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A Riddle – What is the Difference Between Gravity and GAAP and GAAS?
that any two bodies in the universe attract each other with a force that is directly proportional to the product of their masses and inversely proportional to the square of the distance between them.
Thus the application of the rule works on earth, on the moon and everywhere in outer space. A very simple concept. It works here and it works there. Now let's extend the concept to the core rules which regulate the practice of public accountancy by CPAs. Well there are such rules and they are equally applicable to practice in the building down the street with 14 column paper with holes in it, and to QBOnline or Xero "in the cloud" SAME RULES, SAME REQUIRMENTS.
Unfortunately, there appears to be pockets of substantial non-compliance by newer members of the profession, dare I call them milleniels? We are going to explore some of the rules in great depth in coming posts, but I thought we could make an introduction so everyone is aware that the rules exist and then we can begin to apply them.
A licensee shall not render services subject to the authority of the SEC or PCAOB unless the licensee has complied with the applicable standards and rules adopted and approved by the PCAOB and SEC.
A licensee shall not render auditing services unless the licensee has complied with the applicable generally accepted auditing standards.
A licensee shall not render accounting and review services unless the licensee has complied with the standards for accounting and review services issued by the AICPA, including subsequent amendments and editions.
A licensee shall not permit the licensee's name to be associated with governmental financial statements for a client unless the licensee has complied with the standards for governmental accounting issued by the GASB, including subsequent amendments and editions.
A licensee shall not render attestation services unless the licensee has complied with the Statements on Standards for Attestation Engagements issued by the AICPA, including subsequent amendments and editions.
A licensee shall not render management consulting services unless the licensee has complied with the standards for management consulting services (including the definition of such services) issued by the AICPA, including subsequent amendments and editions.
A licensee shall not render services in the area of taxation unless the licensee has complied with the standards for tax services issued by the AICPA, including subsequent amendments and editions.
A licensee shall not permit the licensee's name to be used in conjunction with any forecast of future transactions in a manner which may lead to the belief that the licensee vouches for the achievability of the forecast, and shall not render services associated with prospective financial statements unless the licensee has complied with the standards for accountants' services on prospective financial information issued by the AICPA, including subsequent amendments and editions.
A licensee shall not express an opinion on financial statements unless the licensee complies with the Statements of Financial Accounting Standards, together with those Accounting Research Bulletins and Accounting Principles Board Opinions which are not superseded by action of the FASB, including subsequent amendments and editions.