Career Overview: Accounting
and Auditing
Job description
Accountants and auditors ensure that firms are run efficiently by providing
them with valuable financial information and accurate record keeping.
Accountants on a day-to-day basis are responsible for bookkeeping, including
the tracking of expenses and revenue, payroll, and paying bills. Accountants
are also responsible for preparing balance sheets, profit and loss statements,
and other financial reports, and may also analyze trends, costs, revenues, financial
commitments, and obligations to predict future revenues and expenses.
Accountants are increasingly becoming an important part of successful business
teams. This is because they understand the language of money and a company's
complex financial situation better than any other employees in the company.
Therefore, they are not only responsible for reporting finances to management;
they offer suggestions regarding resource utilization, tax strategies, and
assumptions underlying budget forecasts. Auditors examine this accounting and
financial data and procedures to ensure accuracy and compliance with government
guidelines and laws. They work to identify improper accounting or documentation
and research issues in order to make recommendations to improve policies or
procedures accordingly.
Auditors and accountants need to be critical and detail-oriented thinkers.
Individuals should have an aptitude for math and an understanding of patterns
that influence financial performance. Those individuals that don't enjoy
solving detailed problems and performing analyses should not enter either of
these professions. In addition, strong written and verbal communication skills
are becoming increasingly important for both professions as they often interact
and work with a variety of other departments and professionals.
A day in the life
Although most accountants and auditors work a standard 40 to 45 hour week, many
work longer hours, particularly those that are self-employed and those involved
in tax matters will of course work particularly long hours during the tax
season. While accountants spend most of their time working in the office,
auditors find they spend the majority of their time on the phone, traveling, or
meeting with clients and other business partners.
An unexpected downside to these professions is that oftentimes they find
themselves the bearers of bad news when it comes to companies or individuals
who have run into financial troubles or mishandled their finances. In general
though, the level of satisfaction in these professions is relatively high.
Accountants and auditors work in many different
areas throughout private and government industries. But, about a fourth of
accountants work for accounting, auditing, and bookkeeping firms and
approximately 3 out of 25 accountants and auditors are self-employed. Some
individuals with accounting and auditing backgrounds will work as full-time
faculty at colleges and universities or part-time while still working
professionally. While many are unlicensed, a large number are Certified Public
Accountants (CPAs). Most work in urban areas where public accounting firms and
corporate headquarters tend to be located.
Education and training
Most accounting and auditing positions require at least a bachelor's degree in
accounting, finance, or a related discipline. Entry-level positions in the
federal government require four years of college that includes 24 semester
hours in accounting or auditing, or an equivalent amount of experience. Some
employers even prefer a master's degree in accounting, business administration,
or finance. Soon after being hired, the most common designation required is the
Certified Public Accountant (CPA). But different states have different
requirements; contact the National Association of State Boards of Accountancy to obtain information on licensing requirements and standards in your state.
Auditors who have graduated from an accredited
college or university and who have worked for 2 years as internal auditors and
passed the four-part auditor examination may earn a Certified Internal Auditor
(CIA) designation from The Institute of Internal Auditors. In addition, those with 5
years of experience in auditing electronic data processing systems can earn the
designation of Certified Information Systems Auditor (CISA) after passing the
required examinations.
Continuing professional education is required for CPAs to renew their licenses.
CPE requirements vary by state, but always involve completion of a certain
amount of credit hours in applicable continuing education courses. There are
many professional associations that offer continuing education for accountants
in the form of courses, seminars, and programs.
Pay
The following chart shows national salaries for accountants at various levels
Level |
Years
of Experience |
Median
Salary |
Accountant I |
0-2 |
$36,263 |
Accountant II |
2-4 |
$43,506 |
Accountant III |
4-6 |
$52,019 |
Accountant IV |
6-8 |
$63,540 |
Source: Salary.com, September 2003
For this month's salaries: Salary Wizard
|
The following chart shows national salaries for auditors at various levels.
Level |
Years
of Experience |
Median
Salary |
Internal Auditor
I |
0-2 |
$40,573 |
Internal Auditor
II |
2-4 |
$49,370 |
Internal Auditor
III |
4-6 |
$60,386 |
Internal Auditor
IV |
6-8 |
$70,188 |
Source: Salary.com, September 2003
For this month's salaries: Salary Wizard
|
Job outlook
According to the Bureau of Labor Statistics, employment of
accountants and auditors is expected to grow at about the same rate as other
occupations through the year 2010. Those individuals that have earned
professional recognition through certification or licensure should have the
best job prospects. For example, CPAs should continue to enjoy a wide range of
job opportunities, especially as more states require candidates to have 150
hours of college coursework. Those with management accounting certifications
and graduate degrees will be heavily sought after as well.
Associated careers
Accountants and auditors will often have additional degrees so as to specialize
in different areas, such as marketing, advertising, and law. They will also
move into related areas such as management analysis, consulting, financial
analysis, banking, brokerage, and even the FBI, where they mostly work in
hidden asset recovery. Accountants will often start their own businesses, using
their expertise in finances to manage the start up. Occupations for which
accounting and auditing backgrounds are helpful, and in some cases required,
include budget analysts, collectors, cost estimators, loan officers, personal
financial advisors, revenue agents, and tax examiners.
Source: Salary.com
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