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How to Become an Accountant or Auditor
The role of accountants and auditors is to make sure that organizations' public records are kept properly, that their taxes are paid correctly, and that they are run efficiently. There are four major types of accountants and auditors: public accountants, management accountants, government accountants, and internal auditors.
Public Accountants
Public accountants perform a variety of accounting, auditing, tax, and other consulting functions. Their clients are individuals, businesses, governments, and nonprofit organizations. The services they provide include advising corporations on tax consequences of business decisions, auditing clients' financial statements, helping organizations select ways to keep assets secure, and investigating white collar crime. The accountants who investigate financial crimes work with law enforcement agencies. Other public accountants work as independent consultants or for public accounting firms.
Management Accountants
Management accountants are also called cost, managerial, industrial, corporate, and private accountants. They provide financial information to the executives of their companies, and are responsible for budgeting, performance evaluation, cost management, and asset management. The financial information they analyze is used internally for business decisions and strategic planning.
Government Accountants
Government accountants and auditors work for federal, state, and local governments. They maintain and audit the records of government agencies and audit the financial records of individuals and businesses that are subject to regulations or taxation.
Internal Auditors
Internal auditors ensure that the internal records of organizations are accurate and that organizations are free from waste, fraud, and mismanagement. They review financial records, information systems processes, security controls, and compliance with corporate policy and government regulations.
Usually accountants and auditors have bachelor's degrees in accounting or a related field. Some employers prefer a master's degree in accounting or a master of business administration (MBA) degree with a concentration in accounting.
Certification or licensure is very important in this field. To take some of these examinations, you must have prior work experience in that specialty:
| Specialty
| Certification
| Certifier/Accreditor
|
| Public accounting
|
Certified Public Accountant (CPA) |
State Board of Accountancy, based on recommendations by the American Institute of Certified Public Accountants (AICPA) |
| Management accounting
|
Certified Management Accountant (CMA) |
Institute of Management Accountants (IMA) |
| Government accounting |
Certified Government Financial Manager (CGFM) |
Association of Government Accountants |
| Certified Internal Auditor (CIA), and other certifications |
Institute of Internal Auditors (IIA) |
Association of Government Accountants |
The median 2006 salary for accountants and auditors was $57,000.
Source: Occupational Outlook Handbook, 2006-2007 Edition; Bureau of Labor Statistics, U.S. Department of Labor.
