Auditing

Introduction:

If you are meticulous and have a flair for numbers, auditing could be a right career choice for you. Auditing, one of the main career options in the field of accounting has a vital role to play in each and every organisation, be it public or private sector. Auditing could be termed as the bread and butter work of accounting which involves checking ledgers and financial statements within an organisation.

Auditing is a systematic process of objectively obtaining and evaluating the accounts or financial records of a government undertaking, department, private business, or other entity based on an established criteria. In other words, Auditing involves the review, analysis and evaluation of processes, products, services, systems, organizations and employees. It is a specialized form of accounting for an organization's financial information, which includes systems, policies and records. While auditing focuses largely on financial information, the process also may involve examination of non financial documents that reveal information about a business's conduct.

Traditionally, audits were mainly associated with gaining information about financial systems and the financial records of a company or a business. According of ICAI Institute of Chartered Accountants of India - 'Auditing is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon. Auditing is done to know the true and fair view of an organisations financial position'.

Eligibility:

Ø To become an auditor one must have at least a bachelors degree in Accounting. Some employers may prefer those with masters degree in accounting. MBA with specialization in finance can also be a right subject choice.

Ø Courses in economics, business studies and humanities are also helpful. Some universities conduct specialized courses in auditing. Along with subject specialization, computer literacy is also essential. One must take a course in computer accounting software's such as Tally or some other related diplomas.

Ø One can further take up more advanced courses like ICWA, CA, Company Secretary ship or CPA (certified public accountant in the USA)etc.

Ø  There are certain auditor certifications provided by international audit associations such as Institute of Internal auditors (IIA), Information Systems Audit and Control Association (ISACA) etc which are globally accepted. The Institute of Internal auditors gives Certified Internal Auditor (CIA) designation and ISACA provides Certified Information Systems Auditor (CISA) certification, respectively. CISA qualified Auditors have been recognized as qualified to conduct Systems Audit by Reserve Bank of India (RBI), Ministry of Information Technology (MIT), National Stock Exchange, Comptroller and Auditor General of India (C&AG).

Job Prospects & Career Options:

With the growth in the economy and the number of business concerns boosting day by day, demand for auditors are increasing to ensure the credibility of the financial accounting data and financial statements in the private sector as well as public sector companies. One should not pursue a career in auditing merely because it is a lucrative filed, he/she must really love working with numbers and have an aptitude for mathematics. Companies registered under Companies Act are required to get audited annually. This has also made auditing an evergreen career field.

Types of auditors

Ø Internal auditors

Ø External auditors

Ø Government auditors

Ø Forensic auditors

Remuneration:

At entry level an auditor can expect a salary range between Rs.6,000 to Rs.15,000. Once you are established in the field and gained good experience, salary may not be a constraint. External auditors can earn more compared to internal auditors, as external auditors handle more than one organisation. In the case of internal and government auditors salary is fixed to certain extent.

Courses:

» B.Com
» B.Com Taxation
» M.Com
» M.Com. Cost accounting
» M.Com Computer Application
» M.Com. Taxation
» M.Phil Commerce
» Ph.D Commerce
» Certificate in Financial Accounting

» Certified Advance Business Accountant (C.A.B.A)
» Certified Public Accountant (C.P.A)
» Certified Management Accountant (C.M.A)
» Diploma in Financial Accounting

Accounting

Accounting

Introduction:

Accounting or accountancy is one of the most important fields of finance & commerce. Accounting is the branch of commerce which deals with aspects such as summarizing, reporting and analysing financial transactions to keep financial records. It is the study of how businesses track their income and assets over a period of time. Accountancy is related to dealing and maintaining records of all daily financial transactions happening in business to estimate the success or failure of a business.

Growing economic and commercial activities has made accounting an integral part of our everyday lives. Any business requires an accountant who would be responsible for maintaining books of accounts. Hence, accounting career opportunities exist almost everywhere, and accountants are in high demand whether it is a new business, big or small, home-based business, corporations and government organisations. The services of accountants are required by all organisations as they must maintain systematic records of all transactions for the purpose of planning activities, managing and furnishing tax returns. Without this department, recording financial transactions, proper maintenance of staff salary and books of account, balance sheets preparation, calculation of various taxes etc. is not possible in a firm. Most decisions related to present and future projects are based on the financial records of a concern. Accounting is an important field not only in business but also in everyday life of common man. People use accounting skills while making decisions related to finance and investment options.

