Week 1 Discussion Essay
The most common primary types of auditors are certified public accounting firms, government accountability office auditors, internal revenue agents, and internal auditors. CPAs are licensed to express audit opinions on financial statements and are used as independent or external auditors. I’m not currently aware of any disadvantages of being a CPA. GAO auditors work for the federal government and report directly to Congress. In many states GAO audit experience fulfills the experience requirement to be a CPA. Due to vast experience and the scope of their job auditing the federal government, GAO auditors are …show more content…
When conducting an error analysis, what must a CPA consider? Why? What might happen if these items are not taken into consideration?
The initial considerations must be what type of error is involved, what entries are needed to correct the error, and how are the financial statements to be restated. Three types of errors can occur: balance sheet errors, which affect only the presentation of an asset, liability, or stockholders’ equity account, income statement errors, which affect only the presentation of revenue, expense, gain, or loss accounts in the income statement, or balance sheet and income statement errors, which involve both the balance sheet and income statement. Errors are classified into two types. Counterbalancing errors are offset or corrected over two periods. Non-counterbalancing errors are not offset in the next accounting period and take longer than two periods to correct themselves. If these errors are ignored and