A New York accounting firm is expert in handling your accounting records and making financial statements with accurate bookkeeping. It does not matter if you are a small company or a big company. The accounting work done is similar no matter what the size of the company or the industry the company works in. The only way to make a good statement of accounts is to hire New York Accounting Firm.
There are many companies who still practice the old style of employing a CPA to manage accounting work. The main drawback of hiring a CPA is that the amount payable to them is extremely high with the insurance and other benefits, they cost the company a lot of money. This is now replaced by the new trend in outsourcing the accounting work. When companies outsource the accounting work, the money spent on it gets reduced and the benefits derived are the same as hiring employees.
The services they offer are world class. These firms employ professionals to do the job with adequate experience, so that the accounting work of your company is in safe hands. The staff they have is not simple graduates who don’t know what to do with the accounts and mess them up like a normal outsourcing company.
New York accounting firm hires its professionals with great care so that the end product turns out to be perfect. The services are offered even to aid the managers in case of a new project counseling and planning. A good example of this is when the manager needs to evaluate the cost of one part of the business so that he can sell it off for more profit. New York accounting firm helps the company make these life transforming decision.
New York accounting firm helps in giving the company a good deal. Their costs are lower and are economic in comparison to outsourcing firms of other countries. There are many benefits from this action.
When the services are priced at a cost which is considerably lower than what the company might be paying at that time, the offer would seem to be attractive.
If the people understand that the company is not firing employees but just taking help of a firm in the same country there will not be a lot of debates and the goodwill of the company will increase. The work of one country will go to the people of that country and the company too benefits out of the deal. This will save costs, increase goodwill and increase profits.
Any New York accounting firm is one of the most sought after firms and anyone who has done business with them have all been satisfied with the result they received. Their terms of confidentiality are the best in the industry. Thus, the company can also cross check on the past records of the firm before hiring its services, just to make sure that they are doing a safe investment.
Peter Terry has extensive knowledge about bookkeeping and knows the importance of this for running a successful business. To know more about Accounting New York, New York accounting firm, accountant New York,accounting services New York, Bookkeepers New York and NYC bookkeepers visit www.nycbookkeepers.com
There are a number of individuals and businesses who use the services of an accountant year round. There are other individuals who only hire an accountant to help get all of their finances in order before their tax returns are due. View any directory of accountants in any major metropolitan area and you will find hundreds, if not thousands, of accountants listed.
Surprisingly, most business owners and individuals don’t carefully consider matching their needs to an accountant’s qualifications when making a selection. That’s because many of us who don’t have a strong accounting background view all accountants as being equal.
But the reality is that all accountants are not created equal….and the same goes for Miami Accountants as well.
An accountant, technically speaking, is a professional who takes care of the accounting needs of an individual or a business, including bookkeeping, tax preparation, financial advice, and more. Choosing an accountant is a highly individual process, as everyone has different needs.
This article explains how miami accountanting firms can help you conquer business finances and provide useful questions you should use to choose an accountant that best matches your needs and can help you prosper — and not somebody who just crunches the numbers.
What do accountants do anyway? How can an accountant help me?
Skilled accountants are highly trained and specialized to recognize data interrelationships and identify trends, amounts, and other relationships that just “look” incorrect. This analysis also includes the clear absence of missing information and the ability to recognize cost or tax savings measures that may have been otherwise overlooked or misinterpreted.
Experienced accountants have also been trained to methodically choose and apply selective analysis to financial data with an acute attention to detail.
Some small businesses make due with a bookkeeper - someone to perform the tedious task of recording financial information and cranking that data into the necessary formats, like P&L statements and tax forms. But a good small business accountant does much more than just record transactions and passively generate documents - they actively analyze, interpret and convert that data into actionable business intelligence.
How do I choose an accountant that best matches your needs?
Perhaps the most fundamental consideration in choosing an accountant, or accounting firm, is to choose one that best suits the needs of the individual business.
