The word Accountant is derived from the French "Compter' which took its origin from the Latin "Computare". As a proof of its derivation the word was formerly written in English "Accomptant", but in process of time the word which was always pronounced by dropping the "p" became gradually changed both in pronunciation and in orthography to its present form. From the word Accountant the term Accountancy is derived.[3]
Financial accounting is "a major branch of accounting involving the collection, recording and extraction of financial information, and the summary of it in the form of a periodic profit and loss account, a balance sheet and a cash flow statement in accordance with legal, professional, and capital market requirements"[4]. By contrast management accounting information is used within an organization and is usually confidential and accessible only to a small group, mostly decision-makers. Open-book Accounting aims to improve accounting transparency.Tax Accounting is the accounting needed to comply with jurisdictional tax regulations. Accounting scholarship is the academic discipline which studies the theory of accountancy.
The related, but separate financial audit comprises internal and external audit. External audit - carried out by independent auditors - examines the financial statements and accounting records in order to express an opinion as to the truth and fairness and adherence to Generally Accepted Accounting Principles (GAAP), or International Financial Reporting Standards(IFRS). Internal audit aims at providing information for management usage, and is typically carried out by employees.
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