Accounting Experts
An accounting expert has particular skill or
knowledge in the elements of accounting. The American Institute of
Certified Public Accountants (AICPA) defines accounting as “the art
of recording, classifying, and summarizing in a significant manner
in terms of money, transactions, and events which are, in part at
least, of financial character, and interpreting the results
thereof.”
Accounting is divided into two primary functions:
(1) management accounting and
(2) financial accounting
Management accounting concentrates on reporting financial
information of a business to people inside the business entity, such
as employees and managers. Financial accounting concentrates on
reporting financial information to people outside the business
entity, such as investors, creditors, financial analysts,
economists, and government agencies.
Accounting experts practice the elements of accounting by examining,
auditing, and analyzing business transactions and financial
statements and are sometimes referred to as “forensic accountants”
due to the investigative nature of their work. Accounting experts
assist primarily in preparing and reviewing documents regarding the
assets, liabilities, and operating results of a business and may
also prepare projections. An accounting expert is traditionally one
who has earned the title of Certified Public Accountant (CPA).
Furthermore, some accounting experts use their expertise to serve as
expert witnesses and forensic accounting consultants in legal
disputes regarding accounting matters. These accounting experts
deliver reports, presentations, and testimonies for judges,
attorneys, law firms, and juries in federal and state court trials
and arbitrations.
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