Employment
Accountants and auditors held about 1.1 million jobs in 2002. They worked
throughout private industry and government, but 1 out of 5 wage and salary
accountants worked for accounting, tax preparation, bookkeeping, and payroll
services firms. Approximately 1 out of 10 accountants or auditors were
self-employed.
Many accountants and auditors are unlicensed management accountants, internal
auditors, or government accountants and auditors; however, a large number are
licensed Certified Public Accountants. Most accountants and auditors work in
urban areas, where public accounting firms and central or regional offices of
businesses are concentrated.
Some individuals with backgrounds in accounting and auditing are full-time
college and university faculty; others teach part time while working as
self-employed accountants or employed as accountants for private industry or
government.
Training, Other Qualifications, and Advancement
Most accountant and auditor positions require at least a bachelor's degree in
accounting or a related field. Beginning accounting and auditing positions in
the Federal Government, for example, usually require 4 years of college
(including 24 semester hours in accounting or auditing) or an equivalent
combination of education and experience. Some employers prefer applicants with a
master's degree in accounting, or with a master's degree in business
administration with a concentration in accounting.
Previous experience in accounting or auditing can help an applicant get a
job. Many colleges offer students an opportunity to gain experience through
summer or part-time internship programs conducted by public accounting or
business firms. In addition, practical knowledge of computers and their
applications in accounting and internal auditing is a great asset for jobseekers
in the accounting field.
All States use the four-part Uniform CPA Examination prepared by the AICPA.
The 2-day CPA examination is rigorous, and only about one-quarter of those who
take it each year passes every part they attempt. Candidates are not required to
pass all four parts at once, but most States require candidates to pass at least
two parts for partial credit and to complete all four sections within a certain
period. Most States also require applicants for a CPA certificate to have some
accounting experience. In May 2004, the CPA exam will become computerized and
offered quarterly at various testing centers throughout the United States.
Nearly all States require CPAs and other public accountants to complete a
certain number of hours of continuing professional education before their
licenses can be renewed. The professional associations representing accountants
sponsor numerous courses, seminars, group study programs, and other forms of
continuing education.
Graduates from accredited colleges and universities who have worked for 2
years as internal auditors and have passed a four-part examination may earn the
Certified Internal Auditor (CIA) designation from the Institute of Internal
Auditors (IIA). The IIA recently implemented three new specialty
designations-Certification in Control Self-Assessment (CCSA), Certified
Government Auditing Professional (CGAP), and Certified Financial Services
Auditor (CFSA). Requirements are similar to those of the CIA. The Information
Systems Audit and Control Association confers the Certified Information Systems
Auditor (CISA) designation upon candidates who pass an examination and have 5
years of experience in auditing information systems. Auditing or data-processing
experience and a college education may be substituted for up to 2 years of work
experience in this program. For instance, an internal auditor might be a CPA,
CIA, and CISA.
Capable accountants and auditors may advance rapidly; those having inadequate
academic preparation may be assigned routine jobs and find promotion difficult.
Many graduates of junior colleges and business and correspondence schools, as
well as bookkeepers and accounting clerks who meet the education and experience
requirements set by their employers, can obtain junior accounting positions and
advance to positions with more responsibilities by demonstrating their
accounting skills on the job.
Beginning public accountants usually start by assisting with work for several
clients. They may advance to positions with more responsibility in 1 or 2 years,
and to senior positions within another few years. Those who excel may become
supervisors, managers, or partners; open their own public accounting firm; or
transfer to executive positions in management accounting or internal auditing in
private firms.
Management accountants often start as cost accountants, junior internal
auditors, or trainees for other accounting positions. As they rise through the
organization, they may advance to accounting manager, chief cost accountant,
budget director, or manager of internal auditing. Some become controllers,
treasurers, financial vice presidents, chief financial officers, or corporation
presidents. Many senior corporation executives have a background in accounting,
internal auditing, or finance.
In general, public accountants, management accountants, and internal auditors
have much occupational mobility. Practitioners often shift into management
accounting or internal auditing from public accounting, or between internal
auditing and management accounting. However, it is less common for accountants
and auditors to move from either management accounting or internal auditing into
public accounting.
