1. Audit
It involves the examination of financial statements and generally forms an important part of the work of a practicing CA. All corporations must have their financial statements audited by an external CA. The main functions of the auditor of a company are to examine and verify the financial statements of the company; evaluate the company’s procedure for collecting, recording and reporting financial information; test the controls by which the company protects its financial system from fraud and error; and publish an independent professional opinion on whether the company’s financial statements give a “true and fair picture” of its financial affairs.
The audit improves the reliability of the monetary intelligences organized by a company. By ensuring that monetary statements are correct and complete, auditing increases their reliability and usefulness in obtaining financial results by investors, creditors, analysts, and others for economic decision making by investors, creditors, analysts, and others. Credible financial reports are essential for society to have confidence in public companies.
Auditors must be technically competent in their work and independent of the company whose financial statements they audit. A rigorous evaluation and evaluation system certifies that auditors possess the required technical skill, but it is not always easy for auditors to be independent of the company that hires and pays them. At a minimum, auditors should carefully avoid transactions and relationships with clients that may compromise their ability to express an independent professional opinion on their financial statements.
2. Fiscal services
The business enterprise has to consider the tax consequences of alternative courses of action. Tax services include not only the preparation of tax returns and compliance with tax laws, but also the planning of business activities with a view to minimizing taxes. Considerable tax savings can be achieved by properly organizing one’s business affairs. While tax evasion is definitely illegal, it’s perfectly legitimate for everyone to cut back on tax spending. To be successful in tax practice, an accountant must keep up with changes in tax statutes, rules, notices and circulars, as well as court decisions.
3. Management Consulting Services
A significant portion of the revenue of large accounting firms comes from management advisory services, a catch-all term for a wide variety of consulting activities. These services go beyond the outdated boundaries of accounting and auditing. Consulting assignments include:
• Recruitment of adequate personnel
• Review of cost systems
• Help with design
• Help growing companies go public.
4. Services for small businesses
Many accounting organizations provide a variety of services for small businesses. Setting up an accounting system, compiling financial statements, preparing budgets and forecasts, helping the client obtain a bank loan are examples of small business services.
