Northampton Community College Insights of Accounting Profession Informal Report Please see the attached file. You must use the sources that I’ve indicated

Northampton Community College Insights of Accounting Profession Informal Report Please see the attached file.

You must use the sources that I’ve indicated below:

www.bls.gov/ooh European Journal of Economic Studies, 2015, Vol.(12), Is. 2
Copyright © 2015 by Academic Publishing House Researcher
Published in the Russian Federation
European Journal of Economic Studies
Has been issued since 2012.
ISSN: 2304-9669
E-ISSN: 2305-6282
Vol. 12, Is. 2, pp. 64-68, 2015
DOI: 10.13187/es.2015.12.64
www.ejournal2.com
UDC 33
Certified Public Accountant is Unmatched Advantage on the Global Job Market
1 Tatyana
2 Rimma
G. Borisova
A. Bekhteneva
1-2 Sochi
State University, Russian Federation
354000, Krasnodar region, Sochi, Sovetskaya str., 26a
1 PhD in Economics, Associate Professor
E-mail: tatyana-borisova@bk.ru
2 PhD, Associate Professor
E-mail: tatyana-borisova@bk.ru
Abstract
The article devotes to the necessity of rapid adaptation to the changes connected with the
enormous growth of industry, the world globalization process and development of information
technology. In this context there is a general opinion in the profession about the need to improve
the quality of accounting, professional competence, and accounting education. Maintaining high
ethical standards, compliance with relevant laws, as well as accounting and auditing standards are
also on the agenda.
Keywords: certified public accountant; certified internal auditor; global job market;
business administration; accounting; auditing; management accounting.
Introduction
The role of global business in world affairs is becoming more important. Multinational
corporations spread their activities across national boundaries, the international banking system
carries on banking activities throughout the global world, financial and commodity markets have
become world markets.
Significant changes are known to have taken place in accounting in recent years.
The accountancy profession has gained a very high status. The modern accountant has begun to
play an important role in global business activity.
As a result, the majority of employers prefers to hire applicants who have obtained a master?s
degree in accounting, or a master?s degree in business administration (MBA).
In depth experience in accounting or auditing can help an applicant to get a highly-paid job.
Many colleges offer students an opportunity to gain experience during their summer or part-time
internship programs conducted by public accounting or business firms. In addition, perfect
knowledge of IT and software in accounting and internal auditing, fluent foreign languages for
specific purposes is a great advantage to get a job as an accountant.
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European Journal of Economic Studies, 2015, Vol.(12), Is. 2
Materials and Methods
Source information, concerning Certified Public Accountants, was collected on open source
resources, namely on science websites, Wikipedia. General scientific methods of research, in
particular, analysis, dialectic, system and functional approaches are used.
Discussion
Bookkeeping is a task that relates to creating and maintaining a detailed record of all
transactions which include finances. This procedure is to be carried out by all companies, whether
a small firm or a large organization. The transactions recorded in bookkeeping usually comprise
sales, purchases, due payments, earnings, etc. Some people might think bookkeeping to be the
same as accounting. However, both are slightly different in the method of operation. Bookkeeping
is a primary task and pertains to taking direct information and details from the transactions
conducted. On the other hand, accounting is concerned with referring to bookkeeping records and
then preparing reports accordingly. Accounting is a very wide profession that requires a person to
have the best analytical and logical thinking, decision making, mathematical, and communication
skills. Many people have a misconception regarding this career opportunity. They think that the
accounting field only has one professional which is referred to as an „accountant?. However, this
broad area consists of many different jobs such as auditing, forensic accounting, tax accounting,
financial analysis, just to name a few. [10]
Accountants and auditors are broadening the services they offer to include budget analysis,
financial and investment planning, information technology consulting, and limited legal services.
Specific job duties vary widely among the four major fields of accounting: public, management,
government, and internal.
Public Accounting.
