International Journal of Accounting Research

Analysis of Public Accounting and Auditing Services in Finance

¹Department of Accounting, University College London, London, United Kingdom
^*Correspondence: Jones Maes, Department of Accounting, University College London, London, United Kingdom, Email:

Received: 06-Jul-2022, Manuscript No. IJAR-22-17599; Editor assigned: 11-Jul-2022, Pre QC No. IJAR-22-17599 (PQ); Reviewed: 25-Jul-2022, QC No. IJAR-22-17599; Revised: 01-Aug-2022, Manuscript No. IJAR-22-17599 (R); Published: 08-Aug-2022, DOI: 10.35248/2472-114X.22.10.283

Description

Public accountants assist a variety of clients, including both individuals and corporations, in the preparation of financial documentation. Certified Public Accountants (CPAs), analyses a company's financial statements before they are made public. They could also prepare tax returns for businesses and individuals. Audits, consulting work, and tax advice are possible additional responsibilities. A private accountant typically handles accounts payable as well as sending invoices to clients. A public accounting firm will occasionally examine the work done by the private accounting department when a corporation is being audited. Setting up internal systems to record business transactions is the primary goal of private accounting because they will aid a company's financial reporting.

Clients receive direct assistance from staff members in the financial statement preparation process. This may involve outsourcing the management of numerous accounting tasks. This entails checking the clients' financial statements. Independence laws limit a public accounting firm's ability to offer many of the other services already mentioned if it is contracted to audit a client's financial statements. For instance, a company cannot both prepare and audit a client's financial statements. CPAs, or certified public accountants, are frequently employed in public accounting. After several years of expertise, many accountants quit the larger public accounting firms and work for a company or another organization. They are referred to as a private accountant, corporate accountant, or internal accountant in their new role.

Public accountants are employed by an accounting firm, which would be their employer. Clients who want their accounts checked, their taxes handled, etc. visit an accounting firm. During this time, accountants are dispatched on the customer's behalf by the public accounting firm to review the business records and assist the client with their financial tasks.

Additionally they support their clients' businesses with any upcoming audits to ensure that there are no lost records or theft and that the internal private accounting complies with international accounting standards.

Numerous Certified public accountants work for public accounting businesses (CPAs). Initially, the certification was meant to indicate that a person possesses the necessary credentials to conduct an audit. However, the license also suggests a high level of accounting competence, which is why public accounting companies utilize it to support higher billing rates. Certain services require highly specific skill sets, which are required.

Public accounting firms may therefore be structured around a variety of subspecialties, with staff members whose education and experience are each very specialized. Public accounting firms, for instance, may promote their specialization in a variety of fields, including initial public offerings, fraud investigations, healthcare auditing, and legal support for insurance claims.

As can be seen from the foregoing explanations, public and private accounting involves roughly similar types of job activities, skills, and education. Nevertheless, both accounting categories are very distinct and play significant roles in evaluating a company's financial statements in their own particular ways. The skills that the new graduates acquire after beginning either professional route are where the differences can be apparent. Public and private accounting is a company's "external" and "internal," respectively, accountants. In order to pursue either professional path, it is crucial to comprehend the unique features of the two.