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    Because accounting affects people in
    many different fields, public accounting and private accounting include
    specialized services.

    Auditing is the accounting
    profession's most significant service to the public. An audit is the
    independent examination that assures the reliability of the accounting reports
    that management prepares and submits to investors, creditors, and others outside
    the business.

    In carrying out an audit, CPAs
    (Certified Public Accountants) from outside a business examine the businesses
    financial statements.

    If the CPAs believe that these
    documents are a fair presentation of me business's operations,, the CPAs give a
    professional opinion stating that the firm's financial statements are in
    accordance with generally accepted accounting principles, which is the
    standard. Why is the audit so important?

    Creditors considering loans want
    assurance that the facts and figures the business submits are reliable.
    Stockholders, who have invested in the business, need to know that the
    financial picture management shows them is complete. Government agencies need
    accurate information from business.

    Internal auditing is performed by a business’s
    own accountants. Many large organizations maintain a staff of internal
    auditors. These accountants evaluate the firm's own accounting and management
    systems.

    Their aim is to improve operating
    efficiency and to ensure mat employees and departments follow management's
    procedures and plans.

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