Solution manual for
o o
oprinciples of auditing and other as
o o o o o
surance services o o
22nd edition o o
by ray whittington kurt
o o o
,CHAPTER 1 o
The Role of the Publi
o o o o
c Accountant in the
o o o
American Economy o
Reviewo Questions
1-1 Theo―crisisoofocredibility‖olargelyoaroseofromotheonumberoofocompaniesothatorestatedotheiropreviouslyoissued
ofinancialostatementso aso aoresulto ofo accountingoirregularitieso andofraud.o Especiallyoresponsibleowereotheover
yovisibleoEnronoandoWorldComofraudocases.oBothocompanieso filedoforobankruptcyoandoconstitutedotheolarg
estocompanieso inoAmericanohistoryotoodooso.o Theoextento ofotheoaccountingoirregularitieso andofraudobeingoin
vestigatedoandodisclosedobroughtointooquestionotheoeffectivenesso ofofinancialostatementoaudits.o Inoaddition,
otheocriminaloconvictionoofoArthuroAndersen,oLLP,ooneoofotheothenoBig o5oaccountingofirms,oonochargeso ofo
destroyingodocumentso relatedotootheoEnronocaseobroughtointooquestionotheoethicso standardsoofotheoprofessi
on.
1-2 Assuranceoservicesoareoprofessionaloservicesothatoenhanceotheoqualityoofoinformation,ooroitsocontext,oforo
decision-
making.oTheotwootypesoare:o(a)othoseothatoincreaseotheoreliabilityoofoinformationoando(b)othoseothatoinvolv
eoputtingoinformationoinoao formoorocontextothato facilitateso decision-making.
1-3 Aofinancialostatementoauditois,obyofar,otheomostocommonotypeoofoattestoengagement.o Theooveralloassertion,o
madeobyomanagement,omostofrequentlyoisothatotheofinancialostatementsofollowogenerallyoacceptedoaccounti
ngoprinciples.
1-4 Aolargeocorporationowithosecuritiesolistedoonoaostockoexchangeoisorequiredobyotheorulesoofotheostockoexchang
eoandobyotheoruleso ofotheoSecuritieso andoExchangeoCommissionotooprovideoanoaudito reporto withotheoannualofi
nancialostatementsofurnishedotooitsostockholders.oItoalsooisorequiredotooengageotheoauditorsotooprovideoano opi
niono onoitsointernalo control.o Apartofromolegalorequirements,o however,o ao largeo listedocorporationorecognizes
othatoito musto maintainoinvestoroconfidenceoino theoreliabilityoofoitsofinancialostatementso andointernalocontrolo
overo financialoreportingoifo ito isotoocontinueotoobeoableotoosecureocapitalofromotheopublic.oTheoreportobyoaofir
moofocertifiedopublicoaccountantsoaddsocredibilityotootheofinancialostatementsopreparedobyotheocorporation.o
Whenoaosmallofamily-
ownedoenterpriseoelectsotoohaveoanoaudit,otheopurposeousuallyoisotoouseotheoauditors'oreportotoosupporto anoapp
licationoforoaobankoloan.
,1-5 Aoreportobyoanoindependento publicoaccountanto concerningotheofairnesso ofoaocompany'so financialostatementsoi
socommonlyorequiredoinotheofollowingosituations:
(1) Applicationoforoaobankoloan.
(2) Establishingocreditoforopurchaseoofo merchandise,oequipment,oorootheroassets.
(3) Reportingooperatingoresults,o financialoposition,oandocashoflowso tooabsenteeoownerso(stockholderso
oropartners).
(4) Issuanceoofosecuritiesobyoaocorporation.
(5) Annualofinancialostatementso byoaocorporationowithosecuritieso listedoonoaostockoexchangeoorotradedo
overo theocounter.
(6) Saleoofoanoongoingobusiness.
(7) Terminationoofoaopartnership.
1-6 Tooaddocredibilityotoofinancialostatementsoisotooincreaseotheolikelihoodothatotheyohaveobeenopreparedofollo
wingotheoappropriateocriteria,ousuallyogenerallyoacceptedoaccountingoprinciples.o Asosuch,oanoincreaseoinocr
edibilityoresultsoinofinancialostatementsothatocanobeobelievedoandoreliedouponobyothirdoparties.
