This document summarizes Miguel Mejia's final project on becoming a Certified Public Accountant (CPA). It defines accounting as an information system that identifies, records, and communicates a business's activities. There are four career areas in accounting: financial, managerial, taxation, and accounting-related. To become a CPA requires passing the Uniform CPA Exam, meeting education standards, obtaining experience, and adhering to ethical standards. CPAs ensure organizations' financial reports are accurate and follow standards. With the growing complexity of business, the job outlook for accountants is very positive.

1. FINAL PROJECT
Certified Public Accountant
Miguel Mejia
West Los Angeles College
December 18, 2011
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2. The Role of Accounting
Accounting is “an information and measurement system that identifies, records, and
communicates relevant, reliable, and comparable information about an organization’s business
activities,” as defined in Fundamental Accounting Principles by Wild, Shaw, and Chiappetta.
Identifying the activities of a business means to select transactions and events that are relevant
to the organization. Recording business activities involves keeping a journal of relevant
transactions and events measured in dollar amounts and classified appropriately.
Communicating business activities means preparing the financial reports from the analysis of
business transactions. The financial reports include the income statement, the statement of
owners’ equity, the balance sheet, and the statement of cash flows.
Accounting is called the language of business because businesses set up an accounting
information system to communicate relevant data to help people make appropriate decisions.
Users of accounting information involve external users and internal users. External users are
not directly involved in running the organization. This group includes shareholders, creditors,
customers, suppliers, regulators, customers, the media, and external auditors. Internal users
are directly involved in managing and operating the organization. Internal users of accounting
information include company officers, managers, salespeople, and internal auditors.
Careers in Accounting
There are four areas for career opportunities in accounting: financial, managerial, taxation, and
accounting-related. The following exhibit lists a few examples for each category.
Financial Managerial Taxation Accounting-related
•Preparation •General Accounting •Preparation •Analysts
•Analysis •Cost accounting •Planning •Traders
•Auditing •Budgeting •IRS •Systems designers
•Regulatory •Internal auditing •Estate plans •Business valuation
•Consulting •Treasurer •Legal services •Underwriters
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3. The Certified Public Accountant
Accounting specialists are highly regarded. Their professional standing is denoted by a
certificate. A Certified Public Accountant (CPA) is an accountant who has passed the Uniform
Certified Public Accountant Examination, has met additional education and experience
requirements, and exhibits ethical character.
CPAs primarily work in assurance services for public accounting firms. Assurance, also known as
financial auditing, involves the CPA’s examination of the financial statements of an organization
to provide assurance as to correctness or appropriateness. The CPA attests to the
reasonableness of disclosures, the freedom from material misstatement, and the adherence to
generally accepted accounting principles (GAAP).
Career Paths for CPAs
According to the American Institute of Certified Public Accountants, CPAs have many career
paths to choose from. For example, within public accounting, you can work for any sized firm,
ranging from a large, international CPA firm to a small local accounting firm. Within the firm,
you can work in such areas as audit, tax and management consulting. The same is true for
business and industry, where you can choose careers in companies of all sizes. Within
government, you can make a successful career at the federal, state or local level. Non-profit
organizations and education also offer accounting-related opportunities.
. The following is non-exhaustive list of areas CPAs can work in:
Assurance and attestation services
Corporate finance
Corporate governance
Financial accounting and reporting
Management accounting
Financial analysis
Treasury/cash management
Forensic and valuation services
Taxation
Fraud prevention, detection, and investigation
Information technology
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4. Working Conditions
Most CPAs work in a typical office setting, while some are able to do part of their work from
home. Accountants and auditors employed by public accounting firms, the government, and
organizations with various locations may travel often to perform audits at the client site. Almost
half of all accountants and auditors worked a standard 40-hour week in 2008, but many worked
longer hours, particularly if they own their own firms and have multiple clients. Tax specialists
frequently work long hours during the busy tax season.
