After a year of research the AIPCA has released their findings from a yearlong initiative to examine what's on the horizon (up to 2025) for CPAs and the accounting profession in general. The research included getting insight from over 75,000 comments from CPA's in all professions.
The results showed that there is a bright future for CPAs everywhere, accounting opportunities are expected to be on the rise along with some needed changes in regulation. Some of the findings included:
-"CPAs overwhelmingly agreed that the profession's core purpose, "Making sense of a changing and complex world". remains relevant today and for the future"
-The profession's core values remained substantially unchanged
-The profession's core competencies evolved to reflect the 21st century.
-The services provided by CPAs have become so varied and diverse that the concept ofcore services is no longer representative of the profession. "
(How they were able to get an unbiased sample is beyond me, and their comments may have been skewed because of the inability to create a double-blind test.)
Then the article provides a list of 10 insights and directions which I won't get into here. Reading over this I can't help but feel very speculative of their findings because there was no job market statistical analysis and projections. This was all based on anecdotal evidence from a variety of accountants. The validity of this test is definitely in question but as for the results, they didn't seem to be unreasonable.
Although some people may believe that accoutnatnts will soon be replaced by machines, I feel that it can never happen. Humans provide a control that artificial intelligence can't compete with. In the near future I can definitely see the profession expanding and Accounting becoming a bigger job market. Because of this expansion however, I could definitely see the regulations loosening and the Certification necessary to become a CPA tighten.
The future looks good for CPA's and Accountants, let's make sure it stays that way.
Works Cited:
"CPA Horizons 2025: A Road Map for the Future." Journal of Accountancy. Web. 03 Nov. 2011. <http://www.journalofaccountancy.com/Web/20114688.htm>.
Thursday, November 3, 2011
Fraud Examination, Is It The Job For You?
Given the increased amount of attention placed upon Wall Street lately, the need for Fraud Examiners is ever increasing. This is not your average accounting job, where you'll audit clients or help them complete their SEC compliance.
A forensic accountant is a career path not many students take coming out of school, but it's an exciting field that's growing every day. In forensic accounting you can work as a data analyzer, where you can look through documents and see if any patterns arise that are indicative of fraud. Others may take the more active path where you can undergo CIA training in Langley with the SEC. The amount of activity may very but some of the careers with the SEC can involve secretly filming con-men laundering money. All of this can be extremely dangerous and challenge the stereotype that all accounting jobs are boring 'desk jobs'.
Whether your in audit, tax, or any other accounting profession try the following quiz out and see how well your fraud IQ is. Because I've had extensive fraud training, I scored pretty well, but try it and see how it goes.
Test Your Fraud IQ!
Site Sources
Taylor, Dawn, and Andi McNeal. "What's Your Fraud IQ?" Journal of Accountancy. Web. 03 Nov. 2011. <http://www.journalofaccountancy.com/Issues/2011/Nov/20114391.htm>.
A forensic accountant is a career path not many students take coming out of school, but it's an exciting field that's growing every day. In forensic accounting you can work as a data analyzer, where you can look through documents and see if any patterns arise that are indicative of fraud. Others may take the more active path where you can undergo CIA training in Langley with the SEC. The amount of activity may very but some of the careers with the SEC can involve secretly filming con-men laundering money. All of this can be extremely dangerous and challenge the stereotype that all accounting jobs are boring 'desk jobs'.
Whether your in audit, tax, or any other accounting profession try the following quiz out and see how well your fraud IQ is. Because I've had extensive fraud training, I scored pretty well, but try it and see how it goes.
Test Your Fraud IQ!
Site Sources
Taylor, Dawn, and Andi McNeal. "What's Your Fraud IQ?" Journal of Accountancy. Web. 03 Nov. 2011. <http://www.journalofaccountancy.com/Issues/2011/Nov/20114391.htm>.
New AICPA Chairman, Greg Anton
A new chairman just got elected to the AICPA. Gregory J. Anton, CPA, the co-founder of a small accounting firm in Denver called Anton Collins Mitchell LLP. His organization was recognized for its fast growth and desirable work environment. Although his accounting firm was a success I find it strange that an AICPA chairman came from such a small accounting firm. I had imagined that the AICPA board members would be mostly composed of managing partners from the largest public accounting firms.
This is a one-year post that Greg was happy to receive. Becoming a chairman of the AICPA is a great honor that any accountant would like to receive. During his speech he said:
"As CPAs, we can decipher, disseminate and manage knowledge, this is what a computer or smartphone cannot do"
This was great because this is a time where accountants are truly needed. The Dodd-Frank rule just passed this year so there is even more need to stay vigilant over financial institutions. The time is now for most accounting firms to expand and take advantage of the opportunity.
