ACAUD 2247
Professional Practice of
Accountancy: An Overview
Join me in PRAYER
The prayer
Lord, that I may think what
you want me to think
That I may love what you
want me to love
That I may speak what you
want me to speak
That I may act the way you
want me to act
This is my only ambi@on Lord.
St. Igna@us de Loyola – pray for us
St. Pedro Poveda – pray for us
Systema-c Theory
Professional
Authority
Community
Sanc-on
Regula-on/
Ethical
Code
A Culture
Mastery: intellectual
skills acquired by
training & educa-on
Adherence to a common
code of values &
conduct established
by administering body
Acceptance
of duty to
society as a
whole…
Professional
Accountant in
Public Prac@ce
- Audit
- Tax
- Consul@ng
Valid Cer-ficate issued by BOA
Professional
Accountant in
Business
- Commerce
& Industry
- Educa@on
- Government
Prac-ce of
Public
Accountancy
Prac-ce in
Commerce &
Industry
Prac-ce in
Educa-on/
Academe
Prac-ce
in the
Government
Consider the following statements:
“The economy would not demand financial
statement audits for public companies in the
absence of regula@on.”
“Auditors are in the “comfort produc@on
business”, as they give comfort to decision
makers who are vulnerable to erroneous, selfinterested, & possibly fraudulent financial
statements from corporate management.”
Role of audit
Since its introduc@on, the need for certain
companies’ F/S to be audited by an independent
external auditor has been a cornerstone of a
confidence in the world’s financial systems.
The benefit of an audit is that it provides
assurance that management has presented a
true & fair view of company’s F/S. An audit
underpins the trust & obliga@on of stewardship
between those who manage a company & those
who own it or otherwise have a need for a true
& fair view, the stakeholders.
Public Prac-ce
COA
BIR Examiners
Regulatory Auditors
A. Independent Financial Statement Audit
Consists of methodical review & objective examination
of Financial Statement prepared by an entity (auditee) to
determine if such financial statements has been
prepared in conformity with financial reporting practices
appropriate to the auditee.
B. Internal Audit
An independent, objective assurance and consulting
activity designed to add value and improve entity's
operations. It helps accomplish its objectives by
bringing a systematic, disciplined approach to evaluate
evaluate and improve the effectiveness
effectiveness of risk manage-
ment, control and governance
processes.
C. Government Audit
Involves in the determination of whether government funds are handled properly in compliance
with existing laws and whether programs are
conducted efficiently and
economically.
F/STATEMENTs
COMPLIANCE
OPERATIONAL
Assertions made by the management
That F/S are
fairly presented
That the entity has
complied with laws,
regulations or
contracts
That the entity's
activities are
conducted effectively
& efficiently
Established Criteria
Financial
reporting
standards or F/S
framework
Laws,
regulations,
contracts
Objectives set by
the Board of
directors
F/STATEMENTs
COMPLIANCE
OPERATIONAL
Content of the AUDITOR'S report
An opinion
whether the F/S
are fairly
presented in
conformity with
reporting
framework
Reports on the degree
of compliance with
applicable laws,
regulations & contracts
Recommendations on
how to improve the
operations.
Auditors who generally perform by
External
auditors
Government
auditors
External/Internal
Auditors
Internal auditors
External auditors
A forensic audit is an examina@on of a
firm’s or individual’s financial records
to derive evidence that can be used in
a court of law or legal proceeding.
Forensic audi@ng is a specializa@on
within the field of accoun@ng, & most
large accoun@ng firms have a forensic
audi@ng department.
Agreed-Upon Procedures
Tax Prepara-on & Planning Services
Management Advisory Services
Compila-on
Accoun-ng & Data Processing
System Services