DOCSLIB.ORG

Roles and Practices In

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Roles and Practices In Cost Management Roles and Practices in Management Accounting Today RESULTS FROM THE 2003 IMA-E&Y SURVEY B Y A SHISH G ARG,DEBASHIS G HOSH,JAMES H UDICK, AND C HUEN N OWACKI anagement accounting is at a critical juncture. themselves against their peers. What’s more, more than Increased competition and uncertain business 200 members indicated that they would like to participate Mconditions have put significant pressure on in detailed interviews about industry-wide best practices corporate management to make informed business deci- in management accounting. sions and maximize their company’s financial perfor- mance. In response, a range of management accounting KEY FINDINGS tools and techniques has emerged. The survey revealed six major findings: Given this abundance of solutions, what decision- 1. Cost management is a key input to strategic decision support tools and cost analytics methodologies are makers. finance professionals employing? And what are the fron- 2. Decision makers and decision enablers alike identify tier issues in cost management? Surprisingly, there have “actionable” cost information as their topmost priori- been few contemporary broad-based surveys that illumi- ty.(For purposes of this analysis, we presumed that nate and identify cutting-edge issues in cost management decision makers run the finance or accounting depart- today. That’s why the Institute of Management Accoun- ment and decision enablers include all other manage- tants (IMA) and Ernst & Young (E&Y) undertook a sur- ment accountants.) vey to understand the evolving role of management 3. Several factors impair cost visibility. accountants, the goals of the organizations they serve, 4. Adopting new cost management tools isn’t a priority and the tools they use to meet those goals. We believe this in the current economic environment. survey is the first of its kind in the last several years. 5. Traditional management accounting tools are still During January and February of this year, nearly 2,000 widely used. survey responses from IMA members poured in. The 6. Management buy-in, adequate technology, and in- response rate of 9%, which is at par with commensurate house expertise in addition to a clear, quantifiable surveys, reflects strong interest on the part of IMA mem- value proposition are important triggers for the adop- bers to share best-practices information and benchmark tion of best practices. 1 STRATEGIC FINANCE I July 2003 Now let’s take a closer look at our major findings. role of management accountants has changed, and they’re being increasingly perceived as business partners who 1. Cost management is a key input to strategic decision makers. focus on key strategic issues well beyond the boundaries Cost management plays a significant role at companies; of traditional finance. This was evidenced by the result 81% of all respondents reported that cost management that nearly 56% of respondents agreed that contributing was important to their organization’s overall strategic to core strategic issues was a high priority for manage- goals. There may be several reasons for this. First, 75% of ment accountants. all respondents indicated the current economic slowdown has generated greater demand for cost management and 2. Decision makers and enablers alike identify “actionable” cost cost transparency, pushing companies to seek better ways information to be the topmost priority. of managing costs and financial bottom lines. Second, the There was remarkable alignment between decision mak- ers and decision enablers on top priori- Figure 1: Priorities Facing Management Accountants ties facing management accountants. DECISION ENABLERS DECISION MAKERS Both believe that the top two priorities Generating Cost Information for cost managers are to: (1) generate “actionable” cost information and Cost Reduction (2) reduce costs and drive efficiency. Improving Processes The necessity to generate key, timely, Contributing to Core Strategy and accurate costing information as an Setting Standards aid to strategic decision making was Reducing Risk characterized as a high priority for man- Automating Processes agement accountants by nearly 82% of 012345 NOT A PRIORITY TOP PRIORITY the respondents across both groups. They agreed that generating this infor- July 2003 I STRATEGIC FINANCE 2 mation as efficiently as possible was Figure 2: Top Initiatives Being Undertaken in of utmost importance and felt that Management Accounting the information should ultimately be TOP PRIORITY LOW TO MEDIUM PRIORITY used to accomplish at least one of the following: improve the corporation, ERP Implementation change employee behavior, or manage New Reporting Software costs more efficiently. New Budgetary Procedures Both groups also reported that Financial Consolidation reducing costs and driving efficiency New Analytic Software is a priority. In fact, more than 70% of the respondents