C"P"A
Two meanings of the letter the "P" in CPA
What are Public and Purpose?
Every _____ is not a profession, but every _____ is a job
What is job and profession?
A ____ is anyone who makes their living in some occupation and possesses an expertise of knowledge about how to do things for the public
What is a professional?
(Not just anyone who possesses a marketable skill)
Stereotypical description of an accountant is a ____, who is past _____ ____, and ______
What is a man, who is past middle age, and intelligent?
(wrong image as many accountants are retiring and there are new opportunities at accounting firms for new hires that are young and are equipped with new technological expertise)
Licensure requirements can ______
What is vary?
Example: accounting tasks can be performed by an unlicensed accountant, but only a CPA can sign off on certain audits
Example: nurse can take blood pressure, but licensed physician can prescribe medication
Three requirements for accountants to obtain their CPA _____ , _____ and _____
What are education, examination and experience requirements?
____ is a task or practice that is done to earn money and is typically short-term
What is a job?
(not your career, but it is an integral part of your career)
True professionalism requires one to keep up with the necessary ______ to serve clients and to discharge duties
What are skills?
Describe offshoring
Corporate America is sending jobs that have not been automated yet to other countries where the labor costs are much cheaper
(The accounting profession will become more and more a consulting profession. All of us will become advisory experts, using our professional judgment to help clients make better decisions.)
Licensure provides an ____ _____ _____ for a professional to provide their services
What is an exclusive legal right?
(Professionals are usually organized in “societies” that promulgate “ethics codes”)
CPAs with proper expertise and independence provide greater _______ over more business areas, increasing confidence and the value of information
What is Assurance?
_____ requires advanced education that offers an objective to the person
What is a profession?
A professional has the job to provide _____ and _____ to the client who retains the professional service
What are advice and assistance?
(Client benefit and safety and welfare of general public)
Accounting does not exist in a _____
What is a Vacuum?
(Accountants will have to learn more technical skills, more integrative skills to interact with their clients)
Justification for the state to impose licensing requirements on the practice of law, medicine, accounting, and engineering is _______
What is paternalistic?
(In addition to the state’s paternalism, the professional will practice paternalism by refusing to carry out a clients wishes for that clients own good)
Two reasons to have purpose as a CPA
What are to build trust in society and solve important problems (for buyer and public users)?
Profession is a term derived from the Latin word ‘profiteering,’ which means to declare ______
What is publicly?
(Well-being of the public (navigating legal system, medical treatment, engineering plans are sound for skyscrapers, etc.))
Accountants and other professionals use _____ ______ to help their clients make better decisions
What is professional judgment?
Accountants will have to gain more ______ and ______ skills to interact with their clients due to advancements in this profession.
What are social and marketing skills?
Licensing requirements are defended on grounds of _________
What is paternalism?
(protecting client from self-inflicted harm) and on grounds of public safety and welfare (to protect others)
CPA's have to ask themselves two important questions
Do we have a culture that embraces our public responsibility?
Where else could assurance benefit investors and the public?
Five characteristics traits that provide a distinction between a profession and a job are
What are ......
Extensive training of an intellectual character
Vital services to society’s well being
High degree of autonomy as practitioners
Undergoing a certification process or licensing by the state to be eligible to carry out certain tasks and services
The ______ is a professional organization whose senior committees developed the professional standards that guided accounting decisions and auditing approaches
What is The American Institute of Certified Public Accountants (AICPA)?
Accounting firms experienced a change in culture that was based on delivering _______ services in a professional manner to a growing focus on enhancing __________ and ___________
What are professional services shifting toward growing revenues and profitability?
(New personnel, some at relatively high levels, who lacked a background in accounting professionalism gained an increasing influence in accounting firms due to new consulting practices)
Competing views regarding the value of state licensure requirements are _______ and ________
What are ......
1: serve economic interest of license holders but are not in public interest
(Law limits the performance of certain tasks to license holders)
2: all requirements are often in the public interest
(Reduces chances of going to a quack (cheaper service but not competent to diagnose or treat illness))