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CPA REPORT Essay

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CPA Report
ACC 545
September 30, 2013

CPA Report
The manager of a large organization has asked the CPA to provide information to outside CPAs examining a subsidiary that has been set up as a corporation. As a part of their review, the outside CPAs want to be provided with the several explanations. The CPAs want to know the methodology used to determine deferred taxes and the procedures for reporting accounting changes and error corrections. The CPAs also want to know the rationale behind establishing the subsidiary as a corporation.
Methodology Used to Determine Deferred Taxes
The methodology used to determine deferred taxes deals with the basic principles of accounting for income taxes. According to FASB (2013),
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Attractive to Potential Employees. Corporations are generally able to attract and hire high-quality and motivated employees because they offer competitive benefits and the potential for partial ownership through stock options (U.S. Small Business Administration, 2013).

MEMORANDUM

TO: Manager

FROM: CPA

DATE: September 30, 2013

SUBJECT: Professional responsibilities as a CPA

In response to the request for more information, the following is a summary of the professional responsibilities of a CPA. This memo will also cover the differences between a review and an audit.

CPAs perform an essential role in society, and they are responsible to all those who use their professional services. CPAs have a continuing responsibility to improve the art of accounting, maintain the public’s confidence, and carry out the profession’s special responsibilities for self-governance (The CPA Journal, 2004).

CPAs must adhere to the AICPA Code of Professional Conduct, which sets forth certain standards of professional conduct. AICPA members are bound by the AICPA Code of Professional Conduct. Rule 201 requires that members provide professional services with competency (AICPA, 2013). According to AICPA (2013), “In the delivery of personal financial planning services, a
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