When hiring an accountant, you’re choosing an individual or group that provides you with the requisite expertise that you do not hold. Therefore, your accountant should be adequately experienced and educated in the areas that are most applicable to your needs.
It’s not so uncommon that some people who offer “accounting services” are unqualified. They are unlikely to carry any liability insurance, nor is there any supervisory body you can complain to if things go wrong. The apparent savings in fees, if any, could prove costly.
Accountants who are certified are subject to wide variety of knowledge, experience and ethics requirements, unparalleled by most any other regulated industry. Certified accountants are required to have attended and successfully completed rigorous, higher-level education and/or experience requirements in addition to passing an examination indicating the same. Certified accountants are required to complete certain continuing professional education requirements on an ongoing basis. The purpose of this standard is to help ensure the accountant remains knowledgeable with changing laws, regulations, interpretations and technological advancements.
Experience considerations are of the utmost importance. Accountants practicing “public” accounting have the largest breadth of exposure to various industries, businesses, and persons with unique needs. Public accountants are acutely trained to be able to gather, sort and interpret large volumes of information in very short time periods. Choosing an accountant with prior industry or project experience, can help you save time, money or even the avoidance of costly mistakes. Choose an accountant that has demonstrated an advanced knowledge of specific areas that may be applicable to you.
Step by Step Questions When Choosing an Accountant
Determine what your specific needs are. Do you need an accountant for your business or for your personal finances? Do you need to create a budget, need help with financial planning, need financial records kept, or do you just want someone who will prepare your taxes? Accountants and accounting firms often have specialties, and they all have their own strengths, so make sure you know what you are looking for.
Get personal recommendations. If you have a friend or a relative who loves her accountant, ask her about it! It is best to find someone who is in a position similar to yours (who is happy with her accountant).
Speak personally with the accountants. After you have recommendations, speak with the accountant or accountants that interest you. Explain what you are looking for and ask any questions that you might have. Watch and listen for clear, direct answers and make sure you feel comfortable with the accountant. Feel free to ask about credentials and experience - most accountants will be happy to provide that information.
Determine how much it will cost. As with many professional services, cheapest is not necessarily best when it comes to accountants! On the other hand, you don’t want to be overcharged. Do a little comparative shopping to make sure that the fees seem to be within an acceptable range.
Consider your feelings. It may sound silly to involve feelings in a business or financial decision, but if you are working with someone, especially someone who will be working with your money, you want to feel secure and comfortable. If you are uncomfortable with the accountant for any reason, choose a different one.
Get a timeline. Make sure you talk to the prospective accountant about when you need things done. If you are on a tight deadline for tax season, make sure that he or she can meet that deadline. You need to make sure that the accountant you choose can give you the time that you need!
Does Your Accountants Proximity to Your Business Really Matter? Why Choose a Miami Accountant?
As the accountants’ relationship with clients often requires a continuous, ongoing exchange, it is important to choose an accountant that is easily accessible. However, due to recent technological advancements of communications, desktop sharing and remote access, accountants can more easily exchange information that previously required a physical presence that is no longer applicable.
Miami is a city that provides a wide variety of interests and cultural backgrounds. The majority of its residents are fluent in more than one language. It is probably the best known gateway in the United States to Latin America and South American businesses, European nationals and foreign investors doing business in the United States.
Accordingly, the business acumen of Miami accountants is to generally hold a higher level of knowledge and experience with respect to foreign businesses wanting to have a U.S. presence, foreign real estate and business investors.
Applicable knowledge and skills of Miami accountants will often include more complex taxation reporting requirements, currency translation, business capitalization techniques, choosing entity structures most beneficial to foreign owners, and more complex tax reporting as it relates to foreign investors and owners.
Given the current and ever changing state of technological advancements, ability to communicate fluently in foreign languages, improved knowledge and expertise of accountants of tax matters as it relates to foreign ownership, the demand for certified accountants in cities such as Miami is on the rise.
