The act created the Public Company Accounting Oversight Board, charged with oversight of accounting firms and requiring independent external audits of companies throughout the land. As a result, there are thousands more jobs for accounting program graduates to assist or direct independent, impartial audits of company books.

According to Bea Sanders of the American Institute of Certified Public Accountants, U.S. public companies are “looking to external auditors to help them” comply with the new standards.

If you’re enrolled in an accounting degree program, you may want to take courses that focus on internal auditing procedures for publicly traded companies to examine an organization’s information systems, management procedures, and financial record-keeping controls.

Internal audits especially examine potential fraud, financial reporting methodology, the safeguarding of assets and regulatory compliance.

Here are some key elements involved in performing an audit:

Audit Scope and Objectives
You’ll be asked to assess the length of audit, the key elements for the examination, the process required for gathering and assessing data, and the regulatory requirements of the audit.

Identify Business Area
Which segment or sectors of the business are under review? You’ll determine key stakeholders to interview and which specific records are under examination. Identify transactions to evaluate.

Establish Controls and Tests
Identify and establish monitoring procedure and policies for gathering and evaluating transactions. Complete risk sampling to assess validity of monitoring procedure.

Generate and File Reports
Gather findings into a detailed assessment of practices and procedures, identifying problem areas and recommending immediate actions to assist management in remedying them.

External, independent audits have now become a critical, commonplace procedure in American corporate life. Getting your degree with a specialization in the process can improve your career opportunities.

Source
Monster.com

Taxation
Taxes affect business decisions no matter the size of the company. Federal taxation courses should cover topics such as tax planning, capital gains and losses, partnerships, and corporations. Combine studies in finance and strategy with taxation. Learn about taxes in relation to compensation, investments, regulated industries, mergers and acquisitions, and financial instruments. Stretch your studies to include statewide, federal, and multinational tax issues.

Auditing
Learn to integrate contemporary auditing software and methodology. Take coursework that embraces a range of subjects covering auditing ethics, professional standards, legal liability, and reporting rules. Classes should expose you to the contemporary auditing environment.

Financial Accounting
Classes cover the basics of compiling financial data for internal and external stakeholders of a business entity including management, investors, creditors, and government agencies. Master basic principles of financial statements, inventories, bonds, compensation, stockholder equity, fixed-assets, income statements, and cash flows.

Managerial Accounting
Learn the methodology for interpretation of accounting reports, performing cost control and analysis, and measuring performance. Topics can include cost behavior, job costing, projected performance, product pricing, and contemporary accounting software (accounting cycle, relational databases, internal control structures, and enterprise planning programs).

Fraud Examination and Auditing
The Sarbanes-Oxley Act of 2002 established reporting and auditing standards for all U.S. public company boards, management, and public accounting companies. That means new jobs for accountant/auditors who are well versed in uncovering, investigating, documenting, and reporting occupational and financial fraud.

Business Organization
Your studies should lead to a comprehensive understanding in how to apply your coursework across the major business types: sole proprietorships, partnerships, corporations, and limited liability companies. Knowing how to offer your skills to government agencies and non-profit corporations will further broaden your overall appeal in the workplace.

Interested in Fast & Flexible Accounting Education? Find accounting degrees online.

Source
U.S. Bureau of Labor Statistics

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Accounting Summary:

In the simplest terms, accountants measure, record and report financial activities.  Those activities may be of a business in the form of a 10K; for a corporation in the form of an annual report; for a government entity in the form of a report, an audit or a year-end budget; or for an individual in the form of a tax return. 

There are several variations of the accounting profession.  Accounting is the “language” of finance and the several distinct types of financial analysis and reporting that take place in today’s world require a wide range of training and specialization.

Public accounting is the term reserved for your accountant who has hung out a shingle and operates a business providing accounting services for small businesses and individuals.  These individuals may be defined as public accountants or, if they have gone through additional training, certified public accountants.  The certification aspect of the job is not terribly important for run-of the-mill accounting activities such as tax preparation or monthly business book keeping for a small firm.

Financial accounting refers to the accounting process required of large public companies, for the purpose of quarterly reports, annual reports and reports to shareholders.  Managerial accounting is another job – conceivably within the same publicly held corporation – that provides financial analyses used for managerial decision making.  A managerial accountant’s work is generally seen only by senior executives, analysts and consultants.  Tax accounting (within a large business framework) is the section of the financial office that focuses on tax requirements and reports for various governmental jurisdictions.

There are also accounting positions that focus on internal auditing and external auditing.  Both types of accounting involve reviewing accounting records to determine authenticity and accuracy.  Internal accounting is an in-house monitoring of the bookkeeping activity; external auditing is the work of an outside independent firm (or agency such as the IRS) to determine if the accounting work meets the rules and regulations governing the accounting records under review. 

Accounting FAQs

What are the educational requirements for an accountant?

A Bachelor’s Degree in Accounting is necessary for a primary accounting position within a business.  There are Associate’s Degrees in accounting, but they generally lead to bookkeeping and ledger entry type jobs. 

What is required to become a CPA?

Individuals who wish to become certified public accountants generally are required to hold a bachelor’s degree.  Some states require a certain number of college credits that suggest post graduate work; however the principal challenge is usually passing the state-administered exam.

Are there other “certified” positions?

There are certified bookkeepers, certified general accountants, certified internal auditors, certified management accounts – and on it goes.  As with many professions, there is a wealth of “certifying” agencies and organizations.  Some carry the weight of legitimacy more than others.  Once you have focused on an interest in accounting, explore the certification requirements – if any – for the type of accounting that interests you.  If certification is optional, find out how important it is.

What are the guidelines for an audit?

In the United States, external audits apply what are referred to as “Generally accepted accounting principals.” 

Who defines “generally accepted accounting principles?”

Generally accepted accounting principles (GAAP) are just as they are described: principles rather than codified or statutory law.  Most nations have a national body that puts definitions and guidelines to these principles. In the U.S, the Financial Accounting Standards Board (FASB) sets the guidelines for public and privately held firms, and for non-profits.  Many nations, including the United States, have gravitated to the International Financial Reporting Standards, which are maintained by the International Accounting Standards Board.

Why Should I see an Accountant?

Generally, the value of an accountant’s services rise in proportion to the financial complexity of your life.  As you accumulate things such as a home, children, a business, and even an inheritance the applicable tax laws become more and more complex.  An accountant will maximize the protection of your assets, especially your income, through a thorough understanding of current tax law.  It is critical that every consumer understand that tax laws change all the time, for all sorts of taxes.  It takes a professional to keep current with all of them.

What is the difference between a general public accountant and a Certified Public Accountant?

At the corporate level, most firms want CPAs in positions of responsibility, as the additional training ensures that the individual has had thorough training.  An accountant filing a report with the Securities and Exchange Commission must be a CPA.  A general accountant licensed by the state often has a successful small business handling tax returns for individuals, and both bookkeeping and tax chores for small business.  Certification and training are key for careers at the corporate level. 

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