Question

Degreed accountants have the opportunity to obtain certifications in the accounting career field that they choose. Research and describe the types and requirements of certifications that are available. Conclude with what path is the most interesting to you and why. Also provide an evaluation of the role and importance of ethics in the path (or career related to the path) that interests you.

Answer 1

Since the world economy has been developing on a fast track, the accounting team has been playing a major role in the corporate and non corporate sectors. Therefore Earning finance and accounting certifications is a big step toward improving the marketability and career advancement as a professional in this field. There are many certifications available for a degreed accountants. Each of these certificates are slightly different and have a career focus. A brief list of the accounting and management certifications that are available in the market are given below.

• Certified Public Accountant (CPA)
• Certified Financial Analyst (CFA)
• Certified Management Accountant (CMA)
• Enrolled Agent (EA)
• Certified Internal Auditor (CIA)
• Certified Information Systems Auditor (CISA)
• Certified Fraud Examiner (CFE)
• Certified Government Auditing Professional (CGAP)

The requirements of each of these certifications are explained in brief here.

Certified public Accountant

The certified public accountant credential is the oldest and most respected accounting designation in the profession. CPAs are known and respected across all industries because the CPA license is the most popular and useful certification in the accounting industry. You can think of this like the gold standard. It also has very unique capabilities.

Unlike other certifications, CPAs are the only accountants who are licensed by state governments and allowed to write audit reports and give opinions on publicly traded company financials. CPAs can also sign tax returns as paid preparers and represent clients in front of the IRS.

CPAs can also do all of the same tasks and jobs that other certifications can do. This of the CPA as a general certification and the others are more specialized certifications.

Certified Financial Analyst (CFA)

The certified financial analyst designation is meant to train you and prepare you for a career in the finance and investment world. Although it has applications beyond that like in company management, most CFAs are finance professionals working on Wall Street or for a hedge fund / investment fund.

The CFA certification is not as popular in industry as the CPA is in the United States, but in Europe and China this designation is much more popular. It helps train people to think analytically about finance, investing, and how businesses operate. This makes CFAs great controllers and CFOs.

Certified Management Accountant (CMA) Certification

The certified management accountant designation specializes in company accounting management. This is a topic that the CPA exam doesn’t really even cover. Thus, it makes these candidates great for internal management and executive level roles in companies. For example, a CMA makes a great COO or CFO.

This certification is not that great for public accounting, however. It doesn’t train or certify you to perform audit procedures, write reports, or do any type of tax work. It’s strictly focused on management.

Enrolled Agent (EA) Certification

The enrolled agent certification is a credential created by the IRS to demonstrate ones knowledge of the US tax code and the ability to apply its concepts. This designation is specifically focused on US taxation of all entity types: individuals and corporations. That being said, this designation does not educate you on any finance, auditing, management, or other business topics. It’s strictly a tax certification. If you have this, you know taxes.

Thus, if you want to go into either tax preparation or internal tax work for a company, this would be a good credential to go after. Keep in mind that all public accounting firms will want you to have your CPA over your EA anyway. If you want to work in public accounting, your CPA is almost a requirement, but enrolled agents do have several privileges that CPAs have long enjoyed. For example, EAs can sign tax returns as paid preparers and represent clients in front of the IRS. This makes the credential somewhat useful in public accounting, but most states have additional laws for public firms that restrict ownership and authority to CPAs.

Certified Internal Auditor (CIA) Certification

The certified internal auditor designation is strictly for compliance officers and auditors. CIAs typically work for large companies performing audit procedures and helping independent auditors do their jobs.

While coming to my path, I will go for CPA since I am interested more in CPA and also it has many benefits when compared to the other certifications. And also it can do the things that will be done by other certifications mentioned earlier. And also the respect that will be earning in this certificate will be much more high compared to others.

And when it comes to the matter of ethics and its role in that certification, that plays a major role here. General public are interested in this corporate sector by any of the way possible like investment in different types of securities. Many external parties are connected to this corporate sector. Being a high respected professional we should be in a position to provide our best to them.