Public Practice (Auditing)
Public Practice comprises varied accounting organizations that range from local practices of accounting to international Certified Public Accountants (CPAs). Auditing specifically deals with investigating and giving a review of any business aspect, both in financial and nonfinancial spheres (Accounting Coach, 2015). Any operating company, institution, or business enterprise is liable to an audit from well-trained auditors. The audit ensures improvement of various working procedures of the firms especially in handling of finances, inconsistencies, lack of accountability and also financial frauds. For this case, auditors have the mandate of keeping financial records and auditing the financial statements for both investors and banks. They also have responsibilities of reviewing and evaluating the effectiveness of a company in terms of adhering to the policies of the government.
Business and Industry (Financial Management)
Financial management is an activity revolving around both economic and non-economic measures, which ensure proper utilization of money. It entails keeping of record books and financial statements, which are major elements in the fulfillment of goals of the business because they help in proper decision making (Taylor, 2010). Business owners, for instance, are beneficiaries of quality financial management. Financial management provides a guideline for decision making in any business enterprise and also acts as a tool of planning and organizing the progression of the business and accessing fresh markets. Its gives a business owner a clear picture on how to obtain profitable products and services (Taylor, 2010).
Fundamental Concepts and Principles in Accounting
There are many principles used in accounting. For instance, there is the accrual principle, which is a necessity that accounting transactions be made in their respective periods and not in the periods of their cash flows. There is also the conservatism principle, which requires that the people involved in the process of accounting record the liabilities and expenses soon after they occur, but make entries for the revenues only when they are sure of them. There is also the principle of consistency, which obliges people to keep using the method of accounting that they have adopted for as long as there is no other better scheme available. There are a series of other principles such as the cost principle, the economic entity principle among others. An accounting equation provides a convention for comprehending the elements of measuring the financial status of a business. For this case, the assets, liabilities and owner’s equity are the essential components of an accounting equation. The accounting equation relates the three concepts in the following manner; Assets= Liabilities + Owners’ Equity. Financial statements of a business are a representation of the formal activities of such institution involving finances. There are four such statements; the balance sheet, the income statement, the cash flow statement, and the statement of transformations in equity.
Accounting Positions
Being an accountant is one of the positions in accounting. An accountant has the duty of reviewing and preparing financial statements as well as giving accounting reports for any department in any given firm (Accounting Coach, 2015). The personnel maintains financial data as well as designing procedures that concern accounting principles governing any business. Knowledge of accepting theories and principles in accounting is part of the essential skills an accountant should have (AICPA, n.d). There is also budget review and planning of the cost allocations, improving workability and efficiency in the systems of accounting and performance of business-related duties.
References
Accounting Coach. (2015). Accounting Jobs and Opportunities: Introduction to Accounting Jobs and Opportunities. Web.
American institute of CPAs (AICPA). (n.d). Positions in Business and Industry Accounting. 2015. Web.
Taylor, Marisa. (2010). A Career in Accounting. The Wall Street Journal. Web.
Bureau of Labor Statistics (BLS). (2014). Occupational Employment and Wages News Release. Web.