NCJ Number
72287
Journal
GOVERNMENT ACCOUNTANTS JOURNAL Volume: 29 Issue: 2 Dated: (Summer 1980) Pages: 8-16
Date Published
1980
Length
9 pages
Annotation
For the accounting profession to provide the governmental services envisioned by the General Accounting Office (GAO) Standards, it must take affirmative steps to enable certified public accountants (CPA's) to extend their audit function beyond the traditional attest function.
Abstract
The accounting profession must develop new standards and guidelines and encourage the formation of creative relations between auditor and governmental client. However, any new pronouncements of authoritative bodies must be based upon an understanding and appreciation of the similarities and differences between the traditional financial examination and the extensions proposed by GAO. Reviews of administrative controls can readily be incorporated in the conventional financial examinations. Reviews of performance, by contrast, cannot be readily incorporated in the conventional financial audit. If such reviews are to be performed, then imaginative changes in traditional clientauditor relationships may have to be made. But it would be unfortunate if, only because of ties to traditional practices, the profession fails to provide services for which there has been a clearly articulated demand and for which accountants possess the required abilities and skills. Footnotes are provided. (Author abstract modified)