审计学（英文）_02 THE CPA PROFESSION

THE CPA PROFESSION OOD AUDITING INCLUDES GOOD CLIENT SERVICE Arens, Loeb becke C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. 2 THE CPA PROFESSION OOD AUDITING INCLUDES GOOD CLIENT SERVICE

Objectiv CERTIFIED PUBLIC ACCOUNTING FIRMS Describe the nature of cpa firms what they do, and their structure. 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. ★★★★★★★★★★★★ Big 4 International Firms- The four largest CPA firms in the United States are called the" Big Four"international CPA firms 2. National firms - Three CPA firms in the United States are called national firms because they have offices in most major cities 3. Regional and Large Local Firms- There are only approximately 100 CPA firms with professional staffs of more than 50 people 4. Small Local Firms- More than 95 percent of all CPA firms have fewer than 25 professionals in a single-office firm Arens, Loeb becke C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Objective 2 - 1 Describe the nature of CPA firms, what they do, and their structure. 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 servicesto their clients, such as tax and consulting services. 1. Big 4 International Firms - The four largest CPA firms in the United States are called the “Big Four” international CPA firms. 2. National Firms - Three CPA firms in the United States are called national firms because they have offices in most major cities. 3. Regional and Large Local Firms - There are only approximately 100 CPA firms with professional staffs of more than 50 people. 4. Small Local Firms - More than 95 percent of all CPA firms have fewer than 25 professionals in a single-office firm

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 Arens, Loeb becke C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. STRUCTURE OF CPA FIRMS 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

Organizational Structures Proprietorship General Partners hi General corporation Professional Corporation Limited Lia bility Company Limited Lia bility Partnership Arens, Loeb becke C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Professional Corporation Organizational Structures General Corporation Limited Liability Company Proprietorship General Partnership Limited Liability Partnership

TABLE 2-1 Revenue and Other Data for the largest CPA Firms in the united states Percentage of Total Reve nue from A Net Revenue nd Auditing/Taxes/ 1997 size U.S. Only U. S Manage me nt by Reve nue Firm (in S millions) Partners Professional O ffices Consulting Services BIG FIVE Andersen Worldwide 5445.0 32.319 20/14/66 Price waterhouse Cooper $4,844.5 2,439 26.404 21 37/21/42 Ernst Young $4,416.0 2,172 17.845 36/23/41 Deloitte Touche 3,600.0 7 16.426 35/20/4 KPMG 3,000.0 1,600 13.400 41/25/34 NATIONAL Grant Thornton $289.0 1979 42/30/28 McGladrey Pullen $270.1 1.883 45/32/23 BDO Seidman $240.0 299 1.171 42 51/26/23 REGIONAL Crowe Chizek co 97.4 32/18/50 10 Baird Kurtz dobson 90.0 124 567 20 47/30/23 Plante moran s86.9 7 14 57/23/20 Clifton gunderson co s74.8 56/32/12 13 Moss adams 94 451 47/37/16 LARGE LOCAL 50 Follmer, Rudzeqicz Co s18.3 12 148 39/28/33 75 Kaufman rossin co l3.8 64 54/32/14 Rankings reflect merger of Price Waterhouse and Cooper Lybrand to form Pricewaterhouse Cooper. Information Arens, Loeb becke for Pricewaterhouse Cooper is based on separately reported information for Price Waterhouse and Cooper lybrand C 2000 by Prentice Hall. Inc Source: Accounting Today(March 16-April 5, 1998), pp. 18-20

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. 1997 Size by Re ve nue Firm* N e t R e ve nue - U .S. O nly ( in $ millions) Part ners Professional U .S. O ffice s Perce ntage of Total R e ve nue fro m A ccounting and A uditing/Taxes/ M anage me nt C onsulting Se rvice s BIG FIV E 1 2 3 4 5 A ndersen W orldw ide Pricew aterhouseCooper Ernst & Y oung D eloi tte & Touche K PM G $5,445.0 $4,844.5 $4,416.0 $3,600.0 $3,000.0 1,673 2,439 2,172 1,719 1,600 32,319 26,404 17,845 16,426 13,400 9 5 211 8 9 106 130 20/14/66 37/21/42 36/23/41 35/20/45 41/25/34 N A TIO N A L 6 7 8 G rant Thornton McGladrey & Pulle n BD O Seidman $289.0 $270.1 $240.0 278 381 299 1,979 1,883 1,171 4 8 6 4 4 2 42/30/28 45/32/23 51/26/23 R EG IO N A L 9 1 0 1 1 1 2 1 3 Crow e, Chizek & Co. Baird K urtz & D obson Plante & M ora n Clifton G unders on & Co M oss A dams $97.4 $90.0 $86.9 $74.8 $72.0 9 3 124 117 115 9 4 830 567 704 508 451 1 0 2 0 1 4 4 2 1 6 32/18/50 47/30/23 57/23/20 56/32/12 47/37/16 LA R G E LO C A L 5 0 7 5 Follmer, Rudzeqicz & Co K aufman Rossin & Co. $18.3 $13.8 1 2 1 4 148 6 4 2 2 39/28/33 54/32/14 * Rankings reflect merger of Price Waterhouse and Cooper & Lybrand to form PricewaterhouseCooper. Information for PricewaterhouseCooper is based on separately reported information for Price Waterhouse and Cooper & Lybrand. Source: Accounting Today (March 16-April 5, 1998), pp. 18-20 TABLE 2-1 Revenue and Other Data for the largest CPA Firms in the United States

