Question

The internal accountants need a say in the new system. They are the ones that have intimate knowledge of the business. Is there role to play for external accountants?

Answer 1

Internal Accountant is responsible for :-

Preparation of asset, liability, and capital account entries by compiling and analyzing account information.

Documents financial transactions by entering account information.

Recommends financial actions by analyzing accounting options.

Summarizes current financial status by collecting information; preparing balance sheet, profit and loss statement, and other reports.

Substantiates financial transactions by auditing documents.

Maintains accounting controls by preparing and recommending policies and procedures.

External Accountant

The external accountant is a key support agent in the management of small firms and their influence on the introduction of a CAS(Computerised Accounting Systems) is investigated. The tasks carried out by the external accountant in small firms that use a CAS is compared with those tasks carried out in small firms that do not use a CAS.

External accountant also provides accountancy services by way of business to other persons.Accountancy services include the recording, review, analysis, calculation or reporting of financial information and covers professional bookkeeping services, preparing or signing accounts or certificates of financial information concerning a person’s or organization’s financial affairs, and advising on tax.

Role of external accountant is totally different from internal accountant. Although internal accountant have intimate knowledge of the business but he cannot perform duties of external accountant.

Conclusion

Concluding above we can say that external accountant plays an important role for new system.