Accounting, Artificial Intelligence, and GAAP

Vocabulary flashcards covering core accounting sectors, professional certifications, ethics, artificial intelligence applications, and GAAP fundamentals based on the provided notes.

Private Accounting

Accounting practice in which accountants are employed by companies, government, and not-for-profit entities.

Public Accounting

Accounting practice in which accountants and their staff provide audit, tax, and general accounting services on a fee basis individually or within a public accounting firm.

Certified Public Accountant (CPA)

Public accountants who have met a state's education, experience, and examination requirements to perform general accounting, audit, or tax services.

Ponzi Scheme

A fraudulent investment scheme where the investment manager uses funds received from new investors to pay returns to existing investors, rather than generating returns from actual investment performance.

Bernard L. Madoff Investment Securities LLC

The investment management firm through which Bernie Madoff operated a multi-decade Ponzi scheme, resulting in his 150-year prison sentence.

American Institute of Certified Public Accountants (AICPA)

An organization that provides resources and information for students interested in accounting at www.ThisWayToCPA.com.

EY Fabric

Ernst & Young's (EY) proprietary AI model and product embedded to help clients manage their data as part of EY's $1.4 billion AI investment.

IRS AI Tax Enforcement

The Internal Revenue Service's initiative to train AI models using a vast dataset of past tax returns to identify compliance threats, tax evasion, fraud, and taxpayers for possible audit.

Generally Accepted Accounting Principles (GAAP)

A collection of accounting standards, principles, and assumptions in the United States that define how financial information will be reported.

Accounting Standards

Rules that determine the accounting treatment for individual business transactions.

Accounting Principles and Assumptions

The framework upon which accounting standards are constructed.

Financial Accounting Standards Board (FASB)

The U.S. body that has primary responsibility for developing accounting standards and maintaining the electronic Accounting Standards Codification database.

Accounting Standards Codification

An electronic database maintained by the FASB that contains all the accounting standards making up GAAP.

Accounting Standards Updates

The official updates used by the FASB to make changes to the Accounting Standards Codification.

Securities and Exchange Commission (SEC)

A U.S. government agency that holds authority over the accounting and financial disclosures of companies whose shares of ownership (stock) are publicly traded.

Certified Management Accountant (CMA)

A professional certification in private accounting associated with roles such as Cost Accountant ($60,000 average salary in the Robert Half 2023 Salary Guide).

Certified Internal Auditor (CIA)

A professional certification associated with internal auditor roles ($49,000 average salary in private accounting).

Certified Information Systems Auditor (CISA)

A professional certification associated with information technology auditor roles ($67,000 average salary in private accounting).

Certified Payroll Professional (CPP)

A professional certification associated with payroll clerk positions ($44,000 average salary in private accounting).

Big Four AI Investments

Major firm investments in AI and technology, including $1.4 billion by EY, $2 billion over five years by KPMG, $1 billion by PwC, and $1.4 billion by Deloitte for employee technology training.