Today, a certified public accountant is an indispensable strategic partner for businesses. Their responsibilities go beyond simply preparing financial reports and ensuring their accuracy. They also play a key role in adding value to a company, provided it complies with legal and accounting requirements.
Who is a Certified Public Accountant?
A Certified Public Accountant (CPA) is a legally authorized accountant who can provideindependent financial auditing services . He or she is a qualified individual with the knowledge and experience to accurately apply auditing and accounting standards in accordance with the applicable laws and regulations of the country in which he or she provides his or her services.
Certified public accountants are primarily used by businesses to provide transparent and accurate financial reports that help companies make the best decisions, ensuring tax and accounting compliance and stability in their financial transactions.
The importance of a certified public accountant
A certified public accountant is considered the cornerstone of any economic activity. The economic success of any company has always been linked to the effectiveness and legal integrity of its accounting system. These two aspects represent the main pillars of the work performed by a certified public accountant.
Since accounting is considered one of the most important aspects required by the UAE labor market, due to its importance to individuals, companies, and institutions, seeking the assistance of specialists and experts in this area will provide companies and institutions with a true guarantee of success. Accounting, in its various forms, involves a great deal of complexity that only experts and professionally qualified professionals can simplify.
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Duties of a Certified Public Accountant
First: Financial review
Financial auditing is one of the most important aspects of a certified public accountant’s work. The auditor reviews and examines all of a company’s financial transactions and records to ensure their accuracy and compliance with approved accounting standards.
Financial reviews also include detecting and verifying any errors or manipulation in the figures, as well as ensuring that the financial figures reflect the company’s true financial position.
Second – Tax Administration
A certified public accountant plays a key role in managing tax matters. They are responsible for preparing and submitting tax returns within the specified deadlines and in accordance with the requirements stipulated in tax law, and for providing tax advice on how to implement the best tax strategies and reduce burdens and costs.
Third: Internal and external audit
A certified public accountant conducts both internal and external audits . Internal auditing focuses primarily on assessing the effectiveness of a company’s internal controls and its compliance with internal procedures and policies. External auditing, on the other hand, involves a comprehensive review of financial records and data, verifying their accuracy through an independent entity. This enhances investor and shareholder confidence in the accuracy of a company’s financial statements.
Fourth: Financial consultations
A certified public accountant’s role is not limited to simply carrying out tasks. They also provide financial advice, helping companies make important strategic decisions. This may include analyzing financial performance and proposing appropriate recommendations to improve profitability and operational efficiency, in addition to contributing to budget preparation.
Fifth: Compliance and regulation
In the course of performing their duties, the Certified Public Accountant (CPA) is diligent in ensuring that the company meets compliance requirements with respect to all financial and regulatory laws and regulations. They continually take steps to verify compliance with tax laws, accounting standards, and other regulatory requirements, all of which are designed to preserve the company’s reputation and avoid legal violations.
Sixth: Risk Management
A chartered accountant also manages company risks by assessing and analyzing potential financial risks and developing appropriate strategies to mitigate and prevent them. Potential risks that companies may face include price fluctuations, financial fraud , and changes in economic and tax policies.
The principles on which the certified public accountant relies in his work
When a certified public accountant performs his duties, there are some basic principles that he must adhere to, especially when preparing financial reports, to achieve the requirements of accuracy and transparency.
Cost accounting principle
This principle is based on the certified public accountant recording costs according to their actual value when they occur, without taking into account economic changes that may affect them over time. In other words, the cost is recorded as it is without modification, which enhances the objectivity and accuracy of the financial statements.
principle of separation
This principle is based on separating the company’s activities from the personal activities of its owners. A company is a legal entity independent of individuals. This independence is essential to ensure that company funds do not overlap with personal funds, which contributes to the accuracy and clarity of financial statements.
The principle of immediate revenue recording
This principle operates on the basis of immediately recording revenue as soon as a service is provided or a sale occurs, without taking into account the timing of cash receipts. This principle primarily aims to ensure consistency between expenses and revenues within the same financial period, providing an accurate picture of a company’s performance.
Continuity principle
This principle views a company as a continuing entity, unaffected by changes that may affect its owners. Therefore, periodic financial reports must continue to be prepared, which contributes to providing a true picture of the company’s financial performance over the long term.
Full Reporting Principle
This principle is based on the need for a company to disclose the various problems and challenges it faces, and to provide a comprehensive and clear view of its financial position, including decisions that affect users of the financial statements. This enhances transparency and integrity in the company’s performance.
The principle of currency unification
This means that all financial data is recorded in one currency, and all transactions made in other currencies are converted into that currency. This ensures the accuracy and consistency of financial data and records, and facilitates comparisons.
The principle of different rulings
This principle is based on the fact that accounting judgments may differ depending on the financial impact of errors. A certified public accountant may be liable for non-material errors, while corrective action may be taken if these errors are material and have a significant impact. Therefore, this principle raises the idea of balancing efficiency and accuracy in accounting tasks.
Certified Public Accountant | Farhat & Partners
Farhat & Partners offers you the best legal and financial accounting services in the United Arab Emirates. With over 35 years of expertise and experience, you can rest assured that you’ll receive the best services that will help your business thrive and identify any gaps in corporate accounting systems.
Our chartered accountants are committed to providing unique ideas and suggestions that can help solve any problems that companies or institutions may encounter.
Our forensic accounting services include:
- Auditing services and accurate review of all financial documents and accounts.
- Audit and verification services to evaluate the company’s performance, improve and develop its performance, and achieve better results.
- Audit and review services.
Farhat & Co. is one of the most established auditing firms in the United Arab Emirates, providing legal accounting services. We have provided and continue to provide our auditing and review services.
Contact us now and benefit from our expertise in managing accounting businesses.
Research and Studies Department
Farahat & Co.
Dubai, United Arab Emirates
For service inquiries:
WhatsApp (correspondence only): +971526922588
Email: sales@farahatco.com
