Written by:Diomer Antonio Galán Rincón.
Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.
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The Public Accountant is an expert professional who will be able to perform a series of procedures and methods to interpret and give results of the accounting of an organization or person, with the purpose of preparing financial reports for the administration and for the interested parties (third parties), who work independently or under a dependent relationship, which are used for decision making. To keep books or accounting records, recording the monetary movements of goods, rights and obligations.
Public Accounting is a science whose purpose is to satisfy the needs of society, through the recording, analysis, measurement and interpretation of financial information of organizations or individuals and the preparation of reports on the financial situation of the organization in certain periods of time, on which are based the decision making of managers, future investors, creditors of the company, other interested third parties and the state for tax purposes.
A public accountant, who commits either by negligence or complicity, an opinion different from what the events show, can cause serious damages to the clients that trust in his work, which can generate diverse consequences of very different nature, either economic or administrative.
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It should be noted that all public accounting professionals are governed by the procedures and rules found in the laws in which they must be guided, finding there the rights and duties to third parties, among these laws are the Law of the Practice of Public Accounting, the Code of Professional Ethics and other regulations governing the profession of public accountant.
In Venezuela there is the Law on the Practice of Public Accounting (LECP), enacted in 1973, which typifies the legal provisions governing the profession of public accountant, specifying synthetically that his professional activity consists of all those actions that require the use of different and extensive knowledge and observance of principles and ethical standards.
It is also worth mentioning that accounting irregularities are manifested by some action or inaction of the accountant, these can be generated by the makeup of the financial situation, accounting tax evasion, manipulation of profits, and violation of accounting standards; being its most direct effect in the accounting profession the crisis of lack of confidence, derived from attacks on the truth (entries contrary to good sense), and attacks on clarity (distorted entries).
The public accountant has the duty to comply in a necessary way with the fundamental principles of: integrity (honest and fair behavior of all his actions), Objectivity (not allowing preferences, between professional or business judgments to deviate them from reality), Competence (perform a job where his professional skills and knowledge are always at the highest level, to ensure that the client or employer receives a professional service based on practice, techniques and current legislation), Confidentiality (Have great discretion and not to be disclosing information to third parties, unless there is a legally established or professional duty).
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