A Position Paper on CPA

¶ … training is sometimes necessary in order to provide the company a skilled enough worker to handle even the toughest work. However, sometimes, one does not have to seek the highlight training available to perform well on their job tasks. Sometimes training and education can be more of a hindrance than an aid. Public accounting firm personnel often have a difficult time with the various job responsibilities that have. Some believe additional training and education may help.

Some believe it is a waste of time and resources to seek anything higher than CPA certification. Should public accounting firm personnel responsible for auditing information systems be required to have additional certification beyond the CPA? The answer is no. Body Why say no? It is first important to look at the reasoning behind the answer. One can do this by examining what CPA is and what it stands for. CPA is an acronym for Certified Public Accountant.

(Gleim and Irwin 12) Just like other skilled positions, a person must pass a nationally recognized exam called the Uniform Certified Public Account Examination as well as met additional experience and state requirements to be recognized as a CPA. Even if a person has fulfilled the educational requirements of the title of CPA, but has no experience, they are considered CPA inactive. (Miller and Nouri) Since there are, several things required of an active CPA, this shows there is no need for additional training.

Furthermore, the requirements needed to meet the title of CPA are stringent. Those attempting to use the title of CPA and are not certified as a CPA in that state are not recognized as a CPA even if they have out-of-state CPA certification. When there are such restrictions placed on becoming, a CPA it assures companies and organizations that there is a level of quality control built into the system.

One of the main reasons people elect to seek higher level training past the certification they need is to show they are a better employee. By hiring someone with further training, the idea is that one is hiring a higher quality employee. However, the title of CPA seems to suggest high quality because of the restrictions, limitations, and requirements needed to obtain the title of CPA. Although additional training could be useful, it would rarely be needed.

Perhaps it would benefit someone in management, but approaching a management position requires additional years of experience. CMA stands for Certified Management Accountant. This is the next step past CPA and involves another exam as well as continuing education. (Ingram 8) It can be costly and because the position requires a lot of experience, may be useless in the context of a person starting accounting; it may not be worthwhile to pursue until a person has already established a career.

Why is that? Because being certified as a CMA may put a person in debt due to paying for school and spending time in school and not in the workplace. CMA certification is excellent for someone looking for a position past public accountant, but most accountants do not seek a management position. Many schools may remark on the multiple benefits of gaining CMA certification. However, the reality is, similar to CPA certification; people need experience along with academic training.

It is one thing to pass the test and get the school hours done. It is another to acquire work hours. Although it seems doable on paper, in reality it is much harder and time intensive. It often takes people years to achieve the title of CMA and many say the sacrificed a lot in order to get there. Even when looking at getting CPA certified, many drop out because of the mandatory 150-hour education requirement as evidenced in a 2006 article.

"On average we find a large drop (36%) in the number of candidates in each state taking each exam, a small increase in pass rates for first-time candidates only (3%), and a large drop (31.5%) in the number passing the CPA exam after the 150?hour requirement." (Allen and Woodland 173) Numerous research articles show the effects the 150-hour requirement has on the dropout rate of those seeking to be CPA certified citing cost and ease of acquiring credits as determiners. "Online courses were reported to be the primary means of fulfilling the requirement.

Cost and convenience of acquiring the credits were the most significant determinants in completing the credit hours." (Larkin 61) In addition to the 150-hour requirement, the experience requirement also keeps more from successfully finishing. Because the experience requirement is recognized nation-wide, it is something that remains essential to anyone attempting to gain licensure. "All U.S.

jurisdictions that license CPAs now have some form of experience requirement for licensure." (Armitage 61) The experience requirement has been so detrimental to the completion of CPA licensure/certification that companies/firms have attempted to try to alter the requirements in order to gain accountants that are more qualified. "Historically, such certification required training within public accounting settings with CPA firms and specifically in the area of attestation.

In response to input from public accounting firms and, more broadly, the accounting profession, there have been notable regulatory changes in experience requirements for CPA certification" (Crespi and Kulesza 1) On top of the long hours, people wishing to finish CPA certification must also deal with the varied requirement of course hours.

"The number of accounting course hours needed to take the exam varies between 12 and 36; the number of business courses hours needed to take the exam varies between none and 42." (Shelton, Thompson and Serrett 62) Such variation can be hard for any potential CPA to endure. To imagine doing that and then going for CMA licensure, that may be too much to handle for most people seeking to become an accountant. Conclusion In conclusion, CPA training offers many candidates the foundation to establish a career as a public accountant.

Employers see CPA certification as a national standard that would be enough to carry on the tasks of an accountant. However, achieving CPA certification comes at a cost. Achieving the 150-hour education requirement, experience requirement, and passing the exam, may and has caused many candidates to drop out of the program showing how difficult the certification can be to acquire. Any training passed CPA; CMA for example, is seen as something necessary for a management position.

Logically speaking, if meeting the requirements for CPA has been proven difficult and costly, meeting.