With IT boom, computer has occupied almost every field and in this scenario even accounting is not possible without computers. This has increased the importance of computerised accounting. Specially designed accounting software like Tally is used by firms to ensure speedy and accurate accounting.

Educational Qualification:

• The basic educational qualification for pursuing a career in Accounting is taking 10+2 with Commerce as the main subject, followed by a bachelor degree in Commerce.
• For Post graduate courses such as M.Com one needs to have B.Com at graduate level.
• Along with subject specialisation computer literacy is also essential. One must take a course in computer accounting software's such as Tally or some other related diplomas.
• One can further take up more advanced positions by doing ICWA, CA, Company Secretary ship or an MBA in Finance.
• After bachelor’s degree in accounting, one can also go for diploma or certificate course in Forensic accounting. Some institutes offer Forensic Accounting as part of the Law degree.

PERSONAL ATTRIBUTES:

• Accountants should have an aptitude for mathematics and be able to analyse, compare and interpret facts and figures quickly.
• They must be able to communicate well and have an eye for detail.
• Familiarity with computerized accounting is essential.
• They must be able to work as a team.
• Must have high standards of integrity and accuracy as major decisions are made based on financial statements given by them.

JOB PROSPECTS & CAREER OPTIONS:

As the economy grows and the number of businesses increases, more accountants is required to set up account books, prepare tax returns and provide management advice regarding financial matters. Accountants are always on demand and a diverse range of exciting careers are available for accounting graduates to choose from. 

People can start their career as a junior accountant and can reach various top level positions such as a Senior accountant, Chief financial officer, auditor, budget analyst, financial manager, tax consultant etc. An accountant's work can range from auditing, which is the formal analysis of an organization's financial statements, to the daily bookkeeping that ensures the accounts are maintained correctly. Places where they can find work include public accounting firms, government departments, non-profit organisations, private firms etc. They could also start their own accounting or auditing firm. 

The four major fields of accounting are:

Public accountants - Public accountants work with different clients to assist their accounting needs. They provide accounting services to individuals, businesses and governments. As a public accountant you will focus primarily on tax functions and auditing. They advise on the most effective use of financial resources.

Management accountants - Management accountants also called industrial, corporate or private accountants. Their main responsibilities involve cost management, budgeting, asset management and performance evaluation. Management accountants analyse and interpret financial information and assist to make sound business decisions. 

Government accountants-Government accountants may work at the local/state level or the central level, administer and formulate budgets, track costs and analyse programs. With this position, you work in a variety of government departments such as the Internal Revenue Service, Department of Defence.

Internal Auditors- They conduct audits to ensure compliance with accounting laws and working to make sure that accounting information systems are up to the standard. Verify the accuracy of financial reports and guard against waste or fraud in company operations. Specifically, they examine and evaluate their firms financial and information systems, management procedures, and internal controls to ensure that records are accurate and controls are adequate to protect against fraud and waste. 

Options available in this field are that of

Auditors - The job of the auditors is to ensure the credibility of the financial accounting data and financial statements in private sector companies as well as public sector companies. Work in audit involves checking accounting ledgers and financial statements.

Budget and credit analyst- Budget analysts are responsible for developing and managing organizations financial plans. They forecasts expenditure incurred, analyses records of present and past operations. There are many opportunities for a budget analysis accountant in private as well as government agencies.

Financial accountant- Financial accountants draw information from the general ledgers to prepare financial statements. The core function of a Financial Accountant involves analysing and recording business transactions, financial statements, with information from the ledgers by preparing general ledger accounts, trial balances etc.

Tax accountants- Tax accountants prepare corporate and personal income tax statements and formulate tax strategies. Based on their statement financial choices are made as how to best treat a merger or acquisition, deferral of taxes, when to expense items and the like. They clarify current tax laws to clients, advises on ways to avoid tax by smart investments and assists businesses in calculating annual tax returns. They need to have a thorough understanding of economics and up-to-date information on the tax code and laws of the country. 

