Education, professional training, and recognised qualifications are important for building a career in accounting and auditing. Accountants may obtain academic degrees as well as professional accounting qualifications. The educational and qualification requirements may vary depending on the type of accounting job, professional accounting body, and career path selected by an individual.
Degrees in Accounting
A bachelor’s degree or master’s degree in accounting or a related field is generally required for most accountant and auditor job positions. These degrees provide the academic education required to understand accounting principles and related areas. Some employers may also prefer candidates who possess advanced qualifications.
An accounting degree may also be required for membership in certain professional accounting bodies. In some cases, the education completed as part of an accounting degree can be used to fulfil the educational requirements prescribed by a professional accounting organisation.
For example, accounting degree education may be used to meet the 150-semester-hour requirement of the American Institute of Certified Public Accountants (AICPA). Therefore, formal accounting education may contribute towards meeting the eligibility requirements associated with professional accounting qualifications.
Similarly, associate membership of the Certified Public Accountants Association of the UK is available after obtaining a degree in finance or accounting. This shows that an academic degree can also serve as a basis for obtaining membership in professional accounting organisations.
Doctoral Degrees in Accounting
A doctorate is generally required for a career in accounting academia. For example, a person who wants to work as a university professor in accounting normally needs to obtain a doctoral qualification.
The two popular doctoral degrees in this field are the Doctor of Philosophy (PhD) and the Doctor of Business Administration (DBA). Although both are advanced doctoral qualifications, their general career focus differs.
A PhD is the most common doctoral degree for individuals who wish to pursue a career in academia. It is particularly associated with academic and research-oriented careers in accounting.
In contrast, DBA programmes generally focus on preparing business executives for business or public careers that require research skills and qualifications. Thus, while a PhD is more commonly associated with an academic career, a DBA generally focuses on applying advanced research skills in business or public careers.
Professional Accounting Qualifications
Professional accounting qualifications include Chartered Accountant designations and various other certificates and diplomas. These qualifications are provided or administered through professional accounting organisations and are associated with professional practice in accounting.
Professional qualifications may require accountants to complete specified education, training, examinations, and continuing professional development requirements. Professional accountants may also be required to follow the ethical codes and disciplinary requirements of their respective professional bodies.
Professional Requirements for Chartered Accountants in Scotland
In Scotland, Chartered Accountants associated with the Institute of Chartered Accountants of Scotland (ICAS) are required to undertake Continuous Professional Development (CPD).
Continuous Professional Development refers to the continued professional learning and development of accountants. ICAS Chartered Accountants are also required to comply with the ICAS Code of Ethics. Therefore, their professional responsibilities include both continued professional development and adherence to prescribed ethical standards.
Professional Requirements in England and Wales
In England and Wales, Chartered Accountants associated with the Institute of Chartered Accountants in England and Wales (ICAEW) are required to undergo annual training.
ICAEW Chartered Accountants are also bound by the ICAEW Code of Ethics. In addition, they are subject to the organisation’s disciplinary procedures. Thus, professional membership involves continuing training, ethical obligations, and compliance with professional disciplinary requirements.
Certified Public Accountants in the United States
In the United States, the requirements for joining the American Institute of Certified Public Accountants (AICPA) as a Certified Public Accountant (CPA) are determined by the Board of Accountancy of each state.
Therefore, CPA membership requirements are set at the state level through the respective Boards of Accountancy. Individuals joining AICPA as Certified Public Accountants also agree to follow the AICPA Code of Professional Conduct and Bylaws.
The Code of Professional Conduct establishes professional conduct requirements for members, while the bylaws provide the organisational rules applicable to membership.
Association of Chartered Certified Accountants
The Association of Chartered Certified Accountants (ACCA) is described as the largest global accountancy body, with more than 320,000 members.
ACCA provides an “IFRS stream” and a “UK stream.” These streams provide different areas of focus within the professional accounting qualification framework.
Students pursuing the ACCA qualification are required to pass a total of 14 examinations. These examinations are arranged across three levels. Therefore, the ACCA qualification follows a structured examination system in which students progress through different levels of professional accounting education.
Exam Focus
For most accountant and auditor positions, a bachelor’s or master’s degree in accounting or a related field is generally required. An accounting degree may also help fulfil the educational requirements for membership in professional accounting bodies. The AICPA has a 150-semester-hour educational requirement.
A doctorate is required for a career in accounting academia, such as becoming a university professor. The PhD is the most common degree for an academic career, while the DBA generally prepares business executives for business or public careers requiring research skills and qualifications.
Professional accounting qualifications include Chartered Accountant designations, certificates, and diplomas. ICAS Chartered Accountants undertake Continuous Professional Development and follow the ICAS Code of Ethics. ICAEW Chartered Accountants undergo annual training and are subject to ethical and disciplinary requirements.
In the United States, CPA requirements are set by the Board of Accountancy of each state, and AICPA members follow its Code of Professional Conduct and Bylaws. ACCA has more than 320,000 members and provides IFRS and UK streams. Its students are required to pass 14 examinations arranged across three levels.