Question

what type of services are CPA auditors allowed and disallowed to provide their public audit clients? private audit clients? Please give examples for both please

Answer 1

CPA auditors provide service to their public audit clients: CPA auditors analyze and assess financial statements of company, they obtain the reasonable assurance to make sure that statements are free from misstatement. They collect audit evidence to perform audit procedures. They check the internal control of the public companies and provide Auditor's report. Auditor's report is the reflection of company's financial statements and overall performance. Through auditor's report, CPA Auditor provides the public useful information regarding company.

Example: Independent auditor

CPA auditors provide service to their private audit clients: CPA Auditor's private client team identifies risk associated with the business and manages it accordingly. It helps in improving core business of companies. CPA auditor reduces the risk of fraud within the organization. He updates accounting records, he performs regular audits to insure accuracy in financial statements. He audits financial statements and check their reliability, he collects reasonable audit evidence and provide Audit report in which he writes about the company financials.

Example: PWC's private clients team