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Accounting For Corporations |
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September 22, 2005
by James Tolles
james.tolles@firststoponlinedegree.com
First Stop Online Columnist
Enron and WorldCom have become names associated with massive accounting fraud. The increased Federal scrutiny on the Big Four accounting firms is helping send their clients to smaller firms, but accountants looking for work should find themselves in a great career position.
Big Four Accounting Firms
The Big Four accounting firms in the U.S. are Deloitte, KPMG, PricewaterhouseCoopers (PWC), and Ernst & Young. They are aptly named because they audit 97% of all large companies in America. Still dealing with the Sarbanes-Oxley statute, these accounting giants have had costs driven up to keep clients in compliance with the law. For instance, Advanced Micro Devices have seen their accounting fees more than triple. The Big Four accounting firms have also watched many clients leave to find cheaper accounting solutions from smaller acounting firms.
Internal Accountability
The biggest sticking point for many companies now is Section 404 in the Sarbanes-Oxley statute. Essentially, companies have had to create more internal controls that hold managers accountable for financial reports. The accounting firms are also required to attest to the financial reporting of their clients. The harsher penalties for not complying with the law have gotten corporations moving despite the high costs.
Online Accounting Education
Moody's Investor Service suggests that the increased scrutiny on corporations' finances has "inspired companies to reinvest in accounting personnel." Perhaps that will inspire you as well to pursue an online college course in accounting if not an accounting degree. Education and also certification are key parts of building a strong career in accounting. If you're not sure yet, then taking an online college course will give you a taste to find out if accounting is right for you.
Sources
http://www.economist.com/business/displayStory.cfm?story_id=3984019
http://www.aicpa.org/info/sarbanes_oxley_summary.htm
About the Author
James Tolles is the Managing Editor for hq|publications. He helped write and edit the successful application for Sparks, NV that earned the city honors as a 2004 All-America City Finalist-a title held by only 30 cities in the nation. He is also a freelance writer. He attended a four year liberal arts college and holds two B.A. degrees, one in Creative Writing and the other in History. |
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