Ac410 Unit 1 Assignment

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Kaplan University AC410 Auditing Unit 1 Assignment 1–20. Public accounting firms are sometimes grouped into categories of local firms, regional firms, national firms, and international firms. Explain briefly the characteristics of each. Include in your answer the types of services stressed in each group. Local firms typically have one or two offices, include only one CPA or a few CPAs as partners, and serve clients in a single city or area. These firms often emphasize income tax, consulting, and accounting services (Whittington, p 20). Many local firms have become regional firms by opening additional offices in neighboring cities or states and increasing the number of professional staff. Merging with other local firms is often a route to regional status. This growth is often accompanied by an increase in the amount of auditing as compared to other services (Whittington, p 20). Public accounting firms with offices in most major cities in the United States are called national firms. These firms may operate internationally as well, either with their own offices or through affiliations with firms in other countries (Whittington, p 20). Often in the news are the large international public accounting firms. Since only a very large public accounting firm has sufficient staff and resources to audit a giant corporation, these firms audit nearly all of the largest American corporations. Although these firms offer a wide range of professional services, auditing represents a large, if not the largest, share of their work. (Whittington p 20). 1–26. The Sarbanes-Oxley Act of 2002 created the Public Company Accounting Oversight Board. Explain the major responsibilities of this board. The PCAOB has broad powers to develop and enforce standards for public accounting firms that audit companies that issue securities registered with the SEC and oversee the accounting
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