This type of accounting is the most varied type. Public accountants perform a broad range of
accounting, auditing, tax, and consulting activities for their clients, who may be corporations,
governments, nonprofit organizations, or individuals. For example, some public accountants
concentrate on tax matters, such as advising companies of the tax advantages and disadvantages of
certain business decisions and preparing individual income tax returns. Others offer advice in
areas such as compensation or employee healthcare benefits, the design of accounting and dataprocessing systems, and the selection of controls to safeguard assets. Still others audit clients?
financial statements and report to 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. A public accounting business can have
one or more accountants and both certified and non-certified accountants can provide public
accounting services to their clients. [1]
Some public accountants specialize in forensic accounting – investigating and interpreting
white collar crimes such as securities fraud and embezzlement, bankruptcies and contract disputes,
and other complex and possibly criminal financial transactions, such as money laundering by
organized criminals. Forensic accountants combine their knowledge of accounting and finance with
law and investigative techniques in order to determine if illegal activity is going on. Many forensic
accountants work closely with law enforcement personnel and lawyers during investigations and
often appear as expert witnesses during trials.
New Federal legislation restricts the non-auditing services that public accountants can
provide to clients. If an accounting firm audits a client?s financial statements, that same firm
cannot provide advice in the areas of human resources, technology, investment banking, or legal
matters, although accountants may still advise on tax issues, such as establishing a tax shelter.
Accountants may still advise other clients in these areas, or may provide advice within their own
firm.
Management Accounting.
Accountants who specialize in this type of accounting are also known as private, industrial or
corporate accountants. Management accountants provide their services to business houses for
recording and studying the company?s financial data. Their portfolio in the private firms includes
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European Journal of Economic Studies, 2015, Vol.(12), Is. 2
cost and asset management, budgeting and performance evaluation. This is more on the basis of
employer-employee relation. They also perform internal audit to review the company financial
management practices and keep an eye for any mismanagement and fraud. The accountants who
perform these audits have specializations in compliance auditing, information technology auditing
or environmental auditing.
Government Accounting.
Government accountants and auditors work in the public sector, maintaining and examining
the records of government agencies and auditing private businesses and individuals whose
activities are subject to government regulation or taxation. Accountants employed by Federal,
State, and local governments guarantee that revenues are received and expenditures are made in
accordance with laws and regulations. Those who are employed by the Federal Government may
work as Internal Revenue Service agents or in financial management, financial institution
examination, or budget analysis and administration.
Internal audit.
Internal auditors verify the accuracy of their organization?s internal records and check for
mismanagement, waste, or fraud. Internal auditing is an increasingly important area of accounting
and auditing. Internal auditors examine and evaluate their firms? financial and information
systems, management procedures, and internal controls to ensure that records are accurate and
controls are adequate to protect against fraud and waste. They also review company operations –
evaluating their efficiency, and compliance with corporate policies and procedures, laws, and
government regulations. There are many types of highly specialized auditors, such as electronic
data-processing, environmental, engineering, legal, insurance premium, bank, and healthcare
auditors. As computer systems make information timelier, internal auditors help managers to base
their decisions on actual data, rather than personal observation. Internal auditors also may
recommend controls for their organization?s computer system to ensure the reliability of the
system and the integrity of the data.
In today’s scenario running a business is not an easy deal, it requires a lot of business
professionals to integrate their knowledge and skills for running any business successfully.
Regarding this, Certified Public Accountant is the statutory title given to the qualified accountants
who have passed the Uniform Certified Public Accountant Examination. Certified Public
Accountant should also meet experience requirements and additional state educational
requirements to get the license for public attestation, auditing opinions on financial statements.
Certified Public Accountant has to get certified in different states also for obtaining the designation
of CPA in that state in the United States.
Professional ??mpetences through certification or license provide unmatched advantage on
the job market. CPAs are licensed by a State Board of Accountancy. The vast majority of States
require CPA candidates to be college graduates, but a few States consider public accounting
experience as a college degree. In 2003, due to the American Institute of Certified Public
Accountants (AICPA), 42 States and the District of Columbia require training 150 academic hours
and defensing of college project work (30 academic hours) instead of getting a Bachelor Diploma.