Mitch Helfer is an experienced miami accountant with the skills necessary to get your company on track financially. Learn more about one of the top miami accounting firms by visiting cpamiami.com.
All auditors, accounting firms and CPA’s in the US and foreign, that provide audited financial statements for public companies registered with the SEC (Securities and Exchange Commission) must be registered with the Public Company Accounting Oversight Board (PCAOB), sometimes referred to as Peekaboo. The PCAOB is a private-sector, nonprofit corporation that was created by the Sarbanes-Oxley Act of 2002 which is under the jurisdiction of the SEC. The Sarbanes-Oxley Act and the creation of the PCAOB were a result of the accounting fraud scandals of Enron and WorldCom. There are currently over 2,000 public firms registered with the PCAOB, with more pending registration. A list of current and pending registered firms can be found on the PCAOB website.
Only Certified Public Accountants can prepare audited financial statements on behalf of a business or non-profit organization. In order for a non-certified accountant to become a CPA, the accountant needs to work for an accounting firm for a few years, acquire five hundred hours of auditing time, and pass a test from the American Institute of Certified Public Accountants as well as from their state. A CPA also must take 120 hours of continuing education courses every three years to maintain their license.
The purpose of the Public Company Accounting Oversight Board is to oversee auditors, (accounting firms, Certified Public Accountants (CPA’s), accountants) of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audited financial statements. The PCAOB’s goal is to improve the quality of audited financial statements, reduce the risk of auditing failures, and increase public trust in financial reporting processes and of the auditing profession. The PCAOB has established auditing, quality control, ethics, and independence standards to be used by registered public auditors in the preparation of audited financial statements for publicly traded companies, as required by the Sarbanes-Oxley Act of 2002 and the rules of the Securities and Exchange Commission.
The Sarbanes-Oxley Act of 2002 requires the PCAOB to: register all auditors (accounting firms, CPA’s, accountants) that audit public companies; inspect registered auditors annually for those who annually audit over 100 public companies and a minimum of once every three years for those that audit under 100, assess the degree to which the auditors comply with the act, the rules of the PCAOB and the SEC, professional standards in connection with the performance and issuance of audited financial statements and attest services; related matters involving public companies, and investigate and discipline any auditors who are in violation of specific laws or standards. All auditors are still required to have peer review of their auditing and accounting practice in order to satisfy the American Institute of Certified Public Accountants (AICPA) membership, federal regulatory (Generally Accepted Auditing Standards) and/or state licensing requirements.
The PCAOB currently has pending a requirement that all registered auditors submit an annual report on Form 2, provided on the PCAOB website, by June 30th, except for those firms that have been registered between April 1st and June 30th of that year. Also they will be required to pay an annual fee to the PCAOB by July 31st. As these requirements are still pending approval, the annual report and fees are not required for the 2009 calendar year deadlines. In these reports the registered auditors must provide various information for the year including: audited financial statement reports issued during the year; disciplinary history of any accountants that joined the firm during the year; a break down of the fees for services provided to all clients during the year, showing the percentage of the fees billed to public audit clients for audit services, other accounting services, tax services, and non-audit services. The PCAOB also requires registered auditors to submit special reports on Form 3 within 30 days of the occurrence of the special event. Such special events include change of name or contact information, withdrawal of an audited financial statement by an auditor if the client did not report withdrawal in the 8-K filing with the SEC, and if legal, administrative, or disciplinary action have been taken again the firm or its related accountants. These reports, along with reports from the PCAOB on its inspections of public company audits will be available to the public on their website.
It is the responsibility of the registered auditors that audit financial statements for public companies to provide accurate and independent reports. By following the rules and regulations of the PCAOB, AICPA, and GAAP, registered auditors can provide the highest quality of audited financial statements that fairly and accurately represent the public company, detect material misstatements and false or missing information caused by fraud, and protect the interest of investors.
