Accountants: The Providers of Financial Information

a. Accountants have different roles in providing financial information to decision makers. Which type of accountant would an owner, investor, or creditor be most likely to hire to perform the role indicated?

1. Develop a series of classes designed to help students pass the certified management accounting examination.

2. Determine the amount of tax owed to Canadian taxing authorities for products exported to Canada in the past year.

3. Verify the accuracy of a company’s financial statements.

4. Maintain detailed records of the costs associated with the production of a company’s products.

5. Maintain the accounting information system, record information, and prepare financial reports and financial statements of a company.
6. Examine the information system of an organization to help ensure its effectiveness and efficiency.
7. Provide advice to managers relating to accounting information systems and other business matters.

b. You and your roommate are talking about choosing professional careers. Your roommate wants to be a CPA so she can be independent, but she cannot understand why CPAs are subject to regulation. Explain to her why CPAs are regulated.

c. An audit report that contains an unqualified opinion indicates the accountant’s belief that the financial statements are fairly presented. If an auditor thinks that an unqualified opinion is inappropriate, what other types of opinions might be issued? For each type, describe why the auditor would not issue an unqualified opinion.