A Career in Accounting - Assignment Example

A Career in Accounting Accounting is becoming more important Accounting or accountancy has gained momentum in importance nowadays. The has so much implications and repercussions on so many current world issues. The Enron scams, the Madoff fraud and the global economic meltdown, among others, are connected to accounting particularly to auditing, a specialized branch. The stockholders suffered in untold misery because the Enron executives acted maliciously in cohorts with the auditors while the swindled investors of Madoff trusted overly in the financial statements which were twisted and distorted by the accountants of the alleged fraudster. In the international landscape, the recession started in the United States of America. First, it was the banking system. Then, the credit in housing mortgages crumbled and collapsed. The auto industry followed in the imbroglio. And well, if America sneezes, the world catches cold. All those could have been avoided by proper accounting and sound auditing. Accounting as a career plays a significant role in the world order because it embodies the most useful information system in any undertaking in all jurisdictions and in every kind of business.1 While accounting focuses on financial transactions which are micro, the collection of all data under it represents the ins and outs of economics which are macro. Owing to all these dynamics, accounting will continue to lead in the professional field and accountants will remain in demand in the job market. In the United States, what has led to the need for accountants and auditors is the federally legislated Sarbanes-Oxley law which has outlined stern rules on financial statements after the notorious corporate scandals that included Enron.2 Where the demand is Aside from the new Sarbanes-Oxley statute repercussion, accountants continue to be in demand in the United States because of the increasing workload of the top audit firms.3 Educational and other requirements including the need for hard and soft skills The requirements for the credentials of an accountant depend on the position that has to be filled up. Generally, the average job requires an accounting course at the bachelor level. One of the best supplements to the normal college accomplishment is a master's degree or a special certification on knowledge of accounting and auditing software. A passer of a licensure examination for Certified Public Accountants will be a great advantage. Sufficient experience will also be a big plus.4 Skills in accounting and auditing are highly checked in the pertinent applications. Among these are: designing of internal control measures and analysis of financial information and computer programming, budget analysis and cost estimation, proficiency in loans examinations, tax verifications, collection, and general bookkeeping. Special skills in computer accounting programming, computer accounting software management and design, and systems administration are likewise highly sought. Pay range for accountants and auditors Average annual or yearly salaries for accountants and auditors as of May, 2006, vary according to the list sourced from the same report of the Bureau of Labor Statistics cited above, thus: accounting, tax preparation, bookkeeping, and payroll services $57,020; management of companies and enterprises $55,560; local government $50,120; depository credit intermediation $49,380; and state government $47,200. In a survey conducted by the National Association of Colleges and Employers, the usual initial remuneration that is offered for bachelor degree holders is $46,700.00 annually. For those with a master's degree, it is $49,200.00 per year. Basically, these pay rates are over and above the salaries for other professionals. Bright job outlook for the profession As earlier discussed briefly, there have been new developments which created impact and implications in accounting and finance. These things have re-shaped trends in the accounting career and the growing demand for accountants and auditors who are considered as skilled professionals. Owing to new legal requirements and the increase in accounting and audit workloads, the need for accounting and auditing career persons will continue especially upon the departure from the workplace of the retiring baby boomers.5 The time has come for young and fresh blooded accountants and auditors who are supposed to bring back desirable ideals, decency and good ethics to the accountancy vocation. Accounting and technology Computer technology has changed the accounting and auditing environment in international applications. At first, there was the electronic data processing using main frames in the accounting systems of large companies. The personal computer era followed in the 1980's. Recently, information technology has extremely influenced accounting, particularly in the specialized branch of auditing.6 Choice of a prospective employer Experience in work is vastly and effectively earned if it starts early. One who holds a bachelor's degree in accounting or accountancy has to do it right for personal advancement in a stable career. The prospective employer must have an environment