Guide to public accounting services

Audit and assurance services include:

• engagements captured by Australian, New Zealand and International auditing standards (ASAs as issued by the Audit and Assurance Standards Board and ISA (NZ) as issued by the External Reporting Board)
• review engagements (ASREs or ISRE (NZ))
• compliance engagements (ASAEs or SAEs)
• assurance engagements (ASAEs or ISAE (NZ)).

An audit of financial report is a process that enables the auditor to express an opinion as to whether the financial report is prepared, in all material respects, in accordance with an applicable financial reporting framework. Standards on assurance services provide either reasonable or limited assurance on an engagement. A review engagement is an activity which enables the auditor to express a conclusion whether, based on the review, the financial report is prepared in accordance with an applicable financial reporting framework.

Bookkeeping services include, but are not limited to:

• maintaining and evaluating financial transaction records in books of account such as sales, purchase, cash journals, ledgers or computerised accounting systems 
• preparing budget or income expenditure reports, profit and loss statements and trial balances, and
• the making of statutory returns as permitted by law but not making of any subjective decisions in relation to those returns. 

Examples include payroll services, data entry of revenue and expenses and basic depreciation calculations.

Consumer and commercial credit mean advice and services relating to credit, which an individual gets when acting in a private capacity. This should be used primarily for domestic, household or family purposes and credit which an individual or a business entity, such as a sole trader or a partner, gets for business purposes. 

Examples of consumer credit products include:

• home loans and mortgage broking
• personal loans
• credit cards
• consumer leases
• overdrafts
• line of credit accounts.

It also includes the provision of credit to purchase, renovate, improve or refinance a residential investment property. Examples of commercial credit include:

• lines of credit
• bills of exchange
• promissory notes
• letters of credit.

Consumer credit is regulated by the National Consumer Credit Protection Act 2009 and associated regulations.

More information about credit services

• Regulation of consumer credit and finance broking
• ASIC Regulatory Guide RG 203: Do I need a credit licence?
• Applying for and varying a credit licence 
• Credit licensing – competence and training

Financial planning means providing advice in respect of a client’s personal financial affairs, specifically related to wealth management, retirement planning, estate planning, risk management and related product advice. This includes:

• investment advice
• superannuation advice
• estate planning
• insurance
• financial counselling.

Financial reporting activities include:

• compilation
• preparation of financial statements
• disclosures and notes to accounts
• other calculations required by accounting standards
• corporate secretarial services.

Compilation engagement involves compiling financial information, such as statements. Financial statements are a structured representation of historical or prospective financial information. They include related notes that explain an entity’s economic resources or obligations at a point in time or the changes during that financial reporting period, according to the financial reporting framework. The related notes usually have a summary of significant accounting policies and other explanatory information.

Forensic accounting means advising on assisting an investigation. This may involve legal proceedings or be in connection with allegations of, or concerns regarding illegal, unethical or otherwise improper conduct, where the matter will likely be brought before a court. This includes:

• expert witness services
• lay witness services
• consulting expert services
• investigation services.

Insolvency services are professional services provided by a member in public practice to an entity under appointment. Appointment means placing a member in public practice as a trustee or as a liquidator or provisional controller, or a scheme manager under Chapter 5 of the Corporations Act 2001 or an appointment to provide insolvency services under any other legislation. This includes:

• debt counselling
• debt arrangements
• liquidations
• bankruptcy
• administrations and receiverships.

Management accounting means providing financial and non-financial data and advice to a company that will help with its day-to-day running and longer term growth.  It involves preparing management reports and accounts that provide accurate and timely financial and statistical information to managers, so they can make smart business decisions. This includes:

• business planning
• forecasting
• cash flow
• budgeting
• management accounts
• cost accounting.

Management consultancy requires a consultant with specialised accounting experience to interpret, evaluate, analyse and report on commercial activities that help management make decisions. This may include, but is not limited to:

• budgeting
• forecasting
• internal controls
• efficiency management
• systems selection and implementation
• resource management
• strategy development and evaluation.

Taxation services involve determining a client’s or employer’s tax liabilities or entitlements, or satisfying their obligations under a taxation law, provided under circumstances where they can reasonably expect to rely on the services. This includes:

• preparation of a return, notice, statement, application or other document for lodgment with a revenue authority and responding on behalf of a client or employer to requests for further information from a revenue authority
• preparation of tax calculations to be used as the basis for the accounting entries in the financial statements
• provision of tax planning and other tax advisory services and assisting a client or employer resolve tax disputes.

Transactional accounting engagements involve establishing or changing structures applicable to corporate entities. This includes:

• due diligence
• mergers and acquisitions
• preparation of prospectus
• corporate finance
• initial public offers (IPO)
• venture capital.

Valuation services means an engagement to perform a valuation and provide a valuation procedure that a reasonable and informed third party would perform taking in to consideration all the specific facts and circumstances of the engagement or assignment available to the member at that time. This includes:

• valuation reports
• valuation engagements
• limited scope valuation engagements
• calculation engagements.