1. What is public accounting?

Public accounting is a field of accounting where accountants offer

their services to the public for a fee, and are not limited to
working, as in an employer-employee relationship, for a single
business entity only. The services offered usually pertain to
bookkeeping, auditing, tax and financial planning.

2. What are the college programs that are required to become a public
accountant?
To become a public accountant in the Philippines, one must be a
holder of a degree of Bachelor of Science in Accountancy, as well as
a board passer of the CPA licensure examination given by the
Professional Regulation Commission.

3. What is auditing?
Auditing, as defined by the American Accounting Association, is “a
systematic process of objectively obtaining and evaluation
evidence regarding assertions about economic actions and events
to ascertain the degree of correspondence between these
assertions and established criteria and communicating the results
to interested users.”

Simply put, it is a process of assessing the degree by which the

statements and claims made by an entity regarding their financial
statements, operations or compliance with certain regulations
actually conform to the established criteria.

4. Why do we need to audit?

We need to audit for the following reasons:

-as regards financial statements audit, to lend credibility to and

enhance the value and usefulness of the financial statements
prepared by an entity;
-as regards compliance audit, to determine whether entities
comply with government rules and regulations
-as regards operational audit, to assess the performance and areas
of improvement of an entity

5. What are the types of auditing?

There are three major types of audit: financial statement audit,

compliance audit and operational audit.

Financial statement audit is conducted to determine whether the

financial statements of a company are fairly stated in accordance
with a financial reporting framework.
 A compliance audit reviews the entity’s procedures, and
determines whether or not these comply with the recognized
regulations set by an authoritative body.

An operational audit, also known as performance or management

audit, studies a unit of an organization to measure its performance.

6. What are the types of auditor?

The types of auditor are external, internal or government auditors. They

are classified according to their affiliation with the entity being examined.

When auditors offer their professional services to different clients on a

contractual basis, they are called external auditors. Meanwhile, when auditors
are the entity’s own employees who appraise the internal controls and
performance of a company, they are considered internal auditors. Finally, when
an audit is conducted by government employees to determine whether there is
compliance with the law, they are known as government auditors.

6. How do you report an audit?

Usually, to complete an audit, written reports are extended by the auditor.

These reports contain the auditor’s opinion as to the relationship between
the assertions made and the corresponding criteria.