1. INTRODUCTION TO ACCOUNTING
1.1. Notion of Accounting
Text 1. Accountants
1 Accountant, or Qualified Accountant, or Professional Accountant, is a certified accountancy and financial expert in the jurisdiction of many countries. Such as other legally-restricted professions including medical doctors and lawyers, different countries have their own training and examination systems to maintain the practice quality and restrict the number of qualified accountants in their jurisdictions.
2 Accountants originally worked only in public practice, selling advice and services to other individuals and businesses, but today, in addition, many work within private corporations, the financial industry and various government bodies.
The accountant’s role
3 Since accountants are independent business advisers, they are in a position to help their clients build and develop their businesses. Accountants can offer an extensive range of services. Some of the types of services they may offer are listed below.
Auditing a company
4 Accountants, who are legally registered auditors, may audit a company’s accounts -such an audit may, in some circumstances, be required by law.
Assurance and information integrity
5 Accountants also can provide a variety of services that improve and assure the quality of information, or its context, for business decision-making. And also be ensuring that financial statements reflect fairly the financial performance of the company.
Forensic accounting
6 Operating within the legal sector, either by assisting in preventing, detecting, and investigating financial frauds such as embezzlement, securities fraud, tax evasion, and money-laundering schemes, or by providing expert reports in civil cases covering the calculation of loss of earnings, pensions, or other financial benefits.
7 Accountants who act as expert witnesses hold practising certificates, have undertaken suitable litigation training, have had experience of acting as an expert witness, and have been able to provide references from legal practitioner who have engaged them.
Environmental accounting
8 Addressing how companies can be both environmentally responsible and profitable. This includes focusing the variety of projects like environmental compliance audits and managing and preventing claims and disputes.
Insolvency
9 If the clients are facing the possibility of personal bankruptcy or corporate insolvency, an accountant with his/her own country’s insolvency licence can provide the clients with invaluable advice. If professional advice is sought as soon as the signs of trouble appear, then insolvency/bankruptcy may be avoided. If the clients are a trade creditor and are concerned about a debtor or have been told that a debtor is insolvent, a licensed insolvency practitioner can investigate and advise on the best course of action. To become an accountant with his/her own country’s insolvency licence, stringent criteria must be met and an ongoing experience requirement must be achieved if the licence is to be renewed each year.
Accounting and bookkeeping
10 Advice can be provided on setting up business systems, from basic bookkeeping (cashbook) to comprehensive management reporting. Some accounting firms will undertake the bookkeeping function, which may also include VAT return preparation. Practitioners can also assist in the preparation of year-end accounts.
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