Management accountant - Management accountants work in companies and contribute to decisions about capital budgeting and business analysis. Major functions include cost analysis, analysis of new contracts and participation in efforts to control expenses efficiently. They work along with marketing and financial managers to take business decisions.

Teachers/Lecturers- Teaching is another noble profession. If you have a knack for teaching and the required qualification, you can work as professors, or as researchers in universities or colleges. Pursuing B.Ed., MEd, M. Phil or passing the NET Exam can give an edge for those interested in teaching. 

Forensic accountant - Forensic accountants frequently work for public accounting firms, banks, the IRS (Indian Revenue Service), insurance companies and law firms.

COURSES:

There are lots of Accounting colleges in India and, therefore, the choice is quite a tough one to take when it comes to selecting the proper institute.

» B.Com
» B.Com Taxation
» M.Com
» M.Com. Cost accounting
» M.Com Computer Application
» M.Com. Taxation
» M.Phil Commerce
» Ph.D Commerce
» Certificate in Financial Accounting
» Certified Advance Business Accountant (C.A.B.A)
» Certified Public Accountant (C.P.A)
» Certified Management Accountant (C.M.A)
» Diploma in Financial Accounting

REMUNERATION FOR ACCOUNTANTS

At the entry level an Accountant can start with a monthly remuneration ranging from 6,000 to 15,000. One can command a higher salary as the experiences raises. Companies are offering handsome salary packages to account professionals across the world.

Economics

Economics

Introduction: 

Economics is mainly associated with production, distribution and consumption of goods and services. The study of economics has become crucial because the issue of human development is now almost synonymous with economic development. Economics addresses many of prevailing economic problems such as inflation, unemployment, poverty, market fluctuations, recession and overall economic growth. There are various branches in economics such as Microeconomics, Macroeconomics, Development economics, Econometrics, Public economics, International economics, and Welfare economics etc.

Nature of Work: 

Economists study the ways that society uses limited resources, such as land, water, raw materials, and human labor, to satisfy their needs and wants. They are social scientists who have expert knowledge about systems that produce, distribute, and use goods and services. Economists are concerned with how individuals, businesses, and governments at all levels obtain, invest, and spend money. They also study the reasons why people follow certain economic courses. They sometimes analyze the relationship between the supply and demand of goods and services.

Personality:

• A logical and analytical bent of mind 
• Numerical ability 
• An interest in current social and political activities 
• Sincerity, commitment and devotion 
• An interest in problem solving 
• A high level of patience, with a positive and optimistic attitude 
• Knowledge of overseas economic ideas and trends 
• Knowledge of maths, including statistics 
• Decision-making ability 
• Good oral and written communication skills 
• Good time and project management skills

Professional courses, Duration and Eligibility Criteria: 

List of Courses:

• B.A. (Hons.) Economics. 
• B.A. Applied Economics. 
• B.A. Economics. 
• B.A. Politics. 
• B.A. Politics and International Relations. 
• B.Sc. Economics. 
• M.A. Applied Economics. 
• M.A. Business Economics. 
• M.A. Econometrics. 
• M.A. Economics. 
• M.A. Politics. 
• M.Phil. Development Studies. 
• M.Phil. Economics. 
• M.S. Quantitative Economics. 
• M.Sc. (Hons.) Economics. 
• M.Sc. Economics. 
• M.Sc. Financial Economics. 
• Ph.D. Development Studies. 
• Ph.D. Econometrics. 
• Ph.D. Economics.

Basic Eligibility: 

UG: 

After completing 10+2, a student can enroll for an undergraduate course i.e. Bachelor of Arts (B.A) in Economics.

PG: 

After completion of undergraduate program, one can pursue Master of Arts (M.A) in Economics from a reputed university.

Career Prospects: 

Economics continues to be ranked among the most popular majors chosen by the majority of students. Due to the widespread use of economics in various sectors, graduates are employed in a range of posts which may, or may not, be related to the discipline they studied. They work in manufacturing, transport, communications, banking, insurance, investment and retailing industries, as well as in government agencies, consulting and charitable organizations. In addition to the economic consulting work in both the private and public sectors, employment prospects in sectors such as government jobs, journalism, administration, sales, finance, investment banking, and venture capital seem quite bright for economic graduates. Various international organizations like the World Bank and the International Labor Organization offer ample job opportunities to well-known economists.

