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There was a time, seemingly not all that long ago, when thearray of professional credentials that seasoned accountingprofessionals could pursue was relatively narrow; many choseto work toward the CPA certification. Although this certifi-

cation provides its holder with the only licensed accounting des-ignation in the United States, financial professionals can nowchoose from among a wide variety of additional certificationopportunities and career paths in order to differentiate them-selves within the marketplace.

Expertise in specific areas—such as business valuation, foren-sic accounting, information systems, financial services, internal

auditing, and management accounting, among others—has becomean option for all and a necessity for many. Certification creden-tials evidencing such types of expertise have proliferated, creat-ing an ever-broadening array of certification possibilities.Researching the key attributes of the myriad of professional orga-nizations and the benefits of their respective certifications and cre-dentials is a significant undertaking, for which most accountingprofessionals lack the necessary time; thus, this discussion pro-vides professionals with a guide to the more prominent U.S.-basedprofessional organizations (i.e., those with memberships of morethan 10,000) and the certifications they offer.

Navigating the Maze of Today’sProfessional Credentials

R E S P O N S I B I L I T I E S & L E A D E R S H I Pp r o f e s s i o n a l d e v e l o p m e n t

JUNE 2013 / THE CPA JOURNAL62

By Douglas M. Boyle, Robyn Lawrence, and Daniel P. Mahoney

Such organizations include the AICPA,the Institute of Internal Auditors (IIA), theCertified Financial Planner (CFP) Board ofStandards Inc. and the Financial PlanningStandards Board (FSPB), the ISACA, theAssociation of Certified Fraud Examiners(ACFE), the Institute of ManagementAccountants (IMA), and the AccreditationCouncil for Accountancy and Taxation(ACAT). A streamlined discussion of theseorganizations (in descending order of mem-bership size) and their respective certifica-tions is followed by a discussion of essen-tial implications and questions for profes-sionals to consider, including potential ben-efits and costs. (The Exhibit provides anoverview of the organizations discussedbelow.)

AICPAFounded in 1887 and consisting of near-

ly 400,000 members, the AICPA is thelongest established and arguably mostrecognized among the U.S.-based account-ing organizations. It publishes the Journalof Accountancy; The Tax Adviser; CPALetter Daily; AICPA Weekly Update; CPAClient Bulletin; six e-newsletters; andnumerous online guides, alerts, and spe-cialty-area articles. Although the AICPAis often associated specifically with theUniform CPA Examination, it actuallyserves the accounting profession in a ratherbroad capacity, as stated on its website:

The AICPA is the world’s largest asso-ciation representing the accounting pro-fession, with nearly 386,000 membersin 128 countries and a 125-year heritageof serving the public interest. AICPAmembers represent many areas of prac-tice, including business and industry,public practice, government, educationand consulting. The AICPA sets ethicalstandards for the profession and U.S.auditing standards for audits of privatecompanies, nonprofit organizations andfederal, state and local governments. Itdevelops and grades the Uniform CPAExamination. (http://www.aicpa.org)The AICPA offers five different spe-

cialty credentials to those who already holdthe CPA designation: Personal FinancialSpecialist (PFS); Accredited in BusinessValuation (ABV); Certified InformationTechnology Professional (CITP); Certifiedin Financial Forensics (CFF); and, mostrecently, Chartered Global Management

Accountant (CGMA). These credentialsoffer qualified CPAs the opportunity to fur-ther distinguish themselves and thusadvance their careers and enhance the valueof their practices.

PFS. This credential, established in 1987for CPAs who have or seek expertise inpersonal tax and financial planning, is pro-vided to qualified CPAs who meet certainexperience requirements, earn 80 hours ofpersonal financial planning continuing pro-fessional education (CPE) within the five-year period preceding the PFS applicationdate, pass the six-and-one-half–hour PFSExam (or have passed either the CertifiedFinancial Planner [CFP] Exam or theChartered Financial Consultant [ChFC]Exam), complete the PFS application, andpay a $400 fee. The content of the PFSexam includes professional responsibilities,the personal financial planning process,fundamentals of financial planning andincome tax planning, insurance planning,financial independence (retirement plan-ning), employee benefits, estate planning,charitable planning, and other personalfinancial planning issues.

