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Maintaining CPA License, Auditor Reports

6-After individuals become licensed in accounting, type typically must do what?
A. Work for an auditing firm for 120 hours.
B. Continue their education by acquiring CPE's.
C. Become an Enrolled Agent with the IRS.
D. Open a public practice in accounting.

9-If a company has changed accounting principles, the auditor will issue what type of statement?
A. Lack of accounting standards.
B. Change in costing principles.
C. Lack of consistency.
D. Misstatement of accounting principles.

Solution Preview

6. The requirements for obtaining a CPA license vary from state to state. Some require that the applicant obtain a minimum amount of experience (either in auditing or in general accounting, or both), while others just require that the applicant pass the CPA exam and possess a minimum number of hours of credits and/or a degree. Once the person is licensed, they can work for whomever they desire; many CPAs work in Government or private industry on a full-time basis, so answers A and D are wrong. The IRS will allow CPAs to practice before it; generally, the only non-CPAs recognized by the IRS are enrolled agents, attorneys, and certified actuaries, so answer C is wrong. However, all CPAs must meet a minimum annual ...

Solution Summary

This solution responds to two questions. First, it discusses what a CPA must do to retain his or her license. It then discusses the audit statement issued if a company changes its accounting principles.