tailieunhanh - Accounting For Dummies 4th Edition_13

Tham khảo tài liệu 'accounting for dummies 4th edition_13', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 316 Part IV Preparing and Using Financial Reports These four firms and other large CPA partnerships are legally organized as limited liability partnerships and you see LLP after their names. The Big Four audit the large majority of the public corporations in the United States. The Big Four are international in scope and employ a large number of people. For example Ernst Young has about 130 000 employees worldwide. In contrast browse through the CPA section in the business listings of your local phone book you ll find many sole practitioners and small CPA firms. Many CPAs do not do auditing. In fact they wouldn t touch auditing with a ten-foot pole. They provide income tax financial advising and business consulting services and they make a handsome income doing so. They avoid auditing for several reasons. Perhaps the most important reason is the risk of being sued for failing to discover fraud in financial statements on which the CPA expressed a clean opinion. Auditors have a lot of trouble discovering fraud which I discuss in the later section Discovering Fraud or Not. Another reason many CPAs shy away from auditing is that businesses don t want to pay for the cost of a good audit they want to buy an audit opinion on the cheap. Generally auditing is not as lucrative as income tax advising and consulting services. Also auditing is much more regulated as compared with income tax and consulting. All in all it s a quieter life for CPAs without auditing. Auditing is a high risk and high stress activity but not a particularly high income activity. Nevertheless some small CPA firms do audits. Most mid-size and larger regional CPA firms do audits auditing is a sizeable part of their revenue. Auditing is the mainstay of the Big Four and other national CPA firms. Standing Firm When Companies Massage the Numbers or Not I majored in accounting in college and upon graduation went to work for one of the national CPA firms. I took great pride in my profession. I went on to get my