An organization that reviews activities to identify inefficiencies,
reduces costs, investigate potential theft or fraud and ensure compliance with
appropriate regulations and policies, also ensure the accuracy of reports is
known as audit firm/CPA(certified public accountant) firm.
Activities
of audit/CPA firm.
-The activities of a audit firm can be classified into two part:
(1)Primary activities
(a)Financial statement audit: The financial statement of an
business organization such as income statement, statement of cash flows are
audited in financial statement audit.
(b)Operational audit: Here the audit is done by auditing the day
to day activities of a business organization.
(c)Compliance audit: The purpose of compliance audit is to
determine whether an auditing is done by following exact regulations and law or
not.
(2)Additional activities
(a)Accounting and bookkeeping services: Sometimes the journal
and the ledger of some small company are prepared by audit/cpa firm.
(b)Tax services: Audit firm prepare corporate and individual tax
returns for both audit and non-audit clients. Some times the audit firm
calculate estate tax, gift tax etc. for their clients.
(c)Management consulting services: Most CPA firm consult their
clients and instructs them in order to operate their business more effectively.
These are known as management consulting services.
