AICPA

AICPA stands for the American Institute of Certified Public Accountants. It is founded in 1887. AICPA is set up in the United States and it is the national professional organization of Certified Public Accountant.

Role of AICPA

1. It set a standard of ethics for the best practice for accounting.

2. Create guidelines with the new legislation.

3. In relation to accepted accounting practice (CPA) its monitors service quality.

AICPA is designed to resolve the issue related to the audit and preparation of an audit report by the CPA. The AICPA’s provide a higher professional manner benefits to the public, employers, and clients. There are more than 40,000 members in 128 countries in AICPA including government, industries, and international associates.

Audit:

The audit is defined as a systematic examination of books of accounts of an individual or an organization. Auditing is done by the professional CPA; we call them auditors. At the end of the accounting period when all the books of accounts are closed, an auditor ensures all the entries recorded in the books of accounts are accurate as required in the law.

Auditor:

The auditor is the person hired by the owner for a systematic examination of books of accounts of the company. The auditor uses its professional knowledge and gathers evidence. It should be a question minded, plan, and being alert to the condition of the misstatement due to fraud and error. 

Accountant:

An accountant is the person recorded the daily activity in the books of accounts according to the reporting financial framework.

Independence:

The accountant should be independent of its client because dependence can affect its decision or result.

Internal control:

Internal control is the process designed by the management to achieve the following objectivities:

1. Effectiveness of the operations and rescue the risk of assets loss.

2. Reliability of financing and non-financing external and internal reporting.

3. Follow the applicable rules, regulations, and laws.