The Accounting Profession
PROFESSIONAL ACCOUNTING DESIGNATIONS
Designation
Organization
Chartered Accountant
Canadian Institute
(CA)
of Chartered Accountants
Job Emphasis
Public Accounting
(CICA)
Certified Management
Society of Management
Management &
Accountant (CMA)
Accountants (SMAC)
Private Accounting
Certified General
Certified General
Accountant
Accountants’ Assoication
(CGA)
of Canada (CGAAC)
Private and Public
PUBLIC ACCOUNTING
 An accounting business which offers a
variety of accounting services to other
businesses, individuals, and organizations
including the government.
 Auditing
 Income Tax
 Management Advisory Services
 Most people working in Public Accounting
are Chartered Accountants (CA’s).
 In Ontario, only CA’s can legally perform
audits
Auditing
The principal function of public accountants
A careful study of the company’s accounting
system and gathering of evidence both from
within the business and outside sources
which is used to formulate a professional
opinion about the fairness, accuracy, and
reliability of the financial statements of the
company.
Public corporations must be audited each
year
Statements are then sent to shareholders
and creditors. Copies are made available to
the public
Income Tax Services
Provide tax planning
(to keep taxes
down) and prepare
corporate tax
returns
Management Advisory Services
Acts as a consulting service for various
purposes:
 Conducting a feasibility study of installing or
upgrading a computer based accounting
system.
 Introducing a new product line
 Merging with another company
Largest Public Accounting Firms
PRIVATE ACCOUNTING
An accountant in private industry is
employed by a single organization.
The individual may be hired for a position
in the company and be responsible for:
 Financial Accounting
 Internal Auditng
 Tax Accounting
 Cost Accounting
Financial Accounting
Develops and communicates information
for both internal and external use.
Follows Generally Accepted Accounting
Principles (GAAP)
Financial Statements (F/S) are the end
product of financial accounting.
Generally Accepted Accounting
Principles (GAAP)
Set of rules or standards that
accountants must follow when
practicing accounting. All
businesses and organizations should
be following these principles.
The regulations are established by
the CICA and recorded/published in
the CICA Handbook. (Canadian
Institute of Chartered Accountants)
GAAP Principles
The Business Entity Concept
The accounting for a business organization
must be kept separate from the personal affairs
of its owner, or from any other business or
organization.
Keep
Separate
Records
GAAP Principles
The Continuing Concern Concept
Assumes that a business will
continue to operate unless it is
known that it will not.
GAAP Principles
The Principle of Conservatism
Accounting for a business should be fair
and reasonable.
Internal Auditing
Responsible for evaluating the system of
internal control to ensure that accounting
reports are reliable, that the company’s
resources are safeguarded against theft
or wasteful use, and policies are followed
consistently by all.
Tax Accounting
Due to the complexity of taxes, many
companies maintain their own tax
departments in addition to using the
services of a CA (Public) firm.
Cost Accounting
Concerned with collecting
and interpreting cost data
of running the business
to make informed
decisions.