Hierarchy of Typical CPA Firm TABLE2-2 AICPA'S“Just for Students Staff Levels and Responsibilities Staff Level Average Experience Typical Responsibilities Staff Assistant 0-2 years Performs most of the detailed audit work Senior or in-charge 2-5 years Coordinates and is responsible for the audit field work auditor including supervising and reviewing staff work Manager years Helps the in-charge plan and manage the audit, reviews the in-charge's work, and manages relations with the client. A manager may be responsible for more than one engagement at the same time Partner 10+ years Reviews the overall audit work and is involved i ignificant audit decisi a part f the firm, and therefore has the ultimate responsibility for conducting the audit and serving the client C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Hierarchy of Typical CPA Firm AICPA’S “Just for Students” Staff Levels and Responsibilities Staff Level Average Experience Typical Responsibilities Staff Assistant 0 - 2 years Performs most of the detailed audit work. Senior or in-charge 2 - 5 years Coordinates and is responsible for the audit field work, auditor including supervising and reviewing staff work. Manager 5 - 10 years Helps the in-charge plan and manage the audit, reviews the in-charge’s work, and manages relations with the client. A manager may be responsible for more than one engagement at the same time. Partner 10 + years Reviews the overall audit work and is involved in significant audit decisions. A partner is an owner of the firm, and therefore has the ultimate responsibility for conducting the audit and serving the client. TABLE 2-2

The aIcpa has esta blished the cpa vision Project to provide a core purpose and a vision for the Cpa Ⅴ ISION FOR profession in the year 2011 and beyond. The core THE FURURE purpose of the CPa vision Project is"CPAs. making sense of a changing and complex world. CPAⅤ ISIOn The future success of the cpa profession relies a project great deal on public perceptions of CPAsabilities and roles CPAs must become market driven and not dependent on regulations to keep them in business. The market demands less audit and accounting and more value-adding consulting services. Specialization is critical for the future of the cpa profession. The market demands that cpas be conversant in global business practices and strategies Arens, Loeb becke iting, 8/E C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. VISION FOR THE FURURE CPA Vision Project The AICPA has established the CPA Vision Project to provide a core purpose and a vision for the CPA profession in the year 2011 and beyond. The core purpose of the CPA Vision Project is “CPAs….making sense of a changing and complex world.” • The future success of the CPA profession relies a great deal on public perceptions of CPAs’abilities and roles. • CPAs must become market driven and not dependent on regulationsto keep them in business. • The market demandsless audit and accounting and more value-adding consulting services. • Specializationis critical for the future of the CPA profession. • The market demandsthat CPAs be conversantin global businesspractices and strategies

Establishing Standards saUlles The AICPA is empowered to set standards (guidelines) and rules that all members and other practicing CPAs must follow The requirements are set by committees made up of AICPA members. Arens, Loeb becke C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. The AICPA is empowered to set standards (guidelines) and rules that all members and other practicing CPAs must follow. The requirements are set by committees made up of AICPA members

There are four major areas in which the AICPa has authority to set standards and make rules 1. Auditing standards 2. Compilation and review standards 3. Other attestation standards 4. Code of professional conduct Arens, Loeb becke C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. There are four major areas in which the AICPA has authority to set standards and make rules. 1. Auditing Standards 2. Compilation and Review Standards 3. Other Attestation Standards 4. Code of Professional Conduct

SUMMARY OF GENERALLY ACCEPTED ADUITING STANDARDS Generally Accepted Auditing Standards General Reporting qualifications Field Work resuIts and conduct performance of the audit Whether statements Adequate training Proper planning and were prepared in and proficiency supervision accordance with GAAP Independence in Sufficient understanding Circumstances when mentalattitude ofinternal control GAAP not consistently olowe Due professionalcare Sufficient competent evidence Adequacy of informative disclosures Expression of opinion on Arens, Loeb becke financial statements C 2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. SUMMARY OF GENERALLY ACCEPTED ADUITING STANDARDS Generally Accepted Auditing Standards General qualifications and conduct Field Work performance of the audit Reporting results Adequate training and proficiency Independence in mental attitude Due professional care Proper planning and supervision Sufficient understanding of internal control Sufficient competent evidence Whether statements were prepared in accordance with GAAP Circumstances when GAAP not consistently followed Adequacy of informative disclosures Expression of opinion on financial statements