...There are fraudulent accounting procedures taking place in many businesses all across the world, and many companies have been going a number of years covering up the real financial value of their company. Forensic accountants are becoming much needed as accounting frauds, financial scams, and various economic scandals are beginning to increase globally. This type of accountant does more than the typical accountant of a business or corporation, because their objective is to investigate fraudulent activities being used in the accounting departments of these companies. The amount of fraud being used by companies globally is most likely going to increase in the future as technology is evolving and scammers are getting more creative. This will also lead to a gradual decrease in the investment rates in companies, because the risks of investing in a corrupt business world will outweigh the benefits. Potential investors in companies using creative accounting techniques will increasingly become more at risk if there is no exponential growth in the field of investigative accounting. Accounting scams are becoming a part of the normal occurrence of day to day activities as this type of fraudulent activity is frequently gaining exposure in the daily news worldwide. As owners and managers conceal the financial state of their companies by manipulating their financial statements, the reliability and trust of these statements by investors are decreasing. Illegal accounting procedures are not...
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...Becoming a Certified Public Accountant The passion for accounting has run in my family for three generations. Both my father and grandfather have excelled in the field, setting a great example for me to emulate. The journey to become a certified public accountant like them will be challenging. It will be a tough and demanding expedition, but achievable with the right plan and tools. To reach my goal of becoming a certified public accountant like them I will need to study hard, dedicate myself to it, and not to procrastinate. The first step to reaching my goal of becoming a certified public accountant is to study the hardest I’ve ever studied in my life. The academic requirements will demand my entire attention and intellectual capabilities in order to achieve them. I must recognize that the only way to learn and become more knowledgeable in accounting is to become one with the books; not skimming through them, frantically searching for key words in an attempt to get the answers as quickly as possible. I have to devote myself to study my coursework strategically, slowly, looking to acquire a firm understanding of the subject. Next, to reach my goal, I need to dedicate myself to the cause. Hard study by itself is not going to be enough. I have to apply myself and understand the burden implied with achieving such a challenging goal. Eliminating distractions and temptations is needed in order to completely focus on the goal. Understanding that my free time is not free...
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...There are many essential skills that an accountant must consider. One of which is critical thinking skills. During the past decades, critical thinking has become ever-present in educational programs at all levels of instruction. As for accountants, it is one of the factors needed to be competitive globally especially because the accounting field is becoming more complex as time passes by. Critical thinking is defined by Cascini and Rich (2008) as a mode of thinking about any subject, content or problem in which the thinker improves the quality of his or her thinking by skillfully taking charge of the structures inherent in thinking and imposing intellectual standards upon them. Another definition according to Francis Bacon (1605) about critical thinking skill is that "it is a desire to seek, patience to doubt, fondless to meditate, slowness to assert, readiness to consider, carefulness to dispose, and set in order; and hatred for every kind of imposture." This statement only means that the importance of critical thinking had existed long time ago even before the present century. Even the great philosopher Socrates developed a tradition in which probing questions were used to determine whether claims to knowledge based on authority could be rationally justified with clarity and logical consistency. Critical thinking encompasses broad view of the ability to link data, knowledge, and insight together from various disciplines to provide information for decision-making. Being...
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...While pursuing a career in the accounting field, it is almost vital to become a Certified Public Accountant to advance further. Not only do others respect and admire your Accounting education, “CPAs achieve a level of expertise and proficiency beyond that of a “standard” accountant-proudly earning them the designation of CPA” (NASBA). While preparing for the CPA exam, you further your accounting knowledge with extensive studying of vigorous material. In addition to prestige and respect, by becoming a CPA, you stand out to potential employers. Earning your CPA proves you have the commitment to your career and will help your career advancements as well as job security. CPAs have a variety of talents that many businesses look for. Many prospective employers are interested in individuals who have knowledge in Auditing, International Financial Reporting, and Tax Advisory Services, which are all topics that are tested on the CPA exam. The CPA exam tests on IFRS and GAAP which will help enhance your knowledge in international accounting. The U.S. is in motion to prepare to adopt IFRS and this extensive knowledge will help you prepare for growing globalization and a move towards IFRS. Holding the title of CPA, coupled with international accounting knowledge, almost guarantees a higher salary. According to the 2009 Robert Half Salary Guide, a CPA license can mean a different of 10% between them and their non-licensed peers (NASBA). Furthermore, there are many unique privileges and opportunities...
