Glossary of Professional Designations for the Accounting Industry

 
Certified Public Accountant (CPA)

With approximately 450,000 active CPAs in the United States, the CPA certification is the most popular professional designation for accountants. However, adding "CPA" to your business card is no easy feat, as the CPA exam is known for its extreme difficulty.

Every year, more than 130,000 candidates sit for the Uniform CPA Examination, but only ten percent pass all four parts of the test the first time out. While you do not have to be a CPA to practice public accounting, the CPA designation is a valuable addition to your resume, as it will help you earn a higher salary and greater recognition from your employer and peers.

• Becoming a successful CPA begins while you are still in college. You need to demonstrate superior scholastic achievement, possess a good technical accounting and business knowledge (which means taking those hard electives), and have a good understanding of the humanities and other liberal arts subjects.
• Problem -solving skills are vital. You should be able to analyze, compare and interpret data.
• You have to be a creative thinker, too. You will be faced with issues every day that need innovative solutions. In addition, the answers you come up with are often the difference between being a good CPA and a great one.
• You need to understand business systems and computers. You have to know about networks and be familiar with spreadsheets and accounting software.
• You need good people skills. Accounting is a service activity, and you will have to work well in groups as well as one-on-one situations. In addition, communicating well, both verbally and in writing, is essential.

As a CPA, you must have high ethical standards because people rely on the information you provide. Honesty and integrity are qualities that are highly valued.

Certified Management Accountant (CMA)

Accountants with the CMA certification earn competitive salaries compared to those with the CPA certification. According to the Institute of Management Accountants 1999 Salary Guide, however, compensation is greater for those who are dual holders of the CMA and CPA.

Management accountants are found in both large and small corporations. Hospitals, law firms, school systems, and professional sports franchises are just a few industries where you will find these accounting finance professionals. Management accountants work as part of their company's management team acting in a decision-making capacity.

The Certified Management Accountant (CMA) program is designed to recognize the unique qualifications and expertise of those professionals engaged in management accounting. This certification provides distinction in today's economic climate and affords the opportunity to certify your expertise in the business areas that are critical to the decision-making process.
The certification program has four objectives:

1. To establish management accountants as recognized professions by identifying the role of the professional, the underlying body of knowledge, and a course of study by which such knowledge is acquired;
2. To encourage higher educational standards in the management accounting field;
3. To establish an objective measure of an individual's knowledge and competence in the field of management accounting; and
4. To encourage continued professional development.

 
Certified Financial Manager (CFM)

The CFM designation will be of interest to a broad range of professionals, including current CMAs who wish to broaden their certification, personnel within the corporate finance organization (treasury, planning, and analysis), finance educators, and students. Three parts of the CMA exam form the basis of the CFM exam, with one part on the latter covering advanced topics in Corporate Financial Management, including financial markets and instruments, risk management, corporate restructuring, financial statement analysis, and investor relations.

The Certified Financial Manager (CFM) program is designed to recognize the unique qualifications and expertise of those professionals engaged in management accounting. This certification provides distinction in today's economic climate and affords the opportunity to certify your expertise in the business areas that are critical to the decision-making process.
The certification program has four objectives:

1. To establish management accountants as recognized professions by identifying the role of the professional, the underlying body of knowledge, and a course of study by which such knowledge is acquired;
2. To encourage higher educational standards in the management accounting field;
3. To establish an objective measure of an individual's knowledge and competence in the field of management accounting; and
4. To encourage continued professional development.

Certified Fraud Examiner (CFE)

In today's era of specialization, Certified Fraud Examiners are widely recognized as experts in the anti-fraud field. Career opportunities abound for CFEs, and more are growing. The unfortunate reason is simple... fraud has always been with us, and it has never been more prevalent.

Becoming a Certified Fraud Examiner (CFE) is not an easy task. The CFE designation is restricted to Associate Members of the Association of Certified Fraud Examiners in good standing who have the proven expertise to detect, prevent, and investigate a wide range of fraudulent conduct. Major U.S. corporations, businesses, and government agencies employ CFEs, as do many international organizations.