Another five States – Arizona, Minnesota, New Mexico, New York, and Virginia – perform the
similar training. Colorado, Delaware, New Hampshire, and Vermont do not require training
comprising 150 academic hours. Many schools have modified their curricula accordingly, providing
master?s degree training (150 academic hours), and a prospective accountant should carefully
master accounting curricula and meet the requirements of that State where he is getting a
license. [5]
All States use the four-level Uniform CPA Examination prepared by the AICPA. The 2-days
CPA examination is obligatory, and about one-quarter of applicants takes it annually passing
through each level consequently. Candidates are not required to pass through all four levels at
once, but most States require candidates to pass at least two levels within a stated period. Most
States consider experience in accounting to be one of the essentials to get a CPA certificate. In May
2004, the CPA exam was computerized, therefore, anyone can have direct access to the testing
center?s computer throughout the United States to pass the exam.
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European Journal of Economic Studies, 2015, Vol.(12), Is. 2
The AICPA also offers valid CPA certificates of the Accredited in Business Valuation (ABV),
Certified Information Technology Professional (CITP), or Personal Financial Specialist (PFS).
These degrees are conferred by those who have in – depth experience in accounting. The ABV
degree comprises a written exam, 10 business assessment projects which reflects candidate?s
professional competences and experience. The CITP is not free of charge, and also consist of
written statement, and the performing of an assessment set of tasks. Those who do not meet the
requirements may pass a written exam. The PFS candidates must get a certain number of points via
passing a written exam. It should be noted here that references are of great importance.
About 50 States CPAs and public accountants are obliged to obtain licenses. The professional
associations represent numerous curricula, seminars, group-participative educational programs,
training, etc.
Accountants and auditors also can try to improve their qualifications as volunteers. Voluntary
certification can be attested to professional competence in the specialized branches of economics
such as accounting and auditing. It can also certify that the certain level of professional competence
has been achieved by the accountants and auditors in case of need to get the CPA examination. [4]
The Institute of Management Accountants (IMA) confers the Certified Management
Accountant (CMA) those applicants who?ve got a bachelor?s degree or attain enough points at
school entrance exams. Applicants are obliged to have not less than two – years experience in
management accounting, pass a four-level examination, and meet educational standards and
professional requirements. The CMA program is administered by the Institute of Certified
Management Accountants, an affiliate of the IMA. [3]
Graduates from the accredited colleges and universities who have two – years experience as
internal auditors and have passed a four-level examination may get the Certified Internal Auditor
(CIA) at the Institute of Internal Auditors (IIA). The IIA implemented three degrees – Certification
in Control Self-Assessment (CCSA), Certified Government Auditing Professional (CGAP), and
Certified Financial Services Auditor (CFSA). Requirements are similar to those of the CIA.
The Information Systems Audit and Control Association confers the Certified Information Systems
Auditor (CISA) those candidates who?ve passed the examination and have five-years experience in
auditing information systems. Auditing or data-processing experience and a college Diploma may
be substituted by two-years experience. For instance, an internal auditor can obtain CPA, CIA, and
CISA degrees.
The Accreditation Council for Accountancy and Taxation, a Pilot organization of the National
Society of Public Accountants, confers three degrees– Accredited Business Accountant (ABA),
Accredited Tax Advisor (ATA), and Accredited Tax Preparer (ATP). It is obligatory for the ABA
candidates to pass an exam, while ATA and ATP candidates are to defense the coursework and then
pass an exam. As a rule, they will get multiple licenses and degrees. [1]
The Association of Government Accountants grants the Certified Government Financial Manager
(CGFM) degrees for the accountants, auditors, and other government financial officials at the Federal,
State, and local levels. Candidates must have a bachelor?s degree, 24 hours curriculum in financial
management certificate, two-years experience, and pass three exams. The exams cover topics in
governmental accounting, financial reporting, and budgeting, financial management and control.
Those who want to be a success in accounting should have an aptitude for mathematics and
be able to analyze, compare, and interpret facts and data thoroughly. They must be able to
communicate both in written and verbally the results of their work to both clients and managers.