Sources:
AICPA. "Greg Anton Elected Chairman of AICPA." Welcome to the AICPA. AICPA. Web. 03 Nov. 2011. <http://www.aicpa.org/Press/PressReleases/2011/Pages/Greg-Anton-Elected-Chairman-of-AICPA.aspx>.
This is a one-year post that Greg was happy to receive. Becoming a chairman of the AICPA is a great honor that any accountant would like to receive. During his speech he said:
"As CPAs, we can decipher, disseminate and manage knowledge, this is what a computer or smartphone cannot do"
This was great because this is a time where accountants are truly needed. The Dodd-Frank rule just passed this year so there is even more need to stay vigilant over financial institutions. The time is now for most accounting firms to expand and take advantage of the opportunity.
Sources:
AICPA. "Greg Anton Elected Chairman of AICPA." Welcome to the AICPA. AICPA. Web. 03 Nov. 2011. <http://www.aicpa.org/Press/PressReleases/2011/Pages/Greg-Anton-Elected-Chairman-of-AICPA.aspx>.
Thursday, October 27, 2011
Reaction to AICPA CEO Barry Melancon Speech on Private Company Reporting
Today I watched AICPA President and CEO Barry Melancon speak about the changes that must be made to create separate standards for public and private companies.
The private company reporting committee made two recommendations to FASB about FIN 48 and FIN 46. It was recommended that FIN 48 (accounting for uncertainty within income taxes) should become inapplicable for private companies in order to improve disclosure and accuracy within statements. the second recommendation was that FIN 46 (consolidation of variable interest entities) be changed to better fit private entities and reporting standards. These were two great recommendations that will help regulation over many private sectors
After some discussion, FASB rejected both recommendations. Barry Melancon believes that if FASB retains the power to veto there will be little to no progress.
Barry Melancon believes that enough is enough, FASB has been sitting on this issue for 35 years. He used the following football analogy to better illustrate his message:
" When you have a first and goal, there are different things that can happen. The first thing that happens is the defense unit that comes out on the field that tries to stop you from scoring takes on a little different character than the defense that’s been on the field for the other 90 yards. They are a little meaner, a little bigger, a little more intense. They growl, and spit a little bit. But they’re there to stop you. And they’re number one desire is to keep you out of the end zone. They don’t even want you to kick a field goal, but they’ll settle for that when you have a first and goal. And if they can get a turnover, they will be the champions of their team for that period of time.
The people who are opposed to differential standards today know we have first and goal, they want us to have a turnover. Now maybe they’ll settle for a field goal and say there will be differential standards but with a veto for FASB.
The time to act is now. We have a first and goal, and you’re on that offensive line. The defense wants to keep you out of the end zone. The question becomes do we get held to a field goal or do we have a turnover… we’ll see. If we don’t score now, the clock will almost certainly run out.
The people who do not support differential standards they are the 35 year consecutive champions. Sometimes dynasties have to be broken."
In order to better control the accuracy of financial statements FASB must approve of committee regulation changes or they themselves should put out legislature. Privatized companies must face more scrutiny in order to increase their liability for any corporate misdoings. Barry Melancon is right when he says the time to act is now. So many resources have been spent in the past two years developing committees and if no action is taken it will have been a waste and further push the movement.
In order to better control the accuracy of financial statements FASB must approve of committee regulation changes or they themselves should put out legislature. Privatized companies must face more scrutiny in order to increase their liability for any corporate misdoings. Barry Melancon is right when he says the time to act is now. So many resources have been spent in the past two years developing committees and if no action is taken it will have been a waste and further push the movement.
Sources:
FASB. FASB Interpretation No. 46. FASB, Dec. 2003. PDF.
FASB. FASB Interpretation No. 48. FASB, June 2006. PDF.
Melancon, Barry. "AICPA News." Welcome to the AICPA. AICPA. Web. 25 Oct. 2011. <http://www.aicpa.org/News/Pages/AICPANews.aspx>.
Introduction
Hello,
My name is Rodrigo Teramae and I'm a Staff - 1 at a public accounting firm. The AICPA plays a large part within public accounting so this blog will allow my peers updated on the latest AICPA news.
My name is Rodrigo Teramae and I'm a Staff - 1 at a public accounting firm. The AICPA plays a large part within public accounting so this blog will allow my peers updated on the latest AICPA news.
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