Role Of The Public Accountant On The American Economy

2172 Words9 Pages
Running Head: THE ROLE OF THE PUBLIC ACCOUNTANT IN THE 1 The Role of the Public Accountant in the American Economy Simone Bowens Saint Leo University THE ROLE OF THE PUBLIC ACCOUNTANT IN THE AMERICAN 2 Independent certified public accountants (CPAs)/auditors performing auditing and attestation engagements play a very important role in the economy. Auditing services can assist businesses with (1) transparency, (2) ensuring they are following proper policies and procedures, (3) ensure internal controls are functioning properly and (4) detect fraud and errors. Auditors provide the necessary checks and balances. In addition to the services above auditors can also attest to various other types of subject matters including financial forecast, compliance with laws and regulations, and advertising claims. The information they provide must be accurate, dependable and reliable (Whittington/Pany, 2012). How the requestors of the information utilize the findings can have a negative or positive impact on our economy because these finding can affect (1) whether a bank will grant a business loan, (2) if investors will back a company, or (3) if the government is receiving a fair and reasonable price for goods and services, e.g. You may be wondering about the various types of auditors. There are (1) Internal Auditors, (2) Government Accountability Office Auditors and (3) Internal Revenue Agents and (4) Defense Contract Audit Agency (DCAA) Auditor e.g. (Whittington/Pany, 2012). Nearly every major corporation has an internal auditing section. The primary job of internal auditors is to investigate and appraise the effectiveness with which organizational units of the company are carrying out thei... ... middle of paper ... their internal controls. The government utilizing the results you provided them and negotiating downward on a contract and saving hundreds of thousands of dollars and perhaps millions of dollars in some cases. You may also bring fraud to light, which could lead not only in possible jail time for the perpetrator, but it could result in saving employees’ pension plans or exposing faulty mortgage loans (referring to crisis such as the historic Enron and more recently, the mortgage crisis). The affects a ‘good’ auditor can have a business are endless which will trickles down to a positive impact on the economy. THE ROLE OF THE PUBLIC ACCOUNTANT IN THE AMERICAN 10 REFERENCES Whitting, O. Ray, Pany, Kurt: Principle of Auditing and Other Assurance Services (18th ed.) . New York, NY: McGraw-Hill/Irwin
Open Document