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...Ethics – can we merge AICPA and IFAC ethics standards? AC504 March 10, 2013 INTRODUCTION There are many challenges and obstacles facing the accounting profession with the convergence towards a globally accepted accounting reporting structure and a global ethics structure. Today’s economy is becoming globally smaller and more importantly the economy from all fronts is becoming more co-dependent on one another from a domestic and international perspective regarding finance, raw materials, IT, and labor talent. Some of the challenges facing the accounting profession as move towards a global standard is how do we ensure the information are reliable? Many companies in various parts of the world have different reasons/motives for how financial information is compiled and distributed due to things such as government or other political/social reasons and influences. Another large issue facing accountants would be what is acceptable in Country A may be unacceptable from an ethical standpoint to Country B. An example of this, IGAAP is less stringent than U.S. GAAP regarding certain disclosures, therefore, how will the information be disclosed in order for investors and creditors to make informed decisions. From an ethical standpoint will companies chose to use IGAAP because it is less stringent and the disclosure will be less disclosed than it is today. Finally the idea of enforceability, in certain countries, will the Commission actually have authority to hold...
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...Careers in Accounting Name Institutional Affiliation Question 1 A Forensic Accountant This is a specialized career in accounting, which focuses on investigating financial information to identify or detect existence of white-collar crimes in companies or organizations. It is the responsibility of a Forensic Accountant to analyze and investigate crimes such as bankruptcy, embezzlement, and fraud to provide evidence as to who, what, how, and where the financial crime occurred. A Forensic Accountant needs to integrate law knowledge and the understanding of accounting and finance. The career in Forensic Accounting is recently on high demand because of the increased financial inconsistencies within organizations. A Forensic Accountant finds employment opportunities in many settings, which include law firms, consulting firms, government agencies, and financial institutions (Justice, Law & Legal Studies Forensic Accountant and Fraud Examiner). A Budget Analyst A budget analyst is one of the career paths in accounting. This career involves the relationship between goals of the project and concerns of the budget. The work of the budget analyst is to organize business finances such as preparing budgets reports and checking organizational spending. Minimum requirements are a bachelor’s degree in accounting and in some cases, there is a requirement of a Master’s degree in accounting. Additional requirements include excellent numerical, analytical, and accounting...
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...roles as an accountant and the importance of having an accountant especially when business are involved. Introduction The definition of Accounting is basically a person that keeps track and puts in order a business’s financial records to help that business know if they are gaining or losing money so that the business may continue successfully. Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgments and decisions (I, 10/1/2012) The primary objectives of accounting consists of an accountant (bookkeeper) keeping track of a company’s debits and credits, without this feature for a company there would not be any way for a company to know whether or not they are gaining or losing money (Instructor, 2002-2005)! Therefore, an accountant will gather information from the company which consists of their total income that has been brought in as well as receipts for everything the company has bought to determine the debit that the company has spent. After the accountant has gathered all of this information, the accountant can than determine the company’s equity rather or not they are losing money or gaining money (Instructor, 2002-2005). There are fourteen different steps when dealing with accounting process. Fist the accountant must gather the information from the business and be able to recognize the information (Internet Center for Management and Business Administration, 2002-2010). Second the accountant must prepare...
