Overview of Accounting
Who would have thought that, of all the issues in the world, accounting would ever be foremost among hot-button discussion topics? Accounting? Boring accounting? A profession once derided in a famous "Monty Python" sketch as a "horrible debilitating disease" whose practitioners are "appallingly dull, unimaginative, timid, lacking initiative, spineless, easily dominated, no sense of humor and irrepressibly drab?" Interesting and intriguing? Never!
Yet in early 2002, accounting was pulled from the depths of business arcana, hotly deliberated by politicians and television pundits alike, and plastered on the front pages of the popular press. As a result of the Enron debacle, accounting has entered the public consciousness like never before.
Unfortunately, most of this exposure has cast a negative light on this noble profession. Awash with devastating revelations of shady partnerships, government cronyism, hidden debt, shredded documents and conflicts of interest, all under the oversight of Arthur Andersen, the Enron scandal has played out like a soap opera with accounting as a central storyline. Andersen's alleged role in the scandal has struck a blow to the profession's image that is sure to change public perception about accounting and its practitioners. (A recent Times Square billboard advertisement for whiskey mocked the profession with the caption, "Disappears faster than a Big Five accounting firm." Ouch!)
The Enron scandal has not only changed the perception of accountants in the eyes of the public, but will change the field of accounting as we know it. The government, the Securities and Exchange Commission (SEC) and other regulatory agencies are discussing how to make the accounting profession more reliable and to increase the respect of accounting professionals in the eyes of the public. Congressional committees are considering issues ranging from auditor conflict of interest to the regulation of the derivatives market. The SEC has pledged to reform accounting rules and get tough on fraud and audit oversight. The accounting world as we know it is changing.
Despite the historic implications of the Enron scandal, the accounting profession remains hale and hearty. The work of accountants will always be needed. External audits by public accountants will continue to be required for public companies, tax professionals will be there to interpret the complicated tax laws and companies will still need accountants to ensure the accuracy of their financial records. More importantly, the rising complexity of corporate activities, the growth of international business and the increased use of technology are combining to change the roles of accountants, creating new opportunities and spurring job growth for the profession.
If you're interested in this industry, it's important to understand what it's going to take to be successful if you choose to pursue a career as an accountant. There are ethical considerations (currently a hot topic with the media) as well as a vast job market with thousands of opportunities to be understood and dissected. This Vault guide will give you the inside scoop you need to evaluate the career opportunities in the field.