An accountant is a practitioner of accounting or accountancy. Accountants who have demonstrated competency through their professional associations' certification exams are certified to use titles such as Chartered Accountant, Chartered Certified Accountant or Certified Public Accountant, or Registered Public Accountant. Such professionals are granted certain responsibilities by statute, such as the ability to certify an organization's financial statements, and may be held liable for professional misconduct. Non-qualified accountants may be employed by a qualified accountant, or may work independently without statutory privileges and obligations.
Cahan & Sun (2015) used archival study to determine whether accountants' personal characteristics may exert a very significant impact during the audit process and further influence audit fees and audit quality. Practitioners have been portrayed in popular culture by the stereotype of the humorless, introspective bean-counter.Friedman, A. L., & Lyne, S. R. (2001). The beancounter stereotype: towards a general model of stereotype generation. Critical perspectives on accounting, 12(4), 423-451.Jeacle, I., Miley, F., & Read, A. (2012). Jokes in popular culture: the characterisation of the accountant. Accounting, Auditing & Accountability Journal. It has been suggested that the stereotype has an influence on those attracted to the profession with many new entrants underestimating the importance of communication skills and overestimating the importance of numeracy in the role.
An accountant may either be hired for a firm that requires accounting services on a continuous basis, or may belong to an accounting firm that provides accounting consulting services to other firms. The Big Four auditors are the largest employers of accountants worldwide. However, most accountants are employed in commerce, industry, and the public sector.For example, in 2009 in Ontario, Canada, national firms employ 4,425 Chartered Accountants, which is less than 50% of the members in public practice.(Chartered Accountants in National Firms in Ontario, Canada ) As total membership is 33,146, the national firms employ about 13% of all Chartered Accountants in Ontario. (Ontario Chartered Accountants demographics ) Most of the members are employed in industry, with the majority in small and medium sized enterprises.
Commonwealth of Nations
In the Commonwealth of Nations, which include the United Kingdom, Canada, Australia, New Zealand, Hong Kong pre-1997, and several other states, commonly recognised accounting qualifications are Chartered Certified Accountant (ACCA), Chartered Accountant (CA or ACA), Certified Management Accountant (Institute of Certified Management Accountants) (CMA), Chartered Management Accountant (ACMA) and International Accountant (AAIA). Other qualifications in particular countries include Certified Public Accountant (CPA – Ireland and CPA – Hong Kong), Chartered Professional Accountant (CPA – Canada), Certified Management Accountant (Institute of Certified Management Accountants|CMA – Australia) (CMA – Sri Lanka), Certified Practising Accountant (CPA – Australia) and members of the Institute of Public Accountants (Australia), and Certified Public Practising Accountant (CPPA – New Zealand).
The Institute of Chartered Accountants of Scotland (ICAS) received its Royal Charter in 1854 and is the world's first professional body of accountants.Perks, R.W.(1993): Accounting and Society. Chapman & Hall (London); . p.16
United Kingdom and Ireland Unlike a 'Chartered Accountant', the title 'accountant' does not require a specific qualification or licence in the UK, meaning anyone can call themselves an 'accountant'. HMRC's research suggests that one third of practising accountants do not belong to any professional body.
A Chartered Accountant must be a member of one of the following: the Institute of Chartered Accountants in England and Wales (ICAEW) (designatory letters ACA or FCA) the Institute of Chartered Accountants of Scotland (ICAS) (designatory letters CA) Chartered Accountants Ireland (CAI) a recognised equivalent body from another Commonwealth country (designatory letters being CA (name of country) e.g. CA (Australia)) A Chartered Certified Accountant must be a member of the Association of Chartered Certified Accountants (designatory letters ACCA or FCCA). A Chartered Management Accountant must be a member of the Chartered Institute of Management Accountants (designatory letters ACMA or FCMA). A Chartered Public Finance Accountant must be a member of the Chartered Institute of Public Finance and Accountancy (designatory letters CPFA). An International Accountant is a member of the Association of International Accountants (designatory letters AAIA or FAIA). An Incorporated Financial Accountant is a member of the Institute of Financial Accountants (designatory letters IFA, AFA or FFA). A Certified Public Accountant may be a member of the American Institute of Certified Public Accountants (designatory letters AICPA) or its equivalent in another country, and is usually designated as such after passing the Uniform Certified Public Accountant Examination. (designatory letters CPA) A Public Accountant may be a member of the Institute of Public Accountants (designatory letters AIPA, MIPA or FIPA). Registered Qualified Accountant may be a member of Accountants Institute (designatory letters RQA, and FQA for Fellow Members), based in Slovenia
Excepting the Association of Certified Public Accountants, each of the above bodies admits members only after passing examinations and undergoing a period of relevant work experience. Once admitted, members are expected to comply with ethical guidelines and gain appropriate professional experience.