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...which is used to conduct transactions anonymously. Although Bitcoin is legal, its anonymous nature makes it attractive for users looking to buy and sell illegal goods, like drugs or guns. However, users are increasingly becoming fraud victims themselves. For example, a website that facilitates virtual currency sales disappeared over night in 2013, leaving users with money “locked up” on the site. One user believed he would be murdered because he lost his money, and owed almost a hundred thousand dollars of drug money to “very nasty people” (Malamed). Interestingly, the anonymous nature of Bitcoins can also contribute to other problems. A man in Wales accidently threw away a hard drive that contained a Bitcoin “digital wallet” worth over 6 million US dollars. Malamed concludes that the “murky waters” and general lack of regulations and laws regulating make it challenging and confusing for accountants to understand and work with the new currencies. As an accountant and not an expert of digital currencies, Malamad is unwilling to predict the future of Bitcoin. However, he does emphasize that they already constitute a large amount of wealth and therefore accountant professionals need to understand this new frontier of online payments and currencies. Accountants are generally financially conservative and...
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...Veterinarian, Psychologist and Accountant are some of various my career selections in the past 18 years. My early childhood career selection was to become a Magician. Why would I want to become a Magician? Because I read a book called “Charlie and the Chocolate Factory” and I was attracted by those fancy events. In the book, Mr. Wonka has the biggest candy factory in the world, and he can turn impossible things into possible situations. I always thought it would be great if I can have the same ability as him. My career decisions became more realistic while in Middle School and the High School. When I was in Middle School, I wanted to become a Veterinarian after I got my first puppy. I love dogs, and I want to make Veterinarian profession my future career. I found some information about Veterinarians in “Wiki Answers”, which indicates that “Veterinarian are required to study a Biology related major and must graduate with a Doctor of Veterinary Medicine degree from a 6 year program at an accredited college (http://wiki.answers.com). After I saw this reference website; I choose to abandon this career choice because Science is not my favor subject. After Middle School, in High School I decided that I want to become a Psychologist. I’ve always had an interest in listening to people and their problems. This career closely matched my interest and personality. An online website lists all the information and steps to how becoming a Psychologist. The reference...
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...important five skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. As the annual price tag for fraud at American business soars to nearly $1 trillion, the demand for Certified Public Accountants that provide forensic accounting services has increased exponentially- a spike that appears in no danger of waning over the next several years. (Carlino, 2010) With the demand for forensic accounting services increasing, it is very beneficial for prospective employers and employees to know what skills are needed to fulfill the duties of this very important occupation in today’s society. “Forensic accounting encompasses collecting, analyzing, and evaluating evidence, and the interpreting and communicating the findings in courts, boardrooms or other venues.” (Carlino, 2010) There are numerous skills needed for these positions but five skills are vital in becoming am effective forensic accountant. The most essential skill needed to become an effective forensic accountant is included in the description of the position. One has to be very analytical in their profession in order to become efficient and effective. Being a problem solver in any business is a trait that no business wants lacking from their employees, but in the field of finance and accounting, employers cannot successfully hire accountants without the skill of being analytical...
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...Certified Public Accountant Process Jenna M. Stienstra Southwest Tech Abstract A certified public accountant (CPA) is an individual who has passed the very difficult CPA Exam and been licensed by one of the 50 United States or one of five other jurisdictions. The CPA license is renewed if the individuals continue to follow the state's requirements, including professional education credits. Following the process, knowing the salary difference, and understanding what CPAs do from day-to-day are all important factors. Many changes are being made to the CPA Exam in the near future, so individuals who are planning to take the exam should be aware of the changes that will be incorporated into the upcoming versions. Keywords: CPA, process, advantages and disadvantages, exam, license, salary. CPA Process Anyone who has known a CPA has probably heard how much he/ she had to study and how difficult it was to obtain a CPA license. However, even though it takes additional college education and studying to pass the CPA Exam, it is worth the effort because of the promotions, increased pay, and more credibility that are given to individuals with a CPA license. The CPA Exam is not like any other exam, and the profession does have its pros and cons, just like any other business. What is the CPA Process? Becoming a CPA requires the individual to follow four steps in a sequence. First, the person must graduate from high school. Having a General Education Development (GED) is...