ABV. Established in 1998 for CPAswho have or seek expertise in the area ofvaluation services, the ABV credential isavailable to qualified CPAs who meet cer-tain experience requirements, pass the six-hour ABV Exam (or hold a currentAccredited Senior Appraiser [ASA] orAccredited Member [AM] credential pro-vided by the American Society ofAppraisers), complete the credential appli-cation, and pay a $350 fee. The ABVExam includes content in the areas of qual-itative and quantitative analysis, valuationanalysis, and related topics.

CITP. This credential was established in2000 for CPAs who have or seek exper-tise in the areas of business systems report-ing, IT audit and attest services, internalcontrols, fraud considerations, and riskassessment. The credential is offered toqualified CPAs who meet experiencerequirements, complete the CITP applica-tion, and pay a $400 application fee. Inaddition, since July 25, 2012, applicantsare required to pass the four-hour CITPExam that covers risk assessment; fraudconsiderations; internal control and IT gen-eral controls; evaluation, testing, and report-ing; and information management and busi-ness intelligence.

CFF. This credential, established in2008 for CPAs who have or seek exper-tise in forensic accounting, is provided toqualified CPAs who meet certain experi-ence requirements, earn 75 hours of foren-sic accounting–related CPE within a 10-year period (with a minimum of 50% with-in a five-year period) preceding the date ofCFF application, pass a four-hour exam,complete the CFF application, and pay a$400 fee (for AICPA members). TheCFF Exam includes content related to pro-fessional responsibilities and practice man-agement, fundamental forensic knowledge,and specialized forensic knowledge.

CGMA. This designation was establishedin 2011 through a joint venture between theAICPA and the London-based CharteredInstitute of Management Accountants(CIMA). The CIMA, founded in 1919,describes itself as “the world’s leading andlargest professional body of managementaccountants, with 183,000 members an stu-dents operating in 168 countries, workingat the heart of business” (http://www.cimaglobal.com/About-us/Press-office/Press-releases/2011/March-2011/cima-aicpa-jv/).

The CGMA designation is designed forCPAs specializing in the area of manage-ment accounting and members of the CIMA.As described on the CGMA website:

The AICPA and CIMA have joinedtogether to form a joint venture whichpowers a new designation for manage-ment accountants, the Chartered GlobalManagement Accountant (CGMA). TheCGMA is designed to elevate manage-ment accounting and further emphasiseits importance for businesses worldwide.The CGMA recognises the unique roleplayed by management accountants inbusinesses around the world who areguiding critical business decisions anddriving strong business performance. Itsets a new standard for global recogni-tion of management accounting bybuilding on the longstanding foundationsand thought leadership of the AICPAand CIMA. United by global qualitystandards for ethics and performance, theCGMA maintains distinct credibility andpositioning among worldwide businessdesignations. Through a wide range ofresources and learning opportunities, thedesignation further elevates CGMAs’management accounting expertise, skills,ethical standards, commitment and

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dedication. (http://www.cgma.org/AboutUs/Pages/default.aspx)Current CIMA members are automati-

cally accepted as CGMAs. CPAs who arenot CIMA members are required to meetcertain financial and management account-ing experience requirements, complete anapplication, and pay a $150 designation fee.No exam is currently required as part ofthe acceptance process; however, begin-ning in January 2015, successful comple-tion of an exam will be required.

IIAEstablished in 1941, the IIA has approx-

imately 176,000 members in 165 countries.It publishes Internal Auditor, an online ver-sion of the magazine (http://www.theiia.org/intauditor/), and IIA Today. The IIA providesfive certification opportunities in various spe-cialty areas of auditing. As described on itswebsite, the IIA is the considered the premier organization for internal auditprofessions:

