WHAT THEY DO:
Accountants and auditors examine financial statements for accuracy and conformance with laws.
Accountants and auditors prepare and examine financial records. They ensure that financial records are accurate and that taxes are paid properly and on time. Accountants and auditors assess financial operations and work to help ensure that organizations run efficiently.
Duties
Accountants and auditors typically do the following:
•Examine financial statements to be sure that they are accurate and comply with laws and regulations
•Compute taxes owed, prepare tax returns, and ensure that taxes are paid properly and on time
•Inspect account books and accounting systems for efficiency and use of accepted accounting procedures
•Organize and maintain financial records
•Assess financial operations and make best-practices recommendations to management
•Suggest ways to reduce costs, enhance revenues, and improve profits
In addition to examining and preparing financial documentation, accountants and auditors must explain their findings. This includes face-to-face meetings with organization managers and individual clients, and preparing written reports.
Many accountants and auditors specialize, depending on the particular organization that they work for. Some organizations specialize in assurance services (improving the quality or context of information for decision makers) or risk management (determining the probability of a misstatement on financial documentation).
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Overview A CA (Chartered Accountant) is a professional accountant who has earned the CA title through training and practical experience obtained from the CICA (Canadian Institute of Chartered Accountants). The institute, which has over 66, 000 members, conducts research into current business issues and sets accounting and auditing standards for all types of businesses. A CA is a complete ...
Other organizations specialize in specific industries, such as healthcare.
Some workers with a background in accounting and auditing teach in colleges and universities. For more information, see the profile on postsecondary teachers.
The four main types of accountants and auditors are the following:
Public accountants do a broad range of accounting, auditing, tax, and consulting tasks. Their clients include corporations, governments, and individuals.
They work with financial documents that clients are required by law to disclose. These include tax forms and balance sheet statements that corporations must provide potential investors. For example, some public accountants concentrate on tax matters, advising corporations about the tax advantages of certain business decisions or preparing individual income tax returns.
External auditors review clients’ financial statements and inform investors and authorities that the statements have been correctly prepared and reported.
Public accountants, many of whom are Certified Public Accountants (CPAs), generally have their own businesses or work for public accounting firms.
Some public accountants specialize in forensic accounting, investigating financial crimes, such as securities fraud and embezzlement, bankruptcies and contract disputes, and other complex and possibly criminal financial transactions. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques to determine if an activity is illegal. Many forensic accountants work closely with law enforcement personnel and lawyers during investigations and often appear as expert witnesses during trials.
Management accountants, also called cost, managerial, industrial, corporate, or private accountants, record and analyze the financial information of the organizations for which they work. The information that management accountants prepare is intended for internal use by business managers, not by the general public.
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Accountants and Auditors There are 4 types of accountants: Public Accountants, Managerial Accountants, Internal Auditors, and Government Accountants. Public Accountants work for public accounting companies, Managerial Accountants keep track of company's accounts, Internal Auditors check the accuracy of company's accounts and look for evidence of theft, and Government Accountants and Auditors keep ...
They often work on budgeting and performance evaluation. They may also help organizations plan the cost of doing business. Some may work with financial managers on asset management, which involves planning and selecting financial investments such as stocks, bonds, and real estate.
Government accountants maintain and examine the records of government agencies and audit private businesses and individuals whose activities are subject to government regulations or taxation. Accountants employed by federal, state, and local governments ensure that revenues are received and spent in accordance with laws and regulations.
Internal auditors check for mismanagement of an organization’s funds. They identify ways to improve the processes for finding and eliminating waste and fraud. The practice of internal auditing is not regulated, but the Institute of Internal Auditors (IIA) provides generally accepted standards.
Information technology auditors are internal auditors who review controls for their organization’s computer systems, to ensure that the financial data comes from a reliable source.
Work Environment
Most accounts and auditors work full time, and one in five works more than 40 hours per week.
Accountants and auditors held about 1.2 million jobs in 2010.
Most accountants and auditors work in offices, although some work from home. Auditors may travel to their clients’ places of business.