that is dynamic, wholesome, corruption free, organized and oriented for results. In this paper, the choice is Deloitte & Touche LLP's. 7 It is strongly suggested that the candidate first applies for internship but on a full time basis. In an audit internship program published in the website of the company for its location in Stamford, Connecticut, there is a vacancy for the summer of 2010. The announcement outlines what comprise external audit services. Two salient features will be discussed here briefly for the benefit of the prospective applicant. The discussion is with the objective of guiding the aspiring accountant in the career path and how it will be advanced within the true meaning of professionalism considering, among others, the alleged financial scandals in which even the top audit firms have been involved, strictly from an unbiased mind and a balanced judgment.8 The job calls for the review of quarterly financial statements. Review and audit duties and responsibilities can only be best performed through sheer hard work. The intern has to dig deep into the records of the company under examination. Pertinent queries must be posed and substantially answered by the beginner auditor himself. Are the assets intact and literally existing as borne by the records which will ultimately be reflected in the financial statements and other relevant reports Are the valuations true and fair Can the liabilities be substantiated to be real Can the amounts of the debts be validated Are the terms of the loans legal and moral and in accordance with credit standards Have the purposes of the loans and the applications for the same been approved by the appropriate persons or committees of the corporation having charge thereof The next subject is that which refers to the compliance with Section 404 of the Sarbanes-Oxley law.9 It is actually all about disclosure of internal control matters. This is one vital segment of the statute that is to protect the interests of the investors or stockholders. The novice auditor must see that there is no spending abuse on the part of the corporate officers. He should also check if plans and programs have been first aptly made before material expenditures are incurred for the acquisition of assets or the improvement of properties. Stockholders are not regular insiders in the company and are not privy to whatever inappropriate calisthenics taking place. A prudent, honest and sincere auditing guy will help a lot. Not only will he be of service to the corporation, the stockholders, the public and the government, he will also be doing a great job to enhance his own professional career that is clean, civil and commendable. The spirit of the law must be put into good practice. It was deliberated thoroughly by the lawmakers and deserves to be given due respect in the implementation stage. Profiles Deloitte & Touche is a private auditing firm. Undeniably, its compensation and benefits packages are above standard levels. It is global in the scope of its services with its international networks well entrenched. Its financial structures have always been impressive and it is entirely worth applying for the subject vacancy or accepting it if the same is offered. References Accountants and Auditors. Occupational Outlook Handbook, 2008-09 Edition. Bureau of Labor Statistics. United States Department of Labor. [internet] Accessed November 28, 2009. Available at: http://www.bls.gov/oco/ocos001.htm#training. Audit Intern - Summer 2010. Deloitte. [internet]. Accessed November 28, 2009. Available at: < http://careers.deloitte.com/united- states/students/opportunities.aspxCampaign=internships>. Edquist, Peg Masterson . Demand growing for accountants. Focus on Legal & Accounting Issues. The Business Journal of Milwaukee. November 7, 2008. [internet] Accessed November 28, 2009. Available at: http://milwaukee.bizjournals.com/milwaukee/stories/2008/11/10/focus2.htmlb=1226293200^1729996. Emerging Issues for Next Generation Accountants. FINANCE/ACCOUNTING CAREERS. workvine.com. [internet] Accessed November 28, 2009. Available at: . Hagenbaugh, Barbara. Rules spur demand for accountants Universities can't turn them out fast enough. 01/18/2005. USA TODAY. [internet] Accessed November 28, 2009. Available at:http://tigger.uic.edu/rramakri/Readings/Education/Rules%20spur%20demand%20for%20accountants%2001-18-2005.htm. History of information technology auditing. [internet] Accessed November 28, 2009. Available at: . Importance of Accounting Records and Companys Accounts For Business. Articlesbase. [internet] Accessed November 28, 2009. Available at: http://www.articlesbase.com/finance-articles/importance-of-accounting-records-and-companys-accounts-for-business-858973.html). PUBLIC LAW 107-204-JULY 30, 2002 116 STAT. 745. Public Law 107-204. 107th Congress An Act To protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes. [internet] Accessed November 28, 2009. Available at: < http://www.sec.gov/about/laws/soa2002.pdf>. Satyam Scandal Rattles Confidence in Accounting Big Four. VCCIRCLE. January 09 2009. [internet] Accessed November 28, 2009. Available at: < http://www.vccircle.com/500/news/satyam-scandal-rattles-confidence-accounting-big-four> Read More