[Anonymous]

I am not able to understand what a CPA in public practice means. Does it mean that the CPA works for issuers only? What is the CPA called if he/she works for a nonpublic entity? Do independence rules apply to nonpublic entities?

[kandisjoy]

When you say “in public practice,” I believe it means a CPA working for a CPA firm where they do public accounting (taxes, auditing, etc) vs a CPA who works in private accounting (for a company as Controller, CFO, etc).

Private accounting does not mean nonissuer. For example, I work for a bank and my boss is the Controller. He is a CPA. The bank is a publicly traded company. But he still works in “private” accounting because he isn't out auditing other companies. He is not independent with regard to the work he does. We have auditors from a CPA firm come and do our SOX audit (these are accountants in public practice, who ARE independent).

Does that make sense to you?

FAR: 71, 77
BEC: 70, 82
AUD: 62, 78
REG: 71, 68, 85

CA Licensed 11/2011

[Herbieherb]

Private can also mean non government

NEW YORK- DONE

[Anonymous]

A CPA in private practice could also work for a government entity.

Indepedence only applies to auditors.

[Anonymous]

Thanks all! Yes now I am clear on this topic.

[Author]

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