The Changes in the Business Scope, Legal Responsibilities of A Certified Public Accountant (CPA) and The Evolution of Audit Firm''s Organization

• Main Authors: Springfield Lai, 賴春田
• Other Authors: Chan-Jane Lin
• Format: Others
• Language: zh-TW
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/60988768616074421516

碩士 === 國立臺灣大學 === 會計學研究所 === 88 === The CPAs'' business is heavily reliant on the territory''s economic development, especially the development of capital market. However, for the past 30 years, the CPAs'' business has been expanding from the attest services related to compliance with Generally Accepted Accounting Principles (GAAP) to the services of consulting in nature, and most recently, the CPA''s services have expanded to the business process outsourcing, which have caused significant impact on the CPAs'' professional ethics and independence position. Many scholars in the Accounting profession are expressing serious concerns on this expansion of CPA''s business. This essay covers the background of this phenomenon. This essay reported the changes of the local big accounting firms for the last 30 years. These changes were in response to the worldwide changes in the accounting profession, that is due to globalization, diversification, merger and acquisition of business. The CPAs'' business include many diversified operations, which are managed by professional partners of different fields of expertise, such as accountants, tax lawyers, investment bankers, business consultants, etc. How do they work together effectively and efficiently so that they can provide the best services to the clients? This essay described the operational discipline and methodology to address the operation needs of the business. There had been significant changes in the CPA responsibilities for the past 30 years. For example, the CPA''s unlimited legal liabilities partnership have been changed to limited liabilities partnership, except for the CPA in charge. Furthermore, at present, the non-auditing and consulting services departments have been incorporated as a separate company being prepared to go public. These issues are very hot at this moment in the accounting and auditing fields. This essay also described the historic background, authority requirement, and the Big Five responses to the evolution. Finally, this essay pointed out the following topics, which are the very hot issues, for further study: 1. Business processes outsourcing (BPO) BPO is the recommendable idea to corporate re-engineering as companies do not only seek for downsizing but also for better efficiency and improving the companies'' return on investments. The CPAs are considered to be highly capable to provide the BPO services such as accounting and reporting services, tax filing services, information process, personnel services, etc. as a consequence, the CPAs'' business scope will be enlarged. 2. On-line reporting for financial and non-financial information The current internet and web technologies enable the company to report its financial and non-financial information to its public investors through on-line systems. The CPAs shall be responsible to direct their clients to use these technologies to achieve this objective and this is a very good topic for academic research for young scholars. 3. Reporting change from "cost basis" to "fair value basis" The financial statements of a company are, at present, based on the "cost basis" which will be soon changed to "fair value basis" due to increasing globalization of capital markets and growing interest in the concept of shareholder value. Not to mention our existing financial reporting published recently, this change will, of course, significantly affect the CPAs'' business and responsibilities as well as the audit firms'' organization at structure. We need to keep an eye on its development.