Public Accounting

Public Accounting

1. It concerned to accounting services for public society
2. Licensed professionals engaged in the practice of public accounting are called Certified Public Accountant (CPA)
3. The most important service performed by public accountants is auditing of company’s financial statement
4. Others activities of public accountants are handling tax, accounting information system, etc
5. All CPAs are not necessarily engaged in the practice of public accounting
6. Some of CPAs can be employees of firms or teachers or working for governmental bodies or other profession.

 
  Internal Accounting

1. Accountants employed by individual business firms are engaged in private accounting. They are called internal accountant or private accountant
2. A number of different services that private accountants perform are controller, bookkeeper, cost accountants, internal auditor, tax specialist, and budget former

  

The Fields of Accounting Specialization

1. Financial/ general accounting

1. It produces financial information which is prepared in the financial statement
2. Users of these information are external decision maker. They are company’s owners, creditors, government, employees, and customers of the company

 2. Cost accounting

1. This field generate the information of various costs in the manufacture and sale of the firm’s goods
2. The main category of information needed by management is to be a plan and control for daily company activities
3. These information will be used to make both long term and short term plan

 3. Management accounting

• There are three function in management accounting activities, that are:

1. To choose and plan data
2. To analysis data
3. To prepare report for management  

• A product of management accounting is management report

 4. Auditing

1. Auditing is the field of accounting related by audit activities to notes of financial accounting product
2. An audit is simply an investigation and study of the financial statement and reports prepared by a firm to determine if these reports are prepared according to generally accepted accounting principles (GAAP)  

 5. Tax accounting

          It’s concerned with determining tax expense of the company. It can help the company to choose their activities by management’s judgment

 6. Budgetary accounting 

It describes and explains to collect and process:

data of financial operation in the past time
the predicted of data in the future time

Determined the planning of company’s financial operation (budget) in the certain time or one year

7. Governmental accounting 

         Some government in the world employed accountants help administer the monetary of the country. 

 

Next