ACCOUNTING AND FINANCE GENERAL YEAR 12

Research Plan

Project 2 – PROFESSIONAL ACCOUNTING ASSOCIATIONS

TEACHER: Mr. Manoj

STUDENT: Nguyen Ngoc Thy
What is the role of accountants?
1. Who are they?
An accountant is a professional who is responsible for keeping and interpreting financial records,
either for individual clients or for larger businesses and organizations employing them.

The term accountant refers to a professional who performs accounting functions such
as account analysis, auditing, or financial statement analysis. Accountants work with
accounting firms or internal account departments with large companies. They may also
set up their own, individual practices. After meeting state-specific educational and testing
requirements, these professionals are certified by national professional associations.

2. What types of work do they do?

- Industry accountants are people who work within the financial department of a wider
company and focus on the internal accounts.
- Practice accountants are people who work within a firm of accountants working on
external client’s statutory accounts. (tax services, auditing services, deals)

3. What knowledge and skills do they have?

- Attention to detail: accountants must be accurate in their work and identify
inconsistencies in large amount of data. They are responsible for preparation of financial
statements and income reports, so it is important to avoid errors of any kind.
- Mathematical skills: they should be able to analyze, compare, and interpret facts and
figures from financial records to ensure every detail is accurate and current.
- Spreadsheet skill: Having experience with Excel is one of the most important
skills for an accountant.
- Organization: managing a portfolio of clients, making that they have a plan to get all of
deadlines done, and follow proper guidelines.
- Problem solving: this is a big part, accountant looks through 12 months worth of data,
and look at things like money laundering is this client doing what they say…
Accountants constantly encounter errors, discrepancies, and inaccuracies. If not
detected and addressed, these mistakes can have serious ramifications for employers
and clients. In order to solve these complex problems, accountants must approach
situations critically by considering all variables and potential risks.
- Communication – to presenting the financial statements, encouraging and motivating
staffs on the daily basis, or concisely and present information in an easy-to-understand
manner, especially for individuals who are not well versed in numbers.
 - Analytical skill: accountants should be able to identify issues in financial documents and
suggest appropriate solutions. For example, suggest how to minimize tax liability, or to
deflect fraudulent use of funds. Accounting work requires a meticulous, detail-oriented
eye. Accountants must sift through hefty financial records to ensure every detail is
accurate and current. Otherwise, their analysis may yield inconsistent results.

4. How does one become an accountant?

- They need to find a program that suits them. Consider what type of degree they want - an
associate, Bachelor’s or graduate degree - and take into account the type of specialty
you’re interested in, if any, after you graduate.

- Find the right educational path. Most employers require their accountants to have at least a
bachelor’s degree. Job postings reflect this, as well - analysis of over 170,000 accounting job
postings from the past year showed that 98 percent of postings were seeking candidates with
a Bachelor’s degree or higher.

That makes a Bachelor's degree in accounting a key component in becoming an accountant.

These positions could serve as experience-building stepping stones if they choose to take an
incremental path toward working as an accountant.

- Earn their degree and gain experiences

- Determine what type of accountant that they want to be. There are a few different types of
accounting credentials they can pursue once they have earned your degree. Choosing a
direction really depends on what they want out of their career and how much education and
experience they are willing to obtain before they are certified.

- Land a job and prepare for certification exams

5. What are the different branches of accounting?

Financial accounting  Based on a systematic method of recording transaction

of any business according to the accounting principles.
 It is the original form of the accounting process. The
main purpose of financial accounting is to calculate the
profit or loss of a business during a period and to
provide an accurate picture of the financial position of
 the business as on a particular date.
 The Trial balance, Profit and loss and Balance sheet of a
company are based on an application of financial
accounting. These are used by creditors, banks and
financial institutions to assess the financial status of the
company.
Managerial  Provides information to management for better
accounting administration of the business. It helps in making
important decisions and controlling of various activities
of the business.
 The management is able to take decisions efficiently
with the help of various Management Information
Systems such as budgets, projected cash flow and fund
flow statements, Break Even point calculation, etc.
 Management accounting serves the needs of the
management in decision makings regarding
minimization of the cost factor and enhancing of profit
making.
Cost accounting  Cost accounting deals with evaluating the cost of a
product or service offered.
 It calculates the cost by considering all factors that
contribute to the production of the output, both
manufacturing and administrative factors.
 The objective of cost accounting is to help the
management in fixing the prices and controlling the cost
of production.

