Expanded Services of Accountants

Tax Services

Various Bureau of Internal Revenue (BIR) reports require opinion by independent, certified public
accountants. Most income tax return of individuals, partnerships, and corporations must be
accompanied by the auditor's report. Net income in financial statements is reconciled with the taxable
income. Clients seek tax advice from Certified Public Accountants (CPAs). CPAs prepare income tax
returns and other tar forms for clients. In case of tax assessments, the auditor assists the client in
substantiating income and deductions from income. In financial audits, the position of the auditor is
objective reporting. In tax service the audit takes the position most favorable to client. Other tax
services are on estate, inheritance, donors and donee's tax, business taxes and municipal taxes. A CPA
with legal training will prove useful in tax practice. Tax service, like management and other services of
the CPA, is covered by the Code of Ethics.

Management Advisory Services

Many accounting firms also have management advisory or consulting services divisions in addition to
their primary audit and tax services. Management advisory services may include installation of
accounting systems, advice on electronic data-processing system, budgeting, design of accounting
forms, time and motion study, financing alternatives, pricing, feasibility studies, and others. Included in
management advisory services are feasibility studies.

Compilation, Review, Bookkeeping, Data-Processing Services, and Agreed-upon Procedures

Bookkeeping or write-up work consists of recording in the journals and ledgers, and preparation of
schedules and financial statements. In a small accounting firm, more time is devoted to this type of
service. As the accounting or auditing firm grows, there is less of the write-up work. The income derived
from bookkeeping service is comparatively lesser than those of other services. Less skill is needed for
bookkeeping service. With the introduction of computers, a CPA may offer services for packages on
accounts receivable, inventory, payroll, and other voluminous data-processing work. Some companies,
although not required by law or third parties to have their financial statements audited, may want to
engage the services of CPAs for nonauditing services.
Benefits from Accounting Services

A professional accountant's responsibility is not exclusive to satisfying the needs of an individual client
or employer. The standards of the accountancy profession are heavily determined by the public interest.
For example,

Independent auditors help maintain the integrity and efficiency of the financial statements presented to
financial institutions in partial support for loans and to stockholders for obtaining capital.

Financial executives serve in various financial management capacities in organizations and contribute to
the efficient and effective use of the organization's resources.

Internal auditors provide assurance about a sound internal control system that enhances the reliability
of the financial information of the employers.

Tax experts help establish confidence and efficiency in, and the fair vo application of, the tax system.

Management consultants have a responsibility toward the public interest in advocating sound
management decision-making.

Certification of Accountants - Accountants may be certified. The certifying body may be a government
office or a professional organization. Noncertified accountants are employed in different forms of
business and nonbusiness organizations. Certification, like the specializations of other professionals,
adds value to the accountants.

1. Certified Public Accountant (CPA) is an accountant who has passed the examination conducted by the
Board of Accountancy under the administration of the Philippine Professional Regulation Commission
(PRC).
2. Certified Management Accountant (CMA) is an accountant who has bombpassed the examination by
the Institute of Management Accountants of the National Association of Accountants.

3. Certified Internal Auditor (CIA) is an accountant who has passed the uniform examination by the
Institute of Internal Auditors.

Ethics of Professional Accountants

Ethics is a set of moral principles or values. Ethics may be general or professional. General ethics guides
the individual on proper personal conduct, which is imposed by society and moral duties. Professional
ethics is one self-imposed by professionals even above the requirements of the law. The code of ethics
for the CPAs involves a system of moral principles and observance of rules governing relationships with
clients, employers, colleagues, and the public.

The concepts of morality and habits are essential quality of existence. Ethics should be a concern of
those in business. Do what is right, proper, and fair. Relationship of those involved in business and those
dealing with businesses are the core of business ethics. Do the right thing even beyond what the law
dictates. Those in business should establish a balance between material gains and social responsibility.
Personal ethical values determine appropriate action.