1-7 Businessoriskoiso theoriskothato theoinvestmento willobeoimpairedobecauseoaocompanyoinvestedoinoiso unableotoo
meetoitsofinancialoobligationsodueotooeconomicoconditionso oropooro managementodecisions.oInformationoris
koisotheo riskothatotheo informationo usedotooassesso businesso riskoiso noto accurate.o Auditorso cano directlyoredu
ceoinformationorisk,obutohaveoonlyolimitedoeffectoonobusinessorisk.
1-8 Atotheobeginningoofotheocentury,otheoprincipaloobjectiveoofoauditingowasotheopreventionoandodetectionoofofr
aud.oAuditoworkocenteredoonotheobalanceosheet,obecauseotheoincomeostatementowasoregardedoasohighlyocon
fidentialoandonoto foro publicodisclosure.o Today,o theoprincipaloobjectiveoofoauditingoiso tooformoanoopinionoon
otheofairnessoofofinancialostatementsoandotheiroconformityowithogenerallyoacceptedoaccountingoprinciples.o
Butotheoprofessionalostandardso alsoorequireothatoanoaudito beodesignedotooprovideoreasonableoassuranceoofod
etectingomaterialo misstatements,odueotooerrorsooro fraud.o Particularo emphasiso iso placedoonotheoincomeostate
mento whichoisoofogreato importanceotooinvestors.o Auditingotodayoalsoohasotheoobjectiveso ofomeetingotheorequ
irementso ofotheoSecuritieso andoExchangeoCommissiono(SEC)o andotheoPublicoCompanyoAccountingoOversi
ghto Boardoforopublicocompanies.
1-9 Theostatemento iso incorrect.oTheoincreasingointegratedodatabasesoofo today,oalongowithoavailableoaudito
procedureso makeoauditedoentireopopulationsoaopossibilityoinomanyosituations.
1-10 Anooperationaloauditoattemptsotoomeasureotheoeffectivenessoandoefficiencyoofoaospecificounitoofoanoorga
nization.o Itoinvolveso moreosubjectiveojudgmentsothanoaocomplianceoauditooroanoauditoofofinancialostate
mentsobecauseotheocriteriaoofoeffectivenessoandoefficiencyoofodepartmentaloperformanceoareonotoasoclear
lyoestablishedoasoareomanyolawsoandoregulationso orogenerallyoacceptedoaccountingoprinciples.
Theoreportopreparedoaftero completionoofoanooperationaloauditoiso usuallyodirectedotoomanagementoof
otheoorganizationoino whichotheoaudito workowaso done.
1-11 Aocomplianceoauditoisoanoauditotoodetermineowhetherofinancialoreportsoorootheroassertionsoareoinocomplian
ceowithoestablishedocriteria.oTheonecessaryoingredientsoareoverifiableodataoandotheoexistenceoofostandardso
establishedobyoanoauthoritativeobody.o Anooperationaloaudit,o onotheoothero hand,oisoaoreviewoofoaodepartmen
toorootherounitoofoaobusinesso orogovernmentaloorganizationotoomeasureotheoeffectivenessoandoefficiencyoof
o operations.o Internaloauditorso oftenoperformooperationaloauditso aso dooauditorso employedobyotheoGovernm
ento AccountabilityoOfficeo(GAO)o ofotheofederalogovernment.
1-12 Internaloauditorso mustobeoindependentoofotheodepartmentoheadsoandootherolineoexecutivesowhoseoworkotheyo
review.oHowever,ointernaloauditorsoareonotoindependentoinotheosameosenseoasoaopublicoaccountingofirm.
, Theopublicoaccountingofirmoservesomanyoclientsoandotheorevenueoobtainedofromoanyooneoclientoisoonlyoaosm
allopartoofotheorevenueoofotheofirm.o Internaloauditors,oonotheootherohand,oareoemployeeso ofooneocompany,oando
areosubjectotootheorestraintsoinherentoinotheoemployer-
employeeorelationship.o Internaloauditorso canoachieveoaogreatodealoofoindependenceobyoreportingotootheoaudit
o committeeoofotheoboardoofo directors,obutotheyocannotoachieveotheosame odegreeoofoindependenceoasoisoposse
ssedobyotheoexternalopublicoaccountingofirm.
1-13 Theointernaloauditorsoareoemployeeso ofoSpacecraft,oInc.,oandomayobeoinfluencedobyocorporateomanagement.
