Most people do not know the difference between accounting and auditing. These two fields are very similar in form but have their distinction too. Accounting is something that is done daily in business while auditing is done in a firm by an independent firm that does not have any financial ties to the firm. In accounting, you will be expected to handle the daily transactions that occur in a firm while on the other hand an auditor is expected to review the different accounting books of the firm. Auditing can be conducted by the company itself or have a forensic audit done.
How Much Money do Accountants and Auditors Make?
The Tax Accountant salary is currently at an average of $68,587 in America, according to BLS data. The salary, however, ranges differently depending on the location of the business. The auditor salary, on the other hand, can be up to $54,426 annually. A tax accountant earns more than an auditor because of the nature of their job.
What Is the Tax Accountant Certification?
There are various qualifications you need to be a certified accountant. You will need to have a bachelor’s degree in accounting in or just any other business related course. You can also take a professional course of the Certified Public Accountant. Before you become a certified tax accountant, you will need to do an internship in a firm that practices tax accountancy.
What Are the Auditor Certifications?
To become a certified auditor, there are several certifications you have to go through. These are exams that are acknowledged worldwide. The certification is known as the ‘Certified Internal Auditor.’ If you take up this exam, you are going to be accredited to conduct internal audits and also forensic audits for other firms. The Certified Internal Auditor title is conferred only by the Institute of Internal Auditors which is now recognized globally.
What Are the Licenses and Certifications to Take?
To be in a position to work as an accountant or an auditor, you will need to have some license to practice. This means that you will need to research your state requirements for the profession you want to take up. You will also need to know the fee that is required for the different certifications and registrations. These regulations differ from state to state.
What Are the Popular Certifications in Accountancy?
There are many different certifications and/or credentials when it comes to accountancy. They include:
Certified Public Accountant (CPA)
This is the qualification an accountant needs to be able to file a report with the Security and Exchange Commission. This is a requirement of the law. A CPA is required to pass all the national examinations and also ensure that they meet all the state requirements.
Certified Management Accountant (CMA)
This is a requirement multinational companies require professional accountants to hold if handling their finances. For this one, you will be required to have a bachelor’s degree in a related field and also complete an exam that is usually in two parts. You must follow the Institute of Management Accountants ethics, plus have more than two years of experience in order to obtain this credential.
Internal Auditor Certification (CIA)
This is a certification offered by the Institute of Internal Auditors (IIA) an accountant needs to practice globally as an Auditor. As mentioned above, internal auditors conduct a variety of audits including fraud and compliance cases. An exam is required as well as 2 years of documented experience for this credential.