Auditing in India and public accounting in USA are same. In India, it is the duty of chartered accountant to check the books of accounts of company. In USA, certified public accountant does same duty. It means that both Indian CA and USA CPA have professional identity for auditing the books of company and Attestation of financial statements.
In public accounting, CPA audits day book, ledger book and financial statement. He notes all the points which create the doubts regarding true recording of transactions, material misstatement. He also checks adherence to the applicable generally accepted accounting principles (GAAP) in financial statements. It will become the part of his audit report. Simple words, public accounting is most dedicated and disciplined work in this field.
I remembered when I did my audit training from CA because I wanted to know auditing deeply. I spent my 9 to 10 hours just analyze the balance sheet. Auditor can find many clues of default in recording just analysis of balance sheet. Suppose, I show following proforma of balance sheet of 2010 and 2011 of XYZ corporation.
In public accounting, CPA audits day book, ledger book and financial statement. He notes all the points which create the doubts regarding true recording of transactions, material misstatement. He also checks adherence to the applicable generally accepted accounting principles (GAAP) in financial statements. It will become the part of his audit report. Simple words, public accounting is most dedicated and disciplined work in this field.
I remembered when I did my audit training from CA because I wanted to know auditing deeply. I spent my 9 to 10 hours just analyze the balance sheet. Auditor can find many clues of default in recording just analysis of balance sheet. Suppose, I show following proforma of balance sheet of 2010 and 2011 of XYZ corporation.
What you think after seeing this balance sheet. Just watching above balance sheet 4 or 5 minutes will give you nothing clue of anything. But after 4 or 5 hours analyzing above balance sheet's each item by checking its entries, voucher verification, double verification, checking according to the provisions of laws, there will be open many doors. Opinion of public accountant is ancillary to every interested party of company. These opinion is published in audit report with all the audited financial statements of company. Please check any sample of company's audit report in latest newspaper.
In public accounting, sometime public accountant or auditor may be appointed for detecting, and investigating financial frauds before acquisition other company. At this time, public accountant checks again the books of accounts for finding the risk level in other company's assets, defaults in given debt or credit and so many other questions, he has to solve. Only after this, board of directors pass the resolution for buying other company.
I think, you can conclude above discussion that public accounting is serious and challenging portfolio for your growth in profession in which you have to do your profession without caring your leaves or holidays or rest.
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