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Project 1

1. Project 1

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Project 1

Project 1: Accounting Careers

 

What I Need to Know

 

Accounting as a Profession

 

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Over the past half century, accountancy as a profession has become comparable with law or medicine. Most provinces license public accountants just as they license doctors and lawyers. Licensing accountants helps ensure a high standard of professional service.

 

accountancy: the work done by an accountant

 

 

 

In Canada there are a number of accounting organizations that provide education and professional training. These organizations include the following:

  • Institute of Chartered Accountants (CA designation)
  • Certified General Accountants (CGA designation)
  • Society of Management Accountants (CMA designation)

Courses are available through these organizations and post-secondary schools. In the case of the chartered accountants and management accountants, a university degree is a prerequisite (generally a Bachelor of Commerce degree).

 

All three organizations require their members to have practical experience.. To qualify as a CGA, CMA, or CA, you must pass a final examination that is the same across the country.

 

Accountancy is a growing profession. Its growth is in response to the expansion and complexity of the economy, the increasing involvement of the accountant in the process of management decisions, and a greater number of financial reporting activities.

 

Where Are Accountants Employed?

 

Accountants are employed in three broad fields:

  • public accounting
  • private accounting
  • government
Public Accounting


A public accountant may be employed in any of the following services:

  • auditing: the evaluation of books and records of a business
    Auditing—The principal service offered by public accountants is auditing. Auditing is the evaluation of the books and records of a business. Banks commonly require an audit of the financial statements of a company that applies for a sizable loan. Such audits are performed by public accountants, who are independent professionals working for a fee.

    The purpose of an audit is to authenticate a company’s financial statements. The auditor carefully examines the company’s statements and the account records from which they were prepared. The auditor determines whether the statements fairly reflect the company’s financial position and operating results in accordance with generally accepted accounting principles.
  • Management advisory services—Public accountants commonly offer management advice to a company. Clients use the suggestions from the accountant to make management decisions. Management advisory services include the design, installation, and improvement of a client’s general accounting system and any related information systems it may have for managing the company. Management advisory services may also include financial planning, budgeting, forecasting, and inventory control.

  • Tax services—A professional accountant is well qualified to render services in the tax area, including preparing and filing tax returns.
Private Accounting


Accountants employed by a single company are said to be private accountants. A small business may employ only one accountant or it may depend on the services of a public accountant. A large business, on the other hand, may have a large accounting department. The employees of a large accounting department commonly work under the supervision of a chief accounting officer called the controller.

 

A private accountant may be employed in any of the following areas:

  • General accounting—General accounting involves the general tasks of recording transactions, processing the recorded data, and preparing financial reports for use by the management.

  • Cost accounting—Cost accounting involves determining and controlling costs, as well as assessing the performance of managers who are responsible for costs. This may involve accounting for the costs of producing a certain product or service, or the costs of performing some other specific function.

  • Budgeting—The process of developing formal plans for future business activities is called budgeting. The objective of budgeting is to provide management with a clear understanding of all the activities that must be undertaken and completed in order to accomplish the company’s objectives.

  • Internal auditing—In addition to an annual audit by an independent firm of public accountants, many companies maintain a staff of internal auditors. These employees move from one department to another, checking the records and operating procedures of each department.
Government Accounting

 

Accountants who work for the municipal, provincial, or federal governments provide various services. Government accountants are used in many capacities, including government payroll, investigation of tax evasion, and public boards. Government accountants may also provide all of the services performed by public and private accountants, only their client is the government.