WILJEAN O.

MARFIL BRANCHES OF ACCOUNTING

GRADE11-HUMILITY/ABM MS. LEONILY B. ALEGRIA

Answer the following!!!

1. Explain the difference between public accounting and private accounting.

 Public accounting refers to a business or individual who helps a range
of clients, from individuals to corporations, prepare financial
documents. Certified public accountants, or CPAs, act as a third party
to review the financials of a company for public disclosure. They may
also prepare tax returns for both individuals and organizations. Other
duties may include audits, consulting services and tax advising.
 Private accounting refers to the business practices of an accountant
employed by a single company. These types of accountants analyze
and prepare financial reports internally. Typically, a private
accountant is also responsible for accounts payable and sending
invoices to clients. Sometimes when a company is being audited, a
public accounting firm will review the work of the private accounting
department. The main objective for private accounting includes
setting up internal systems to record business transactions, which will
help inform a company’s financial statements.

Both public and private accounting involve the preparation of financial statements
and reports. They are both involved in auditing but on opposite sides. There are
some other differences between public and private accounting that could affect
your career path. The main differences include:

1. Job duties

Public accounting involves reviewing a client’s financial documents for

accuracy and completeness before the documents are disclosed to the public.
Private accountants review their client’s internal business documents and
work with financial managers to plan budgets and evaluate fiscal
performance. Daily duties for a private accountant may also involve
management reporting, including journal entries and account reconciliation.
WILJEAN O. MARFIL BRANCHES OF ACCOUNTING
GRADE11-HUMILITY/ABM MS. LEONILY B. ALEGRIA
2. Education and certifications

For both public and private accounting, a bachelor’s degree in accounting is

the main requirement. A CPA (certified public accountant) license is required
to practice public accounting. A CPA license means that you can file reports
with the Securities and Exchange Commission (SEC). If you receive your CPA
license, there is a requirement for continuing education credits to maintain
your license. Certification is not required for private accounting, but there
are some that may make you a more competitive job candidate, such as
a CIA (Certified Internal Auditor) or CMA (Certified Management
Accountant).

3. Work environment

For both public and private accountants, certain times of the year are busier
than others. For example, public accountants are busy during tax season,
whereas private accountants are busier at the end of a fiscal quarter.

Another difference in the work environment is that public accountants have

unpredictable work environments and schedules. Public accountants work
with various clients from individuals to big corporations and sometimes the
government. A public accountant often travels to their clients’ locations and
is often under stringent deadlines. Private accountants usually work typical
business hours.

4. Career path

Public accountants start in entry-level positions and can progress to more

senior positions throughout their careers. They can advance until they reach
the highest position, which might be an audit partner at a firm. Private
accountants usually start in entry-level positions, with the senior-most
position being a CFO (chief financial officer).
 WILJEAN O. MARFIL BRANCHES OF ACCOUNTING
GRADE11-HUMILITY/ABM MS. LEONILY B. ALEGRIA

5. Skills

Public accountants interact with a wide variety of clients, so they need to be

comfortable interviewing and communicating with people as part of the
auditing process. Private accountants need interviewing skills as well, but
their interview subjects will be more limited to people within their client’s
company.

The primary skills for both public and private accounting include self-
motivation, integrity, organizational skills, ability to manage deadlines,
strong communication skills and proficiency in new technology.

2. What is government accounting?

Governmental accounting maintains tight control over resources, while also

compartmentalizing activities into different funds in order to clarify how
resources are being directed at various programs. This approach to accounting
is used by all types of government entities, including federal, state, county,
municipal, and special-purpose entities.

3. What are the other specialized field in accounting?

As in many other areas of human activity in the twentieth century, a number of

specialized fields in accounting have evolved This tendency towards specialization
has been caused in large measure by growth in size of business units, mounting
taxes and increasing regulation of business by lay and by governmental agencies.
These influences, together with rapid technological advances and accelerated
economic growth, have created the need for accountants to acquire high degree of
expertness in various specialties. The term financial accounting or general
accounting applies to the overall accounting for an economic unit. It is concerned
with the recoding of transactions for a business for other economic unit and the
periodic and special purpose reports and statements prepared from the accounting
 WILJEAN O. MARFIL BRANCHES OF ACCOUNTING
GRADE11-HUMILITY/ABM MS. LEONILY B. ALEGRIA
records are used to impart useful information to managers, owner, creditors,
governmental agencies

and the public. The accounting principles and techniques that will be developed in
this book are in large part included in financial accounting. Auditing is classified
under two head: external auditing and internal auditing. External auditing service
is rendered by practicing accountants as required by law. These accountants
examine the accounts and supporting records and express an opinion regarding the
fairness and accuracy of the Balance Sheet and the Profit and loss Account.
Internal auditors, as their name implies, are generally employed by large
companies from amount their own staff. One of the most important duties of
internal auditors is to determine the extent to which the various operating
divisions observer the policies and procedures prescribed by management.

There are multiple specialized accounting fields such as forensic accounting,

government accounting  and internal auditing . Some accounting disciplines may
never play a role in your business, while others, such as  tax accounting, are
common in the business world.

Performance Task:

Write an additional information you may know about CPAs in Specialized Areas.

a. Forensic Accounting- is an investigative methodology to follow money or

proceeds, conducted under the premise that the results of the investigation may be
used in a court of law. Regardless of the purpose of your engagement — civil or
criminal — forensic accounting is usually all about following the money.

b. Information Technology Service- has changed the way that just about every
industry function including accounting. While you might not be able to afford an
in-house accountant, technology makes it effective and easy to have a
professional working on your business finances. Take a look at how you can use
 WILJEAN O. MARFIL BRANCHES OF ACCOUNTING
GRADE11-HUMILITY/ABM MS. LEONILY B. ALEGRIA
information technology to partner with an off-site accountant and keep your
business's financial goals on track.

c. Environmental Accounting- also called green accounting, refers to modification

of the System of National Accounts to incorporate the use or depletion of natural
resources. Environmental accounting is a vital tool to assist in the management of
environmental and operational costs of natural resources. 

d. International Accounting- is a specialty within the entire discipline that is

focused on using specific accounting standards that are as relevant in the US as
they are when you are balancing the books of a company overseas.