Question

You have been working at a local CPA firm for the last 2 years. At the beginning of the year, you passed the last section of the CPA Exam. Last week, your CPA License came in the mail. Consequently, you have now decided to go into business for yourself. You have some savings and have a line on a bank loan for start-up costs. Additionally, you do not have a noncompete clause in your employment agreement with your current CPA firm, and you have your own customers.

In your initial post, discuss the following:

• Explain the authority that you have to practice and what duties you must complete practicing before the IRS.
• Explain what restrictions, if any, you face in tax practice.
• Explain on what ethical grounds you will base your practice and where you would draw the line to please your clients.

Answer 1

1) The authorities that we have to practice before the IRS : Enrolled agents, Enrolled Retirement plan Agents and Enrolled Actuaries

Duties:- A) Preparing or assisting in the preparing, approving, and filling of returns, documents, affidavits, and other papers relating to IRS matters.

B) Determining the correctness of oral or written representation made by him or her to the department of the Treasury.

C) Determining the correctness of oral or written representation made by him or her to clients with reference to any matter administered by the IRS.

2) As a tax practitioner you have been restricted to only with his work, he has to be someone who completes SARS returns on behalf of third parties for reward/a fee...Tax practitioners analyse, report and provide advice o taxation issues to organisation or individuals, prepare taxation returns and reports, and to handle disputes with taxation authorities

3) The practice should be based on some ethical grounds and CPA is the professional responsible for developing professional accounting ethical values. So CPA practice must be based on ethical grounds like:

A) INTEGRITY - It is an important fundamental element of the accounting profession. Integrity requires accountants to be honest, candid and forthright with a clients financial information. Accountant should be restrict themselves from personal gain or advantage using confidential information.

B) OBJECTIVITY AND INDEPENDENCE - It is an important ethical values in the accounting profession. Accountants must remain free from conflicts of interest and other questionable business relationships when conducting accounting services. Failure to remain objective and independent may hamper an accountant ability to provide an honest opinion about the company's financial information. So Objectivity and independence are also important ethical values for auditors.

C) DUE CARE AND COMPETENCE - Is the ethical value requiring accountants to observe all technical and ethical accounting standards. professional accountants are often required to review generally accepted accounting principles (GAAP) and apply this framework to a company specific financial information. Due care requires accountants to exercise competence, diligence and a proper understanding of financial information.

Line to please the customers:- you can have the best customer service in the world , but if its is killing your business then it won't do you much good. So where do you draw the line to please clients, here are the three vital areas to consider

A) Extending Credits

B) Service

C) Personal attention