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C P A P R O F E S S I O N A L S E R V I C E S
Procedure
new and evolving market opportunities.
Show the AICPA video to your organizations that provide addi- Distribute copies of
class and distribute the career tional information and material Activity #12 and explain
guides to your students. about career opportunities in the rules of the game.
Using the career guide, discuss accounting and as a CPA. Explain that for each
the various services provided Distribute copies of the Topic situation there can be
by CPAs, the industries that Overview to your students to more than one answer,
CPAs work in, the positions CPAs read in class. BUT there is one answer
hold, and the earning potential a that is best. The CPA firm
Divide your class into teams and
CPA possesses. In addition, discuss (team) with the highest
have each team select a CPA firm
the requirements for becoming a dollar total (score) is the
name and team spokesperson.
CPA and identify the most successful firm and
the “winner” of the game!
Teaching-tips
Students create “flashcards” for each possible answer Jeopardy Round! Allow student teams to secretly wager an
(i.e., the CPA services introduced in the Topic Overview) amount up to but not exceeding their accumulated total
using notebook paper. For each situation, allot teams 60 prior to reading and answering the last situation (Job A10
seconds to select an answer, which each team spokesperson and Job B10) in each round.
will identify using their flashcard.
Overview
The accounting profession is one of the most respected and
rewarding career paths available to students. At the pinnacle of
the accounting profession is the Certified Public Accountant
(CPA). CPAs are versatile business strategists who provide valuable
insight and information to individuals and companies
working to improve their financial position or business
performance. CPAs work for public accounting
WebTrust : CPAs conduct an examination of Internet-based
systems that carries the professional equivalent of a financial
statement audit. WebTrust, an assurance service, is designed to
build confidence among consumers and businesses purchasing
goods and services over the Internet. The WebTrust seal
of approval is given to companies that comply with stated
procedures, thus assuring consumers that they can transact
firms, corporations and private businesses, govern- business electronically with confidence.
ment agencies, education institutions, and not-for- SysTrust : CPAs examine the reliability of information systems
profit organizations. and provide assurance that transactions are processed
CPAs perform certain core services: Assurance accurately, without security and privacy concerns.
Services and Information Integrity, Technology Performance View : CPAs identify the critical factors that will
Services, Management Consulting and lead to success in a business and then measure, track and
Performance Management, Financial analyze them in order to assess the progress made in achieving
Planning, and International Services. specific goals and targets.
Assurance Services and Information ElderCare: Through ElderCare, CPAs provide assurance to
Integrity: CPAs provide services that children and family members that elderly family members, no
improve and assure the quality of longer able to live independently, will have long-term care. The
information used in making business CPA, working with other professionals, such as healthcare
decisions. The CPA’s assurance has practitioners and attorneys, coordinates and assures the quality
traditionally been applied to financial of services provided to the elderly person.
statements in the form of an audit.
An audit is the process of verifying Technology Services: CPAs provide services that help businesses
the accuracy and legitimacy of accomplish their goals by designing and implementing
the accounting practices computer systems and software applications that improve
used by a company. business performance and decision-making.
The purpose is to Management Consulting and Performance Management:
determine whether CPAs utilize their strong problem-solving skills and broad
the company’s finan- business knowledge to provide objective advice and insight
cial statements, which to any company on a wide range of management and
include the Income performance issues. For instance, CPAs provide services
Statement, Balance Sheet, that deal with business valuation, operational efficiency,
Statement of Stockholder’s Equity, strategic planning, organizational restructuring, business risk
and Statement of Cash Flows, have been assessment, and mergers and acquisitions.
prepared and stated in accordance with specified
Forensic Accounting also falls under the management consulting
accounting criteria. CPAs refer to this “specified
umbrella. In forensic accounting, also known as investigative or
accounting criteria” as GAAP, or Generally
fraud auditing, CPAs search beneath the accounting records,
Accepted Accounting Principles. The
analyzing the “paper trail” for evidence of criminal conduct.
