| Accountants and Auditors |
Do the names Enron and WorldCom ring a bell for you? Enron was one of the world’s leading energy providers
with revenues of $100 billion in the year 2000. WorldCom was the second largest long distance phone company
happened to these behemoths of industry? They were both victims of fraudulent accounting practices. With the
wave of accounting fraud that followed, faster-than-average growth of accountant and auditor jobs will result from
new financial laws and greater scrutiny of corporate finances.
Nature of the work
Simply put, accountants and auditors keep track of a company’s money. They are charged with preparing,
analyzing, and verifying financial documents of companies and governments. Some even offer budget analysis,
financial and investment planning, information technology consulting and limited legal services. Specific job duties
vary depending on the field of accounting one chooses. There are four kinds of accountants.
Job Outlook
As mentioned earlier, faster-than-average growth is expected through the year 2016 due to stricter accounting and
auditing regulations and an expanding economy. Specifically, this field is expected to grow by 18 percent between
2006 and 2016, or an increase of 226,000 jobs over the next decade.
The bright future of this field is due to changes in legislation related to taxes, financial reporting standards,
business investments, mergers, and other financial events. Because of the many accounting scandals in the
earlier half of the decade, Congress passed the Sarbanes-Oxley Act of 2002 to address the shady accounting
practices that companies used to inflate their earnings. These laws and changes are expected to lead to increased
scrutiny of company finances and accounting procedures and should create numerous opportunities for
accountants and auditors, especially CPAs, to audit financial records more thoroughly.
While job prospects are favorable overall, those with master’s degrees will have an advantage, and those who
earn a Certified Public Accountant (CPA) certification will have excellent job prospects.
Employment and Earnings
In 2008, accountants and auditors held 1.1 million jobs. They worked throughout private industry, academia and
government, but 21 percent worked for accounting, tax preparation, bookkeeping, and payroll services firms.
About 10 percent were self-employed.
Annual earnings across all fields of accounting/auditing in 2008 were:
The following table lists the industries with the highest levels of employment in this occupation in 2008.
Education
Most accountants and auditors need at least a bachelor’s degree in business, accounting, or a related field.
Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business
administration (MBA) with a concentration in accounting.
Licensure/Certification
Any accountant filing a report with the Securities and Exchange Commission (SEC) is required to be a Certified
Public Accountant (CPA). CPAs are licensed by their State Board of Accountancy. As of 2007, 42 states and the
District of Columbia required CPA candidates to complete 150 semester hours of college work, an additional 30
hours beyond the traditional 4-year bachelor’s degree. The CPA exam is rigorous, and less than half of those who
take it each year pass every part they attempt on the first try. However, passing all parts of the exam at once is not
required, but all four parts must be passed within 18 months of each other. The test is offered two months out of
every quarter at testing centers throughout the country.
Other certifications, such as the Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), Certified
Government Financial Manager (CGFM), and others exist, but we will leave it to you to investigate these further if
you’re interested in this field.
Costs
Bachelor’s degrees in this field can be attained at virtually all four-year colleges so obtaining a degree can be very
inexpensive, especially if you finish your general education requirements at a community college.
with revenues of $100 billion in the year 2000. WorldCom was the second largest long distance phone company
happened to these behemoths of industry? They were both victims of fraudulent accounting practices. With the
wave of accounting fraud that followed, faster-than-average growth of accountant and auditor jobs will result from
new financial laws and greater scrutiny of corporate finances.
Nature of the work
Simply put, accountants and auditors keep track of a company’s money. They are charged with preparing,
analyzing, and verifying financial documents of companies and governments. Some even offer budget analysis,
financial and investment planning, information technology consulting and limited legal services. Specific job duties
vary depending on the field of accounting one chooses. There are four kinds of accountants.
- Public accountants perform a wide range of accounting, auditing, tax, and consulting activities for their
clients, which may be corporations, governments, nonprofit organizations, or individuals. Those who are
Certified Public Accountants (CPAs) also run their own businesses. - Management accountants (also called cost, managerial, industrial, corporate, or private accountants) record
and analyze the financial information for which they work. They are usually part of executive teams
responsible for strategic planning of the development of new products. Also, they prepare financial reports
for outside groups such as stockholders, creditors, regulatory agencies, and tax authorities. - Government accountants and auditors work in the public sector, maintaining and examining government
records and the records of individuals and companies that do business with the government. - Internal auditors verify the effectiveness of their company’s internal controls and check for mismanagement,
waste, or fraud.
Job Outlook
As mentioned earlier, faster-than-average growth is expected through the year 2016 due to stricter accounting and
auditing regulations and an expanding economy. Specifically, this field is expected to grow by 18 percent between
2006 and 2016, or an increase of 226,000 jobs over the next decade.
The bright future of this field is due to changes in legislation related to taxes, financial reporting standards,
business investments, mergers, and other financial events. Because of the many accounting scandals in the
earlier half of the decade, Congress passed the Sarbanes-Oxley Act of 2002 to address the shady accounting
practices that companies used to inflate their earnings. These laws and changes are expected to lead to increased
scrutiny of company finances and accounting procedures and should create numerous opportunities for
accountants and auditors, especially CPAs, to audit financial records more thoroughly.
While job prospects are favorable overall, those with master’s degrees will have an advantage, and those who
earn a Certified Public Accountant (CPA) certification will have excellent job prospects.
Employment and Earnings
In 2008, accountants and auditors held 1.1 million jobs. They worked throughout private industry, academia and
government, but 21 percent worked for accounting, tax preparation, bookkeeping, and payroll services firms.
About 10 percent were self-employed.
Annual earnings across all fields of accounting/auditing in 2008 were:
The following table lists the industries with the highest levels of employment in this occupation in 2008.
Education
Most accountants and auditors need at least a bachelor’s degree in business, accounting, or a related field.
Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business
administration (MBA) with a concentration in accounting.
Licensure/Certification
Any accountant filing a report with the Securities and Exchange Commission (SEC) is required to be a Certified
Public Accountant (CPA). CPAs are licensed by their State Board of Accountancy. As of 2007, 42 states and the
District of Columbia required CPA candidates to complete 150 semester hours of college work, an additional 30
hours beyond the traditional 4-year bachelor’s degree. The CPA exam is rigorous, and less than half of those who
take it each year pass every part they attempt on the first try. However, passing all parts of the exam at once is not
required, but all four parts must be passed within 18 months of each other. The test is offered two months out of
every quarter at testing centers throughout the country.
Other certifications, such as the Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), Certified
Government Financial Manager (CGFM), and others exist, but we will leave it to you to investigate these further if
you’re interested in this field.
Costs
Bachelor’s degrees in this field can be attained at virtually all four-year colleges so obtaining a degree can be very
inexpensive, especially if you finish your general education requirements at a community college.
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