The Institute of Internal Auditors (IIA) isan international professional associationwith global headquarters in AltamonteSprings, Florida, USA. The IIA is theinternal audit profession's global voice,recognized authority, acknowledged lead-er, chief advocate, and principal educa-tor. Generally, members work in internalauditing, risk management, governance,internal control, information technologyaudit, education, and security.Globally, The IIA has more than 170,000members. The IIA in North America com-prises 159 chapters serving more than70,000 members in the United States,Canada, the Caribbean (Aruba, Bahamas,Barbados, Cayman Islands, Curacao,Jamaica, Puerto Rico, and Turks &Caicos), Bermuda, Guyana, and Trinidad& Tobago. Members enjoy benefitsoffered by the North American ServiceCenter including local, national, and glob-al professional networking; world-classtraining; certification; standards andguidance; research; executive develop-ment; career opportunities; and more.(https://na.theiia.org/about-us/Pages/About-The-Institute-of-Internal-Auditors.aspx)The certifications offered by the IIA

include the Certified Internal Auditor (CIA),Certified Government Auditing Professional(CGAP), Certified Financial Services Auditor(CFSA), Certification in Control Self-

Assessment (CCSA), and Certification inRisk Management Assurance (CRMA).Although all of these certifications can addvalue to a professional’s career, the CIA des-ignation is the one for which the IIA is bestknown. Few would argue with the IIA’sassertion that the CIA is “the only globallyaccepted certification for internal auditors andremains the standard by which individualsdemonstrate their competency and profes-sionalism in the internal auditing field”(https://na.theiia.org/certification/CIA-Certification/Pages/CIA-Certification.aspx)

CIA. In order to obtain the CIA certifi-cation, a candidate must be a member ofthe IIA, hold a four-year postsecondarydegree (or higher) from an accredited uni-versity or its equivalent, exhibit high moraland professional character as evidenced bya character reference form, have at least 24months of internal auditing experience(holding a master’s degree can substitutefor 12 of these months), and pass anexam consisting of four two-hour-and-twenty-five–minute sections (internal auditactivity’s role in governance, risk, and con-trol; conducting the internal audit engage-ment; business analysis and informationtechnology; and business managementskills). The application fee for an IIA mem-ber is $100 and the exam part fee is $150.

Other IIA certifications. The CGAP,CFSA, and CCSA specialty certificationsprovide opportunities for accounting pro-fessionals to demonstrate their knowledgeand expertise in specific content areas. Thesecertifications require that the candidate be amember of the IIA and have a four-yearpostsecondary degree (or its equivalent) ora two-year degree and defined experience(depending upon the designation). In addi-tion, the candidate must complete a charac terreference form and pass a three-hour-and-fifteen–minute specialty exam for each cer-tification. The CGAP Exam includes four“domains” (i.e., topic areas): standards, gov-ernance, and risk/control frameworks; gov-ernment auditing practice; government auditing skills and techniques; and govern-ment auditing environment. The CSFA examlikewise includes four domains—financialservices auditing, auditing financial servicesproducts, auditing financial service process-es, and the regulatory environment—andallows the candidate to select from one ofthree disciplines (banking, insurance, secu-rities). The CCSA Exam includes six

domains: CSA fundamentals, CSA programintegration, elements of the CSA process,business objectives and organizational per-formance, risk identification and assessment,and control theory and application.

The CRMA certification is the most recentaddition to The IIA’s specialty offerings andwill have requirements similar to the othercertifications discussed. The administeringof CRMA is planned to commence in mid-2013. The IIA previously allowed candidatesto apply for the CRMA based upon a pointsystem, whereby candidates could obtain cer-tification depending upon the professionalexperience and credentials that they pos-sessed. This opportunity expired onSeptember 30, 2012, and new candidates aresubject to the exam procedures. The appli-cation fee for all specialty certifications is$100 for IIA members and the specialtyexam fee for the CGAP, CFSA, and CCSAis $325, and it is $350 for the CRMA.

FPSBThe FPSB, formed in 2004, consists of

approximately 140,000 members in 24 ter-ritories worldwide, approximately 64,000of whom are located in the United States.The FPSB’s publications include FPSB’sUpdate and It’s Your Turn. As noted onits website, the FPSB works to promotecompetency, ethics, and standards forfinancial planners across the globe:

Financial Planning Standards Board Ltd.(FPSB) is a nonprofit association thatmanages, develops and operates certifi-cation, education and related programsfor financial planning organizations sothat they may benefit the global com-munity by establishing, upholding andpromoting worldwide professionalstandards in financial planning. … FPSB works in conjunction with itsmembers to develop and promote rig-orous international competency, ethicsand practice standards for CFP profes-sionals in member territories to ensurethat consumers looking for qualifiedfinancial planners understand and valueCFP certification. (http://www.fpsb.org/fpsbincreasesrepresentation.html)The FPSB offers the CFP credential

through agreements with nonprofit (orequivalent) organizations that becomeFPSB members. Following FPSB stan-dards, these members administer the CFPcertification standards and can adapt the

