Professional Documents
Culture Documents
Public accountants provide services to a wide variety of clients that include individual taxpayers, large
businesses, government agencies, non-profits and educational institutions. The services performed by public
accountants generally fall within three categories:
Accounting and auditing services that involve maintaining financial records and preparing and
auditing financial statements for use by outside investors and banks.
Tax services that involve the preparation of tax returns as well as advising clients on tax deductions,
tax planning, and other tax-related issues.
Consulting services, which can involve financial planning services for individuals as well as business
consultation services to help management design, develop and implement accounting systems and
employee compensation packages.
Principle of regularity
Principle of consistency
Principle of sincerity
Principle of the permanence of methods
Principle of non-compensation
Principle of prudence
Principle of continuity
Principle of periodicity
Principle of full disclosure/materiality
Principle of good faith
GAAP rules only apply to the practice of public accounting within the United States. As the globalization of
the world economy intensifies, the pressure upon the U.S. increases to adopt International Financial
Reporting Standards (IFRS), which are used worldwide and can also be applied to American companies. It is
expected that in the future IFRS will become the predominant system of standards used in the United States
as well.