The Code of Ethics for CPAs lists their responsibilities to clients, employers, employees, credit grantors,
investors, business and financial community, and governments. A CPA may be an employee or an
employer. As an employee, service to employer is guided by accounting principles and standards. The
CPA employer mentoring his or her subordinates improves the efficiency of those who, in the future, will
move up to the mentor's position. Preparation of financial reports and assurance on these reports
contribute significantly to the decisions of lenders, investors, and others in the business and financial
community.

Government regulators like in the SEC and the BIR, require reports with assurances or opinions from
professionals who render credible information. Independence, integrity, and objectivity are expected of
the certified public accountants. The title of the assurance is Independent Auditor's When a CPA affixes
his signature on this report, he or she a) states the work done; b) mentions the division of responsibility
between the auditor and the auditee; and c) assures auditee's compliance with Philippine Financial
Reporting Standards. Many times, CPAs are engaged even by small entities only for BIR compliance.
Credit grantors and investors analyze audited financial reports the accompanying auditor's opinion. The
auditor's opinion adds credibility to and read financial reports. Even when the analyses entail matters
beyond the figures and descriptions presented, valuable information is provided by the audited reports.

The Code of Ethics for Professional Accountants in the Philippines provide the following in the areas of
(1) Public Interest; (2) Objectives; and (3) Fundamental Principles.

Objectives of the Code of Ethics for Professional Accountants profession

The code recognizes that the objectives of the accountancy are to work to the highest standards of
professionalism, to attain the highest levels of performance, and generally, to meet the public interest
requirement.

These objectives require four basic needs to be met:

Credibility

In the whole of society there is a need for credibility in information and information systems.

Professionalism

There is a need for individuals who can be clearly identified by clients, employers, and other interested
parties as professional persons in the accountancy field.

Quality of Services

There is a need for assurance that all services obtained from a professional accountant are carried out to
the highest standards of performance.
Confidence

Users of the services of professional accountants should be able to feel confident that there exists a
framework of professional ethics that governs the provision of those services.

Fundamental Principles to Be Observed

The fundamental principles to be observed by professional accountants are the following:

Integrity

A professional accountant should be straightforward and honest in performing professional services.

Objectivity

A professional accountant should be fair and should not allow prejudice or bias, conflict of interest, or
influence of others to override objectivity.

Professional Competence and Due Care

A professional accountant should perform professional services with due care, competence, and
diligence, and has a continuing duty to maintain professional knowledge and skill at a level required to
ensure that a client or employer receives the advantage of competent professional service based on up-
to-date developments in practice, legislation, and techniques.

Confidentiality

A professional accountant should respect the confidentiality of information acquired during the course
of performing professional services. They should not use or disclose any such information without
proper and specific authority or unless there is a legal or professional right or duty to disclose.
Professional Behavior

A professional accountant should act in a manner consistent with the good reputation of the profession
and refrain from any conduct that might bring discredit to the profession.

Technical Standards

A professional accountant should carry out professional services in accordance with the relevant
technical and professional standards. accountants have a duty to carry out the instructions of the client
or employer with care and skill, as long as they are compatible with the requirements of integrity,
objectivity, and in the case of professional accountants in public practice, independence.

Career Choices

A career is a series of progressively responsible jobs in one field or related field. As early as now, you
may plan your career path. Be guided by (1) self-assessment, (2) career exploration, and (3) goal setting.
Start drawing your plan.

Your job search includes the following:

1. family

2. network with friends, acquaintances

3. on-the-job training contacts

4. newspaper advertisements

5. Internet
6. human resource department of companies

Job application involves the following. You may practice these now.

1. writing letters of application

2. completing the company's application forms

3. preparing own resumé or curriculum vitae (CV) or biodata; developing a personal fact sheet that you
will progressively enhance with pieces of evidence or certificates of training, attendance, and
completion of programs; preserving academic diploma and board examination certificates, identification
cards, and proof of academic honors and technical skills

4. being clear with your job objectives and goals

5. obtaining letters of recommendation

6. selling yourself in your cover letter and starting today, making yourself marketable

7. preparing for the interview by:

a. dressing properly

b. exhibiting good behavior

c. knowing the company and industry you are applying for

d. getting ready with questions you would want to ask the interviewer
e. being prepared for common questions of interviewers

8. writing a follow-up letter