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certification process to address the regula-tions, laws, and products of local areas. TheCFP Board established the eight majordomains of the CFP Exam: establishingand defining the client-planner relationship,gathering information necessary to fulfillthe engagement, analyzing and evaluatingthe client’s current financial status, devel-oping recommendations, communicatingthe recommendations, implementing therecommendations, monitoring the recom-mendations, and practicing within profes-sional and regulatory standards.

The exam, which costs $595, may includeone comprehensive exam or a series ofexams; formats for the exam may varydepending upon location and the preferencesof each FPSB member. In order to be qual-ified to sit for the CFP Exam, a candidatemust be an FPSB member and demonstratecompletion of courses at the upper divisionundergraduate or graduate (master’sdegree) level (or its equivalent) in financialplanning. In addition, a condition of obtain-ing initial certification is that the candidateholds at least a bachelor's degree from anaccredited institution. The CFP Board hasan experience requirement, defined as “thesupervision, direct support, teaching or per-sonal delivery of all or part of the personalfinancial planning process to a client”(http://www.cfp.net/docs/default-document-library/purpose_of_cfp_board.pdf?sfvrsn=2).

ISACAFormed in 1969 and previously known

as the Information Systems Audit ControlAssociation, ISACA has a global member-ship of more than 100,000, representingmore than 180 countries. Its publicationsinclude ISACA Journal and JournalOnline,which features online-only articles availableto ISACA members in the months that thebimonthly ISACA Journal does not appearin print. The ISACA’s website describes theorganization as follows:

A nonprofit, independent membershipassociation, ISACA is a leading globalprovider of knowledge, certifications,community, advocacy and education oninformation systems assurance, controland security, enterprise governance ofIT, and IT-related risk and compliance.Founded in 1969 as the EDP AuditorsAssociation, ISACA helps its membersand their employers ensure trust in, andvalue from, information systems.

ISACA … has more than 100,000 con-stituents in more than 180 countries inAsia, Latin America, Europe, Africa,North America and Oceania. Its membersinclude internal and external auditors,CEOs, CFOs, CIOs [chief informationofficer], educators, information securityand control professionals, business man-agers, students, and IT consultants.

(http://www.isaca.org/About-ISACA/Press-room/Pages/ISACA-Fact-Sheet.aspx)The certifications offered by ISACA focus

on various systems-related specialties:Certified Information Systems Auditor(CISA), Certified Information SecurityManager (CISM), Certified in theGovernance of Enterprise IT (CGEIT), and

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Key Information Certifications Offered

American Institute of Certified Public Accountants (AICPA) n Accredited in Business Valuation (ABV) Website: http://www.aicpa.org n Certified in Financial Forensics (CFF)Offices: New York, N.Y.; Durham, N.C.; Ewing, N.J.; and Washington, D.C. n Certified Information Technology Professional (CITP) Established in: 1887 n Chartered Global Management Accountant (CGMA)Membership: 377,000 members in 128 countries n Personal Financial Specialist (PFS) Publications: Journal of Accountancy (printed monthly), The Tax Adviser (printed monthly), CPA Letter Daily (free daily e-newsletter), AICPA Weekly Update (e-newsletter), CPA Client Bulletin (printed 10 times yearly), six Insider e-newsletters (CPA, career, corporate finance, corporate taxation, tax, and wealth management). Monthly online guides: IFRS Report; InfoTech Update; Forensic & Valuation Reporter; Financial Planning Digest; BusIndNews; and numerous other specialty-area publications, alerts, and guides.