Securities and Exchange Commission
requires public companies— ones that sell Financial Planning: As a financial planner, the CPA assists clients
their stock in public financial markets such as in identifying financial objectives and advising them of the risk,
the New York Stock Exchange — to undergo an annual audit of liquidity, management and tax characteristics of investments.
their financial statements by an independent CPA. Examples of financial planning services include developing
investment strategies, tax consulting, insurance analysis and
In addition to traditional audit services, new exciting niche
retirement planning. The CPA also assists clients with preparing
areas have increased the demand for the expertise of CPAs. The
income tax returns.
new assurance services that CPAs provide — WebTrustSM/TM,
SysTrustSM, Performance View, and ElderCare — require a International Services: CPAs provide international consulting
multitude of skills and knowledge, such as technology in services, such as the development and implementation of
the case of WebTrust and SysTrust, which CPAs have gained operating procedures that are in accordance with the laws,
through their education and work experience. rules and regulations of a foreign country. Serving multinational
businesses requires an understanding of the business practices
of different countries and cultures.
Round-1
Activities
Your team is a CPA firm and the individuals and
companies listed below are your clients. Round 1: Identify
the Service that
Your CPA Firm is
Round 2: What
Service Does
Your Client Need?
For each of the independent situations, identify the Providing
CPA service that you are providing for your client. For
Job A1 $ Round 1 Total $
each correct answer, award your firm $10,000! For
each incorrect answer, award zero dollars. Job A2 $ Job B1 $
Job A3 $ Job B2 $
Round-2 Job A4 $ Job B3 $
For each of the independent situations, identify the Job A5 $ Job B4 $
CPA service that your client needs. For each correct Job A6 $ Job B5 $
answer, award your firm $10,000. For each incorrect
Job A7 $ Job B6 $
answer, deduct $10,000 from your firm's total!
Job A8 $ Job B7 $
Use the table to the right to score your CPA firm’s Job A9 $ Job B8 $
results and remember that for each situation there can Job A10 $ Job B9 $
be more than one answer, BUT there is one answer Round 1 Total $ Job B10 $
that is best. Grand Total $
Job# B2. The Wilson Company started a fast food Job# B7. The Central Partnership is a free Web-based
restaurant called “Willy’s” and is in its fifth year of oper- dating service that has experienced tremendous
ation. Sales at Willy’s have increased every year and the growth in the last two years. It now wishes to sell gifts
Wilson Company is now considering opening additional and other products over its site and wants to assure
restaurants or offering franchises or both. customers that the site is secure.
Job# B3. The Rumba Company manufactures distinctive Job# B8. Joe, a college graduate, started his own insur-
chinaware patterns. Rumba has been quite successful ance agency ten years ago. At the time, Joe had one
in the United States and now plans to distribute its office with two employees and filed applications with
chinaware in Europe and eventually set up a facility the insurance companies manually. Joe now has eight
in Italy. offices in three states with over 100 employees and is
finding that the manual system of filing insurance
Job# B4. Margaret is the controller of a large sports applications is inefficient.
arena. While she was on her honeymoon, a temporary
employee was hired to fulfill her role. Margaret believes Job# B9. The Rodgers Corporation is a profitable, well-
funds from a recent concert were embezzled because known exercise and fitness business. The company,
they are recorded in the computer ledgers but do not however, has had difficulty hiring and retaining quality
show up on the bank statement. personnel. On average, most new hires leave the com-
pany after three years.
Job# B5. Joan and Jim, who are both employed, are
expecting their first child in March. Joan and Jim hope Job# B10. Sweet Pea, Inc., a large domestic producer
to have a second child as well and send both children of fruits and vegetables, is a public company.
to college and graduate school. According to Securities and Exchange Commission
(SEC) guidelines, public companies must report quarterly
earnings and produce an annual report.
Answers
round-1: IDENTIFY THE SERVICE THAT YOUR CPA FIRM IS PERFORMING.
Job# A1 Assurance Services — Auditing
Job# B6 Assurance Services — Financial statement preparation and compliance with SEC
regulations regarding an IPO (Initial Public Offering)
Job# B10 Assurance Services — Audit quarterly and annual financial statements and audit
or prepare other SEC required financial reports