Accountants and auditors must be good at dealing with people, as well as with businesses and IT.
Undoubtedly, accountants should be familiar with basic accounting software packages. Because
financial decision making is based on their statements and services, therefore, accountants and
auditors should have high standards of integrity.
Capable accountants and auditors may advance rapidly; those who have insufficient
academic knowledge may be assigned to routine jobs and find promotion difficulties. Many
graduates of junior colleges, business and correspondence schools, as well as, bookkeepers and
accounting clerks meeting the education and experience requirements, can obtain operating
accounting positions and be promoted and achieve heights in their careers.
Start-up public accountants usually begin with rendering a number of services. They may be
assigned to higher positions within 1 or 2 years. Those who?ve succeeded will become supervisors,
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European Journal of Economic Studies, 2015, Vol.(12), Is. 2
managers, or partners or launch their own PLC Co., or obtain executive positions in management
accounting or internal auditing in LTD Co.
Management accountants often start their careers as cost accountants, junior internal
auditors, or trainees for other accounting positions. As they climb the ladder in the organization,
they are succeeding in getting such positions as: an accounting manager, a chief cost accountant, a
budget director, or a manager of internal auditing. Some of them become controllers, treasurers,
financial vice presidents, chief financial officers, or presidents of the corporations. Many senior
corporation executives have in-depth experience in accounting, internal auditing, or finance.
In general, public accountants, management accountants, and internal auditors are highly
mobile. As fact, they switch over from management accounting position to internal auditing, from
public accounting to internal auditing or management accounting. However, it is uncommon for
accountants and auditors to switch over from management accounting or internal auditing to
public accounting.
In conclusion it should be noted that accountants and auditors help to ensure that the
Nation?s firms are run efficiently, its public records kept accurately, and its taxes paid properly and
on time. They perform these vital functions by offering an increasingly wide array of business and
accounting services to their clients. These services include public, management, and government
accounting, as well as internal auditing. Beyond the fundamental tasks of the occupation –
preparing, analyzing, and verifying financial documents in order to provide information to clients –
many accountants now are required to possess a wide range of knowledge and skills.
References:
1. American Institute of Certified Public Accountants (AICPA) – Company Profile,
Information, Business Description, History, Background Information on American Institute of
Certified Public Accountants (AICPA) URL http://www.referenceforbusiness. com/ history2
/82/American-Institute-of-Certified-PublicAccountants-AICPA.html
2. L. Chasteen, R. Flaherty, M. O?Connor. Intermediate Accounting.
3. R. Bekhteneva, T. Borisova. Accounting on the global market: challenges and rewards /
Sovremenniy etap rasvitiya buhgalterskogo ucheta, kontrolya i audita: tendentsii, problemi,
perspectivi / V megdunarodnaya nauchno-practicheskaya konferentsia // Sbornik nauchnikh
statei. – Sochi: Tipografia IP Krivlyakin S.P., 2014. p. 32-37.
4. R. Bekhteneva, T. Borisova, A. Tumasyan. Interactive course of Olympic Volunteers?
Academic and professional foreign language interaction: scientific rationale and specific character.
// Vestnik SUTR. 2011. ? (18). p. 160-162.
5. R. Miller. American Institute of Certified Public Accountants (AICPA) – Center for
Professional Responsibility URL http://www.americanbar.org/groups/professional _responsibility
/commission_multidisciplinary_practice/rmiller.html
6. T. Borisova. K voprosu o certificatsii professionalnih buhgalterov (na primere USA) /
Sovremenniy etap rasvitiya buhgalterskogo ucheta, kontrolya i audita: tendentsii, problemi,
perspectivi / V megdunarodnaya nauchno-practicheskaya konferentsia // Sbornik nauchnikh
statei. – Sochi: Tipografia IP Krivlyakin S.P., 2014. p. 57-67.
7. www.aup.ru
8. www.8.saldo.ru
9. www.study-finance.ru
10. www.jobbankusa.com
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