considered cost Outsourcing Back Office Functions reduction, not top-line growth, the 0102030405060708090100 % OF RESPONDENTS prime way to impact the bottom line in the current recession. Figure 3: How Tools Are Implemented Decision makers and decision enablers diverged on subsequent priorities. Contributing to core strategy is the Installed as Part of next most important priority for decision makers. Deci- an ERP sion enablers demonstrated that they’re in tune with their Package: 14% day-to-day job requirements by revealing that their next A "Best of Breed" most important priorities are to improve the reporting Technology: 14% Developed process and set performance standards for the enterprise In-house Using Homegrown Systems: Most Popular Management 72% Accounting Tools There’s considerable variability in what management accounting tools companies use. These are the top (see Figure 1). This seems reasonable given the relative tools that more than 50% of the respondents use: roles of each group. Planning and Budgeting Tools ◆ Operational Budgeting 3. Several factors are perceived to impair cost visibility. ◆ ABM/Std. Budgeting Despite the emphasized need for cost information, there are obstacles to providing accurate numbers. Ninety-eight ◆ Capital Budgeting percent of the respondents said that some factors cause Decision-Support Tools some distortions in cost information, while 38% said that ◆ Quantitative Techniques some factors cause significant distortions. Bottom line: ◆ Breakeven Analysis Many numbers aren’t as accurate as they should be. ◆ Internal Transfer Pricing To delve deeper into the topic of distortions, the survey Product Costing Analysis Tools posed the following question: “In your experience, what ◆ Traditional Costing factors are distorting the computation of true costing in ◆ Overhead Allocations your organization?” The most reported distortion factors were overhead allocations (30%), shared services (20%), Performance Evaluation Tools and greater product diversity (19%). Most likely, over- ◆ Benchmarking head allocations tops the list because operating and Here are the tools that more than 40% of the SG&A overheads account for 34% to 42% of operating respondents say they are considering: value-chain costs across all industries. analysis, supply-chain costing, theory of constraints, target costing, value-based management, and the balanced scorecard. 4. Adopting new cost management tools isn’t a priority in the current economic environment. In today’s economic environment, new initiatives aren’t 3 STRATEGIC FINANCE I July 2003 high on companies’ priority lists, and, in fact, nearly 80% (1) enterprise resource planning (ERP) implementation, agreed that implementing new management accounting followed by (2) newer budgetary procedures, and (3) new initiatives is of low to medium priority. This finding was reporting software. Approximately 23%-24% of all similar for both large and small corporations and consis- respondents reported adopting these initiatives as a top tent across industries. While all new initiatives are gener- priority. Other once-popular initiatives such as financial ally on hold (see Figure 2), the top three initiatives are consolidation and installing new analytical software such The Survey Process and Respondents The survey, which was executed electronically using the Web and Table 1: Summary Statistics e-mail, involved no paper or telephone transactions (it is posted at http://surveys.ey.com/ima/survey2003). In a sense, we test- Total Invitations Sent 23,034 ed the limits of electronic survey deployment simply because of Number of Respondents 1,995 the sheer number (23,034) of IMA members we asked to com- Response Rate 9% plete the questionnaire. Median Revenue $300MM We distributed the survey to the following IMA members: Median Number of Employees 1,750 senior-level financial executives (such as CFOs, VPs of finance, Corporation Types: controllers, cost managers), members with experience imple- Public Corporation 44% menting cost management solutions, and those who belong to Private Corporation 40% the Cost Management Group and the Controllers Council Mem- Other 16% ber Interest Groups (MIGs). A copy of the report, “2003 Survey Industry Sectors Represented: of Management Accounting,” will be available to IMA members Manufacturing (Various) 39.8% on request. Financial Services/Consulting 15.5% Survey respondents formed a representative cross-section of Government/Nonprofit 7.8% IMA members and cost managers (refer to Table 1). The average Consumer Package Goods 5.8% respondent represented a company with 1,750 employees and Retail/Wholesale 5.1% $300 million in
Load more

Recommended publications
  • Accounting Certification Quick Guide
