Bryle Jay P.

Lape BSA-III

In a Nutshell (UNIT 1: ULOa)

1. Accountancy profession upon the theories and assumptions that form part of its
practice standards - accounting and reporting standards, assurance and non-assurance
standards, and advisory standards.
2. Accountancy Law and Code of Ethics for Professional Accountants implemented
rules, legal codes and ethical measures to prevent misuse of profession and to
discipline the accountants in practice.
3. CPA in public practice provide services to the public. They are the ones who
represent their clients when it comes to accounting and auditing related matters.
4. Academe as a field of practice require CPA’s to engaged under institutions that
provide learning and education.

In a Nutshell (UNIT 1: ULOb)

1. A Certified Public Accountant in the practice of accountancy may offer assurance

and non-assurance services. Assurance services include independent financial
statement audit, reviews and other assurance services. Non-assurance services include
agreed-upon procedures, compilations, tax services, consultancy services and other
non-assurance services.
2. Both assurance and non-assurance services undertake engagements between the
parties and perform accounting and other activities that could improve the quality of
the subject matter.
3. Assurance services differ from non-assurance services because a practitioner under
assurance services expressed their conclusions that give a level of assurance to the
subject matter that meet the needs of the intended user.
4. A final verdict, from a practitioner, is not needed in a non-assurance services. The
practitioner’s report follows the interest of the intended users.
5. One element of assurance engagements is the relationship of three parties namely:
the practitioner; responsible party; and the intended users.
6. Suitable criteria must also be presented for a practitioner to evaluate the subject
matter under it to meet the needs of the intended users.
7. Materiality is one thing to be considered by the practitioner in gathering sufficient
evidences supporting his/her conclusion to the subject matter. This concept will serve
as a guide to determine whether misstatements/errors and omissions will influence the
decisions of the intended users.
8. Professional skepticism is an attitude a practitioner must have in order to provide a
rational conclusion and critical assessment of the subject matter. It plays a vital role in
evaluating the subject matter under the given suitable criteria and to fully express the
level of assurance of the subject matter to the intended users.
9. CPA under public practice also faced challenges in their profession. The
emergence of technology brings more complexity to the accounting and auditing
procedures. It might be efficient if used properly, but misuse of such might create
additional risks. Also, auditing processes always put time pressure to the auditors.
10. Firms have adopted public regulations to ensure that auditors and the users
(potential investors) will not experience expectation gap. Examples are: establishing
standards and measures to improve auditing procedures; maintaining discipline in the
practice of profession; and utilizing programs that will improve services under public
practice.