The following industries employed the most accountants and auditors in 2010:
Accounting, tax preparation, bookkeeping, and payroll services24%
Finance and insurance8
State and local government, excluding education and hospitals7
Manufacturing6
Management of companies and enterprises6
Work Schedules
Most accountants and auditors work full time. In 2010, one in five worked more than 40 hours per week. Longer hours are typical at certain times of the year, such as at the end of the budget year or during tax season.
How to Become an Accountant or Auditor
Most accountants and auditors need at least a bachelor’s degree in accounting or a related field.
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Most accountants and auditors need at least a bachelor’s degree in accounting or a related field. Certification within a specific field of accounting improves job prospects. For example, many accountants become Certified Public Accountants (CPAs).
Education
Most accountant and auditor positions require at least a bachelor’s degree in accounting or a related field. Some employers prefer to hire applicants who have a master’s degree, either in accounting or in business administration with a concentration in accounting.
A few universities and colleges offer specialized programs, such as a bachelor’s degree in internal auditing. In some cases, graduates of community colleges, as well as bookkeepers and accounting clerks who meet the education and experience requirements set by their employers, get junior accounting positions and advance to accountant positions by showing their accounting skills on the job.
Work experience is important for getting a job, and most states require experience before an accountant can apply for a CPA license. Many colleges help students gain practical experience through summer or part-time internships with public accounting or business firms.
Licenses
Every accountant filing a report with the Securities and Exchange Commission (SEC) is required by law to be a Certified Public Accountant (CPA).
Many other accountants choose to become a CPA to enhance their job prospects or to gain clients.
CPAs are licensed by their state’s Board of Accountancy. Becoming a CPA requires passing a national exam and meeting other state requirements.
As of 2012, 46 states and the District of Columbia required CPA candidates to complete 150 semester hours of college coursework, which is 30 hours more than the usual 4-year bachelor’s degree. Many schools offer a 5-year combined bachelor’s and master’s degree to meet the 150-hour requirement, but a master’s degree is not required.
A few states allow a number of years of public accounting experience to substitute for a college degree.
All states use the four-part Uniform CPA Examination from the American Institute of Certified Public Accountants. Candidates do not have to pass all four parts at once, but most states require that they pass all four parts within 18 months of passing their first part.
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... done. Class: Accountants Special Interest: Analyzing Financial Information Subclasses: Financial accountants Tax accountants Internal auditors A college student decides she wants to become an accountant. General accounting and bookkeeping ... changes in tax laws and regulations. If a tax accountant has met state experience requirements, she may want to take exams to ...
Almost all states require CPAs to take continuing education to keep their license.
Certification
Certification provides an advantage in the job market because it shows professional competence in a specialized field of accounting and auditing. Accountants and auditors seek certifications from a variety of professional societies. Some of the most common certifications are listed below:
The Institute of Management Accountants offers the Certified Management Accountant (CMA) upon applicants who complete a bachelor’s degree. Applicants must have worked at least 2 years in management accounting, pass a two-part exam, agree to meet continuing education requirements, and comply with standards of professional conduct. The exam covers areas such as financial statement analysis, working-capital policy, capital structure, valuation issues, and risk management.
The Institute of Internal Auditors (IIA) offers the Certified Internal Auditor (CIA) to graduates from accredited colleges and universities who have worked for 2 years as internal auditors and have passed a four-part exam. The IIA also offers the Certified in Control Self-Assessment (CCSA), Certified Government Auditing Professional (CGAP), and Certified Financial Services Auditor (CFSA) to those who pass the exams and meet educational and experience requirements.
ISACA offers the Certified Information Systems Auditor (CISA) to candidates who pass an exam and have 5 years of experience auditing information systems. Information systems experience, financial or operational auditing experience, or related college credit hours can be substituted for up to 2 years of experience in information systems auditing, control, or security.