    Accounting Certification Quick Guide CPA CMA CIA CFE EA CGMA Accounting Courses Required to Sit for Exam Yes No Yes No No Yes Work Experience Needed to Sit for Exam No No No Yes No 2 years Bachelor's Degree Yes (150 credit hours) Yes (can sit b/f graduated) Yes Yes* No Yes Estimated Cost of Exam $ 3,000 $ 1,750 $ 1,500 $ 400 $ 1,000 $ 325 Estimated Total Costs** $ 4,500 $ 2,230 $ 2,300 $ 1,395 $ 1,500 $ 2,600 Exam Dates Per Year 4 Windows (9 Mo.) 4 Windows (6 Mo.) Year Round Year Round May 1-Feb 28 3 Windows Exam Length 16 Hours 8 Hours 6.5 Hours 8 Hours 12 Hours 3 Hours Work Experience Needed for Certification Yes* 2 Years 1 - 2 Years Yes* No 3 Years Number of Exams 4 2 3 4 3 1 Memberships Required to Sit for Exam None IMA Member None ACFE Member None AICPA Member CFA CGAP CBA CISA CFSA CITP Accounting Courses Required to Sit for Exam No Yes Yes No Yes Yes Work Experience Needed to Sit for Exam No* 1-5 Years* No No No No Bachelor's Degree Yes No (associate) Yes No No (associate) Yes Estimated Cost of Exam $ 2,500 $ 855 $ 498 $ 670 $ 2,000 $ 500 Estimated Total Costs** $ 4,600 $ 2,500 $ 900 $ 2,240 $ 2,250 $ 650 Exam Dates Per Year 1-2 Times/ Year Year Round 3 Times/ Year June 1-Sept 23 Year Round 3 Windows Exam Length 18 Hours 3 Hours 4 Parts 4 Hours 3 Hours 4 Hours Work Experience Needed for Certification 4 Years 1-5 Years 2 Years 3 Years* 1-5 Years 1,000 Hours Number of Exams 3 1 4 1 1 1 Memberships Required to Sit for Exam CFA Institute None None None None AICPA Member * Work experience varies by state **Includes study material, fees, test, etc.
    [Show full text]
  • Accountant Exempt, Full-Time Administrative Department
    Accountant Exempt, Full-Time Administrative Department Job Summary: Under general supervision of the Finance Director, responsible for accounting and support services. The employee must routinely use independent judgment when performing tasks. Equipment Used / Job Locations / Work Environment: The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this class. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. The employee will operate a computer, fax machines, copier and other modern office equipment. The employee generally works indoors in an office. Essential Functions & Job Responsibilities: The duties listed below are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to this class. Responsible for accounting and financial records of all funds, including reconciling bank statements and invoices, reconciling General Ledger (G/L) accounts and sub ledgers, bond payments, verifying accounts payable, and payroll; balances all receipts and tax collections monthly; responsible for journal entries to G/L; records fixed assets; assists with annual audit; assist with annual budget preparation; assist with annual and monthly financial report; assists users in resolving problems on various accounting systems. Additional Work Performed: Prepares social security and tax withholding reports; prepares quarterly unemployment reports; maintains general records of account according to established accounting classifications, including various ledgers, registers, and journals; posts entries to books and computer from supporting records, makes adjustments, and prepares financial statements.
    [Show full text]
  • Historical Evolution of Management Accounting
    1990's: Value Based Management Focus shifted to include the creation of customer value, strategy, balanced scorecards, EVA, and other related concepts. 1980's: Lcan Enterprise CA M-I Cost Management Focus shifted to the reduction of waste, JTT, teamwork, ABC, target costing, quality, investment & product life cycle management. 1951 - 1980's: Managerial Accounting Focus shifted to providinginformation for management planning & control. 1920 - 1950: Cost Accounting Matching concept developed. Focus on cost determination and financial control. 1812 - 1920: Accountingfor Processes Prior to the matching concept. Focus on operating cost and efficiency of processes. Shah Kamal Historical Evolution of Assistant Relationship Manager Management Accounting Bank Alfalah [email protected] Abstract The obsolescence of most companies' cost accounting and management control systems is particularly unfortunate for the global competition of the 1980s (Johnson & Kaplan, 1987). During the past two decades, conventional cost and management accounting practices have been under extensive criticism for their malfunction to instigate change and their inability to support management accounting innovations in coping with the requirements of a changing environment. The academic literature has been crucial of conventional management accounting systems particularly for their lack of efficiency and capability to present comprehensive and the latest information and to assure decision makers and potential users of such information. Focusing on this debate, current study reviews the evolution of cost and management accounting innovations over the past century around the world and to examine whether there has been a significant impact of management accounting in the organization. The analyses suggest that management accounting is changing. However, these changes do not have much bearing upon the type of management accounting techniques.