All Certified Public Accountants (CPA’s), in the US and foreign, that provides audited financial statements for public companies registered with the SEC (Securities and Exchange Commission) must be registered with the Public Company Accounting Oversight Board (PCAOB), sometimes referred to as Peekaboo. The PCAOB is a private-sector, nonprofit corporation that was created by the Sarbanes-Oxley Act of 2002 which is under the jurisdiction of the SEC. The Sarbanes-Oxley Act and the creation of the PCAOB were a result of the accounting fraud scandals of Enron and WorldCom.
Only Certified Public Accountants (CPA’s) can prepare audited financial statements on behalf of a business or non-profit organization. In order for a non-certified accountant to become a CPA, the accountant needs to work for an accounting firm for a few years, acquire five hundred hours of auditing time, and pass a test from the American Institute of Certified Public Accountants as well as from their state. A CPA also must take 120 hours of continuing education courses every three years to maintain their license.
The purpose of the Public Company Accounting Oversight Board is to oversee auditors, (accounting firms, CPA’s, accountants) of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audited financial statements. The PCAOB’s goal is to improve the quality of audited financial statements, reduce the risk of auditing failures, and increase public trust in financial reporting processes and of the auditing profession. The PCAOB has established auditing, quality control, ethics, and independence standards to be used by registered public accounting firms and CPA’s in the preparation of audited financial statements for publicly traded companies, as required by the Sarbanes-Oxley Act of 2002 and the rules of the Securities and Exchange Commission (SEC).
The Sarbanes-Oxley Act of 2002 requires the PCAOB to: register all accounting firms, CPA’s, and accountants that audit public companies; inspect all registered firms and CPA’s annually for those who annually audit over 100 public companies and a minimum of once every three years for those that audit under 100, assess the degree to which the firms and CPA’s comply with the act, the rules of the PCAOB and the SEC, professional standards in connection with the performance and issuance of audited financial statements and attest services; related matters involving public companies, and investigate and discipline any firms and CPA’s whom are in violation of specific laws or standards. All firms and CPA’s are still required to have peer review of their auditing and accounting practice in order to satisfy the American Institute of Certified Public Accountants (AICPA) membership, federal regulatory (Generally Accepted Auditing Standards) and/or state licensing requirements. There are currently over 2,000 public firms registered with the PCAOB, with more pending registration. A list of current and pending registered firms can be found on the PCAOB website.
The PCAOB currently has pending a requirement that all registered firms and CPA’s submit an annual report on Form 2, provided on the PCAOB website, by June 30th, except for those firms and CPA’s that have been registered between April 1st and June 30th of that year. Also they will be required to pay an annual fee to the PCAOB by July 31st. As these requirements are still pending approval, the annual report and fees are not required for the 2009 calendar year deadlines. In these reports the registered CPA’s must provide various information for the year including: audited financial statement reports issued during the year; disciplinary history of any accountants that joined the firm during the year; a break down of the fees for services provided to all clients during the year, showing the percentage of the fees billed to public audit clients for audit services, other accounting services, tax services, and non-audit services. The PCAOB also requires registered CPA’s to submit special reports on Form 3 within 30 days of the occurrence of the special event. Such special events include change of name or contact information, withdrawal of an audited financial statement by an auditor if the client did not report withdrawal in the 8-K filing with the SEC, and if legal, administrative, or disciplinary action have been taken again the firm or its related accountants. These reports, along with reports from the PCAOB on its inspections of public company audits will be available to the public on their website.
It is the responsibility of the registered CPA’s that audit financial statements for public companies to provide accurate and independent reports. By following the rules and regulations of the PCAOB, AICPA, and GAAP, registered CPA’s can provide the highest quality of audited financial statements that fairly and accurately represent the public company, detect material misstatements and false or missing information caused by fraud, and protect the interest of investors.
