CPA Case Studies



Professional Responsibilities of CPAs

Introduction

Certified Public Accountant (CPA) is the U.S. occupation title to U.S. accountants , so the experts of Management Accounting , which have passed the CPA exam. Only those who are in the U.S. states actively licensed, may carry the title, the others are forced to if they want to wear that title, lead to 'CPA-inactive'.

Professional Care and Diligence

The owner must have the professional skills updated in the affairs of his profession and in particular must have the security of having moral knowledge and resources needed to start a professional commitment.

Ethical and legal status

This condition is ethical status in all professional contracts, which is followed by the moral and legal obligation to develop a commitment to professional care and diligence

What is professional diligence?

It means the proper application of intelligence and technical standards of the profession, so wise and just under the very conditions of the commitments.

Liability

Carelessness can lead the practitioner to the commission of crimes and civil and criminal penalties, depending on the degree of professional care, according to the legal framework of the country.

Quality Control

The need to exercise care and diligence professional commitments which involves a large number of people, creates both a careful quality control to ensure the responsible individual has been duly complied with work commitments.

Case 1)

No matter where a CPA works, is expected to follow a code of ethics without compromise. As Jane did not complete her continuing education requirements for the current reporting period, Jane might face the following issues:

The members of a state CPA enjoy a host of benefits ranging from substantial discounts on seminars that qualify for continuing education credits which will lack for Jane.

In addition to these, members of the CPA was also obtained dental, medical, disability and life insurance products along with the benefits and defined contribution pension plans. They enjoy three weeks of vacation and ten days each year and 3 weeks of illness, in the first year. Moreover, they are also given flexible working hours, comp time, tuition reimbursement and longevity pay (www.daimeaghercp).

Case 2)

Issues that John is potentially facing due to situation of trouble earning a living from his CPA tax practice are as followed:

The professional credits his experience and expertise. Words can show they have sufficient knowledge, which are updated, and the expertise to develop high quality activities to their profession.

The user has the certainty of the services they receive. - You are guaranteed the efficiency of the services contracted and quiet to work with staff of recognized professional quality.

The Public Accountants can develop their profession in the global market. - Since facilitates access to foreign markets accounting professional for professional services, so that provides services beyond the boundaries and acts in a global economy (www.hp.jicpa.or.jp).

Business Consultant and Penalties

All public accountant and / or firms can provide their services as consultants or business tax will have to look the best the best position for his client, who is not obstructed in any way the integrity and objectivity, and his opinion is consistent with the law, any ...