Remuneration: 

In the age of globalization and liberalization economists are supposed to get good returns from their jobs whether in a private or public sector. In government sectors economists are getting Rs. 10,000 to 12,000 per month as assistants while a experienced and seniors have a average salary of Rs. 25,000 per month.

In colleges and universities, economics teachers are earning somewhere in between Rs. 12,000 to 25,000 per month depending on their seniority and private sectors. In private sector remuneration are even higher. Economic consultants are also earning better returns depending upon the number of clients they own.

Forensic Accounting

Forensic Accounting

Introduction:

A forensic accountant is a person who is one part accountant, one part detective, and one part legal expert. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques to determine whether an activity is illegal. Many forensic accountants work closely with law enforcement personnel and lawyers during investigations and often appear as expert witnesses during trials. A forensic accountant is an experienced auditor, who acts as a watch-dog of accounts of a company, in order to keep a check on the frauds. These experts are responsible for using technology and implementing investigative techniques to disclose fraudulence and illegal practices in the fields of accounting, banking, financial laundering, etc. They carry out elaborate audits, verify records, gather proof of financial malpractice, and question people related to the misconduct.

Nature of work: 

Forensic accountants and auditors help to unravel and solve crimes through the use of financial information, embezzlement activity records, security fraud, bankruptcies and money laundering. They interpret financial records and history to find information that may contribute to answers in a criminal case. Some forensic accountants work closely with law enforcement officers to investigate paperwork and the history of criminal suspects. Forensic accountants and auditors are skilled in unraveling detailed and complex financial transactions to determine whether or not they could potentially have something to do with criminal activity. They then report them to law enforcement officials and work with them to combine information and piece together details that may be used to solve a crime or benefit a court case.

Personality: 

Analytical:
Forensic accountants need to be analytical. As they review financial reports and source documents, they need to analyze the validity of each transaction and determine if the company recorded the transaction fairly. In some cases, the documentation will not support the numbers on the reports. The forensic accountant needs to analyze where the numbers on the reports came from and whether the company accurately reported those numbers.

Detail Oriented:
A forensic accountant needs to be detail oriented. Reviewing financial reports and the supporting documents requires looking at large quantities of numbers. At each step, the numbers from the supporting documents need to match the numbers on the financial reports. The forensic accountant needs to compare these amounts and note any inconsistencies. This requires seeking out the detailed information for each transaction and investing time to compare the details with the final totals.

Persistence:
Persistence plays an important role in the life of the forensic accountant. In some cases, the financial reports lack the supporting documentation. The forensic accountant needs to continue requesting that documentation and finding the source of the data reported. Without the supporting documentation, the forensic accountant cannot draw conclusions regarding the validity of the numbers. She needs to continue requesting the documentation, becoming more assertive if necessary, until she can make a solid conclusion.

Inquisitiveness:
Gaining the information necessary to investigate financial reports comes from asking questions. Inquisitive forensic accountants get answers. As the forensic accountant reviews the numbers on the financial reports, he needs to ask the staff questions regarding each number reported. The more questions he asks, the better he’ll understand why they reported the numbers that appear on the financial reports. If the staff members fail to answer his questions, he needs to continue asking other staff members or supervisors.

Professional courses, Duration and Eligibility Criteria:

• Graduate from high school 
• Attend a bachelor’s program in forensic accounting or a related field (4 years). 
• Take the uniform certified public accountant (CPA) examination (timeline varies). 
• Garner professional experience, especially in forensic accounting, internal auditing, fraud detection, white-collar crime investigations, and other relevant areas (1-3 years). 
• Seek state CPA licensure and other professional certifications (timeline varies). 
• Pursue a graduate degree in forensic accounting (typically 2 years).

