Public Accounting Firms Flashcards, test questions and answers

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What is Public Accounting Firms?

Public accounting firms are professional services firms that offer services such as auditing, tax preparation, bookkeeping, and consulting services. These firms employ Certified Public Accountants (CPAs) who are licensed and regulated by the state in which they practice. Public accounting firms provide a wide range of services to their clients, ranging from small businesses to large public companies.Public accounting firms are responsible for providing assurance on financial statements prepared by companies that have gone public or have publicly traded assets. They also provide tax advice to their clients and prepare tax returns for filing with local, state and federal government agencies. Additionally, they can advise on various areas of finance including risk management, investments and financial planning.Public accounting firms often serve as an independent third party for companies seeking an objective assessment of their financial activities or records. They audit company books in order to ensure accuracy and adherence to generally accepted accounting principles (GAAP). Audits also reveal any potential fraud or misstatement of information that may be contained within the company’s financial records. The firm is then able to take corrective action if needed.Public accounting firms can provide valuable advice on how best to structure a business in order to maximise profits while remaining compliant with applicable laws and regulations. They can assist with selecting the most appropriate form of taxation depending upon the client’s needs while advising on ways in which compliance costs can be minimised over time through careful planning. Ultimately, these professionals help organizations increase wealth by providing sound advice regarding their finances while helping them stay compliant with relevant laws and regulations throughout the life cycle of their business operations.