Accountancy

Accountancy (British English) or accounting (American English) is the measurement, disclosure or provision of assurance about information that helps managers and other decision makers make resource allocation decisions. Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarized, interpreted, and communicated. Auditing, a related but separate discipline, is the process whereby an independent auditor examines an organization's financial statements in order to express an opinion -- that conveys reasonable but not absolute assurance -- as to the fairness and adherence to generally accepted accounting principles, in all material respects.

Accountancy qualifications and regulation

The requirements for entry in the profession of accounting vary from country to country.

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British Commonwealth

In the United Kingdom, Canada, Australia and several other Commonwealth countries, the equivalents of Certified Public Accountant (CPA) include Chartered Accountant (CA - in UK, British Commonwealth and former British states), Chartered Certified Accountant (ACCA - United Kingdom), International Accountant (AIA - United Kingdom), Certified Public Accountant (CPA - Ireland and CPA - Hong Kong), Certified General Accountant (CGA - Canada), and Certified Practising Accountant (CPA - Australia).

Related Topics:
United Kingdom - Canada - Australia - Commonwealth - Chartered Accountant

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Please refer to the latest statutory auditing rights of above accounting bodies in individual jurisdictions and distinction from non-audit bodies for various consumers. In UK, only 3 chartered accountants (England & Wales, Scottish and Irish)and their equivalents (AIA and ACCA) are "Registered Auditors" under Companies Act.

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ACA is the best known and most respected qualification in the UK, equivalent of a CA but handled by a different board ICAEW.

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Canada

In Canada, there are three recognized accounting bodies: the Canadian Institute of Chartered Accountants (CA), the Certified General Accountants Association of Canada (CGA), and the Society of Management Accountants of Canada (CMA). CA and CGA were created by Acts of Parliament in 1902 and 1913 respectively and CMA was established in 1920.

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The CA program focuses in public accounting and candidates must obtain auditing experience from public accounting firms; the CGA program takes a general approach allowing candidates to focus in their own financial career choices; the CMA program focuses in management accounting. All three programs require a candidate to obtain a degree and practical accounting experience before certification.

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Auditing and Public Accounting are regulated by the provinces. Historically, only CAs can perform audits in Ontario. After the corporate accounting scandals including the Enron fiasco, the provincial government of Ontario passed a new Public Accounting Act allowing qualified CAs, CGAs and CMAs to audit. In Quebec, CAs still have monopoly in the audit of public companies; In British Columbia and Prince Edward Island, CAs and CGAs have equal status regarding public accounting and auditing; In the rest of Canada, CAs, CGAs, and CMAs are considered equivalents pursuant to provincial and territorial legislations.

Related Topics:
Ontario - Enron - Quebec - British Columbia - Prince Edward Island - Canada

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A recent attempt between the CAs and CMAs (in 2005) to join forces to form a new unified body failed as the respective organisations could not reach consensus on a number of important issues. This failure represented a factual indicator of the continued and strong resentment of the infringement of other accounting designations' influence and opinion upon others, as well as a possible measure of the degree of pride that still remained within each of Canada's three recongised accounting bodies. The recent measure (2004) of opening Ontario's public practice to all three bodies may actually have exacerbated the competition between these organisations, especially in light of the historic monopoly conferred to the CA association.

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United States of America

In the United States, practicing accountants include Certified Public Accountants (CPAs), Certified Internal Auditors (CIAs) and Certified Management Accountants (CMAs). The difference between these certifications is primarily the types of services provided, although individuals may earn more than one certification. Additionally, much accounting work is performed by uncertified individuals, who may be working under the supervision of a certified accountant.

Related Topics:
United States - Certified Public Accountant - Certified Management Accountant

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A CPA is licensed by the state of his/her residence to provide auditing services to the public, although most CPA firms also offer accounting, tax, litigation support, and other financial advisory services. The requirements for receiving the CPA license varies from state to state, although the passage of the Uniform Certified Public Accountant examination is required by all states. This examination is designed and graded by the American Institute of Certified Public Accountants.

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A CIA is granted a certificate from the Institute of Internal Auditors (IIA), provided that the candidate passed a rigorous examination of four parts. A CIA mostly provides his/her services directly to their employers rather than the public.

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A CMA is granted a certificate from the Institute of Management Accountants (IMA), provided that the candidate passed a rigorous examination of four parts and meet the practical experience requirement from the IMA. A CMA mostly provides his/her services directly to his/her employers rather than the public. A CMA can also provide his services to the public, but to an extent much lesser than that of a CPA.

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The United States Department of Labor's Bureau of Labor Statistics estimates that there are about one million (1) persons employed as accountants and auditors in the U.S.

Related Topics:
United States Department of Labor - Bureau of Labor Statistics

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U.S. tax law grants accountants a limited form of accountant-client privilege.

Related Topics:
Tax law - Accountant-client privilege

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