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...the foreseeable future, individuals and businesses still need CPAs and accountants to prepare and file tax. Companies still require audits. The consulting and advisory services many accountants specialize in will continue to be in demand.If everyone, seemingly, needs an accountant, then the industry hasn’t suffered . . . has it? Accounting firms are a good barometer for the US economy. You probably noticed during the last several years that revenues at some of the largest accounting firms declined. Your own revenues may have as well, especially in industries hit hardest by the downturn: construction, real estate, architecture, and manufacturing. Similarly, client attrition rates have probably increased as more businesses have either gone out of business or had to downsize dramatically. What I’m finding, however, is that accounting firms are becoming more optimistic. They’re hearing consistent news about economic improvement and seeing clients rebounding financially. Now that the economy is on the upswing, accounting firms are encouraged to target certain industries that were popular five to ten years ago. Here are several examples of industries where we’re seeing more activity. In most areas of the country, residential and commercial real estate have greatly improved after a difficult time period. Now that the excess inventory has been reduced, local markets are becoming hot again. As a result, accountants who serve the real estate industry are seeing an increase in leads from...
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...Forensic Accountants: Fraud Busters Strayer University Business 508 August 11, 2013 Abstract The paper will determine the five important skills a forensic accountant must possess and describe their role within a courtroom environment. It will also analyze the legal responsibility of the accountant while serving its clients business. Giving two examples where a forensic accountant played an important role in aiding attorneys in presenting fraudulent bookkeeping records of company’s who ultimately committed white-collar crimes. Have you ever heard the figure of speech a “needle in a haystack” when referring to finding a small object in a large setting? The task of performing a very detailed search seems impossible. Leaving no stone unturned and demanding hours and hours of mental and manual labor. This is what a forensic accountant faces. By definition, a forensic investigation of any kind is conducted with the purpose of obtaining evidence that will be used in a court case. Forensic accounting is simply the analysis of financial documents use as tax returns, bank statements, canceled checks and the like, in search of proof of a criminal act, be it tax evasion, running numbers, embezzlement, money laundering, fraud by wire or securities fraud (DiGabriele, 2009). These crimes exists for the sole purpose of illegally making money. Leaving a paper trail pointing to criminal activity producing money coming into and leaving the organization...
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...choose to do. One of the fields that many people go into is accounting. Accounting is a good choice to go into because there will always be a demand for an accountant in any business. “Employment for accountants and auditors is expected to grow by 13 percent through 2022, according to the U.S. Department of Labor.” (Careers in Accounting) Not only is there a demand in accounting, but it is also a field in which there is easy growth. An accountant can start in an entry level position and be able to move up to an executive level in the company. There are many different careers with an accounting degree because as an accountant you have many career choices and with the right amount of schooling and certificates you can move up in accounting. Accounting is a good career to go into because of the many options that are available, “Accounting is one of the largest professions in business today, with more than 100,000 accounting firms in the United States alone.” (Careers in Accounting). An accountant is required to keep track of either an individual or a company’s financial records; by preparing, analyzing and keeping the budget on track. An accountant has the responsibility to work with a business or an individual and help them understand and evaluate the money they spend and profits that can be made. An accountant needs to be able to give the business/individual ideas of how they can better use their finances in order to help create more profits and to keep them out of debit...
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...The Institute of Management Accountants’ has created a certification that not only showcases to businesses an individual’s ability, but provides a benchmark for professionalism and ethical behavior. In 1972, the first CMA exam and accreditation was administered to accounting professionals (CMA Handbook, 2012). Forty years later, the program has developed into an internationally recognized program. Individuals who wish to distinguish themselves from thousands of other accountants have the opportunity for a board of regents to review their credentials and pass a two-part examination, which will provide certification. The areas of expertise include: financial planning, analysis, control, and decision support (CMA Handbook, 2012). This paper will cover the basic requirements of following the CMA designation and benefits it will bring. The first step that must be taken by a candidate is becoming a member of the Institute of Management Accountants. Becoming a member requires paying dues and upholding the ethical/professional stance of the organization. To fulfill the educational requirements of a CMA, an individual must receive a bachelor’s degree, in any major, from an accredited university or college. A complete listing of pre-approved schools is found at http://univ.cc/world.php (CMA Handbook, 2012). Just because a school is not on the list, does not mean a person cannot meet this particular criterion. He or she will need to submit the school and a notarized official transcript...
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