Theopublicoaccountingofirmoiso independento ofotheocompanyoandoisoinoaobetteropositionotootakeopositionsoopp
osedotoothoseoofocompanyomanagement.oTheoworkoofotheointernaloauditostaffoemphasizesomeasurementoofoth
eoefficiencyoandoeffectivenesso ofovariouso operatingounitso ofotheocompanyoandocomplianceowithoallotypesoofo
controls,owhereasotheopublicoaccountingofirmoisoprimarilyoconcernedowithodeterminingotheofairnessoofoSpace
craft'sofinancialostatements.
1-14 TheoGovernmento AccountabilityoOfficeo(GAO)oisoaostaffoofoprofessionaloauditorsowhichoreportsotooCongre
ss.o Itsofunctionoisotoodetermineothatoprogramsocarriedooutobyofederaloagenciesoconformotootheofinancialoauth
orizationoofotheoCongress.o Itoisoalsooconcernedowithotheocost-
effectivenessoofogovernmentoprograms.o Theoauditoactivitiesoincludeoinvestigationoofotheocostsoandoperform
anceoofocorporationso holdingogovernmento contracts.
1-15 AmongotheomanyoimportantocontributionsotooauditingoliteratureobyotheoAICPAoareotheoseriesoofoStatementso
onoAuditingoStandardso(SASs),oStatementsoonoStandardsoforoAttestationoEngagementso(SSAEs),oIndustryoA
uditoandoAccountingoGuides,oAuditoGuides,oAuditoRiskoAlerts,oStatementsoonoStandardsoforoAccountingoan
doReviewoServiceso(SSARSs),o,oandotheoCodeoofoProfessionaloConducto(onlyotwoorequired).
1-16 Aopeeroreviewoisoaocriticaloreviewoofoaopublicoaccountingofirm'sopracticesobyoanotheropublicoaccountingo
firmo(orootheroCPAsofunctioningoasoaopeeroreviewoteam).oTheopurposeoofoaopeeroreviewoisotooencourageo
adherenceotooqualityocontrolostandardso establishedobyotheoaccountingofirmoandotheoprofession.
1-17 TheoSecuritiesoandoExchangeoCommissiono(SEC)oisoanoagencyoofotheofederalogovernmentoandoisoresponsibl
eoforoadministeringoaonumberoofoacts,oincludingotheoSecuritiesoActoofo1933oandotheoSecuritiesoExchangeo Ac
to ofo1934.o Ino meetingo thisoresponsibility,o theo SECoreviewso financialo statementso ofocompaniesoofferingosec
uritiesoforosaleotootheopublic.oItoisoparticularlyoconcernedowithorequiringofullodisclosureoofofinancialoinformat
ionoandowithopreventingomisrepresentation.oThroughotheoPublicoCompanyoAccountingoOversightoBoard,oth
eoSECo nowooverseeso publicoaccountingofirmsothatoaudito publicocompanies.oIncludedoinothisooversightoproces
soincludesodevelopmentoofoauditing,oindependence,oandoqualityocontrolostandards;oinspectionoofo performanc
e;oandoenforcemento ofotheostandards.
TheoAICPAoisotheonationaloorganizationoofocertifiedopublicoaccountants.o Itohasolongobeenoaoleaderoi
noaccountingo andoauditingoresearch,o ino publicationo ofo authoritativeo accountingoando auditingopronouncem
entso andostudies,oandoinopromotingohighoprofessionalostandardso ofopractice.
1-18 Serviceso offeredobyopublicoaccountingofirmso inoadditionotooauditingoincludeootheroformso ofoattestation,otaxo
work,oconsultingoservices,olitigationosupportoservices,ofraudoinvestigationoservices,o personalofinancialoplan
ningoandoaccountingoservices.o Thisolastocategoryoincludeso preparationoofofinancialostatementso forosmalleroc
ompaniesothatohaveolimitedoaccountingopersonneloandovariousotypesoofowrite-
upowork.oPublicoaccountingofirmsoalsooperformoaovarietyoofootheroservices.o Consultingoservicesoincludeoai
dingoclientsoinotheodesignoofoaccountingosystems,oconversionotooInformationoTechnologyo(IT)osystems,opre
parationoofobudgets,oplanningobusinessocombinationsowithootherocompanies,oexecutiveosearch,oandonumero
usootheroprojects.oPublicoaccountingofirmsoareorestrictedoasotootheoconsultingoservicesothatotheyomayoprovid
eotooaudito clientso thatoareopublicocompanies.
o o
oprinciples of auditing and other as
o o o o o
surance services o o
22nd edition o o
by ray whittington kurt
o o o
,CHAPTER 1 o
The Role of the Publi
o o o o
c Accountant in the
o o o
American Economy o
Reviewo Questions
1-1 Theo―crisisoofocredibility‖olargelyoaroseofromotheonumberoofocompaniesothatorestatedotheiropreviouslyoissued
ofinancialostatementso aso aoresulto ofo accountingoirregularitieso andofraud.o Especiallyoresponsibleowereotheover
yovisibleoEnronoandoWorldComofraudocases.oBothocompanieso filedoforobankruptcyoandoconstitutedotheolarg
estocompanieso inoAmericanohistoryotoodooso.o Theoextento ofotheoaccountingoirregularitieso andofraudobeingoin
vestigatedoandodisclosedobroughtointooquestionotheoeffectivenesso ofofinancialostatementoaudits.o Inoaddition,
otheocriminaloconvictionoofoArthuroAndersen,oLLP,ooneoofotheothenoBig o5oaccountingofirms,oonochargeso ofo
destroyingodocumentso relatedotootheoEnronocaseobroughtointooquestionotheoethicso standardsoofotheoprofessi
on.
1-2 Assuranceoservicesoareoprofessionaloservicesothatoenhanceotheoqualityoofoinformation,ooroitsocontext,oforo
decision-
making.oTheotwootypesoare:o(a)othoseothatoincreaseotheoreliabilityoofoinformationoando(b)othoseothatoinvolv
eoputtingoinformationoinoao formoorocontextothato facilitateso decision-making.
1-3 Aofinancialostatementoauditois,obyofar,otheomostocommonotypeoofoattestoengagement.o Theooveralloassertion,o
madeobyomanagement,omostofrequentlyoisothatotheofinancialostatementsofollowogenerallyoacceptedoaccounti
ngoprinciples.
1-4 Aolargeocorporationowithosecuritiesolistedoonoaostockoexchangeoisorequiredobyotheorulesoofotheostockoexchang
eoandobyotheoruleso ofotheoSecuritieso andoExchangeoCommissionotooprovideoanoaudito reporto withotheoannualofi
nancialostatementsofurnishedotooitsostockholders.oItoalsooisorequiredotooengageotheoauditorsotooprovideoano opi
niono onoitsointernalo control.o Apartofromolegalorequirements,o however,o ao largeo listedocorporationorecognizes
othatoito musto maintainoinvestoroconfidenceoino theoreliabilityoofoitsofinancialostatementso andointernalocontrolo
overo financialoreportingoifo ito isotoocontinueotoobeoableotoosecureocapitalofromotheopublic.oTheoreportobyoaofir
moofocertifiedopublicoaccountantsoaddsocredibilityotootheofinancialostatementsopreparedobyotheocorporation.o
Whenoaosmallofamily-
ownedoenterpriseoelectsotoohaveoanoaudit,otheopurposeousuallyoisotoouseotheoauditors'oreportotoosupporto anoapp
licationoforoaobankoloan.
,1-5 Aoreportobyoanoindependento publicoaccountanto concerningotheofairnesso ofoaocompany'so financialostatementsoi
socommonlyorequiredoinotheofollowingosituations:
(1) Applicationoforoaobankoloan.
(2) Establishingocreditoforopurchaseoofo merchandise,oequipment,oorootheroassets.
(3) Reportingooperatingoresults,o financialoposition,oandocashoflowso tooabsenteeoownerso(stockholderso
oropartners).
(4) Issuanceoofosecuritiesobyoaocorporation.
(5) Annualofinancialostatementso byoaocorporationowithosecuritieso listedoonoaostockoexchangeoorotradedo
overo theocounter.
(6) Saleoofoanoongoingobusiness.
(7) Terminationoofoaopartnership.
1-6 Tooaddocredibilityotoofinancialostatementsoisotooincreaseotheolikelihoodothatotheyohaveobeenopreparedofollo
wingotheoappropriateocriteria,ousuallyogenerallyoacceptedoaccountingoprinciples.o Asosuch,oanoincreaseoinocr
edibilityoresultsoinofinancialostatementsothatocanobeobelievedoandoreliedouponobyothirdoparties.
1-7 Businessoriskoiso theoriskothato theoinvestmento willobeoimpairedobecauseoaocompanyoinvestedoinoiso unableotoo
meetoitsofinancialoobligationsodueotooeconomicoconditionso oropooro managementodecisions.oInformationoris
koisotheo riskothatotheo informationo usedotooassesso businesso riskoiso noto accurate.o Auditorso cano directlyoredu
ceoinformationorisk,obutohaveoonlyolimitedoeffectoonobusinessorisk.
1-8 Atotheobeginningoofotheocentury,otheoprincipaloobjectiveoofoauditingowasotheopreventionoandodetectionoofofr
aud.oAuditoworkocenteredoonotheobalanceosheet,obecauseotheoincomeostatementowasoregardedoasohighlyocon
fidentialoandonoto foro publicodisclosure.o Today,o theoprincipaloobjectiveoofoauditingoiso tooformoanoopinionoon
otheofairnessoofofinancialostatementsoandotheiroconformityowithogenerallyoacceptedoaccountingoprinciples.o
Butotheoprofessionalostandardso alsoorequireothatoanoaudito beodesignedotooprovideoreasonableoassuranceoofod
etectingomaterialo misstatements,odueotooerrorsooro fraud.o Particularo emphasiso iso placedoonotheoincomeostate
mento whichoisoofogreato importanceotooinvestors.o Auditingotodayoalsoohasotheoobjectiveso ofomeetingotheorequ
irementso ofotheoSecuritieso andoExchangeoCommissiono(SEC)o andotheoPublicoCompanyoAccountingoOversi
ghto Boardoforopublicocompanies.
1-9 Theostatemento iso incorrect.oTheoincreasingointegratedodatabasesoofo today,oalongowithoavailableoaudito
procedureso makeoauditedoentireopopulationsoaopossibilityoinomanyosituations.
1-10 Anooperationaloauditoattemptsotoomeasureotheoeffectivenessoandoefficiencyoofoaospecificounitoofoanoorga
nization.o Itoinvolveso moreosubjectiveojudgmentsothanoaocomplianceoauditooroanoauditoofofinancialostate
mentsobecauseotheocriteriaoofoeffectivenessoandoefficiencyoofodepartmentaloperformanceoareonotoasoclear
lyoestablishedoasoareomanyolawsoandoregulationso orogenerallyoacceptedoaccountingoprinciples.
Theoreportopreparedoaftero completionoofoanooperationaloauditoiso usuallyodirectedotoomanagementoof
otheoorganizationoino whichotheoaudito workowaso done.
1-11 Aocomplianceoauditoisoanoauditotoodetermineowhetherofinancialoreportsoorootheroassertionsoareoinocomplian
ceowithoestablishedocriteria.oTheonecessaryoingredientsoareoverifiableodataoandotheoexistenceoofostandardso
establishedobyoanoauthoritativeobody.o Anooperationaloaudit,o onotheoothero hand,oisoaoreviewoofoaodepartmen
toorootherounitoofoaobusinesso orogovernmentaloorganizationotoomeasureotheoeffectivenessoandoefficiencyoof
o operations.o Internaloauditorso oftenoperformooperationaloauditso aso dooauditorso employedobyotheoGovernm
ento AccountabilityoOfficeo(GAO)o ofotheofederalogovernment.
1-12 Internaloauditorso mustobeoindependentoofotheodepartmentoheadsoandootherolineoexecutivesowhoseoworkotheyo
review.oHowever,ointernaloauditorsoareonotoindependentoinotheosameosenseoasoaopublicoaccountingofirm.
, Theopublicoaccountingofirmoservesomanyoclientsoandotheorevenueoobtainedofromoanyooneoclientoisoonlyoaosm
allopartoofotheorevenueoofotheofirm.o Internaloauditors,oonotheootherohand,oareoemployeeso ofooneocompany,oando
areosubjectotootheorestraintsoinherentoinotheoemployer-
employeeorelationship.o Internaloauditorso canoachieveoaogreatodealoofoindependenceobyoreportingotootheoaudit
o committeeoofotheoboardoofo directors,obutotheyocannotoachieveotheosame odegreeoofoindependenceoasoisoposse
ssedobyotheoexternalopublicoaccountingofirm.
1-13 Theointernaloauditorsoareoemployeeso ofoSpacecraft,oInc.,oandomayobeoinfluencedobyocorporateomanagement.