    [Show full text]
  • Government Audit Committees – Part 1 – Charter, Roles and Responsibilities
    Management Accounting & Finance Sponsored by the AICPA’s Government Performance & Accountability Committee (GPAC) Government Audit Committees – Part 1 – Charter, Roles and Responsibilities Lori A. Sexton, CPA, CGMA A government’s audit committee provides governance and accountability but must address the enhanced transparency expectations of the public which it serves. Developing an entity specific charter as well as creating roles and responsibilities of the audit committee which may include unique requirements is the first step in achieving a successful audit committee. Before we dig into best practices of a government audit committee, there are certain limitations placed on the audit committee and therefore will not be addressed. The audit committee is not responsible for planning or conducting audits; this is the independent auditor’s responsibility. Neither is the audit committee responsible for (1) preparing and fairly presenting the government entity’s financial statements in accordance with generally accepted accounting principles, (2) maintaining effective internal control over financial reporting, and (3) ensuring the government entity’s compliance with applicable laws, regulations, and other requirements. These responsibilities are management’s, and the independent auditor and the audit committee have independent and complementary oversight responsibilities for determining that the related objectives of management’s responsibilities are achieved. The audit committee begins it’s responsibilities by creating a charter that lays out it’s specific governance responsibilities, expectations and measures as applicable. This includes the committee’s purpose, reporting hierarchy, committee membership, authority and responsibilities. This article links to the full report https:// www.cgma.org/content/dam/cgma/resources/reports/downloadabledocuments/cgma-govt-audit- committee-part-1.pdf which includes a tool of 20 best practices for developing a government audit committee charter.
    [Show full text]
  • Introduction to Management Accounting and Control
    ⬛⬛ CHAPTER 1 Introduction to Management Accounting and Control FEATURE STORY It’s Monday morning, 9 o’clock. Pekka Virtanen, Pekka: Restructuring means laying-off a larger general manager at FinnXL, one of the larg- percentage of the employees. Let me have est furniture companies in the world, calls a closer look at your scenarios, please. I’m for a meeting with his chief controller, Linn sure you’ll have included all the financials Petersson. in your model, but have you considered One of FinnXL’s production facilities in Estonia potential employee reaction to the restruc- is under discussion for a major restructur- turing plans? I remember some five years ing. The profitability of the production site ago, when I was the plant manager at our has dropped severely in the last six months. production site in Poland, that the financial Pekka is responsible for the Eastern European forecasts, which had been prepared by the operations, and FinnXL’s top management has central accounting department, were too instructed him to solve the problem. optimistic. They underestimated the nega- tive effects on employee motivation. Pekka: Good morning Linn. Great that you Linn: I have to admit, employee reaction is not could make it at such short notice. As I told explicitly considered in my model, as this is you last week, we need to find a solution for really difficult to quantify. But I have looked our Estonian production facility. up FinnXL’s experience with restructurings Linn: Absolutely. I’ve collected all the numbers in the Baltic states. In recent years, the actual from the last six months.
    [Show full text]
  • CHOOSING a BOOKKEEPING SOLUTION Step 1
    CHOOSING A BOOKKEEPING SOLUTION Step 1: Determine skill requirements (The chart below is offered as a general guide to creating a job description.) Basic Bookkeeping Advanced Bookkeeping Accounting Finance Recording basic daily Recording more Handling accounting Handling other financial transactions such as: complex transactions functions such as: and managerial ‐Receipts & Deposits such as: ‐Processing payroll activities such as: ‐Disbursements ‐Payroll ‐Maintaining fixed asset ‐Budgeting ‐Vendor bills & credits ‐Credit card activity schedules ‐Projections ‐Customer invoices, ‐Journal entries ‐Inventory valuation ‐Cash flow analysis credits and statements ‐Inventory ‐Work‐in‐process ‐Financing ‐Project/Job costing Accounting ‐Tax preparation or ‐Estimates ‐Overhead allocations interfacing with your ‐Purchase orders ‐Cost of good/services CPA ‐Allocation by profit accounting center ‐Tax reporting (sales & ‐Bank and credit card use, gross receipts, account reconciliation 1099, payroll taxes) ‐Interfacing with a point of sale system ‐Internally prepared financial statements Job titles may include: Job titles may include: Job titles may include: Job titles may include: ‐Data Entry Clerk ‐Bookkeeper ‐Office Manager ‐Accounting Manager ‐Payables and/or ‐Senior Bookkeeper ‐Staff Accountant ‐Director of Finance Receivables Clerk ‐Full charge Bookkeeper ‐Accountant and/or Accounting ‐Entry Level Bookkeeper ‐Junior Accountant ‐Payroll Accountant ‐Chief Finance Officer ‐Bookkeeper ‐Office Manager ‐Senior Accountant Education required: Education