Have you been worried about the accounting problems like how to tally the Balance Sheet or put a particular entry in what book? Do you often worry about the fact that the accounts are not going the right way and the profit shown would not be the true representation? If you do not follow the practices mentioned on accounting by GAAP then, you could be fined or worse you could go to prison for false representation of facts. When there is a small business then hiring a CPA would turn out to be very expensive. The entrepreneur would normally do them and make a lot of errors in the process. That way he would not know the true valuation of his business. This could lead to problems not only for him but also to the business and its investors. Hence true representation of facts is extremely important. An accountant helps you end all your worries on accounting problems and gives you a brighter look for the day. Here is how: -
An NJ accountant firms follows the best accounting practices and the most relevant policies and rates. They have a series of professionals who help them in making the accounts look good. Basically they handle accountants for all businesses. It could be a large scale business or a small scale business, it could be in the realty sector or the pharmacy industry, and they handle accounts for all of them. Since they handle accounts for all the industries they are aware of what policies to take for what industry and what tax rates and depreciation rates are applicable.
They operate through a set of complex and good software which help them get the results in minutes. They not only get the results and send the final Income Statement and Balance Sheet, also find out any errors that might be there due to wrong entry etc. They provide company with weekly, monthly, or quarterly reports so that the company might evaluate the way the business is progressing.
NJ Accountant firm not only offers its services to New Jersey but also helps other business across the state. They get business from a lot of other states and this helps them in expanding their horizons.
NJ accountant also helps the management in various decisions that affect the business. For example if a deal is not right according to the accounting standards then they would advice the company to take the right decision. When an expert looks at the books of accountants, they realize the areas where the business is lacking and what areas are the strengths of the business. They can find the errors easily and they can make sense of where and how the business is progressing. They prepare reports of these results and send them to the company and counsel the business firm regarding new ideas and developmental issues of accounting. With a good accountant services, a company can go far and experiment with growth prospects and New Jersey Accountant does that job really well.
Peter Terry has extensive knowledge about bookkeeping and knows the importance of this for running a successful business. To know more about New Jersey bookkeepers, New Jersey bookkeeping, accountant New Jersey, NJ Accounting, NJ accountant and New Jersey Tax Accountant visit www.jerseybookkeepers.com
All Certified Public Accountant (CPA) firms, in the US and foreign, that provide audited financial statements for public companies registered with the SEC (Securities and Exchange Commission) must be registered with the Public Company Accounting Oversight Board (PCAOB), sometimes referred to as Peekaboo. The PCAOB is a private-sector, nonprofit corporation that was created by the Sarbanes-Oxley Act of 2002 which is under the jurisdiction of the SEC. The Sarbanes-Oxley Act and the creation of the PCAOB were a result of the accounting fraud scandals of Enron and WorldCom. There are currently over 2,000 public firms registered with the PCAOB, with more pending registration. A list of current and pending registered firms can be found on the PCAOB website.
Only Certified Public Accountants (CPA’s) can prepare audited financial statements on behalf of a business or non-profit organization. In order for a non-certified accountant to become a CPA, the accountant needs to work for an accounting firm for a few years, acquire five hundred hours of auditing time, and pass a test from the American Institute of Certified Public Accountants as well as from their state. A CPA also must take 120 hours of continuing education courses every three years to maintain their license.
The purpose of the Public Company Accounting Oversight Board is to oversee auditors, (accounting firms, Certified Public Accountants (CPA’s), accountants) of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audited financial statements. The PCAOB’s goal is to improve the quality of audited financial statements, reduce the risk of auditing failures, and increase public trust in financial reporting processes and of the auditing profession. The PCAOB has established auditing, quality control, ethics, and independence standards to be used by registered public accounting firms in the preparation of audited financial statements for publicly traded companies, as required by the Sarbanes-Oxley Act of 2002 and the rules of the Securities and Exchange Commission .
