Your Ask Joey ™ Answer

What is public accounting?

Accountants can either work in public or private accounting (industry). Basically, if an accountant works in public accounting, they would serve clients such a corporations, individuals, not-for-profit organizations, or governmental entities. If an accountant works in private accounting, they are performing internal accounting functions for their employer (help process financial transactions and prepare financial statements).

There are over 46,000 public accounting firms in the United States according to the AICPA. However, you can take it one step further and be an public accounting firm that is registered with the PCAOB. Only accounting firms that are registered with the PCAOB can perform audits of public companies that are required to issue financial statements with the Securities and Exchange Commissions (“SEC)”. According the the PCAOB, there are 860 firms registered in the United States.


Back To All Questions

You might also be interested in...

  • Discontinued Operations on the FAR CPA Exam

    Overview of Discontinued Operations In financial reporting, discontinued operations refer to a component of a company’s core business or product line that have been divested or shut down. Discontinued operations will be reported (net of tax) separately from continuing operations on the income statement. The reason that discontinued operations are reported separately is so that...

  • Equity Method Excel Workbook

    If you would like to use the Excel workbook that was used to create the Universal CPA lecture on the equity method, please click the link below to download the Excel workbook: Equity Method Lecture Example https://youtu.be/QE4flnmuSkw

  • How Hard is the CPA Exam?

    So you’re thinking about taking the CPA exam? Whether you have a dream of becoming a tax advisor, feel as though you need public accounting experience, or just want to solidify your business acumen, the CPA license is one of the most prestigious and well respected licenses in the business world. The exam itself is...