    [Show full text]
  • Code of Ethics for Professional Accountants Contents
    June 2005 Revised July 2006 CODE OF ETHICS FOR ♦ PROFESSIONAL ACCOUNTANTS CONTENTS Page PREFACE ...................................................................................................... 1102 PART A: GENERAL APPLICATION OF THE CODE ............................... 1103 100 Introduction and Fundamental Principles ........................................ 1104 110 Integrity ........................................................................................... 1110 120 Objectivity ....................................................................................... 1111 130 Professional Competence and Due Care .......................................... 1112 140 Confidentiality ................................................................................. 1113 150 Professional Behavior ...................................................................... 1115 PART B: PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE ... 1116 200 Introduction ..................................................................................... 1117 210 Professional Appointment ............................................................... 1123 220 Conflicts of Interest ......................................................................... 1127 230 Second Opinions .............................................................................. 1129 240 Fees and Other Types of Remuneration .......................................... 1130 250 Marketing Professional Services ..................................................... 1133 260 Gifts and
    [Show full text]
  • The Challenge of XBRL: Business Reporting for the Investor
    Thechallenge of XBRL: business reportingfor theinvestor Alison Jonesand Mike Willis Abstract The Internet nancialreporting language known asXBRL continues to developand has now reachedthe point wheremuch of its promised benets areavailable. The authors look atthe history of this project, provide acasestudy of how Morgan Stanleyhas madeuse of the system andpredict some developmentsfor the future. Keywords Financial reporting, Financial services,Internet Alison Jones isan Assurance enyears ago, only ahandful of visionaries could haveforeseen the impactof the Internet Partner specializingin on the entire business world andthe information-exchange community. Today, a technology, infocomms and T decadelater, we areon the brinkof anInternet revolution that will redene the ‘‘business entertainment,and media. She reporting’’ paradigm.This revolution will not taketen years to impactbusiness communication. isthe PricewaterhouseCoopers The newInternet technology, eXtensibleBusiness Reporting Language (XBRL), is alreadybeing XBRLServices Leader for the deployedand used across the world. UK, andrepresents the rm on theUK XBRLconsortium. For many companies, the Internet playsa keyrole in communicating business information, MikeWillis, Deputy Chief internally to management andexternally to stakeholders.Company Web sites, extranets and Knowledge Ofcer of intranets enableclients, business partners, employees, nancial marketparticipants and PricewaterhouseCoopers’ other stakeholders to accessbusiness information. Although the needfor standardization of
    [Show full text]
  • The Roles and Domain of the Professional Accountant in Business
    Information Paper The Roles and Domain of the Professional Accountant in Business Published by the Professional Accountants in Business Committee Professional Accountants in Business Committee International Federation of Accountants 545 Fifth Avenue, 14th Floor New York, New York 10017 USA The mission of the International Federation of Accountants (IFAC) is to serve the public interest, strengthen the worldwide accountancy profession and contribute to the development of strong international economies by establishing and promoting adherence to high-quality professional standards, furthering the international convergence of such standards and speaking out on public interest issues where the profession’s expertise is most relevant. This publication was prepared by IFAC’s Professional Accountants in Business (PAIB) Committee. The PAIB Committee serves IFAC member bodies and the more than one million professional accountants worldwide who work in commerce, industry, the public sector, education, and the not-for-profit sector. Its aim is to enhance the role of professional accountants in business by encouraging and facilitating the global development and exchange of knowledge and best practices. This publication may be downloaded free-of-charge from the IFAC website http://www.ifac.org. The approved text is published in the English language. Copyright © November 2005 by the International Federation of Accountants (IFAC). All rights reserved. Permission is granted to make copies of this work provided that such copies are for use in academic classrooms or for personal use and are not sold or disseminated and provided further that each copy bears the following credit line: “Copyright © by the International Federation of Accountants. All rights reserved. Used by permission.” Otherwise, written permission from IFAC is required to reproduce, store or transmit this document, except as permitted by law.
