Appendix 1B: Employment In The Accounting Field Today

Question 1

What legal status did accounting attain in 1902 in Canada?

Answer 1

Accounting attained the legal stature of professions such as law, medicine, engineering, and architecture in Canada through an Act of Parliament in 1902.

Question 2

What designation did professional accountants have in Canada before the unification of the accounting profession in 2013?

Answer 2

Before the unification in 2013, professional accountants in Canada had designations such as Chartered Accountant (CA), Certified General Accountant (CGA), or Certified Management Accountant (CMA).

Question 3

What is the current unified designation for professional accountants in Canada?

Answer 3

The current unified designation for professional accountants in Canada is Chartered Professional Accountant (CPA).

Question 4

What are some common characteristics shared by recognized professions, including accounting?

Answer 4

Recognized professions, including accounting, share common characteristics such as professional competence requirements, dedication to public service, a high level of academic study, and a common body of knowledge.

Question 5

What are some specific requirements for obtaining the CPA designation in Canada?

Answer 5

Specific requirements for obtaining the CPA designation in Canada include a university degree with a specified number of accounting courses, good character, a minimum of two years of relevant professional experience, and successful completion of a standard professional Common Final Examination (CFE).

Question 6

What annual requirement do all accountants need to fulfill to maintain their CPA designation?

Answer 6

All accountants must provide evidence that they have completed annual standardized Continuing Professional Development courses offered by the profession to maintain currency and retain their CPA license.

Question 7

What are some areas of practice that have become increasingly common in the accounting profession today?

Answer 7

Some areas of practice that have become increasingly common in the accounting profession today include

financial analysis,

evaluation and implementation of new information technology and business processes,

management advisory and consulting services,

forensic accounting,

risk management and cybersecurity,

and environmental, social, and governance (ESG) reporting.

Question 8

How has the demand for accounting services reshaped educational programs for aspiring accountants?

Answer 8

The demand for accounting services has reshaped educational programs for aspiring accountants by emphasizing a broader range of skills and knowledge beyond traditional accounting and tax services.

Aspiring accountants are now trained to handle financial analysis, technology implementation, consulting, forensic accounting, risk management, cybersecurity, and ESG reporting.

Question 9

What are the three main types of services typically offered by accounting firms?

Answer 9

Accounting firms typically offer three main types of services:

audit or assurance services,

management consulting and advisory services,

and tax services.

Question 10

What are some examples of the “Big Four” accounting firms?

Answer 10

The “Big Four” accounting firms are Deloitte Touche Tohmatsu, Ernst & Young, KPMG, and PricewaterhouseCoopers.

Question 11

What is the primary purpose of a financial statement audit performed by CPAs?

Answer 11

The primary purpose of a financial statement audit performed by CPAs is to lend credibility to the financial reports and ensure that they fairly represent what they claim.

Question 12

Besides financial statement auditing, what are some other areas of assurance services provided by CPAs?

Answer 12

Other areas of assurance services provided by CPAs include ensuring the integrity and security of electronic commerce and assessing the reliability of information systems.

Question 13

What are some examples of management consulting services offered by independent accounting firms?

Answer 13

Management consulting services provided by accounting firms include

designing and installing accounting systems,

data processing systems,

profit-planning and budgeting systems,

financial advice,

forecasting,

internal controls assessment,

cost-effectiveness studies,

and operational, data, and business systems analysis.

Question 14

How is artificial intelligence (AI) used in accounting by major accounting firms?

Answer 14

Major accounting firms use AI to develop and implement end-to-end accounting information systems that handle all data entry for accounting purposes.

AI software analyzes these data to detect errors and unusual entries, enhancing internal control and reducing external audit costs.

Question 15

What role do accountants play in ESG (Environmental, Social, and Governance) reporting?

Answer 15

Accountants are involved in measuring the impact of sustainability activities and attesting to entities’ compliance with existing and new sustainability disclosure standards in response to the demand for ESG reporting.

However, they must maintain independence from the public companies they audit.

Question 16

What services do accountants in public practice typically provide in the area of income tax?

Answer 16

Accountants in public practice offer income tax services, which include tax planning as part of decision-making processes and the determination of income tax liability reported on annual income tax returns.

Question 17

Why is a high level of competence necessary for accountants specializing in taxation?

Answer 17

A high level of competence is required for accountants specializing in taxation due to the increasing complexity of provincial and federal tax laws, which they must navigate effectively to serve their clients.

Question 18

How significant is the accountant’s role in tax planning for clients?

Answer 18

The accountant’s role in tax planning can be quite significant, as many major business decisions have significant tax implications. Tax considerations often play a crucial role in governing certain business decisions.

Question 19

What is the role of the chief financial officer (CFO) in a business enterprise, and what qualifications do they typically possess?

Answer 19

The CFO in a business enterprise usually holds the position of vice-president or controller and is typically a Certified Professional Accountant (CPA).

They are responsible for a wide range of management, financial, and accounting duties and are considered a leader of the management team.

Question 20

What are some of the activities that accountants in business entities are typically engaged in?

Answer 20

Accountants in business entities are involved in various activities, including general management, general accounting, cost accounting, profit planning and control (budgeting), internal auditing, computerized data processing, cybersecurity, and ESG reporting.

They also handle external reporting, tax planning, asset control, and related responsibilities within the organization.

Question 21

What functions do professional accountants in the public and not-for-profit sectors typically perform, and how do they compare to their counterparts in for-profit organizations?

Answer 21

Professional accountants in the public and not-for-profit sectors perform functions similar to those in for-profit organizations.

They are involved in activities such as financial management, budgeting, auditing, and reporting, but their organizations are typically governmental units, charitable organizations, hospitals, universities, and other not-for-profit entities.