Nature and purpose of professional code of conduct

1. What is ethics?
Ethics, also called corporate or business ethics, is often referred to as a code of conduct or set of
beliefs that dictate what is right, wrong, fair, and unfair.

2. Why is it important?
The accounting profession is based on morals and ethics. They as accountants and CPAs are
required to uphold strict ethical standards because most of the time we are fiduciaries to third
parties. Investors and creditors rely on the financial statements that we produce and certify. Our
judgments must be based on facts, reason, and ethical decisions.

3. Fundamental principles
- Integrity: Honesty and straightforwardness in all professionals and business relationships.
Fair dealings truthfulness in every transaction
- Objectivity: Avoid the impact of biases on your judgment, decision making or allow undue
influence on others or yourself. Not allowing bias, conflict or interests, and undue influence
of others to override professional or business judgements.
- Professional competence and due care:
 A professional accountant has a continuing duty to maintain professional knowledge
and skill at the level required to ensure that a client or employer receives competent
professional services based on current developments in practice, legislation and
techniques. A professional accountant should act diligently and in accordance with
applicable technical and professional standards when providing professional
services.
 To act diligently in accordance with the applicable services.
- Confidentially: A professional accountant should respect the confidentiality of
information acquired as a result of professional and business relationships and should not
disclose any such information to third parties without proper and specific authority unless
there is a legal or professional right or duty to disclose. Confidential information acquired
as a result of professional and business relationships should not be used for the personal
advantage of the professional accountant or third parties.
- Professional behavior:
 Compliance with laws and regulations relevant to where you live and do not behave
in a way that reflects badly on you, your business or employer and the profession.
 Professional accountants shall not exaggerate claims and to make disparaging
references to the work of others.

4. Threats to accountants
- Self-interest threat – the threat that a financial or other interest will inappropriately influence
the Member‘s judgement or behavior. For example, having shares in the company.
- Self-review threat – the threat that a Member will not appropriately evaluate the results of a
previous judgement made or service performed by the Member, or by another individual within
the Member‘s firm or employing organization, on which the Member will rely when forming a
judgement as part of providing a current service. For example, prepare and audit financial
statements.
- Advocacy threat – the threat that a Member will promote a client’s or employer’s position to
the point that the Member’s objectivity is compromised. For example, promoting supplier
company run by family member.
- Familiarity threat – the threat that due to a long or close relationship with a client or employer,
a Member will be too sympathetic to their interests or too accepting of their work.
- Intimidation threat – the threat that a Member will be deterred from acting objectively because
of actual or perceived pressures, including attempts to exercise undue influence over the
Member.

The differences and similarities between the different professional accounting bodies:
1. CPA Australia (Certified Practicing Accountants of Australia)

What is CPA Australia?

Certified Practicing Accountants Australia is one of the world’s biggest bookkeeping bodies with
a worldwide participation of more than 164,695 individuals (as at 31 December 2018) working
in 150 nations and regions around the world. CPA is a finance, accounting and business
profession with a specific qualification.

What are the goals of CPA?

It ensures you are equipped with an understanding of the dynamic issues facing organizations in
a global marketplace. You will learn how to think strategically, how to position yourself as a
leader and gain a global perspective.
How to become member of CPA?
- Hold a degree recognised by CPA Australia, in any discipline.
- Have completed the CPA Program, including their experience within six years.To be able
to offer public accounting services, a CPA must also hold a public practice certificate in
accordance with CPA Australia's By-Laws.
- Education – most of place require some level of accounting education to become a
licensed CPA. Earn at least a 4-year bachelor’s degree with a minimum number of
accounting and business credit hours and 150 credit hours of general higher education.
- CPA exam requirements – pass all 4 parts of the Uniform CPA examination.

What are the benefits of being a member of CPA?

- The CPA designations is also recognised by a number of overseas membership bodies
under agreements with CPA Australia, making an international career easier to pursure.
Special offers are available to members, including: AMP banking deals, American
Express card specials, detailed IBISWorld reports, Europcar car hire discounts,
discounted Australian Unity health cover. CPA Australia membership also gives member
exclusive access to a range of benefits and services, continuing professional development
and special offers.
- The CPA Program goes beyond the numbers. It teaches you the skills that will help you
reach the next level in leadership, strategies and business.
- Products and services that suit them. One of the many advantages of being a CPA
Australia member is accessing their privilege program.