    [Show full text]
  • Certificateas a Certified Public Accountant State
    DO NOT WRITE IN THIS SPACE APPLICATION FOR A CERTIFICATE AS A CERTIFIED PUBLIC ACCOUNTANT Certificate No. ............................................. STATE BOARD OF CPAs OF LOUISIANA Date Issued ............................................. 601 Poydras Street, Suite 1770 New Orleans, Louisiana 70130 Reviewed ............................................. Approved ............................................. Please refer to the instructions on the reverse side or next page of this form. 1. If you passed the May 1999 or a subsequent CPA exam, type or print name exactly as you wish it scrolled on your certificate: (limit three names, i.e., first, middle, and last) 2. Full name (no initials): [ ] Mr. [ ] Mrs. [ ] Miss [ ] Ms. 3. Passed CPA examination as a Louisiana candidate: _____________ _________ Month Year 4. Soc. Sec. No.: __________________________ 5. Date of birth: __________________________ 6. Addresses and phone numbers (include street and post office box if applicable): a. Business/Employer: b. Residence: Phone no. ( ) _____________________ Phone no. ( ) _____________________ 7. Preferred mailing address: [ ] Business [ ] Residence 8. Summarize the experience for which you are submitting documentation. At least one year of experience must be confirmed that was within the four years preceding the date of this application; involved the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills; and, was supervised and verified by a licensee. Full time months Part time hours (see instructions) [ ] Public practice: ___________ mos. __________ hrs. [ ] Industry: ___________ mos. __________ hrs. [ ] Government: ___________ mos. __________ hrs. [ ] Academia: ___________ mos. __________ hrs. 9. [ ] Enclose letter(s) confirming the experience from: [ ] present and/or past employer(s), and [ ] licensee(s) explaining their supervision of the work experience For experience in Academia (college teaching), confirmation letters must also include: [ ] college courses taught [ ] dates (beg.
    [Show full text]
  • Audit Accountant Series
    AUDIT ACCOUNTANT SERIES PREAMBLE This series includes positions which are responsible for an assigned audit function which involves completing audit reports and preparing subsequent reports and/or recommendations relative to establishing more effective and efficient accounting and financial systems. This series does not include positions which are performing clerical verification procedures or pre-audit functions such as checking expenditure vouchers where the procedures are established and responsibility is primarily to ensure conformance with criteria such as Acts, Directives, Policies, signatures, etc. Such positions should be tested for inclusion in the Audit Clerk or Clerk series. AUDIT ACCOUNTANT 1 Class Definition Incumbents in this class are responsible for performing audit work and for preparing statements and reports on the findings of the audits and for making recommendations for improving financial systems and procedures. They will also be responsible for completing an audit assignment. Positions performing an audit function for a department are responsible for auditing all varieties of expenditures for the department or for the external agencies that come within the jurisdiction of the department. Incumbents are responsible for completing audits and preparing reports and recommendations for improving financial systems. Positions located in the Provincial Auditor's Office will assist in conducting an examination and audit of a variety of accounts and records for all government departments, boards, commissions and agencies and duties may also include supervision of a team of Audit Clerks. Positions located in the Taxation Division are responsible for performing a complete tax audit on small businesses and will assist in auditing larger business firms within and outside the province.
    [Show full text]
  • 542.13 Unlawful Acts. 1. Only a Certified Public Accountant May
    1 PUBLIC ACCOUNTANTS, §542.13 542.13 Unlawful acts. 1. Only a certified public accountant may issue a report on financial statements of a person, firm, organization, or governmental unit, or offer to render or render any attest service. Only a certified public accountant or licensed public accountant may render compilation services. This restriction does not prohibit such acts by a public official or public employee in the performance of that person’s duties; or prohibit the performance by any nonlicensee of other services involving the use of accounting skills, including the preparation of tax returns, management advisory services, and the preparation of financial statements without the issuance of reports on such financial statements. A nonlicensee may prepare financial statements and issue nonattest transmittals or information on such statements or transmittals which do not purport to be in compliance with the statements on standards for accounting and review services. 2. A licensee performing attest or compilation services must provide those services consistent with professional standards. 3. A person not holding a certificate shall not use or assume the title “certified public accountant” or the abbreviation “CPA” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such person is a certified public accountant. 4. A firm shall not provide attest services or assume or use the title “certified public accountants” or the abbreviation “CPAs” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such firm is a certified public accounting firm unless the firm holds a permit issued under section 542.7 and ownership of the firm satisfies the requirements of this chapter and rules adopted by the board.
    [Show full text]