Accounting Essay free essay sample

Cake is among one of the most popular desserts eaten at ceremonial occasions especially during events like weddings, birthdays and anniversaries. There are countless types of cakes in the world nowadays. Although most cakes share common cooking procedures, the ingredients are what define each type of cake from one another. Thus, the required ingredients of a particular type of cake are crucial in successfully making the cake. Similarly, certain expertises, attributes and skills of a Chartered Accountant lead them onto the path of success. Such expertise, attribute and skill required for success as a CA include having expertise in numeracy, good communication skills and a strong sense of integrity. Generally speaking, many people in the world today have the misconception that the accounting profession is boring. Nevertheless, the CA designation requires accountants to be more involved in a far broader range of activities than just simple book-keeping. According to Henry Cisneros, accounting â€Å"is not a field that is standing still- it’s changing very rapidly†¦accounting is not a boring profession anymore† (Dalal). We will write a custom essay sample on Accounting Essay or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Thereupon, the journey to become a successful CA is very long and excruciating. First of all, students have to endure through the countless university assessments and exams to obtain a business degree. Be mindful that â€Å"the business degree alone will not qualify you as a chartered accountant† (â€Å"How to Become a Chartered Accountant†). After obtaining the 4-year, 120 credit-hour university degree, one must complete a CA accredited university program or, obtain 3 years of practical experience with a CA training office. Afterwards, it is necessary for one to successfully complete the ICAO Professional Program. Ultimately, one is required to write and pass the Uniform Evaluation (UFE) in order to be qualified as a CA (â€Å"Become a CA†). After all, there is a good reason as to why the process of becoming a CA is so intense. In obtaining the thorough knowledge in the principles of accounting and experiences required to become a CA, one will develop a keen sense in dealing with the many difficult situations they may experience. Furthermore, the necessary expertise with numeracy will also be obtained from consistent practise and experience. For the most part, CAs must have an expertise in numeracy so they feel comfortable working with large figures on a daily basis. Not only does this expertise allow for greater efficiency when preparing financial statements, it also permits financial information to be provided and analyzed precisely. Imagine if an accountant did not possess the required expertise with numeracy and incorrectly credited an amount of $100 million dollars into retained earnings, when really, there were only $10 million dollars to be credited in the retained earnings account. Consequently, the shareholders’ equity section of the organization would be overstated and financial decisions would be made based on the incorrect financial information provided. In the long run, if this accountant continues to make these silly mistakes because his or her lack of expertise with numeracy, inevitably, the organization altogether is negatively affected. Generally, CAs receive managerial roles within companies and organizations and are held responsible for a variety of tasks. All CAs at some time along their career path work as advisors in public practice; they provide accounting and business advice to clients in areas like tax, audit, information technology†¦etc (â€Å"What do CAs Do? †). Hence, it is necessary that CAs have good communication skills so they can interact with clients to assist them in understanding the financial situation of their organization. CAs also have to express concerns within the organization they work for. For this reason, CAs are required to provide strategic leadership by presenting their ideas and concerns clearly with strong communication skills. On a similar note, integrity is a very important attribute for an accountant to possess. â€Å"CAs are valued for their integrity and expertise† (â€Å"Vision and Mission†). As an accountant, one needs to assess financial facts and faithfully present information of the economic situation of an organization. CAs must have the integrity to record these facts in a manner that will accurately reflect the organization’s position. Without integrity, information can be recorded in a way which results in financial statements that are misleading and inaccurate. As seen in the WorldCom accounting scandal (one of America’s largest accounting fraud in U. S. history), fraudulent accounting methods were used to hide declining earnings by presenting false information of financial growth and profitability to increase price of WorldCom’s stock in 1999. Consequently, WorldCom’s chief financial officer and controller at the time were fired and charged, serving 65 years in prison (Tran). In 2002, WorldCom filed for bankruptcy protection. By 2003, investigation revealed that the company’s total assets had been inflated by around $11 billion (Scharff). Evidently, accounting frauds result in the downfall of the business organization as a whole. All things considered, the above three mentioned expertise, skill and attribute are vital to the success of a CA. If cake represented an accountant, the ingredients can be used to differentiate one accountant from another. As for a CA, a strawberry whip cream cake, the whip cream and strawberries would be the essential skills and attributes that define the CA from any other accountants. The whip cream strawberry cake would definitely not be the same without the whip cream or the strawberry. Similarly, expertise with numeracy, strong communication skills and integrity, are the secret ingredients of a successful Chartered Accountant.