Accountant

Accountant

Occupation
Names	Accountant qualified accountant professional accountant chartered accountant
Type	profession
Activity sectors	business
Description
Competencies	management skills
Education required	see professional requirements
Fields of employment	private corporations financial industry government

Accountancy
Key concepts
Accountant · Bookkeeping · Cash and accrual basis · Constant Item Purchasing Power Accounting · Cost of goods sold · Debits and credits · Double-entry system · Fair value accounting · FIFO & LIFO · GAAP / International Financial Reporting Standards · General ledger · Historical cost · Matching principle · Revenue recognition · Trial balance
Fields of accounting
Cost · Financial · Forensic · Fund · Management · Tax
Financial statements
Statement of Financial Position · Statement of cash flows · Statement of changes in equity · Statement of comprehensive income · Notes · MD&A
Auditing
Auditor's report · Financial audit · GAAS / ISA · Internal audit · Sarbanes–Oxley Act
Accounting qualifications
CIMA  · ACCA · CA · CGA · CIMA  · CMA  · CPA  · LCCI

An accountant is a practitioner of accountancy (called accounting in the United States), which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and other decision makers make resource allocation decisions.

The word "accountant" is derived from the French word Compter which took its origin from the Latin word Computare. The word was written in Middle English as Accomptant, but in process of time the word, which was always pronounced by dropping the "p", became gradually changed both in pronunciation and in orthography to its present form.^[1]

The Big Four are the largest employers of accountants worldwide.^[2] However, they do not employ a majority of accountants; most are employed in commerce and industry.^[3]

Contents 1 Commonwealth of Nations 1.1 The United Kingdom 1.2 Canada 1.3 New Zealand 1.4 Sri Lanka 1.5 Bangladesh 2 United States 3 Hong Kong 4 Austria 5 Portugal 6 References

Commonwealth of Nations

In the Commonwealth of Nations, which includes the United Kingdom, Canada, Australia, New Zealand and several other states, the primary accounting bodies are the Chartered Certified Accountant (ACCA), Chartered Accountant (CA or ACA), Chartered Management Accountant, International Accountant (AAIA), Certified Public Accountant (CPA - Ireland and CPA - Hong Kong), Certified Management Accountant (CMA - Canada), Certified General Accountant (CGA - Canada), Certified Practicing Accountant (CPA - Australia) and members of the NIA (Australia), Certified Public Practicing Accountant (CPPA) of the New Zealand Association of Certified Public Accountants (NZACPA).

The United Kingdom

• A Chartered Certified Accountant must be a member of the Association of Chartered Certified Accountants (designatory letters ACCA or FCCA).
• A Chartered Accountant must be a member of one of the following:
  • the Institute of Chartered Accountants in England & Wales (ICAEW) (designatory letters ACA or FCA)
  • the Institute of Chartered Accountants of Scotland (ICAS) (designatory letters CA)
  • the Institute of Chartered Accountants in Ireland (ICAI)
  • a recognised equivalent body from another Commonwealth country (designatory letters being CA (name of country) e.g. CA (Canada))
• A Chartered Management Accountant must be a member of the Chartered Institute of Management Accountants (designatory letters ACMA or FCMA).
• A Chartered Public Finance Accountant must be a member of the Chartered Institute of Public Finance and Accountancy (designatory letters CPFA).
• An International Accountant must be a member of the Association of International Accountants (designatory letters AIAA or FAIA).
• An Incorporated Financial Accountant must be a member of the Institute of Financial Accountants (designatory letters AFA or FFA).
• An Institute of Professional Accountant must be a member of the Institute of professional Accountants(designatory letters APA or FPA).
• A Certified Public Accountant must be a member of the Association of Certified Public Accountants (designatory letters AICPA or FCPA).

Excepting the Association of Certified Public Accountants, each of the above bodies admits members only after passing examinations and undergoing a period of relevant work experience. Once admitted, members are expected to comply with ethical guidelines and gain appropriate professional experience.

Chartered, Chartered Certified, Chartered Public Finance, and International Accountants engaging in practice (i.e. selling services to the public rather than acting as an employee) must gain a "practising certificate" by meeting further requirements such as purchasing adequate insurance and undergoing inspections.

The ICAEW, ICAS, ICAI, ACCA, AIA and CIPFA are six statutory RQB Qualification Bodies in the UK. A member of one them may also become a Registered Auditor in accordance with the Companies Act, providing they can demonstrate the necessary professional ability in that area and submit to regular inspection. It is illegal for any individual or firm that is not a Registered Auditor to perform a company audit.

All six RQBs are listed under EU mutual recognition directives to practise in 27 EU member states and individually entered into agreement with the Hong Kong Institute of Certified Public Accountants (HKICPA).

Further restrictions apply to accountants who carry out insolvency work.

In addition to the bodies above, technical qualifications are offered by the Association of Accounting Technicians and Association of Chartered Certified Accountants, which are respectively called AAT Technician and CAT (Certified Accounting Technician). Also, there is IAT of Association of International Accountants.

Canada

In Canada, there are three recognized accounting bodies: the Canadian Institute of Chartered Accountants (CA) and the provincial and territorial CA Institutes, the Certified General Accountants Association of Canada (CGA), and the Society of Management Accountants of Canada, also known as the Certified Management Accountants (CMA). CA and CGA were created by Acts of Parliament in 1902 and 1913 respectively and CMA was established in 1920.