Since its inception more than 20 years ago, their primary goal for the Member Benefits
program has been to provide a value-based model, offering products and services to
members that are relevant to their varied interests.

Their partner with organisations who have a shared desire to support and make a
difference to their members and the accounting and business finance profession.

2. ICA Australia (Institute of Chartered Accountants of Australia)

What are the benefits of being a member of ICA Australia?

- Offering the best trainings and programs for the professionals in business and finance
- Providing opportunities for employees to have access to wide network
- Providing an access to Institute community and special interest groups
- Upholding the profession and monitoring professional standards
- Administering and supplying up to date knowledge and information in regards to
accounting profession
- Supporting the members enrolled in commerce with regards to services and information
needed
- Providing its members access to over 13,000 books and 80 journals
- Offering the members of the institute with special offers on quality products and services
- Assessing the requirements of the applicant who wish to become a member of ICAA

3. IPA Australia (Institute of Public Accountants)

What is IPA?
The Institute of Public Accountants (IPA) is a professional organisation for accountants
recognised for their practical, hands-on skills and a broad understanding of the total business
environment. The Institute of Public Accountants is a progressive, responsive accounting body
committed to integrity, professionalism and professional development. It represents more than
24,000 members and students working in industry, commerce, government, academia and private
practice. The Institute of Public Accountants formed in 1923 and is one of the three professional
accounting bodies recognised by Australian legislation.
What are the goals of IPA?
Become as trusted advisers, IPA members play a pivotal role in the lives of their small business
clients and are in an ideal position to support the productivity, growth and prosperity of small
business, thus making a genuine economic contribution.

What are the benefits of being a member of IPA?

IPA’s commitment to members includes the delivery of quality continual professional
development and education pathways, ensuring they maintain currency of knowledge and
relevance in an ever-changing and competitive market.

This is supported by a range of communications including technical newsletters and updates;

major conferences and networking opportunities; and, an award winning online technical support
platform.

Advocating on behalf of members is an ongoing activity for the IPA and we have a seat at more
than 120 forums with key political, regulatory and industry stakeholders across Australia and
overseas.

We understand what our members need to build and run a successful business, which is why we
have designed a range of benefits with this in mind.

4. NIA Australia
What is NIA Australia?
The NIA is one of the three recognised professional accounting bodies in Australia, representing
over 20,000 accountants, business advisers, academics and students throughout Australia and
internationally

What are the goals of NIA?

The NIA prides itself in not only representing the interests of its members but also the
accounting profession in general as well as the public interest more broadly. Being a full member
of the International Federation of Accountants (IFAC), the NIA is dedicated to promoting the
development of the industry and profession. Members of the NIA work in all fields of accounting
including in private practice, government, industry and academia. The NIA is actively involved
in setting and enforcing professional standards and in reviewing and commenting on legislation
at all levels.

5. CAANZ

What is CA ANZ?
Chartered Accountants Australia and New Zealand (CA ANZ) represents more than 128,000
members in Australia, New Zealand and overseas.
What are the goals of CA ANZ?
CA ANZ focuses on the education and lifelong learning of members, and engage in advocacy
and thought leadership in areas of public interest that impact the economy and domestic and
international markets. Also proactively shape the profession of the future by developing
opportunities for their members that build value for themselves, their clients and the
communities in which they live and work.

How to become member of CA ANZ?

- They have to eligible to become a Chartered Accountant
- Apply for Provisional Membership
- Enroll in their CA Program subjects and complete three years Mentored Practicial
Experience
- Apply for full CAANZ Membership

What are the benefits of being a member of CA ANZ?

CA ANZ provides members with access to benefits and professional support via a range of
activities:
- maintaining professional standards and a code of ethics.
- setting rigorous entry requirements to the profession.
- monitoring the profession through conduct and regulatory functions.
- promoting your designation in the marketplace.
- professional guidance and technical support.
- advocacy in legislative, regulatory and public policy arenas on issues that can affect the
profession.
- access to library and research services.
- professional opportunities through international networks and reciprocal arrangements
with global bodies.

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