The Sarbanes-Oxley Act of 2002 requires the PCAOB to: register all CPA firms that audit public companies; inspect registered CPA firms annually for those who annually audit over 100 public companies and a minimum of once every three years for those that audit under 100, assess the degree to which the CPA firms comply with the act, the rules of the PCAOB and the SEC, professional standards in connection with the performance and issuance of audited financial statements and attest services; related matters involving public companies, and investigate and discipline any accounting firms and related accountants who are in violation of specific laws or standards. All CPA firms are still required to have peer review of their auditing and accounting practice in order to satisfy the American Institute of Certified Public Accountants (AICPA) membership, federal regulatory (Generally Accepted Auditing Standards) and/or state licensing requirements.
The PCAOB currently has pending a requirement that all registered CPA firms submit an annual report on Form 2, provided on the PCAOB website, by June 30th, except for those firms that have been registered between April 1st and June 30th of that year. Also they will be required to pay an annual fee to the PCAOB by July 31st. As these requirements are still pending approval, the annual report and fees are not required for the 2009 calendar year deadlines. In these reports the registered CPA firms must provide various information for the year including: audited financial statement reports issued during the year; disciplinary history of any accountants that joined the firm during the year; a break down of the fees for services provided to all clients during the year, showing the percentage of the fees billed to public audit clients for audit services, other accounting services, tax services, and non-audit services. The PCAOB also requires registered CPA firms to submit special reports on Form 3 within 30 days of the occurrence of the special event. Such special events include change of name or contact information, withdrawal of an audited financial statement by an auditor if the client did not report withdrawal in the 8-K filing with the SEC, and if legal, administrative, or disciplinary action have been taken again the firm or its related accountants. These reports, along with reports from the PCAOB on its inspections of public company audits will be available to the public on their website.
It is the responsibility of the registered CPA firms that audit financial statements for public companies to provide accurate and independent reports. By following the rules and regulations of the PCAOB, AICPA, and GAAP, registered CPA firms can provide the highest quality of audited financial statements that fairly and accurately represent the public company, detect material misstatements and false or missing information caused by fraud, and protect the interest of investors.
All accounting firms, in the US and foreign, that provide audited financial statements for public companies registered with the SEC (Securities and Exchange Commission) must be registered with the Public Company Accounting Oversight Board (PCAOB), sometimes referred to as Peekaboo. The PCAOB is a private-sector, nonprofit corporation that was created by the Sarbanes-Oxley Act of 2002 which is under the jurisdiction of the SEC. The Sarbanes-Oxley Act and the creation of the PCAOB were a result of the accounting fraud scandals of Enron and WorldCom. There are currently over 2,000 public accounting firms registered with the PCAOB, with more pending registration. A list of current and pending registered firms can be found on the PCAOB website.
Only Certified Public Accountants (CPA’s) can prepare audited financial statements on behalf of a business or non-profit organization. In order for a non-certified accountant to become a CPA, the accountant needs to work for an accounting firm for a few years, acquire five hundred hours of auditing time, and pass a test from the American Institute of Certified Public Accountants as well as from their state. A CPA also must take 120 hours of continuing education courses every three years to maintain their license.
The purpose of the Public Company Accounting Oversight Board is to oversee auditors, (accounting firms, Certified Public Accountants (CPA’s), accountants) of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audited financial statements. The PCAOB’s goal is to improve the quality of audited financial statements, reduce the risk of auditing failures, and increase public trust in financial reporting processes and of the auditing profession. The PCAOB has established auditing, quality control, ethics, and independence standards to be used by registered public accounting firms in the preparation of audited financial statements for publicly traded companies, as required by the Sarbanes-Oxley Act of 2002 and the rules of the Securities and Exchange Commission (SEC).
