In: Accounting
Do CPA’s performing investigative services need to be independent? Why or why not?
Certified Public Accountant (CPA) is a high standing profile in the eyes of business contacts, public, Government, regulators and clients. Majorly, CPA's perform the following roles:-
1) Tax Services
2) Audit & assurance services
3) Management services
4) Work for IRS, Regulators
5) Financial reporting
Investigation is not their main objective while performing their duties independently if appointed as a statutory auditor or internal auditor by external authority or internal management.
They need to ensure that financial statements present true and fair view of operation and these have not been materially misstated. They also need to ensure whether there is a sufficient internal control system in place or not.
CPA's also work for Federal Government (FBI, IRS, Department of Treasury, general accounting office) for the following purposes:-
1) Investigating crime independently
2) Audits of financial statement for government agencies
3) Performing analysis on financial management issues
4) Substantiate before a legislative committee on an audit or on the impact of pending tax legislation
Hence, CPA's primarily role is not investigation. However, they should perform their duty independently if they are appointed for the purpose of investigation.