The CA program focuses on public accounting and candidates must obtain auditing experience from public accounting firms; the CGA program takes a general approach allowing candidates to focus in their own financial career choices; the CMA program focuses in management accounting, but also provides a general approach to financial accounting and tax. The CA and CMA programs require a candidate to obtain a degree as a program entry requirement. The CGA program requires a degree as an exit requirement prior to certification.

Auditing and Public Accounting are regulated by the provinces. In British Columbia, Ontario and Prince Edward Island, CAs and CGAs have equal status regarding public accounting and auditing; In the rest of Canada, CAs, CMAs, and CGAs are considered equivalents pursuant to provincial and territorial legislation.

As of year 2006, the Chartered Certified Accountant (ACCA or FCCA) is also recognized by Canadian government as an eligible qualification to audit federal government institutions in Canada. Furthermore, The Canadian branch of ACCA is pursuing recognition for statutory audit purposes in the province of Ontario under the province's Public Accounting Act of 2004.

New Zealand

In New Zealand, there are two local accountancy bodies the New Zealand Institute of Chartered Accountants (NZICA) and the New Zealand Association of Certified Public Accountants (NZACPA) the operating name of New Zealand Association of Accountants Inc (NZAA).

To audit public companies an individual must be a member of either the NZICA or an otherwise gazetted body. Chartered Certified Accountant (Association of Chartered Certified Accountants or FCCA) qualification has also been gazetted under the relevant act (Under Section 199 of the Companies Act 1993: Qualifications of Auditors). An ACCA member can practice as long as they hold an ACCA public practice certificate (with audit qualification) in their country of origin.

Sri Lanka

In Sri Lanka, a Chartered Accountant must be a member of the Institute of Chartered Accountants of Sri Lanka (designatory letters ACA or FCA), therefore it is the sole local accountancy body. To audit public companies an individual must be a member of the ICASL.

Bangladesh

United States

In the United States, legally practicing accountants are Certified Public Accountants (CPAs), and other non-statutory accountants are Certified Internal Auditors (CIAs), Certified Management Accountants (CMAs) and Accredited Business Accountants (ABAs). The difference between these certifications is primarily the legal status and the types of services provided, although individuals may earn more than one certification. Additionally, much accounting work are performed by uncertified individuals, who may be working under the supervision of a certified accountant.

A CPA is licensed by the state of their residence to provide auditing services to the public, although most CPA firms also offer accounting, tax, litigation support, and other financial advisory services. The requirements for receiving the CPA license varies from state to state, although the passage of the Uniform Certified Public Accountant examination is required by all states. This examination is designed and graded by the American Institute of Certified Public Accountants.

A CIA is granted a certificate from the Institute of Internal Auditors (IIA), provided that the candidate passed a rigorous examination of four parts. A CIA mostly provides their services directly to their employer rather than the public.

A CMA is granted a certificate from the Institute of Management Accountants (IMA), provided that the candidate passed a rigorous examination of two parts and meet the practical experience requirement from the IMA. A CMA mostly provides their services directly to their employers rather than the public. A CMA can also provide their services to the public, but to an extent much lesser than that of a CPA.

An ABA is granted accreditation from the Accreditation Council for Accountancy and Taxation (ACAT), provided that the candidate passed the eight-hour Comprehensive Examination for Accreditation in Accounting which tests proficiency in financial accounting, reporting, statement preparation, taxation, business consulting services, business law, and ethics. An ABA specializes in the needs of small-to-mid-size businesses and in financial services to individuals and families. In states where use of the word "accountant” is not permitted by non state licensed individuals, the practitioner may use Accredited Business Adviser.

Public Accountants. In certain states, state law grants State Public Accountant to practise accountancy and taxation (except for audit).

The United States Department of Labor's Bureau of Labor Statistics estimates that there are about one million persons [2] employed as accountants and auditors in the U.S.

U.S. tax law grants accountants a limited form of accountant-client privilege.

Hong Kong

In Hong Kong, the accountancy industry is regulated by the HKICPA under the Professional Accountants Ordinance (Chapter 50, Laws of Hong Kong). The Auditing industry for limited companies is regulated under the Companies Ordinance (Chapter 32, Laws of Hong Kong), and other Ordinances such as the Securities and Futures Ordinance, the Listing Rules, etc.

Removal of requirement for a qualified accountant in the Listing Rules of Hong Kong
In November 2008, the Stock Exchange of Hong Kong Limited has removed the requirement for a qualified accountant from the Listing Rules but expanded the Code Provisions in the Code on Corporate Governance Practices regarding internal controls to make specific references to the responsibility of the directors to conduct an annual review of the adequacy of staffing of the financial reporting function and the oversight role of the audit committee.

Austria

In Austria the accountancy profession is regulated by the Bilanzbuchhaltungsgesetz 2006 (BibuG - Management Accountancy Law).

Portugal

In Portugal, to be a qualified accountant or auditor, having an academic degree is obligatory, and the certification is exclusively awarded by the Ordem dos Revisores Oficiais de Contas (OROC), a professional organization. In general, accountants or auditors accredited by the Ordem dos Revisores Oficiais de Contas are individuals with university graduation diplomas in business management, economics, mathematics and even law, who after further studies, applied for an exam at the Ordem dos Revisores Oficiais de Contas and received the certification to be a ROC (Revisor Oficial de Contas), the highest professional qualification in the field of accountancy. Any citizen having a polytechnic degree as accounting technician is also entitled to apply for the exam and certification at the OROC.^[4]

References