FABM

• Sectors of Accounting Practice:

  1. Public Practice
  2. Commerce and Industry
  3. Education
  4. Government
• Sectors of Accounting Practice - apply their knowledge and expertise
• professional fee - are the charges incurred for the professional services provided by accountants, financial experts, and other professionals in the field.
• individual practitioner or part of an accounting firm - perform their public practice.
• Examples of services under the accounting practice are: Auditing, Tax Preparation, Management Consultancy
• Auditing - this is the most common service offered by CPAs. In auditing, financial statements are carefully examined and validated by accountants.
• 1. Tax Preparation - this involves providing help to clients in complying with their tax obligations.
• 1. Management Consultancy - this involves extending guidance to business organizations to help improve their management procedures, address problems, and plan for the improvement of their business operations.
• Management Consultancy - business consult.
• Commerce and Industry - accountants in this sector are considered private accountants. They are directly involved in the management of the company's operations.
• private accountants: chief accountant, internal auditor, budget officer, vice president of finance
• Education - accountants can also be employed as instructors in colleges and universities that offer accounting subjects.
• Education - to equip the spiring accountants with their knowledge and skills
• Government - CPAs can be hired in many accounting and accounting-related positions in government agencies and units.
• Government - higher income/salary
• Examples in Government: BIR (Bureau of Internal Revenue),

  Commission on audit, Department of Budget and Management, Department of Finance
• 3 Major Branches of Accounting: Financial Accounting, Cost Accounting, Management Accounting
• Financial Accounting - is primarily

  concerned with the recording, preparation, and presentation of business transactions in the form of financial statements.
• Financial Accounting - financial statements are also used to provide information for the needs of external users.
• external users - party outside the business: creditors, investors, banks, government authority
• Cost Accounting - deals with the measurement and recording of all the cost incurred in a business to help the management in controlling the business organization's expenses.
• Management Accounting - is to provide reports and information about business transactions to the internal users.
• internal users - person or party that are directly involved: owner, manager, employees
• Other Fields or Areas of Accounting:

  Tax Preparation

  Government Accounting

  Auditing

  Accounting Education

  Fiduciary Accounting

  Forensic Accounting

  Accounting Research
• 1. Tax Accounting - a special type of accounting that focuses on taxes rather than on financial statements.
• 1. Government Accounting - is concerned with the systematic collecting, recording, summarizing, analyzing, and interpreting of financial transactions related to the expenditures and revenues of government institutions.
• Government Accounting - disclose the public funds
• Auditing - financial records

  are carefully examined to determine the accuracy and fairness of these records.
• 1. Accounting Education - employs accountants as educators and researchers.
• 1. Fiduciary Accounting - involves the evaluation and handling of accounts that are managed by an individual who has been entrusted with the guardianship and custody of a business, possession, or property owned by another individual.
• 3 types of fiduciary accounting; receivership - no control of the owner (bankruptcy or failure to pay your debts), trust accounting - the trustee (bank) and beneficiaries (people), estate accounting - owner

  who passed away
• receiver - to be chosen by the court or creditors of the company
• 1. Forensic Accounting - involves the investigation and analysis of numbers and financial data and records that are usually presented in court discussions.
• Forensic Accounting - mishandling of money
• 1. Accounting Research - a type of academic research which focuses on the study of the effects of economic events on accounting processes and how information gathered in this research affects economic events in return.
• Accounting Research - study about accounting to improve everything about accounting