Auditoria

auditing and the public accounting profession

Auditing plays a vita) role in busmess, governmenl, and our economy. Evi-dence of the importance of auditing is provided by the foJlowing:
* TThefipj^da] ^atements of over 14,000 public companies are audited annu-
aliy, including all companies vvhose securities are traded on the New York
Stock Exchange.
* Each state and localgovernment unit receivjng $100,000 or more per year in
fínancial assistance from the federa] government must have an annua] audit
under the Single Audit Act.
* In 1993, the Interna! Revenue Serviceaudiled nearly 1.2 million tax retums.
As a vocation, auditing offers the opportunity for challengíng and rewarding careéis in public accounting, industry, and government. Individuáis choosing anauditing career in a pubíic accounting firm will progress from a starling position of staff assistant, to sénior auditor, to manager, and then to partner. Becoming a partner ordinarily takes from ten torweive years. Auditing career paths in industry and goveniment vary considerably. Some state and local govemment chieí auditor positions are elective offices.
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objcctívés •
'" .'•"•• ' • Aftej- studying this cbapter.
yóu sbould be-abíe to'• •
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* • • •
' I v Explajn the common at-«ributís ef activities de: . finad as aúditing.- • • .
-2..Distinguish among.the dif-. ferent t^pés of aüdits and ; auditors. --' •" .
S.^Describe the histórica! roets qf a'uditing, . * •. '
4. CitVseveraJ milestbn'es in
the rfse'of the U.S.pubíic _
ácceunttng profession. '
•" • '• • •
5. Éxplain the nature of §t- • •
test sérvices and^Jescribe^
severa) types perforfned
• byCPAs..
" ' * • *
íi. Éxplain the nature ofnon-, attest services and describe severa! types.per-
• -formed by CPAs.
.'.- .— '.,ldalitify»severai prívate. '
sectoT organTzátions asso-
t
ciated with the prófesíion and explain théir...