Institute of Internal Auditors (IIA) n Certified Internal Auditor (CIA)Website: http://www.theiia.org n Certified Government Auditing Professional (CGAP)Office: Altamonte Springs, Fla. n Certified Financial Services Auditor (CFSA)Established in: 1941 n Certification in Control Self-Assessment (CCSA)Membership: 176,000 members in more than 165 countries n Certification in Risk Management Assurance (CRMA)Publications: Internal Auditor, an online version of Internal Auditor, IIA Today (bimonthly)

Certified Financial Planner Board of Standards Inc. (CFP Board) n Certified Financial Planner (CFP)[Financial Planning Standards Board (FPSB)]Website: www.cfpb.net [www.fpsb.org]Office: Washington, D.C. [Denver, Colo.]Established in: 1985 [2004] Membership: FPSB has 140,000 members in nonprofit organizations from 24 territories worldwidePublications: FPSB’s Update (bimonthly e-newsletter), CFP Board’s It's Your Turn (monthly e-newsletter)

ISACA n Certified Information System Auditor (CISA)Website: www.isaca.org n Certified Information Security Manager (CISM)Office: Rolling Meadows, Ill. n Certified in the Governance of Enterprise IT (CGEIT)Established in: 1969 (EDP Auditors Association) n Certified in Risk and Information Systems Control Membership: More than 100,000 members in 180 countries (CRISC) Publications: ISACA Journal (printed bimonthly), JournalOnline, (online-only articles bimonthly, alternatingwith ISACA Journal)

Association of Certified Fraud Examiners (ACFE) n Certified Management Accountant (CMA) Website: www.acfe.comOffice: Austin, Tex. (headquarters); Singapore; London; TokyoEstablished in: 1988Membership: More than 60,000 membersPublications: Fraud Magazine (bimonthly), Fraud-Magazine.com (e-newsletter), The Fraud Examiner (e-newsletter), Blogs: ACFE Insights and FraudInfo

Institute of Management Accountants (IMA) n Certified Fraud Examiner (CFE) Website: www.imanet.org Office: Montvale, N.J.Established in: 1919 (National Association of Cost Accountants)Membership: 60,000 members internationallyPublications: Strategic Finance (monthly), Management Accounting Quarterly (online); IMA Educational Case Journal (quarterly, online); IMA Online News (weekly, e-newsletter; specialized e-newsletters on technology, careers, CMA certification, and students’ interests.

Accreditation Council for Accountancy and Taxation (ACAT) n Accredited Business Accountant (ABA)Website: www.acatcredentials.org n Accredited Tax Advisor (ATA)Office: Alexandria, Va. n Accredited Tax Preparer (ATP)Established in: 1973 by the National Society of Public Accountants (now the NSA, which was established n Accredited Retirement Advisors (ARA)in 1945)NSA Membership: 10,240Publications: Action News (ACAT's e-newsletter), Main Street Practitioner, formerly NPA Magazine (digital six times per year, printed quarterly by NSA); NSA Practice Advisor, formerly NSA Technology Advisor(published eight times per year by NSA); NSAlert (biweekly e-newsletter by NSA); MemberLink (biweekly e-mail newsletter by NSA)

EXHIBITU.S.-Based Accounting Organizations with More Than 10,000 Members

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Certified in Risk and Information SystemsControl (CRISC). All of these certificationsrequire ISACA membership and three to fiveyears of related specialty experience (depend-ing upon the certification), with certain allow-able waivers that depend upon the candi-date’s educational credentials. Although acandidate’s education might be usedtoward a waiver of certain experiencerequirements, ISACA does not state any edu-cational requirements needed to obtain cer-tification. In addition to having experience,candidates must pass the related specialtyexam and adhere to ISACA’s Code ofProfessional Ethics in order to obtain a cer-tification. The early exam registration fee forISACA members is $410 per certification.

The specialty exams cover variousdomains. The CISA includes five topicareas: the process of auditing informationsystems; governance and management ofIT; information systems acquisition, devel-opment, and implementation; informationsystems operations, maintenance, and sup-port; and protection of information assets.The CISM exam covers four domains: infor-mation security governance, information riskmanagement and compliance, informationsecurity program development and man-agement, and information security incidentmanagement. The CGEIT exam consistsof five domains: strategic alignment, valuedelivery, risk management, resource man-agement, and performance measurement.Finally, the CRISC exam covers fivedomains: risk identification, assessment andevaluation, risk response, risk monitoring,information systems control design andimplementation, and information systemscontrol monitoring and maintenance.

