1. The CPA Profession

2. Chapter Objectives To understand; CPA firm structure and role Regulatory influences on the profession (we will have a separate presentation on Sarbanes-Oxley that fits here) The increasing importance of International Auditing Standards GAAS Quality control practices in public accounting.

3. CPA Firms Size and Scope Big 4 National Regional Local Services Structure State laws Liability Taxation Hierarchy

4. Typical Hierarchy of a CPA Firm Partner Manager (5-10 years) Senior (2-5 years) Staff (0-2 years)

5. Regulation Sarbanes-Oxley—separate presentation provides additional information SEC PCAOB issues ASs AICPA ASB issues SASs IFAC IAPC issues ISAs

6. Generally Accepted Auditing Standards Audits are conducted in accordance with ______________ in order to determine whether financial statements are prepared in accordance with ______________

7. GAAS General (Acronym = TIP) Adequate Technical training and proficiency Independence in mental attitude Due Professional care Fieldwork (acronym = PIE) Planning and supervision Understand Internal Controls Sufficient, appropriate Evidence Reporting (Acronym = GCDO) GAAP = accounting Consistency in application of principles Adequate Disclosures State Opinion

8. Quality Control Elements (acronym AICPA) Acceptance of clients Independence, Integrity, and objectivity Continuous monitoring Personnel management (in)Accordance with standards.