The Sarbanes-Oxley Act of 2002 requires the PCAOB to: register all accounting firms that audit public companies; inspect registered accounting firms and their associated certified public accountants annually for those who annually audit over 100 public companies and a minimum of once every three years for those that audit under 100, assess the degree to which the firms comply with the act, the rules of the PCAOB and the SEC, professional standards in connection with the performance and issuance of audited financial statements and attest services; related matters involving public companies, and investigate and discipline any accounting firms and related accountants who are in violation of specific laws or standards. All firms are still required to have peer review of their auditing and accounting practice in order to satisfy the American Institute of Certified Public Accountants (AICPA) membership, federal regulatory (Generally Accepted Auditing Standards) and/or state licensing requirements.
The PCAOB currently has pending a requirement that all registered firms submit an annual report on Form 2, provided on the PCAOB website, by June 30th, except for those firms that have been registered between April 1st and June 30th of that year. Also they will be required to pay an annual fee to the PCAOB by July 31st. As these requirements are still pending approval, the annual report and fees are not required for the 2009 calendar year deadlines. In these reports the registered firms must provide various information for the year including: audited financial statement reports issued during the year; disciplinary history of any accountants that joined the firm during the year; a break down of the fees for services provided to all clients during the year, showing the percentage of the fees billed to public audit clients for audit services, other accounting services, tax services, and non-audit services. The PCAOB also requires registered firms to submit special reports on Form 3 within 30 days of the occurrence of the special event. Such special events include change of name or contact information, withdrawal of an audited financial statement by an auditor if the client did not report withdrawal in the 8-K filing with the SEC, and if legal, administrative, or disciplinary action have been taken again the firm or its related accountants. These reports, along with reports from the PCAOB on its inspections of public company audits will be available to the public on their website.
It is the responsibility of the registered accounting firms that audit financial statements for public companies to provide accurate and independent reports. By following the rules and regulations of the PCAOB, AICPA, and GAAP, registered firms can provide the highest quality of audited financial statements that fairly and accurately represent the public company, detect material misstatements and false or missing information caused by fraud, and protect the interest of investors.
All accountants, in the US and foreign, that provides audited financial statements for public companies registered with the SEC (Securities and Exchange Commission) must be registered with the Public Company Accounting Oversight Board (PCAOB), sometimes referred to as Peekaboo. The PCAOB is a private-sector, nonprofit corporation that was created by the Sarbanes-Oxley Act of 2002 which is under the jurisdiction of the SEC. The Sarbanes-Oxley Act and the creation of the PCAOB were a result of the accounting fraud scandals of Enron and WorldCom.
Only Certified Public Accountants (CPA’s) can prepare audited financial statements on behalf of a business or non-profit organization. In order for a non-certified accountant to become a CPA, the accountant needs to work for an accounting firm for a few years, acquire five hundred hours of auditing time, and pass a test from the American Institute of Certified Public Accountants as well as from their state. A CPA also must take 120 hours of continuing education courses every three years to maintain their license.
The purpose of the Public Company Accounting Oversight Board is to oversee auditors, (accounting firms, CPA’s, accountants) of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audited financial statements. The PCAOB’s goal is to improve the quality of audited financial statements, reduce the risk of auditing failures, and increase public trust in financial reporting processes and of the auditing profession. The PCAOB has established auditing, quality control, ethics, and independence standards to be used by registered public accounting firms and their respective accountants in the preparation of audited financial statements for publicly traded companies, as required by the Sarbanes-Oxley Act of 2002 and the rules of the Securities and Exchange Commission (SEC).
The Sarbanes-Oxley Act of 2002 requires the PCAOB to: register all accounting firms, CPA’s, and accountants that audit public companies; inspect all registered firms and their accountants annually for those who annually audit over 100 public companies and a minimum of once every three years for those that audit under 100, assess the degree to which the firms and their accountants comply with the act, the rules of the PCAOB and the SEC, professional standards in connection with the performance and issuance of audited financial statements and attest services; related matters involving public companies, and investigate and discipline any firms and their accountants whom are in violation of specific laws or standards. All firms and their accountants are still required to have peer review of their auditing and accounting practice in order to satisfy the American Institute of Certified Public Accountants (AICPA) membership, federal regulatory (Generally Accepted Auditing Standards) and/or state licensing requirements. There are currently over 2,000 public firms registered with the PCAOB, with more pending registration. A list of current and pending registered firms can be found on the PCAOB website.
