Question

Using your own personal experiences and knowledge please discuss the following question: Do you believe that accounting is critical to our economic system? Why is it an integral part of our economic system Explain. Support your answers with at least one practical example. Why did you choose accounting as your major? If it is not your major, explain your reason for your selection of your major What is a CPA? What service can a CPA provide that a non CPA accountant cannot regardless of how many other qualifications he/she has including a doctorate in accounting? What are some of the specializations in the accounting field? Discuss one or more of them. Which one are you considering if you are an Accounting major? Post a job description detailing the responsibilities and requirements on any accounting position that requires a minimum of a Bachelor's degree. Was there anything about that job description that surprised you (pleasant or unpleasant) Your responses must be numbered according to each question above. You do not need to reproduce the question. You must meet a minimum length of 750 words (excluding citations, the job description and my questions) and must be posted as response to my thread in this forum with the same subject line as above followed by your last name. Use any acceptable form of citation. There is an automatic 5 point deduction for submissions with no citations or citations in poor format.  Please do not use attachments when posting your work.

Answer 1

Do you believe that accounting is critical to our economic system? Why is it an integral part of our economic system Explain. Support your answers with at least one practical example.

Yes, I believe accounting is very critical to our economic system. Accounting plays an essential role in economic development. High-quality corporate reporting is key to improving transparency, facilitating the mobilization of domestic and international investment, creating a sound investment environment and fostering investor confidence, thus promoting financial stability. A strong and internationally comparable reporting system facilitates international flows of financial resources while at the same time helping to reduce corruption and mismanagement of resources. It also strengthens international competitiveness of enterprises in attracting external financing and taking advantage of international market opportunities.

Good quality financial infrastructure is essential to the development of emerging economies as it provides investors with an acceptably high level of assurance. Unless resources invested in putting the plumbing in place can be accounted for, what will stop the roads going nowhere, the energy disappearing, and the communications breaking down?

It could be very interesting and maybe surprising if we clearly understand that how accountants can help to improve and growth economies in all over the world. Traditionally, researches have said that accountants were hands of liberalism and liberal economies. It is true, but is not all of the facts. In each economic system, accountants have very important roles; either liberal or free market or any other systems.

In the financial system funds flow from those who have surplus funds to those who have a shortage of funds, either by direct, market-based financing or by indirect, bank-based finance. The former British Prime Minister William Gladstone expressed the importance of finance for the economy in 1858 as follows: "Finance is, as it were, the stomach of the country, from which all the other organs take their tone."

Accountants provide many useful information that assist businesses for better performance. We all heard this sentence: “knowledge is power”; then, achieving proper data and information is very important for people, businesses, organizations and Economy as a whole. Financial reporting, assurance services, collecting data, internal and external audit, and many more useful things that accountants have a great role on them can demonstrate capacities of accountants and their notable characteristics.

However, accountants have 5 critical roles. I mentioned them in the below titles.

1. Collecting accurate and precise data
2. Preparing and providing financial statements and data for investors (especially foreign investors)
3. help to growth of FDI with introduce the appealing of investing at the target countries
4. Collecting useful and timeliness information in the public sector based on accrual accounting instead of cash bases. This could lead to financial reform and will help to improve trading between government and private sectors or foreign investors.
5. Interpreting the objects of managements to readable and common language between countries and people that can able parties to do business together.

The Asia–Pacific crisis in 1997/8 gave huge impetus to the spread of international financial reporting standards as international investors demanded more transparency in company reports and easily comparable data. These countries largely had the accountancy infrastructure to introduce them. While the US implemented Sarbanes– Oxley and Europe introduced reform through the Eighth Directive as a response to this and other crises, notably the corporate scandals in the US in the early 2000s, it was not clear what action should be taken by the rest of the world. The World Bank introduced Reports on the Observance of Standards and Codes (ROSCs) for audit and accounting, which take into account the different levels of development and varying priorities in different countries and regions. Produced as a joint initiative with the International Monetary Fund, the reports assess the strengths and weaknesses of existing frameworks and accounting practices, including the degree of compliance with and enforcement of national regulatory systems.

