs who practice in accounting firms or work in organizations as part of management. Comply with relevant ethical requirements. The auditor is required to have formal education in auditing and accounting, adequate practical experience for the work being performed, and continuing professional education.Ģ. Providing continuing education seminars for its membersġ.Writing and grading the uniform CPA examination.Developing specialist certifications to help market and ensure the quality of services in specialized practice areas.Promoting the accounting profession through organizing national advertising campaigns.AICPA publications include the Journal of Accountancy, industry audit guides for several industries, periodic updates of the Codification of Statements on Auditing Standards, and the Code of Professional Conduct. Research and publication on many different subjects related to accounting, auditing, attestation and assurance services, management consulting services, and taxes.These standards consist of auditing standards for auditors of private companies, compilation and review standards, other attestation standards, and the Code of Professional Conduct. Setting standards and rules that all members and other practicing CPAs must follow.Terms: Organizational structures available to CPA firms Many accounting firms now operate as LLPs. However, the personal liability protection of an LLP is less than that of a general corporation or an LLC, but it is greater than a general partnership. It is structured and taxed like a general partnership. LLCs are typically structured and taxed like a general partnership, but its owners have limited personal liability similar to that of a general corporation. This form combines the most favorable attributes of a general corporation and a general partnership. Personal liability protection for shareholders in professional corporations varies widely from state to state. A professional corporation provides professional services and is owned by one or more shareholders. Many states prohibit CPA firms from organizing as a general corporation. Shareholders in a general corporation are liable only to the extent of their investment in the corporation. This form is similar to a proprietorship, except that it applies to multiple owners. ![]() This form is limited to firms with only one owner. : CPA firms can take one of six organizational forms: ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |