What Are CPA Audit Firms?
CPA Audit Firms
CPA audit firms provide accounting, auditing, tax planning, and business consultation services. Their most sought-after services remain accounting, tax planning, and auditing. Every business needs an auditing service, be it a private business or a public entity.
In addition, CPA firms possess special skills and qualifications to provide accounting and auditing services that ordinary accountants cannot offer. Public accounting differs in several ways from ordinary accounting services. Although accountants can also provide accounting, taxation, and financial management services. However, some limitations are likely.
For this reason, a CPA firm must have at least one qualified certified public accountant. That’s why CPAs are the most sought-after credentials for accounting firms.
What are CPA Audit Firms?
CPA Audit firms come with qualifications for the public accounting domain. A CPA audit firm must have sufficient qualified personnel to offer public accounting services. These professionals are called Certified Public Accountants (CPAs).
The most common distinction of a CPA audit firm from an ordinary accounting service is the ability to perform financial statement audits. All companies need to comply with the requirement of financial statement audits. However, public companies are bound by law to provide audited and reviewed financial statements by certified auditing firms such as a CPA audit firm.
CPA audit firms also enjoy the distinction of qualified audit and tax representation. For instance, a CPA firm can represent your business before the IRS for tax audits. However, an attorney or an enrolled agent can also present before the IRS.
CPA Audit Firm Services
CPA audit firms provide a wide range of services to public and private companies. For instance, a CPA can provide the auditing and review of financial statements. Likewise, auditing remains a key service offered by these firms for public companies. However, all private companies also need to comply with accounting and auditing standards.
Let us briefly discuss some key services offered by CPA auditing firms.
Audit and Assurance Services
CPA firms offer external auditing services to public companies. Financial statement audits are required by regulatory authorities. External audits can only be performed by public accounting firms.
Assurance provides comprehensive risk assessment and action plans for a business. It requires careful planning for governance, compliance, and internal controls.
Companies can also outsource their internal auditing services to CPA auditing firms. Internal auditing covers financial statement audits, internal controls, governance, risk management, and compliance segments of a business.
The internal auditing function is concerned with the implementation of effective governance procedures. Furthermore, CPA audit firms ensure a business is fully compliant with the internal controls.
Special Audits and Forensics
A business may need to conduct a special audit such as an IT system audit. In general, a business may need to perform a comprehensive forensic audit to unveil misconduct, theft, corruption, or fraud inside the business operations. Moreover, a CPA audit firm can offer special audits and forensics services.
Risk assurance services range from risk assessment, identification, controls, implementation, and review process. Identification and measurement of key risk areas are critical for the success of any business. Thus, a CPA audit firm can offer risk management and assurance services to offer enhanced controls for a business.
Digital Audits and Cybersecurity
Digital auditing relates to auditing services offered for any digital asset. For example, these audits may range from IT system audits, cybersecurity challenges, digital banking risks, cloud accounting risks, and so on.
Also, digital audits remain a key challenge in the modern business world. CPA audit firms offer digital auditing services through skilled auditors and forensic experts.
Employee Benefit Plan Audits
In short, employee benefit plan audits are meant to safeguard the most precious asset a business possesses i.e., Human Capital. In addition, employee benefit plans require regulatory compliance. These plans are often offered through third-party service providers. However, a CPA audit firm ensures the business remains compliant with statutory requirements of employee benefit plans.
CPA Firms Beyond Auditing
CPA audit firms can offer a wide range of services beyond auditing as well. You can expect advisory and business consulting services from these professional firms. Moreover, these services can range from accounting, taxation, and bookkeeping to financial management.
Here are some key advisory services that you can avail from a CPA auditing firm.
- Accounting and Bookkeeping
- Financial Management
- Business Planning and Consulting
- Tax planning
- Auditing and Assurance
- Budgeting and Cash Flow Management
- Risk Management
- Transaction Advisory Services
- Business Valuation
- Debt Restructuring
- Digital Audits and Cybersecurity