In the wake of various financial crises continued efforts are being made towards improving the quality of corporate reporting as an important part of measures towards strengthening the international financial architecture. In this regard the implementation and application of internationally recognized standards, codes and good practices in the area of corporate reporting has been strongly encouraged as a reflection of the increasing pace of globalization and international economic integration. However, the effective adoption and implementation of such standards and codes remains a challenge for many developing countries and economies in transition as they lack some of the critical elements of corporate reporting infrastructure – from weaknesses in their legal and regulatory frameworks, to lack of human capacity and relevant support institutions. In the face of these challenges there is a need for a coherent approach to building capacity in this area, as well as for tools to measure and benchmark progress and identify priorities for further actions.

Why did you choose accounting as your major? If it is not your major, explain your reason for your selection of your major.

I choose accounting as my major because of the following reasons:-

1. Accounting opens doors in every kind of business coast to coast. It can give you the foundation you need to go on

2. An accounting major, whether he or she earns an associate, a bachelor's degree or a more advanced degree has a variety of career options from which to choose after graduation.

3. This field of study includes financial accounting—the reporting of an organization's financial information—and managerial accounting—the use of that data to measure the entity's performance and inform decisions about future plans and controls. An accounting major learns how companies' and other organizations' financial records are prepared and maintained. He or she studies taxation, auditing, and financial reporting.

4. American Institute of Certified Public Accountants (AICPA) summarized it best in its newly issued pamphlet: "Accounting: The One Degree with 360 Degrees of Possibilities": "You may already have an idea about what you want to do for a career. Then again, maybe you're not so sure. Either way, there's one degree that gives you the education to succeed at just about anything in the business world. It's an accounting degree. Accounting opens doors in every kind of business coast to coast. It can give you the foundation you need to go on and become a CPA. It can prepare you to become a partner in an accounting firm, to pursue a career in finance or corporate management, to work in government, or even to become an entrepreneur. In fact, no matter what you decide to do, having an accounting background can open doors wide."

What is a CPA?

A certified public accountant, or CPA, is a person who has passed the very difficult CPA Exam and has been licensed by one of the 50 U.S. states (or one of five other jurisdictions). The CPA's license is renewed if the state's requirements continue to be met including continuing professional education credits.

Many certified public accountants work in the field of　public accounting　in CPA firms ranging from a sole practitioner to a large international CPA firm. However, many certified public accountants leave public accounting while others never enter public accounting. These CPAs can be found working as　accountants　in manufacturing, financial services,　not-for-profit organizations, health care, government agencies, education, and so on.

To become a CPA and practice public accounting, there are generally four basic requirements:

1. Education: Applicants must provide evidence of a baccalaureate or higher degree, or foreign equivalency, in any subject, a total of 150 semester units, including a minimum of 24 semester units of accounting subjects, a minimum of 24 semester units of business related subjects, a minimum of 20 semester units of accounting study, and 10 semester units of ethics study.
2. Passing the CPA examination: The CPA candidate must pass all four parts of a uniform CPA examination. The exam is developed by the AICPA and administered four times each year in all U.S. states and territories. The CPA exam is a computer-based test and consists of the following four parts:
   • • Auditing and Attestation (4 Hours)
     • Regulation (4 Hours )
     • Financial Accounting and Reporting (4 Hours)
     • Business Environment & Concepts (4 Hours)

3. Experience. One year general experience which includes any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax or consulting skills. For those wishing to sign attest reports, the experience shall include 500 hours of attest.

   4     Satisfying state requirements for education and experience, successful candidates are awarded the CPA certificate by a state. A new CPA must then pay a fee to obtain a state license to practice. All states have reciprocity laws, allowing a CPA moving to another state to obtain a new license from that state without having to take the uniform CPA exam again.

   What service can a CPA provide that a non CPA accountant cannot regardless of how many other qualifications he/she has including a doctorate in accounting?

   Only a CPA can prepare an audited financial statement. This process requires the CPA to methodically examine and test the financial records of a company. A report is then issued by the auditing accountants stating whether they found the information contained in the financial statements to be presented fairly, in all material respects.

   In addition, only a CPA can prepare a reviewed financial statement. The review process is less involved than an audit but some testing is done to verify information. The CPA issues a report describing the scope of the review, its limitations, and findings.