Theopublicoaccountingofirmoiso independento ofotheocompanyoandoisoinoaobetteropositionotootakeopositionsoopp
osedotoothoseoofocompanyomanagement.oTheoworkoofotheointernaloauditostaffoemphasizesomeasurementoofoth
eoefficiencyoandoeffectivenesso ofovariouso operatingounitso ofotheocompanyoandocomplianceowithoallotypesoofo
controls,owhereasotheopublicoaccountingofirmoisoprimarilyoconcernedowithodeterminingotheofairnessoofoSpace
craft'sofinancialostatements.
1-14 TheoGovernmento AccountabilityoOfficeo(GAO)oisoaostaffoofoprofessionaloauditorsowhichoreportsotooCongre
ss.o Itsofunctionoisotoodetermineothatoprogramsocarriedooutobyofederaloagenciesoconformotootheofinancialoauth
orizationoofotheoCongress.o Itoisoalsooconcernedowithotheocost-
effectivenessoofogovernmentoprograms.o Theoauditoactivitiesoincludeoinvestigationoofotheocostsoandoperform
anceoofocorporationso holdingogovernmento contracts.
1-15 AmongotheomanyoimportantocontributionsotooauditingoliteratureobyotheoAICPAoareotheoseriesoofoStatementso
onoAuditingoStandardso(SASs),oStatementsoonoStandardsoforoAttestationoEngagementso(SSAEs),oIndustryoA
uditoandoAccountingoGuides,oAuditoGuides,oAuditoRiskoAlerts,oStatementsoonoStandardsoforoAccountingoan
doReviewoServiceso(SSARSs),o,oandotheoCodeoofoProfessionaloConducto(onlyotwoorequired).
1-16 Aopeeroreviewoisoaocriticaloreviewoofoaopublicoaccountingofirm'sopracticesobyoanotheropublicoaccountingo
firmo(orootheroCPAsofunctioningoasoaopeeroreviewoteam).oTheopurposeoofoaopeeroreviewoisotooencourageo
adherenceotooqualityocontrolostandardso establishedobyotheoaccountingofirmoandotheoprofession.
1-17 TheoSecuritiesoandoExchangeoCommissiono(SEC)oisoanoagencyoofotheofederalogovernmentoandoisoresponsibl
eoforoadministeringoaonumberoofoacts,oincludingotheoSecuritiesoActoofo1933oandotheoSecuritiesoExchangeo Ac
to ofo1934.o Ino meetingo thisoresponsibility,o theo SECoreviewso financialo statementso ofocompaniesoofferingosec
uritiesoforosaleotootheopublic.oItoisoparticularlyoconcernedowithorequiringofullodisclosureoofofinancialoinformat
ionoandowithopreventingomisrepresentation.oThroughotheoPublicoCompanyoAccountingoOversightoBoard,oth
eoSECo nowooverseeso publicoaccountingofirmsothatoaudito publicocompanies.oIncludedoinothisooversightoproces
soincludesodevelopmentoofoauditing,oindependence,oandoqualityocontrolostandards;oinspectionoofo performanc
e;oandoenforcemento ofotheostandards.
TheoAICPAoisotheonationaloorganizationoofocertifiedopublicoaccountants.o Itohasolongobeenoaoleaderoi
noaccountingo andoauditingoresearch,o ino publicationo ofo authoritativeo accountingoando auditingopronouncem
entso andostudies,oandoinopromotingohighoprofessionalostandardso ofopractice.
1-18 Serviceso offeredobyopublicoaccountingofirmso inoadditionotooauditingoincludeootheroformso ofoattestation,otaxo
work,oconsultingoservices,olitigationosupportoservices,ofraudoinvestigationoservices,o personalofinancialoplan
ningoandoaccountingoservices.o Thisolastocategoryoincludeso preparationoofofinancialostatementso forosmalleroc
ompaniesothatohaveolimitedoaccountingopersonneloandovariousotypesoofowrite-
upowork.oPublicoaccountingofirmsoalsooperformoaovarietyoofootheroservices.o Consultingoservicesoincludeoai
dingoclientsoinotheodesignoofoaccountingosystems,oconversionotooInformationoTechnologyo(IT)osystems,opre
parationoofobudgets,oplanningobusinessocombinationsowithootherocompanies,oexecutiveosearch,oandonumero
usootheroprojects.oPublicoaccountingofirmsoareorestrictedoasotootheoconsultingoservicesothatotheyomayoprovid
eotooaudito clientso thatoareopublicocompanies.
