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The CPA Profession مهنة التدقيق

The CPA Profession مهنة التدقيق. Chapter 2. Certified Public Accounting 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 consulting services.

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The CPA Profession مهنة التدقيق

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  1. The CPA Professionمهنة التدقيق Chapter 2

  2. Certified Public Accounting Firms The legal right to perform audits is grantedto CPA firms by regulation of each state. CPA firms also provide many other services to their clients, such as tax and consulting services More than 45,000 CPA firms exist in the USA ranging in size 1 person to 20,000 partners and staff.

  3. Certified Public Accounting Firms • Big Four international firms. In 2005 , the big four size by revenue As follow: (1) Deloitte & Touche :$7,814 millions , 2650 partner, 23841 professionals (2) Ernst & Young :$6,330 millions, 2130 partner, 15 900 professionals (3) PricewaterhouseCoopers: 6,167 millions, 2019 part , 20056 professional (4) KPMG: $4,715 millions, 1607 partner, 13184 professionals • National firms • Regional and large local firms • Small local firms

  4. Certified Public Accounting Firms The four largest CPA firms in the United States are called the “Big Four” international CPA firms. These four firms have offices in most major cities in the United States and in many cities throughout the world.

  5. Activities of CPA Firms • Accounting and bookkeeping services • Tax services • Management consulting services

  6. Structure of CPA Firms Three main factors influence the organizational structure of all firms: 1. The need for independence from clients. 2. The importance of a structure to encourage competence. 3. The increased litigation risk faced by auditors.

  7. Organizational Structureالهيكل التنظيمي • Proprietorship: one owner • Professional corporation: owned by one or more shareholders • General partnership: multiple owners • Limited liability company: its owners have limited personal liability • General corporation: • Limited liability partnership: owned by one or more partners

  8. Hierarchy of a Typical CPA Firmالتسلسل الهرمي لشركة التدقيق

  9. E-Commerce andCPA Firm Operations CPA firms are using the Internet to market their services. Firm Web sites also feature online software tools and databases to subscribers. Firms take advantage of online resources and databases to help their staffs stay current on emerging business and standards-setting issues.

  10. Securities and Exchange Commission The overall purpose of the Securities and Exchange Commission (SEC)is to assist in providing investors with reliable information upon which to make investment decisions.

  11. AICPA The AICPA sets professional requirements for CPAs, conducts research, and publishes materials on many different subjects related to accounting, auditing, attestation and assurance services, management consulting services, and taxes.

  12. Establishing Standardsand Rules The AICPA is empowered to set standards (guidelines) and rules that all members and other practicing CPAs must follow.

  13. Establishing Standards and Rulesتأسيس المعايير والقواعدThe AICPA is empowered to set standards (guidelines) and rules that all members and other practicing CPAs must follow. • Auditing standards: the auditing standard board (ASB) معايير التدقيق • is responsible for pronouncements, which are called • Statement on Auditing StandardsSASs 2. Compilation and review standards تجميع ومراجعة المعايير 3. Other attestation standards 4. Consulting standards • Code of Professional Conduct: professional ethics • نظام الاجراءات المهنية

  14. Other AICPA Functions Writes and grades the CPA examination. Supports research by its own staff and provides grants to others. Publishes a variety of materials. Provides seminars and education in a variety of subject matters.

  15. General standards Standards of field works Reporting standards Generally accepted auditing standards (GAAS)معايير التدقيق المتعارف عليها

  16. General Standards معايير عامة • The audit is to be performed by a person or persons having adequate • technical training and proficiency as an auditor. • التدقيق يجب ان ينجز من قبل شخص لدية تدريب ومهارة مناسبة كمدقق • The auditor must maintain independence in mental attitude in all • matters relating to the audit. • يجب على المدقق ان يكون مستقلا ذهنيا في كل الامور المتعلقة بالتدقيق • The auditor must exercise due professional care in the performance • of the audit and the preparation of the report. • المدقق يجب ان يمارس الحذر المهني في اداء التدقيق واعداد تقرير التدقيق

  17. Standards of Field Workمعاييرمتعلقة بحقل العمل • The auditor must adequately plan the workand must properly • supervise any assistants. يجب ان يخطط بشكل مناسب عملية التدقيق • ويشرف بشكل مناسب على المساعدين 2. The auditor must obtain a sufficient understandingof the entity and its environment, including its internal control, to assess the risk of material misstatement and to design further audit procedures. المدقق يجب ان يكون لدية فهم كافي للشركة التي يدقق عليها , وبيئتها ونظام الرقابة الداخلي , لتقدير محاطر التحريف المادي ولتصميم اجراءات التدقيق اللاحقة • The auditor must obtain sufficient appropriateaudit evidence by performing • audit proceduresto afford a reasonable basis for an opinion regarding the • financial statements under audit. • يجب على المدقق ان يحصل على اثباتات تدقيق كافية اثناء القيام باجراءات التدقيق لتكون قاعدة معقولة لاعطاء رأي • فيما يتعلق بالقوائم المالية للشركة الواقعة تحت التدقيق

  18. Standards of Reporting • The report shall state whether the financialstatements are presented in • accordance withgenerally accepted accounting principles. • التقرير يجب ان ينص فيما اذا تم اعداد القوائم المالية حسب المعاييرالمحاسبية المتعارف عليها 2. The report shall identify those circumstancesin which such principles have not beenconsistently observed in the current periodin relation to the preceding period.

  19. Standards of Reporting 3. Informative disclosuresافصاح فية معلومات مفيدة in the financial statements are to be regarded as reasonably adequate unless otherwise stated in the report. 4.The report shall contain an expression of opinion regarding the financial statements, taken as a whole.

  20. Generally Accepted AuditingStandards General Standards 1.Adequate training and proficiency 2. Independence in mental attitude 3. Due professional care Standards of Field Work 1. Proper planning and supervision 2. Understanding of the entity 3. Sufficient appropriate evidence Standards of Reporting 1. Statements prepared in accordance with GAAP 2. Circumstances when GAAP not followed 3. Adequacy of disclosures 4. Expression of opinion on financial statements

  21. Statements on Auditing Standards The 10 generally accepted auditing standards are too general to provide meaningful guidance. SASs interpret the 10 generally accepted auditing standards and are the most authoritative references available to auditors.

  22. Statements on Auditing Standards • Classification of Statements on Auditing Standards • GAAS and Standards of Performance

  23. International Standardson Auditing International Standards on Auditing (ISAs) are issued by the International Auditing Practice Committee of the International Federation of Accountants (IFAC).

  24. International Standardson Auditing IFAC is the worldwide organization for the accountancy profession. The IFAC works to improve the uniformity of auditing practices and related services throughout the world.

  25. Elements of Quality Control • Independence, integrity, and objectivity • Personnel management • Acceptance and continuation of clients • and engagements • Engagement performance • Monitoring

  26. Relationships Quality control standards Generally accepted auditing standards AICPA practice sections Peer review

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