Professor Elam

The purpose of this post is to describe three of the accounting certifications available, and to make some specific recommendations about what you might best pursue.  At this point, I suggest you log on to WEB CT and retrieve my Helpful Websites document that contains a host of useful web links.

A certification is obtained by taking an examination administered by a licensing body. Certifications do not come from universities or CCs.  There are numerous certifications including Certified Divorce Accountant, no kidding, but here we are focusing on the top three which are

Certified Public Accountant

Certified Managerial Accountant

Certified Internal Auditor

Certified Public Accountant or CPA is the most prestigious.  The unique quality here is that one is licensed to issue audited statements on financial reports.  One can also represent folks before the IRS but actually there are lots of categories of folks that can do that.  This cert is issued by the Texas State Board of Public Accountancy. Click on that link for the rules. Basically you have to compete 150 college hours of which 30 are in accounting beyond the first 6 and an additional three in ethics.  And you must have completed a college degree though one in accounting is not specified though if you must have the hours, gee it only makes sense to major in accounting.  There is not space here to explain everything but most major universities in Texas have adopted a BBA MPA program so you will have the required hours and earn a BBA and a Masters upon completion. But understand that passing rate  is only about 40% on any one of the four IN short, you can graduate, take review exams, pay the whopping $750 exam fee and still have a heck of a time passing. IN fact most accounting grads never become CPAs, a fact not readily acknowledged in university circles.  Now, I am in no way saying that you should not consider becoming a CPA, I did at the urging of a good friend and it was one of my better life decisions.  Now by the way, do not confuse the state licensing agency, the TSBPA withe the American Institute of CPAs AICPA or the Texas Society of CPAs TSCPA. The latter are volunteer memberships to promote the profession.  Texas is divided into several sectors by area, such as Dallas Society of CPAs.  One joins the local and state society at the same time, AICPA is separate. 

Now I told you all that to ask you to consider a more modest level of accomplishment but still an important one first. I honestly believe the next two certifications are growing in importance and are probably more the areas where our graduates will seek work. 

The Institute of Internal Auditors supervises the Certified Internal Auditor CIA exam.  The

Institute of Management Accountants supervises the CMA exam.  Both certifications would be found working for an organization. The things we study in managerial accounting are what CMA is all about.  As we have become more service oriented and globalization has taken center stage, the importance of improving internal process has gained in importance. 

SARBOX and the call for more assurance will I think cause Internal Auditing to be the fastest growing field of accounting .  These exams are certainly difficult and composed of four different sections.  They are not seen as difficult as the CPA exam, but hey don’t think you can breeze thru without lots of serious study.  However the big advantage is that a BBA is required, not 150 hours.  And the exam fee is much lower.  This would also be a good way to build your confidence to eventually take the CPA exam. 

I will obtain the latest copies of the Gleim review books for CIA and CMA. If you are a student you can buy the Gleim review books for $50 for CMA and $48 each for CIA including book and software. Remember thre are four books to the entire set.    This price is lower as UNT has a site license with Gleim.  I will put then on reserve in the library. I also recommend taking a regular in the seat review class.

I urge you to take the Helpful Websites and surf around the sites to see what is going on in the world of accounting, quite a bit frankly.

Now one more thing.  Look around you next time you are in class here or in Denton.  Just about everyone you see is going to get a BBA. Well not to diminish that accomplishment BUT that means you have simply moved up one notch.  It will be necessary to separate yourself from the pack so to speak to stand out as a job applicant. There is simply no better way to do that than by obtaining a certification.  And you can take pride in your accomplishment knowing that many either don’t try or try and fail.