Role of the Cpa

CPA Report

November 20, 2010


To:     William Bailey, Manager
From:     Mary McGuire, CPA
Date:     November 20, 2010
Subject:     CPA Responsibilities/Reviews vs. Audits
CPA Responsibilities
  As professionals, certified public accountants have many roles in society. First as a group CPAs are held to a high standard of ethical principles and professional standards in all their activities. Second CPAs have the responsibility to their profession to maintain and enhance the traditions of the profession (CPA Responsibilities, 2004). Third they must maintain the public and financial statement users’ confidence in their work performance. The AICPA regulates the activities and standards of the CPA through the Principles of Professional Conduct, which outlines the qualities a CPA must possess to protect competently the investors right of information. The six principles as presented in the Principles of Professional Conduct are (AICPA ppt, 2010):
  1. responsibility as professional members to exercise professional and moral judgment in all activities
  2. commitment to serve the public interest and honor public trust
  3. strive continually to improve competence and quality of services with due care
  4. to perform all professional responsibilities with the highest sense of integrity
  5. maintain objectivity and be free of conflicts of interest in performing professional responsibilities
  6. observe the Principles of the Code of Professional Conduct in the scope and nature of services provided
Audits versus Reviews
As CPA’s strive to maintain the Code of Professional Conduct some of the services provided by professionals include tax returns and accounting services, independent assurance services, auditing, accounting and reporting for governmental, nongovernmental, public, and private companies. CPAs engage in two main types of services these include auditing and attestation services.
      The audit is the accumulation and...