Present By: Group 3

In public accounting the accountant performs

or offers to perform any activity that will result
to the issuance of an attest report that is in
accordance with professional standards. Such
activities include consulting services, personal
financial planning services, the preparation of
tax returns, and advice on tax matters for a fee.
A public accountant works in a firm offering its
services to various clients.
 External Auditing
Tax Preparation and Planning
Service
Management Advisory Service
* In external auditing, public accountants
examine the financial statements in order
to express an opinion on whether
statements have been fairly presented or
not.
* The auditor critically examines the
accounting records of the client to check if
business transactions have been properly
recorded.
* Some CPAs also offer tax services wherein
they advice and help their clients in tax
planning and preparing tax returns.
* In this branch of public accounting, the
accountant is a tax specialist.
* Also represents the client in any tax related
case filed by the Bureau of Internal Revenue.
* Management consulting is an area in public
accounting that involves financial planning and
control, and the development of accounting and
computer systems.
* The accountant advices management on
matters such as the installation of an accounting
system, finance, budgeting, business processes,
introduction of new products, and other
business activities.
 Private accounting involves setting up systems of
recording business transactions that are aggregated
into financial statements. It includes the
development and interpretation of accounting
information intended to assist management in
operating the business.
A private accountant is a salaried employee who
deals with the company’s day-to-day accounting
needs.
 Financial Accounting
Cost Accounting
Budgeting
Accounting Information System
Tax Accounting
Internal Auditing
* This branch of private accounting provides
economic and financial information for inventors,
creditors, and other external users.
* It uses a system of reporting designed to meet the
information needs of external users.
* Financial accounting is governed by an established
body of standards and principles.
* It focuses on the recording and classifying of
business transactions while applying the generally
accepted accounting principles ( GAAP ).
* Financial accounting ends in the preparation and
presentation of general purpose financial
statements.
* These documents should show the business
financial position, operating results, and cash
activities.
* It is also best to include supporting explanatory
notes to these financial statements to further
explain its report or findings.
*Information from this branch of accounting helps
investors and creditors in deciding where to place
their scarce resources.
* Such decisions are crucial since it determines
which companies and industries will receive the
financial resources needed to economic growth.
* Cost accounting focuses on accumulating
manufacturing costs for financial reporting and
decision - making purposes.
* It covers the reporting of financial information
relevant to manufacturing operations.
* It provides the management the necessary tools
and information for planning and controlling
activities.
* The primary role of a cost accountant is to
determine the inventory cost for financial
reporting purposes.
* Budgeting provides a detailed collection and
reporting of the expenditures and revenues
involved in a business or company operations.
* This branch of private accounting tracks the
financial details of the firm, including the money
taken in and the money spent by the company and
the staff.
* It also assists the management in quantifying
goals concerning revenue, cost of sales or
services, and operating expenses.
* Accounting information system collects
and processes transaction to interested
parties.
* It involves the designing of both manual
and computerized data processing systems.
* It deals with the preparation of various
tax returns and doing tax planning for the
business.
* This is similar to the tax services done in
public accounting.
* In this branch, however, the client is the
business and not the public.
* This branch of private accounting
reviews the business operations to check if
they are complying management policies.
* It also evaluates the efficiency of
business operation.
* Normally, an internal auditor is a hired
employee of a company.
 Government accounting is a system used in
government offices to record and report financial
transactions. It is systematic process of collecting,
recording, classifying, summarizing, and
interpreting the financial transactions relating to
the revenues and expenditures of government
offices. Government accounting reveals how
public funds have been generated and utilized . It
is employed in both national and local
governments.