Chartered, Chartered Certified, Chartered Public Finance, and International Accountants engaging in practice (i.e. selling services to the public rather than acting as an employee) must gain a "practising certificate" by satisfying a minimum period of post-qualifying experience and complying with wider obligations including adequate professional indemnity insurance, submitting annual compliance reports and agreeing to undergoing regular inspection.
The ICAEW, ICAS, ICAI, ACCA and AAPA are five Recognised Supervisory Bodies (RSB) in the UK. A member of one of them may also become a Statutory Auditor in accordance with the Companies Act, providing they can demonstrate the necessary professional ability in that area and submit to regular inspection. It is illegal for any individual or firm that is not a Statutory Auditor to perform a company audit.
The ICAEW, ICAS, ICAI, ACCA, AIA and CIPFA are six recognised qualifying bodies statutory (RQB) in the UK. A member of one of them may also become a Statutory Auditor in accordance with the Companies Act, providing they are a member of one of the five Recognised Supervisory Bodies RSB mentioned above.
All six RQBs are listed under EU mutual recognition directives to practise in 27 EU member states and individually entered into agreement with the Hong Kong Institute of Certified Public Accountants (HKICPA).
Further restrictions apply to accountants who carry out insolvency work.
In addition to the bodies above, technical qualifications are offered by the Association of Accounting Technicians, ACCA and AIA, which are respectively called AAT Technician, CAT (Certified Accounting Technician) and IAT (International Accounting Technician).
United States
In the United States, licensed accountants are Certified Public Accountants (CPAs), and in certain states, Public Accountants (PAs). Unlicensed accountants may be Certified Internal Auditors (CIAs) and Certified Management Accountants (CMAs). The difference between these certifications is primarily the legal status and 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. As noted above, the majority of accountants work in the private sector or may offer their services without the need for certification.
The training time required for accountancy certification in the US requires specific guidelines: Certificate: Several months to a year Associate degree: One–two years Bachelor's degree: Three–four years CPA: Five years of education (150 semester college credits) plus one–two years of work experience (length of work experience requirement depends on which state is granting the license) Master's degree: One–two years Doctoral degree: Three–five years
In recent years, the profession in the U.S. has experienced a structural talent deficit driven by a declining CPA exam pipeline, retiring professionals, and the demanding 150-hour academic requirement.
A CPA is licensed by a state to provide auditing services to the public. Many CPA firms also offer accounting, tax, litigation support, and other financial advisory services. The requirements for receiving the CPA license vary 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 (AICPA).
A PA (sometimes referred to as LPA—Licensed Public Accountant) is licensed by the state to practice accountancy to the same extent as are CPAs, although in some states PAs are not permitted to perform audits or reviews (notably Iowa, Minnesota, Oregon, & South Carolina). A PA's ability to practice out of state is very limited due to most states having phased out the PA designation. While most states no longer accept new PA license applicants, four states still accept PA applicants for practice privileges within the state. As with the CPA, the requirements for receiving the PA license vary from state to state. Most states require a passage of either two or three (out of four) sections of the CPA exam or passage of the Comprehensive Examination for Accreditation in Accounting which is administered and graded by the Accreditation Council for Accountancy and Taxation (ACAT).
A certified internal auditor (CIA) is granted a certificate from the Institute of Internal Auditors (IIA), provided that the candidate has passed a four-part examination. One of the four parts is waived if the candidate has already passed the CPA Exam. A CIA typically provides services directly to an employer rather than to the public.
A person holding the Certificate in Management Accounting (CMA) is granted the certificate by the Institute of Management Accountants (IMA), provided that the candidate has passed an examination of two parts and has met the practical experience requirement of the IMA. A CMA provides services directly to employers rather than to the public. A CMA can also provide services to the public, but to an extent much lesser than that of a CPA.
An Enrolled Agent (EA) is a federally authorized tax practitioner empowered by the U.S. Department of the Treasury to represent taxpayers before the Internal Revenue Service (IRS). Enrolled agent status is the highest credential awarded by the IRS, unlimited rights of representation.Enrolled Agent Information, Internal Revenue Service, U.S. Dep't of the Treasury, at . The EA credential is recognized across all 50 U.S. states. Candidates must pass a three-part exam (called the Special Enrollment Examination) covering the subjects of individual tax, business tax, and client representation, or must have worked at the IRS for five consecutive years in a position which regularly engaged in these areas.
The United States Department of Labor's Bureau of Labor Statistics estimates that there are about one million persons employed as accountants and auditors in the U.S.
U.S. tax laws grant CPAs and EAs a form of accountant–client privilege.
Non-certified accountants
Australia