The PCAOB currently has pending a requirement that all registered firms and accountants submit an annual report on Form 2, provided on the PCAOB website, by June 30th, except for those firms and accountants that have been registered between April 1st and June 30th of that year. Also they will be required to pay an annual fee to the PCAOB by July 31st. As these requirements are still pending approval, the annual report and fees are not required for the 2009 calendar year deadlines. In these reports the registered accountants must provide various information for the year including: audited financial statement reports issued during the year; disciplinary history of any accountants that joined the firm during the year; a break down of the fees for services provided to all clients during the year, showing the percentage of the fees billed to public audit clients for audit services, other accounting services, tax services, and non-audit services. The PCAOB also requires registered accountants to submit special reports on Form 3 within 30 days of the occurrence of the special event. Such special events include change of name or contact information, withdrawal of an audited financial statement by an auditor if the client did not report withdrawal in the 8-K filing with the SEC, and if legal, administrative, or disciplinary action have been taken again the firm or its related accountants. These reports, along with reports from the PCAOB on its inspections of public company audits will be available to the public on their website.
It is the responsibility of the registered accountants that audit financial statements for public companies to provide accurate and independent reports. By following the rules and regulations of the PCAOB, AICPA, and GAAP, registered accountants can provide the highest quality of audited financial statements that fairly and accurately represent the public company, detect material misstatements and false or missing information caused by fraud, and protect the interest of investors.
Working in the present economic environment is very difficult for most companies which is why a good accountant is always a very valuable asset to have and in the present economic climate it is even more important.
As well as the normal issues that businesses have to deal with including cash flow, new proposals and relationships with banks, companies have now to deal with a down turn in business. This can be very difficult and it is something that most businesses have not dealt with over the last 15 years. For most companies new issues are arising for example dealing with the revenue, late tax payments and debt collection. These new activities can distract the business from what it should be focusing on which is dealing with a downturn in business.
A good accountant will take away a lot of the pain associated with dealing with the revenue. Also a good accountant would give you advice on how you should tackle the downturn within your own company. Answering questions like how am I going to handle the redundancies, what new skill sets should I train for, how to relocate staff and many more questions like these.
Accountants themselves have to change to adapt to the new economic environment. This is really important so that they can hold onto their clients and also gain new ones. As word of mouth is the best way to advertise your business, word would really spread rapidly about you if you are the accountant that will deal with revenue in an efficient manner to enable a company to focus on the day-to-day running of their business.
Providing this service for companies is new to accountants as over the last 15 years they have been dealing with issues like how to grow your business, what staff to hire and how to restructure in times of growth. Also dealing with issues like what to do with surplus cash, do I put into a pension fund, do I invest in property? These are no longer the burning issues that companies have to deal with. Accountants need to be proactive and need to meet problems head-on and also need to be available to talk to their clients.
In a lot of cases accountants will be blamed for the poor performance of past investments based on their advice given to clients. Accountants will have to work with their clients on a go forward basis no matter what the performance of previous investments. Accountants who work with clients even when tensions are high have a better chance of maintaining their current client base. For the customer, changing one’s accountant is a huge decision and not one that’s taken lightly. This means that the accountant has every opportunity to hold on to their clients even in difficult times like this.
In 2009 most businesses are facing into a downturn. Because of this most businesses are facing a shortfall in their cash projections and are running into trouble meeting all their obligations. Because the situation is so dire, revenue will work with businesses to try to come to a resolution that would keep both sides happy. Accountants have a key role to play in this relationship.
