Accountants and Auditors

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Duties

Accountants and auditors frequently:

• Financial statements must be audited to ensure accuracy and compliance.
• Taxes must be kept track of and paid on time.
• Check for fraud, efficiency, and compliance with accepted accounting principles.
• Record and analyze all financial transactions.
• Create a list of potential threats and obstacles that management should be aware of.
• Ideas to reduce costs while increasing revenue and profit.
• RPA and AI have the potential to improve auditing and accounting efficiency. Routine tasks can be automated, allowing employees to focus on higher-level tasks like analysis and problem solving.
• Accountants and auditors must not only analyze but also present their findings. You'll also need to meet with company executives and clients in person and write reports.

Many accountants and auditors choose to specialize based on their employer. Several assurance services focus on the quality or context of information for decision-makers (determining the probability of a misstatement on financial documents). Another option is to focus on a specific industry, like finance and insurance or health care.

Some examples of accountants and auditors are:

Government accountants keep and audit records of government agencies and those subject to government laws or taxes. Federal, state, and local governments employ accountants to ensure funds are received and spent properly. Financial reporting, auditing, and managerial accounting are among their duties.

Among other names, management accountants are also referred to as financial analysts. Accounting and financial data are vital for business decision-making. Their hands can easily combine financial and non-financial data. They gather data for their employers, not for the whole population.

Management accountants work a lot with budgets and metrics. They may also be able to help organizations better anticipate their operational costs. Asset managers work with investment advisors to choose assets like stock and bond portfolios and real estate.

Public accountants perform tasks such as auditing, tax preparation, and consulting. Clients include businesses, governments, individuals, and charities.

Tax returns and financial statements are among the financial documents that businesses must make public by law. Some public accountants specialize in taxation and may advise businesses or prepare individual tax returns for their clients.

Financial crimes like securities fraud and embezzlement, bankruptcy, and contract disputes can all be investigated by forensic accountants. Legality is determined by forensic accountants' knowledge of money and accounting. They frequently testify as expert witnesses in criminal cases, assisting officers and attorneys.

Some even help the public with their own money. Accountants use economics, financial planning, and tax law to help their clients. A financial adviser can help with everything from cash flow and insurance to investments, retirement, and wealth transfer.

While many CPAs own their own firms, many work for one of these organizations. The Securities and Exchange Commission (SEC) requires listed companies to sign all documents, including annual and quarterly reports.

External auditors examine a firm's performance in areas such as financial reporting, cybersecurity, and supply chain risk management. The auditing firm no longer audits them because they work for a new Company. Authorities, investors, and regulators can rest assured that customers' financial statements are accurate.

To keep their businesses' IT systems secure, IT auditors must verify both financial and non-financial data.

Internal auditors perform similar duties to external auditors, except they work for the company they audit. They value identifying and eliminating financial risks like inefficiencies and fraud. Internal auditing methods are thus defined by the Institute of Internal Auditors (IIA).

Education

Accounting or a related field, such as business, is usually required. Some employers prefer a master's degree in accounting or business administration with an accounting focus.

Accounting, forensic accounting, internal auditing, and tax accounting are just a few specializations available. An associate degree or equivalent work experience is required for entry-level accounting positions, as is a high school diploma.

Experience in public accounting or commercial businesses can be gained through internships.

Certification and Licensing

The Securities and Exchange Commission (SEC) requires all accountants to be licensed CPAs (CPA). Accountants may decide to take the CPA exam to advance their careers or gain new business clients. 

Employers may cover CPA exam fees.

The state's Board of Accountancy regulates CPAs and issues them licenses to practice. To practice, a CPA must pass a national exam and meet state requirements. To become a CPA, you need 150 semester hours of college study, which is 30 hours more than a 4-year bachelor's degree. All states require this minimum. Several colleges offer a 5-year combined bachelor's and master's degree, but a master's degree is not required.

In some cases, public accounting experience can replace a college degree.

Every state uses the AAICPA's four-part Uniform CPA Examination (AICPA). Applicants do not have to complete all four parts simultaneously, but in most states, they must pass all four within 18 months of passing the first.

All states require CPAs to maintain continuing education, which includes ethics.

An advantage in the job market is being able to demonstrate expertise in a specific area of accounting and auditing through certification. Many organizations issue certificates to accountants and auditors. Some of the most popular certifications are listed below:

The AICPA offers numerous certifications. There are many other credentials offered by the AICPA besides ABV and CFF, CITP, and PFS for CPAs. These qualifications require experience, ongoing education, and a test.

The AICPA and the Chartered Institute of Management Accountants jointly created the CGMA designation (CIMA). Before applying for a job, a candidate must complete a program and pass an exam.

The Association of Government Accountants (AGA) offers the Certified Government Financial Manager (CGFM) certificate to accountants and auditors in government. This certification requires a bachelor's degree from an approved university and passing tests in government finance management. CGFMs must complete continuing education courses to keep their certification.

The Institute of Internal Auditors offers the Certified Internal Auditor (CIA) credential to graduates of accredited institutions who have worked as internal auditors and passed an exam (IIA). The IIA also offers certifications in control self-assessment (CCSA), government auditing (CGAP), financial services auditing (CFSA), and risk management assurance (CRMA).

The Institute of Management Accountants accepts applications for the Certified Management Accountant (CMA) designation (IMA). Candidates must have a background in management accounting, have passed a test, and agree to continue their education and follow ethical standards.

Applicants can become a Certified Information Systems Auditor by passing a test and working as an information systems auditor (CISA). Financial or operational auditing, or comparable college credit hours, may be acceptable substitutes for IT auditing and control expertise.

Advancement

Some senior executives and financial managers have experience in accounting, internal auditing, and finance.

With experience and responsibilities, public accountants can become senior public accountants. It is possible to become a private business executive, manager, partner, or owner of a public accounting firm.

Management accountants often start as cost accountants, junior internal auditors, or accounting trainees. Depending on their experience, they may progress from accountant to budget director, chief cost accountant, or head of internal audit. Some become CFOs, treasurers, financial vice presidents, or even company presidents.

Accountants, including public accountants, management accountants, and internal auditors, can change careers. Former public accountants often move into management accounting or internal audit. Internal auditors and management accountants can coexist. Management accountants and internal auditors are less likely to become public accountants.

Important traits

Analytical and critical thinking skills Accounting and audit professionals must be able to analyze data, identify issues with documentation, and recommend solutions. Internal auditors may uncover cash misappropriation, while public accountants may seek to lower a company's tax burden.

Communication ability Accountants and auditors must consider the views of clients, managers, and other stakeholders. They must also be able to present their findings both orally and in writing.

Focused on accuracy Accountants and auditors must carefully compile and examine documents.

Mathematical aptitude Accountants and auditors must be able to evaluate, compare, and comprehend data. Calculus and statistical analysis can help.

The ability to effectively manage time. Accountants and auditors must be organized to deal with a variety of financial documents for a variety of clients.

Pay

In May 2020, accountants and auditors earned an average yearly salary of $73,560. If half of the people in a profession make more than the median wage, and half earn less, we say that the median wage is too high or too low. Percentages in the bottom and top tenths of earners ranged from $45,220 to $128,680.

Job Projections

Accountants and auditors are expected to see a 7 percent increase in employment between 2020 and 2030, which is in line with the average growth rate for all vocations.