ACFEThe ACFE was established in 1988

and has an international membership ofmore than 60,000. The ACFE publishesFraud Magazine, Fraud-Magazine.com,and The Fraud Examiner. The ACFE iden-tifies itself as follows:

The ACFE is the world's largest anti-fraud organization and premier providerof anti-fraud training and education.Together with nearly 65,000 members,the ACFE is reducing business fraudworldwide and inspiring public confi-dence in the integrity and objectivitywithin the profession. (http://www.acfe.com/about-the-acfe.aspx)

The ACFE offers the Certified FraudExaminer (CFE) designation. In order toobtain this credential, a candidate must bea member of the ACFE, agree to complywith the CFE’s bylaws and Code ofProfessional Ethics, meet professionaland educational standards, and completethe 10-hour CFE exam. The professionalminimum experience requirement is at least

two years of related experience in the fieldof fraud examination; generally, applicantsmust have at least a bachelor’s degree orits equivalent. Ultimately, the profession-al and educational requirements are determined based upon a point system,whereby the candidate is awarded creditaccording to certain education, profes-sional affiliations, and experience criteria.

The editors invite readers to continue their interactionwith The CPA Journal online by joining our LinkedIngroup, at www.linkedin.com/groups/CPA-Journal-1866117. Connect with top accounting and auditingprofessionals and discuss hot topics confronting theprofession—from forthcoming accounting standardsand recent tax legislation to financial planning issues,educational and regulatory requirements, and muchmore. Join the conversation with other readers andNYSSCPA members now.

The CPA Journal Online

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The CFE Exam, which costs $300,includes the topics of fraud prevention anddeterrence, financial transactions, fraudinvestigation, and legal elements of fraud.

IMAThe IMA was founded in Buffalo, New

York, in 1919; it was originally known asthe National Association of Cost Accountantsand later as the National Association ofAccountants, but it adopted its currentname in 1991 in order to signify its “broad-er role as the association for accountants andfinancial professionals working inside orga-nizations” (http://www.imanet.org/about_ima/our_history.aspx). The IMA hasa global membership of more than 60,000members. Its publications include StrategicFinance; Management AccountingQuarterly; IMA Education Case Journal,IMA Online News; and various specializede-newsletters pertaining to technology,careers, CMA certification, and students’interests. The IMA’s website clearly statesits mission “to provide a forum forresearch, practice development, education,knowledge sharing, and the advocacy ofthe highest ethical and best business prac-tices in management accounting and finance”(http://www.imanet.org/about_ima/our_mission.aspx).

In 1972, the IMA established theCertified Management Accountant (CMA)credential. CMA candidates are required tojoin the IMA, hold at least a bachelor’sdegree from an accredited institution, havea minimum of two years of professionalmanagement accounting or financial man-agement experience, and successfully com-plete the two-part, eight-hour CMAexam. The exam content for the first partincludes planning, budgeting, and fore-casting; performance measurement; costmanagement; internal controls; and pro-fessional ethics. Content for the second partincludes financial statement analysis, cor-porate finance, decision analysis and riskmanagement, investment decisions, andprofessional ethics. There is a $225 certi-fication entrance fee and a $350 fee foreach exam part.

ACATEstablished in 1973 as a nonprofit inde-

pendent testing, accrediting, and monitoringorganization, the ACAT has a membershipof more than 10,000. It publishes Action

News, Main Street Practitioner, NSAPractice Advisor, NSAlet, and MemberLink.As noted on its website, the ACAT targetsaccounting professionals servicing small tomid-sized businesses:

The Council seeks to identify profes-sionals in independent practice who spe-cialize in providing financial, account-ing and taxation services to individualsand small to mid-size businesses.Professionals receive accreditationthrough examination and/or course-work and maintain their accreditationthrough commitment to a significant pro-gram of continuing professional educa-tion and adherence to the Council's Codeof Ethics and Rules of ProfessionalConduct. ACAT programs are governedby a Board of Directors that includespractitioners, educators and a publicmember. (http://connect.nsacct.org/ACAT/About1/AboutACAT/)ACAT certifications include Accredited

Business Accountant (ABA), AccreditedTax Advisor (ATA), Accredited TaxPreparer (ATP), and Accredited RetirementAdvisor (ARA). None of these certifica-tions has educational requirements.

