Which of the following is NOT a service typically provided by a public accounting firm?

• A. Consulting on business mergers and acquisitions
• B. Tax preparation and planning
• C. Auditing financial statements
• D. Management of internal company operations

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the role of a public accounting firm. Public accounting firms provide services to external clients, focusing on areas such as auditing, tax preparation, and consulting. Their primary role is to ensure compliance with financial regulations and provide expertise in financial matters.
2. Step 2: Review the services listed in the question. Consulting on business mergers and acquisitions, tax preparation and planning, and auditing financial statements are all services typically provided by public accounting firms.
3. Step 3: Analyze the option 'Management of internal company operations.' This service involves overseeing and managing the day-to-day operations within a company, which is typically the responsibility of internal management rather than an external public accounting firm.
4. Step 4: Differentiate between internal and external roles. Public accounting firms focus on external services, while internal company operations are managed by the company's own staff or internal accounting team.
5. Step 5: Conclude that 'Management of internal company operations' is NOT a service typically provided by a public accounting firm, as it falls outside the scope of their external advisory and compliance-focused services.