Career Prospects:

Forensic accountants and auditors can expect more jobs to open up over the next several years. The job outlook is positive for forensic accountants and auditors due to the increased number of white collar crimes being committed by owners of large businesses regarding money laundering and other financial crimes. In recent years there have also been stricter laws enforced regarding money transactions and businesses, so these enforcements are causing the need for forensic accountants to increase significantly.

Forensic accountants and auditors who have worked in the field for several years can advance to working for a larger law enforcement agency or working as a financial investigator on larger crimes. Many also lead up to the head of the entire forensic accounting department, leading a team of accountants and auditors by giving each person a role or specific duty to perform in order to find all the information needed regarding a case. Large cases often require the use of several forensic accountants and auditors to look at information from different angles and perform different research techniques in order to obtain all the necessary information.

Forensic accountants and auditors can reach the top of their career ladder by becoming an accountant or auditor for the Federal Bureau of Investigation. They will then investigate crimes on a national level that can even involve federal government employees. Those who work for the FBI have usually worked a number of years in a smaller government agency and worked their way up to leadership positions.

Remuneration:

Forensic accounting is one of the highly paid jobs in India. As the demand for forensic accountants is on a rise and those with required qualification is rare, the scope for this job as well as remuneration is sky-scraping. A beginner can earn a salary between Rs. 25,000-30000 per month, while an experienced person can earn a lot more than that, probably in six figures.
Most forensic accountants abroad begin their career making between $30,000 and $60,000 and often work their way up to salaries often between $125,000 and $150,000 or more.

Finance Management

Finance Management 

Introduction: 

Business concern needs finance to meet their requirements in the economic world. Any kind of business activity depends on the finance. Hence, it is called as the lifeblood of the business organization. Whether the business concerns are big or small, they need finance to fulfill their business activities. In the modern world, all the activities are concerned with the economic activities and very particular to earning profit through any venture or activities. The entire business activities are directly related to making a profit. (According to the economics concept of factors of production, rent was given to landlord, wage given to labor, interest given to capital and profit given to shareholders or proprietors), a business concern needs finance to meet all the requirements. Hence finance may be called as capital, investment, fund etc., but each term is having different meanings and unique characters. Increasing the profit is the main aim of any kind of economic activity. 

Nature of work:

Financial managers advise clients on appropriate business planning and help in decision-making processes to ensure that businesses are financially successful. This might involve advising on investments, savings, pensions or insurance products.

A wide range of organizations employs financial managers including financial institutions, supermarkets, insurance companies, manufacturers, charities, utilities, local government, health authorities, industrial organizations, retailers, universities/colleges, IT companies and engineering firms.

Personality:

Employers look for evidence of good oral and written communication skills, self-motivation, commercial awareness, initiative and the ability to work as part of a team. Excellent problem-solving, analytical, technical, IT and numerical abilities are crucial.

Courses: 

Divided into three main parts:
1. MBA
2. Statutory Courses

• Chartered Accountant
• Cost Accountant
• Company Secretary
• Actuary

3. Specialized Course

• Chartered Financial Analyst
• Certified Financial Planner
• Economics
• Statistics
• Investment Analyst
• Financial Risk Manager
• Financial Modeling and Investment Banking Programmes

Eligibility Criteria:

The basic qualification to this 2 years full-time program is graduation in any discipline and the admission is based on written test, group discussion, and interview. And many Certificate, Diploma, Graduate and post graduate courses are also available and help one to enter the profession.
The minimum educational qualification to join these courses is graduation in Commerce or Economics.

Personal skills:

One must keep on updating the knowledge about the subject and the current global- national financial scenario. They should have the love for numbers, good mathematical and analytical skills, knowledge of latest computer technology, integrity, problem-solving, decision-making and organization skills.

Job Prospects:

As with other managerial occupations, job seekers are likely to face competition because the number of job openings is expected to be fewer than the number of applicants. Candidates with expertise in accounting and finance—particularly those with a master's degree or certification—should enjoy the best job prospects. An understanding of international finance and complex financial documents is important.

Remuneration:

A fresher in this field, especially an MBA graduate can expect an initial payment of about Rs. 10,000-30,000 per month in a big corporate. A senior financial expert could get something not less than Rs. 50,000 to 1.5 lakh depending upon his performance.