The ACAT identifies the ABA as its trade-marked designation that meets state regula-tory requirements to practice publicaccounting in the states of Delaware, Iowa,and Minnesota. For this certification, a can-didate must have at least three years ofrelated professional experience. The ABAexam consists of two parts, each lasting three-and-one-half hours. The content of the firstpart of the exam includes financial account-ing and financial statement preparation, pre-sentation, and reporting. The content of thesecond part includes taxation, managerialaccounting, business law, and ethics.

The ATA and ATP designations requirea candidate to have at least five years of taxexperience and three years of tax experience,respectively, whereas the ARA credentialdoes not have a stated experience require-ment. All three of these designationsrequire candidates to pass an exam consist-ing of 100 multiple-choice questions. Thetopical areas for the questions on the ATAexam include tax preparation, planning, clientservices, and ethics. The ATP exam coverstax preparation and ethics. The ARA examincludes content in the areas of retirementplans, benefits, and distribution; insurance,healthcare, and senior and long-term care

options; estates, trusts, estate planning andtaxation; personal residence issues; andethics. The cost to take both parts of theABA exam includes a $285 exam fee anda $50 registration fee. If the parts are takenseparately, the cost is $200 for the exam and$50 for registration. The ATA, ATP, andARA exams cost $200 each, along with a$50 registration fee.

Implications for ProfessionalsAccounting professionals have long had

the opportunity to pursue one or more pro-fessional designations, each designed toreflect an individual’s competence and inter-ests and to help with career advancement.Of course, the CPA designation commandssignificant respect. But today there are manyother additional certifications that onemight choose to pursue. Indeed, in an erathat demands new levels of specializedknowledge, it seems intuitive that bothnovice and veteran members of the profes-sion would be well served by securing thekinds of credentials that reflect such knowl-edge. The obvious question for profession-als to consider is whether the benefits ofobtaining the certification exceed the relat-ed costs. Although all of the organizationsdiscussed above readily cite in their mar-keting material a vast array of benefits inobtaining their certifications, formal researchon this topic has found mixed results.

In “Costs and Benefits of APFSAccreditation,” a survey of approximately320 accredited personal financial specialists(AFPS) found that the majority of partici-pants believed that benefits of certificationwere equal to or exceeded the related costs(John E. Elsea, The CPA Journal, 1992).Key benefits included improved profes-sional image, skills, expertise, and com-petiveness. Although preparing for and tak-ing the examination were cited as the toptwo costs, they were not viewed as majorobstacles. Yet, respondents noted that theircertifications did not have a significantimpact on billings and that certain staterestrictions on promotion of specialty ser-vices likewise limited the incremental rev-enues that one might logically expect fromhaving such certifications.

In contrast, another study, “Costs andBenefits of Personal Financial PlanningAccreditation,” pointed to an increase inbillings and hourly rates; however, on thedownside, it also highlighted a potential addi-

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tional cost of increased legal liability andrelated insurance premiums (Joseph G.Donelan, Journal of Accountancy, vol. 176,no. 3, 1993). This cost may have been anoverstated perception, because only 6% ofparticipants had indicated that they had actu-ally experienced an increase in premiums.

Interestingly, studies that surveyed hold-ers of a particular certification have iden-tified a wider array of perceived benefitsthan those that focused on executiveswho did not hold such certifications andworked outside of the specific functionalarea. In other words, those who are certi-fied in a specific functional area andwork in that area seem to perceive greaterbenefit to their respective certifications thanthose who work outside of that specificfunctional area. In “Practitioners’ andUsers’ Perception of the Benefits ofCertification of Internal Auditors,” surveyparticipants included directors of internalaudit and executives outside of internalaudit, such as CFOs and members of theboard of directors (Audrey A. Gramling,Accounting Horizons, March 1997, pp.39–53). This study found that although theCIA designation is perceived to representa high level of competence and support foradvancement within the internal auditprofession, it is not generally perceived tobe important to management’s acceptanceof internal audit’s recommendations, nordoes it provide career advancement advan-tages outside of the internal audit function.This study further noted the fact that priorresearch found that other non-CPA desig-nations in accounting might not be per-ceived by business executives as being par-ticularly beneficial to the organization. Thearticle thus indicates that the primary ben-efits from obtaining a non-CPA designa-tion might be a personal sense of accom-plishment, a perceived competence withinthe specialty area, and greater potentialfor advancement within a particular func-tion; however, with respect to mattersexternal to the holder’s specific function-al area, the benefits of such certificationare quite limited.