For accountants with a CPA, the American Institute of CPAs (AICPA) offers the option to receive any or all of the Accredited in Business Valuation (ABV), Certified Information Technology Professional (CITP), or Personal Financial Specialist (PFS) certifications. The business valuation certification requires a written exam and completion of at least 10 business valuation projects that demonstrate a candidate’s experience and competence. The technology certification requires the achievement of a set number of points awarded for business technology experience and education. Candidates for the personal financial specialist certification also must achieve a certain numbers of points based on experience and education, pass a written exam, and submit references.
The Essay on Accounting for Financial Management Answers
However, the firm’s net cash flow is also quite important, especially if one distrusts management and thinks the accounting statements might be misleading. 7-2a. WorldCom understated costs. This had the effect of increasing its reported profits and its net worth. Also, since assets were not reduced by the correct amounts, reported assets were too high. This caused the reported debt ratio ( ...
Advancement
Some top executives have a background in accounting, internal auditing, or finance. For more information, see the profile on top executives.
Beginning public accountants often advance to positions with more responsibility in 1 or 2 years and to senior positions within another few years. Those who excel may become supervisors, managers, or partners; open their own public accounting firm; or transfer to executive positions in management accounting or internal auditing in private firms.
Management accountants often start as cost accountants, junior internal auditors, or trainees for other accounting positions. As they rise through the organization, they may advance to accounting manager, chief cost accountant, budget director, or manager of internal auditing. Some become controllers, treasurers, financial vice presidents, chief financial officers, or corporation presidents.
Public accountants, management accountants, and internal auditors can move from one aspect of accounting and auditing to another. Public accountants often move into management accounting or internal auditing. Management accountants may become internal auditors, and internal auditors may become management accountants. However, it is less common for management accountants or internal auditors to move into public accounting.
Important Qualities
Analytical skills. Accountants and auditors must be able to identify issues in documentation and suggest solutions. For example, public accountants use analytical skills in their work to minimize tax liability, and internal auditors do so when identifying fraudulent use of funds.
Communication skills. Accountants and auditors must be able to listen carefully to facts and concerns from clients, managers, and others. They must also be able to discuss the results of their work in both meetings and written reports.
Detail oriented. Accountants and auditors must pay attention to detail when compiling and examining documentation.
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... in accounting, auditiing, budgeting, and financial management. Here accountants may be systems accountants, general accountants, cost accountants, internal auditors, ... branch of manufacturing, public utilities, or transportation. Except public accountants and private accountants, there are some ... many accountants. Thus, accountant is tightly related to the tax adminatration. Accountants use skills in ...
Math skills. Accountants must be able to analyze, compare, and interpret facts and figures, although complex math skills are not necessary.
Organizational skills. Strong organizational skills are important for accountants and auditors who often work with a range of financial documents for a variety of clients.
Pay
Accountants and Auditors
Median annual wages, May 2010
Accountants and Auditors
$61,690
Business and Financial Operations Occupations
$60,670
Total, All Occupations
$33,840
Job Outlook
Accountants and Auditors
Percent change in employment, projected 2010-20
Business and Financial Operations Occupations
17%
Accountants and Auditors
16%
Total, All Occupations
14%
Note: All Occupations includes all occupations in the U.S. Economy.
Source: U.S. Bureau of Labor Statistics, Employment Projections program
Employment of accountants and auditors is expected to grow 16 percent from 2010 to 2020, about as fast as the average for all occupations. There has been an increased focus on accounting in response to corporate scandals and recent financial crises. Stricter laws and regulations, particularly in the financial sector, will likely increase the demand for accounting services as organizations seek to comply with new standards. Additionally, tighter lending standards are expected to increase the importance of audits, as this is a key way for organizations to demonstrate their creditworthiness.
The continued globalization of business should lead to more demand for accounting expertise and services related to international trade and international mergers and acquisitions.
Job Prospects
Accountants and auditors who have earned professional recognition, especially as a Certified Public Accountants (CPA), should have the best prospects. Job applicants who have a master’s degree in accounting or a master’s degree in business with a concentration in accounting also may have an advantage.
However, competition should be strong for jobs with the most prestigious accounting and business firms.