Training and Qualifications
A CPA is licensed by each sate. In California, to obtain the CPA license, candidates are required
to show what they have learned and their competence by passing the Uniform CPA exam,
meeting education standards, and obtaining accounting experience. There are changes for
licensing requirements effective January 1, 2014. According to CalCPA, there are two pathways
for earning the CPA certification:
Pathway 1 (Expires Dec. 31, 2013)
Designed for individuals who will practice only in California and requires:
A bachelor’s degree;
24 semester units in accounting-related subjects;
24 semester units in business-related subjects (accounting courses beyond the 24
required units may apply toward the business units);
Passing the Uniform CPA Exam;
Two years of general accounting experience supervised by a CPA with an active license;
and
Passing an ethics course.
Pathway 2 (After Jan. 1, 2014, this will be the ONLY pathway to licensure in California.)
If you are licensed under this pathway, the majority of other states will recognize your license.
If you think that someday you might want to practice in another state, Pathway 2 may provide
you the professional mobility you desire. Requirements:
A bachelor’s degree;
24 semester units in accounting-related subjects;
24 semester units in business-related subjects;
150 semester units (or 225 quarter units) of education;
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5. Passing the Uniform CPA Exam; • One year of general accounting experience supervised
by a CPA with an active license; and
Passing an ethics course.
Career Outlook & Salaries
The Bureau of Labor Statistics notes that accountants and auditors are expected are very likely
to experience faster than average employment growth through 2018. The Bureau goes on to
state that accountants and auditors who hold a professional certification, particularly CPAs, are
more likely to have favorable prospects. As the economy improves and grows, the business world
will have an increased need for accountants. The globalization of business and the increasing complexity
of financial reporting also will put a higher demand for accountants.
According to the Fundamental Accounting Principles text, demand for accounting specialists is
increasing. The following table lists average annual salaries for several accounting positions. Salaries
depend on location, company size, professional designation, experience, and other factors. Salaries for
chief financial officers range from $75,000 to more than $1,000,000 yearly. The salaries for bookkeepers
range from under $30,000 to more than $80,000.
Field Title (experience) 2007 Salary 2012 Estimate
Public Accounting Partner $190,000 $242,500
Manager (6-8 years) 94,500 120,500
Senior (3-5 years) 72,000 92,000
Junior (0-2 years) 51,500 65,500
Private Accounting CFO 232,000 296,000
Controller/Treasurer 147,500 188,000
Manager (6-8 years) 87,500 111,500
Senior (3-5 years) 72,500 92,500
Junior (0-2 years) 49,000 62,500
Professional Organizations
Networking with others in the field is important as you progress through your accounting education and
career. Networking allows individuals to meet accounting professionals, learn about trends in the
accounting profession, and obtain information on scholarships and internships. The following is brief list
of professional organizations, clubs, affiliations, and associations that members of the accounting
profession can join:
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6. Association of Latino Professionals in Accounting and Finance (ALPFA)
American Institute of Certified Public Accountants (AICPA)
American Society of Women Accountants (ASWA)
Beta Alpha Psi
Federal Accounting Standards Advisory Board (FASB)
International Network of Accountants and Auditors (INAA)
Why I Want to Become a CPA
I enjoy studying accounting and reading about the accounting profession. Graduating with an
accounting degree and becoming a CPA down the line is my career goal. I have a love for
numbers and I enjoy analyzing numbers, facts and figure in my accounting, economics, math,
and related courses. The accounting profession requires many skills. Three of these skills are
that an individual be detail-oriented, analytical, and computer-savvy. Those skills are my strong
points and I feel that the accounting career is the strongest match for my abilities.
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7. References
Wild, Shaw, & Chiappetta, (2009). Fundamental Accounting Principles. (19 ed.).
McGraw-Hill.
CalCPA (2011). http://www.calcpa.org/content/licensure/requirements.aspx
Bureau of Labor Statistics (2011). Occupation Outlook Handbook.
http://www.bls.gov/oco/ocos001.htm
American Institute of CPAs (2011).
http://www.aicpa.org/Career/CareerPaths/Pages/CareerPaths.aspx
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