Accordingly, those considering the pur-suit of certifications in specific function-al areas should consider whether suchcertifications are congruent with their spe-cific career goals. For example, an inter-nal auditor whose goal is to becomedirector of the internal audit function

would very likely benefit from the CIAcertification; in contrast, an internal audi-tor whose goal is to become a CFO mightfind that obtaining the CIA certificationhas limited value.

One key benefit that warrants further dis-cussion is the potential effect a non-CPA cer-tification might have on compensation. Abroad survey of IMA members, “IMA2011 Salary Survey: What Does ThisRecovery Feel Like?,” found that the aver-age total compensation for participants whoheld neither the CMA nor CPA designationwas $103,960, as compared with $131,093for participants who held the CMA designa-tion and $145,712 for participants who heldthe CPA designation (Lee Schiffel, DavidL. Schroeder, and Kenneth A. Smith,Strategic Finance, vol. 93, no. 12, 2012).Participants who held both the CMA andCPA designations reported an average totalcompensation of $149,484. In the ACFE’sCompensation Guide for Anti-FraudProfessionals, 2010/2011 Global SalaryStudy, antifraud professionals indicated thatthe average total compensation for partici-pants who held the CFE designation was$90,500, as compared to $74,500 for partic-ipants not holding the designation. The studydid not provide information comparing par-ticipants who held the CPA designation.

The results of these various studiesindicate that holders of non-CPA certifi-cations typically find value in such des-ignations and often receive personal sat-isfaction, peer recognition, and careeradvancement within the specialized areaof the certification; however, these hold-ers might not enjoy such benefits out-side of their particular specialty areas.In addition, non-CPAs can benefit fromincreased compensation if they acquirea non-CPA designation (e.g., CMA,CFE), but the compensation increase forthose holding a CPA license is marginal,and thus should not serve as a significantfactor in considering the pursuit of addi-tional professional credentials.

The available professional certificationareas provide accounting professionals witha host of potential choices. Dependingupon a professional’s particular career goalsand objectives, one or more such certifi-cations could prove beneficial. But oneshould not pursue a particular certifica-tion without considering all of the poten-tial costs and benefits. The accounting pro-

fession is hardly “one size fits all”; whatwell serves one particular individual mightoffer little or no benefit to a colleague.Accounting professionals should ask them-selves the following questions:n Do the benefits identified above out-weigh the costs? In particular, will the cer-tification serve long-term career goals?n Which specific areas of specializationdo I truly find interesting?n Which areas of specialization couldhelp me and my firm better serve currentand potential clients?n Which certifications flow most logi-cally from my answers to the first and sec-ond questions?n Do I possess the education and expe-rience requirements for the certificationsidentified in the third question? If not, arethe steps to meet the requirements feasible?n What kind of testing (or other) pro-cess is necessary in order to obtain suchcertification?n How can I allot time from my scheduleto prepare for this process in such a waythat maximizes my likelihood of success?n Does my employer typically supportthis kind of endeavor via financial support,study time, or change in the nature of thework experience, or might it be to myadvantage to develop a formal request?n Once I obtain the new credentials, whatare the continuing education requirementsand maintenance costs? Will my employ-er be supportive in this respect?

Once these questions are answered,accounting professionals are ready to beginthe application process via the organiza-tions discussed above.

Taking time to consider the pursuit ofnew credentials can be one of the mostimportant career moves that an accountingprofessional makes. Of course, identify-ing areas of specialization that are of gen-uine interest—rather than just financiallylucrative—is an essential part of this pro-cess. It is most certainly time well invest-ed, because the result can be a career paththat is rewarding in a variety of ways. q

Douglas M. Boyle, DBA, CPA, CMA, is anassistant professor of accounting, RobynLawrence, PhD, CPA, is an associate pro-fessor of accounting, and Daniel P. Mahoney,PhD, CPA, is a professor of accounting, allin the Arthur J. Kania School of Management,University of Scranton, Scranton, Pa.