FINAL PROJECT:CERTIFIED PUBLIC ACCOUNTANT

Miguel Mejia – West Los Angeles College

A Certified Public Accountant (CPA) is an accountant who has passed the Uniform Certified Public Accountant Examination. CPAs primarily work in assurance services for public accounting firms. The CPA attests to the reasonableness of disclosures, the freedom from material misstatement, and the adherence to generally accepted accounting principles (GAAP).

Job Description

CPAs have many career paths to choose from. Fields for CPAs include public accounting, private accounting, and government agencies. CPAs often work in :

• Tax advising and preparation• Auditing• Consulting• Managing a business

Duties & Tasks

CPAs require a vast variety of skills to be successful. Skills learned in the classroom and in the field include:

Required Technical Skills

Strong leadership Keen decision-making

Communication skills People management skills

Attention to detail Knowledge of GAAP

Analytical skills Math skills

Financial acumen Knowledge of the audit manual

CPAs involved in the audit services deal with a lot of paperwork. The following tools/equipment are used in audit procedures:

• Working papers• Payroll records• Audit software & computer• Accounting information systems• General ledger• Financial statements• Other relevant financial information

Tools & Equipment Used

•Most CPAs work in a typical office setting, while some are able to do part of their work from home.

•Accountants employed by public accounting firms, the government, and organizations with various locations may travel often to perform audits at the client site.

•Almost half of all accountants and auditors worked a standard 40-hour week in 2008, but many worked longer hours.

•Tax specialists frequently work long hours during the busy tax season.

•Accountants generally wear business casual/business professional attire at their offices and client site

Work Environment

Work Environment

The “Big 4” audit firms are some of the most prestigious public accounting firms. They are:

•A CPA is licensed by each sate. •In CA, to obtain the CPA license, candidates are required to show what they have learned and their competence by passing the Uniform CPA exam, meeting education standards, and obtaining accounting experience. •There are changes for licensing requirements effective January 1, 2014. •According to CalCPA, there are two pathways for earning the CPA certification (see next slide)

Education & Training Requirements

Education & Training Requirements

Designed for individuals who will practice only in California and requires:

A bachelor’s degree; 24 semester units in accounting-

related subjects; 24 semester units in business-

related subjects (accounting courses beyond the 24 required units may apply toward the business units);

Passing the Uniform CPA Exam; Two years of general accounting

experience supervised by a CPA with an active license; and

Passing an ethics course. 

If you are licensed under this pathway, the majority of other states will recognize your license. If you think that someday you might want to practice in another state, Pathway 2 may provide you the professional mobility you desire. Requirements:

A bachelor’s degree; 24 semester units in accounting-related

subjects; 24 semester units in business-related

subjects; 150 semester units (or 225 quarter units) of

education; Passing the Uniform CPA Exam; and one year

of general accounting experience supervised by a CPA with an active license; and

Passing an ethics course. 

Pathway 1 (Expires 12/31/13)

Pathway 2 (After 1/1/14, this will be the only pathway to licensure in CA

•The Bureau of Labor Statistics notes that accountants and auditors are expected are very likely to experience faster than average employment growth through 2018. •The Bureau goes on to state that accountants and auditors who hold a professional certification, particularly CPAs, are more likely to have favorable prospects. •As the economy improves and grows, the business world will have an increased need for accountants. •The globalization of business and the increasing complexity of financial reporting also will put a higher demand for accountants.

Job Outlook

The following table lists average annual salaries for several accounting positions. Salaries depend on location, company size, professional designation, experience, and other factors. Salaries for chief financial officers range from $75,000 to more than $1,000,000 yearly. The salaries for bookkeepers range from under $30,000 to more than $80,000.

Expected Earnings

Field Title (experience) 2007 Salary 2012 Estimate Public Accounting Partner $190,000 $242,500 Manager (6-8 years) 94,500 120,500 Senior (3-5 years) 72,000 92,000 Junior (0-2 years) 51,500 65,500 Private Accounting CFO 232,000 296,000 Controller/Treasurer 147,500 188,000 Manager (6-8 years) 87,500 111,500 Senior (3-5 years) 72,500 92,500 Junior (0-2 years) 49,000 62,500

•Association of Latino Professionals in Accounting and Finance (ALPFA)•American Institute of Certified Public Accountants (AICPA)•American Society of Women Accountants (ASWA)•Beta Alpha Psi•Federal Accounting Standards Advisory Board (FASB)•International Network of Accountants and Auditors (INAA)

Professional Associations & Clubs

•Wild, Shaw, & Chiappetta, (2009). Fundamental Accounting Principles. (19 ed.). McGraw-Hill.

•Accounting: Skills & Talents (2011). http://www.careers-in-accounting.com/acskill.htm

•CalCPA (2011). http://www.calcpa.org/content/licensure/requirements.aspx

•Bureau of Labor Statistics (2011). Occupation Outlook Handbook. http://www.bls.gov/oco/ocos001.htm

•American Institute of CPAs (2011). http://www.aicpa.org/Career/CareerPaths/Pages/CareerPaths.aspx

References