This paper provides a comprehensive overview of the Certified Public Accountant (CPA) profession, covering the roles CPAs play across industries, the requirements for certification, salary expectations, and educational pathways. The paper also examines management accounting as a specialty, highlights several New England universities offering accounting degrees, and assesses the job outlook for accountants and auditors through 2012. Drawing on data from the U.S. Bureau of Labor Statistics and the AICPA, the paper presents a practical snapshot of the profession for students considering a career in public accounting.
Certified Public Accountants (CPAs) are found in many walks of life. They serve as well-paid and often highly publicized Chief Financial Officers (CFOs) of major corporations, as well as advisors to smaller neighborhood businesses (CPA.net, 2004). They work for both large and small public accounting firms and are typically well-respected strategic business advisors and decision-makers. CPAs also act as business consultants on a wide range of issues, including taxes and accounting.
Public accountants perform a variety of accounting, auditing, tax, and consulting activities for clients that include corporations, governments, nonprofit organizations, and individuals (U.S. Department of Labor Bureau of Labor Statistics, 2004). Some CPAs concentrate on tax matters, such as helping companies understand the tax advantages and disadvantages of certain business decisions and preparing individual income tax returns. Others serve as consultants in areas such as employee compensation and healthcare benefits, the development of accounting and data-processing systems, and the selection of controls to protect assets. Still others audit clients' financial statements and report to investors and authorities that the statements have been properly prepared and disclosed. CPAs typically either operate their own businesses or work for public accounting firms.
There are numerous requirements involved in becoming a CPA (CPA.net, 2004). CPAs must meet the requirements of the state or jurisdiction in which they wish to practice. These requirements, which vary by state, are established by law and administered by the state boards of accountancy.
As a general rule, CPAs must complete the following to qualify for certification (CPA.net, 2004):
Complete a program of study in accounting at a college or university — the AICPA recommends at least 150 semester hours of college coursework to obtain the common body of knowledge required for CPA licensure; pass the Uniform CPA Examination, which is developed and graded by the AICPA; and accumulate a certain amount of professional work experience in public accounting, though not all states require this.
All states use the four-part Uniform CPA Examination (U.S. Department of Labor Bureau of Labor Statistics, 2004). The two-day examination is rigorous, and only about one-quarter of those who take it each year pass every part they attempt. After completing these qualifications, most states require specified amounts of continuing professional education courses annually to retain a professional license to practice.
In 2002, the median annual wage and salary earnings of accountants and auditors were $47,000, with the middle range falling between $37,210 and $61,630 (U.S. Department of Labor Bureau of Labor Statistics, 2004). The top 10% of accountants and auditors earned more than $82,730, while the bottom 10% earned less than $30,320.
In 2002, the industries employing the largest numbers of accountants and auditors included the federal government, accounting and tax preparation firms, bookkeeping and payroll services companies, management of companies and enterprises, and local and state government (U.S. Department of Labor Bureau of Labor Statistics, 2004).
In this industry, education matters. According to a salary survey by the National Association of Colleges and Employers, bachelor's degree candidates in accounting received job offers averaging $40,647 per year in 2003, while master's degree candidates in accounting were offered an average of $42,241 (U.S. Department of Labor Bureau of Labor Statistics, 2004).
Several New England institutions offer strong accounting programs for students seeking to complete a bachelor's or master's degree in the field (CPA.net, 2004):
Babson College: Private college in Wellesley, MA. Offers BS and MBA programs.
"New England universities offering accounting degrees"
"Management accounting as a specialty field"
"Growth trends, technology impact, and post-Enron changes"
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