Prof. Regis Peeples
November 28, 2018
Accounting as an Integrated Part of Today’s World.
The American Institute of Certified Public Accountants (AICPA) defines accounting as: “the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of financial character, and interpreting the results thereof” (Accounting Verse). Accounting was used in the early civilizations who where engaged in trade and organized systems of government. The historians consider the primary reason for development of writing systems came from the need to record trade transactions. “Some of the earliest known writings discovered by archaeologists are accounts of ancient tax records on clay tablets from Egypt and Mesopotamia dating back as early as 3300 to 2000 BCE” (Bellis). Luca Pacioli, born in 1447 at Sansepolcro, Italy is believed to be the father of accounting even though he didn’t invent the system. Rather, he described the systems used by the merchants in Venice during the revival period of Italy. Accounting plays a vital role in the recording of financial transactions in a business. It shows the financial health of the business to its stakeholders. It is called the language of business because it conveys the information that the stakeholders need to evaluate the financial performance of a business. This paper deals with the scope of accounting, the average wages of an accountant and the professional accounting bodies in different parts of the world.
The accounting jobs in the U.S and internationally keep increasing year over a year. Accountants and auditors have a positive trend in the U.S. “In 2017, there were 1.24 million accountants and auditors and 1.53 million bookkeeping, accounting and auditing clerks employed in the U.S. The number of accountants/auditors and their administrative staff was forecasted to rise to 3.44 million in 2022” (Nace). About half of the accountants in the U.S are licensed CPAs. According to the U.S Bureau of Labor Statistics, the job outlook for accountants and auditors shows that the demand will increase 10 percent (faster than average) from 2016 to 2026. The median annual wage for the profession in the U.S was approximately $69,350 in 2017. The American Institute of Certified Public Accountants (AICPA) is the national organization representing the accounting profession in the U.S. The major U.S professional qualification is CPA. U.S based firms works under Generally Accepted Accounting Principles (GAAP), for which CPA is the designation of choice, on the other hand, majority of the rest of the world serve under the International Financial Reporting standards (IFRS). Some of the other level, such as the Chartered Accountant (CA) or CIMA Cert BA, may carry the same or more weight as CPA.
The accounting profession in Australia was booming for the past 5 years and is expected to grow moderately in the next 5 years. The...