Services provided by CPAs
The primary functions CPA fulfill relate to assurance services, or public accounting. In assurance services, also known as financial audit services, CPAs attest to the reasonableness of disclosures, the freedom from material misstatement, and the adherence to the applicable generally accepted accounting principles (GAAP) in financial statements. CPAs can also be employed by corporations—termed "the private sector"—in finance functions such as Chief Financial Officer (CFO) or finance manager, or as CEOs subject to their full business knowledge and practice. These CPAs do not provide services directly to the public.
Although some CPAs serve as business consultants, the consulting role is under scrutiny following the corporate climate in the aftermath of the Enron scandal. This has resulted in divestitures in the consulting divisions by many accounting firms. This trend has since reversed. In audit engagements, CPAs are (and have always been) required by professional standards and Federal and State laws to maintain independence (both in fact and in appearance) from the entity for which they are conducting an attestation (audit and review) engagement. However, most individual CPAs who work as consultants do not work as auditors.
CPAs also have a niche within the income tax preparation industry. Many small to mid-sized firms have both a tax and an auditing department.
Whether providing services directly to the public or employed by corporations or associations, CPAs can operate in virtually any area of finance including:
Assurance and Attestation Services
Corporate Finance (Merger & Acquisition, initial public offerings, share & debt issuings)
Corporate Governance
Estate Planning
Financial Accounting
Financial Analysis
Financial Planning
Forensic Accounting (preventing, detecting, and investigating financial frauds)
Income Tax
Information Technology, especially as applied to accounting and auditing
Management Consulting and Performance Management
Tax Preparation and Planning
Venture Capital
While some CPAs are generalists and offer a range of services (especially those in small practices) many CPAs specialize in just one area and do not provide all the services listed above.