Certified Fraud Examiners have the expertise to resolve allegations of fraud from inception to disposition, gather evidence, take statements, write reports, testify to findings, and assist in the prevention and detection of fraud.

Certified Financial Planner (CFP)

Professional financial planners assist their clients in managing, sheltering and expanding their assets through the development of a comprehensive plan geared toward a client's financial objectives and resources. Virtually anyone with income and expenses can use a Financial Planner and concerns about inflation, changing tax laws and the need to plan early for retirement are more prevalent than ever before.

The Certified Financial Planner® or CFP® Professional Education Program has defined the financial planning profession since 1972 and has been the basis on which many other financial planning education programs have been developed.

The program is a recognized standard among those who seek the knowledge and skills necessary to objectively assess their clients' current financial status, identify problem areas, and recommend appropriate actions–in short, to provide comprehensive, client-based financial planning.

Through a study of the financial planning process, advisors learn to respond to each client's unique financial concerns, addressing them with the most effective financial techniques and solutions. Students also learn to recognize a client's need for the special skills of other professionals--such as accountants and attorneys--and to coordinate a team of consultants working toward a client's financial goals and objectives.

Successful completion of the program fulfills the education requirement for taking the Certified Financial Planner Board of Standards, Inc. (CFP Board) Certification Examination. A review course to help prepare for the CFP Board Certification Examination is included with the program.

Specialized Designation Programs

Practitioners in the financial services industry can benefit from the College's designation programs, which focus specifically on investments, mutual funds, and retirement planning.
These programs offer advanced training--in as little as four months--in crucial financial planning areas that will help you expand your business. Choose from these specialized programs:

• The Chartered Mutual Fund Counselor or CMFC Professional Education Program
• The Accredited Asset Management Specialist or AAMS Professional Education Program
• The Chartered Retirement Counselor or CRPC Professional Education Program
• The Chartered Retirement Plans Specialist or CFPS Professional Education Program
   

Certified Internal Auditor (CIA)

Evaluating emerging technologies, analyzing opportunities, examining global issues… Assessing quality, economy, and efficiency… Providing accurate and timely communication... Such diversity gives internal auditors a broad perspective on the organization. Internal auditors are a valuable resource to executive management and boards of directors in accomplishing overall goals and objectives, as well as strengthening internal control and governance.
 
Internal auditing is an independent appraisal function established within an organization to examine and evaluate the adequacy and effectiveness of the organization's internal control system and its overall quality of performance. Internal auditing furnishes top management with analyses, appraisals, recommendations, counsel, and information concerning the activities reviewed.

Whether you are a long-term internal auditor, or a future manager gaining exposure and expertise in organizational risk management, the CIA will serve you well your entire career.
"CIA is enduring because it requires candidates to master the ability to identify risks, examine alternative remedies, and prescribe the best initiatives to control these risks. CIAs master auditing standards and practices as well as management principles and controls, information technology, and emerging strategies to improve business and government," said John J. Fernandes, CIA, Executive Vice President and Chief Operating Officer of The Institute of Internal Auditors.

The IIA believes an organization is served best by a fully resourced and professionally competent internal auditing staff which provides value-added services that are critical to the efficient and effective management of an organization. In addition, according to the National Commission on Fraudulent Financial Reporting (Treadway Commission), every public corporation should have an internal audit function.

Enrolled Agent (EA)

Often called the "best kept secret in accounting," Enrolled Agents provide an important–and marketable–service to the public, government and accounting community. An EA is an individual designation provided by the IRS. It is one of the few designations that signify a concentration of competency in the field of taxation. Unlike CPAs, who may or may not provide tax services, Enrolled Agents specialize in taxation. Learn more about the designation is this section.
 

Certified Government Financial Manager (CGFM)

More than 13,000 individuals have received the CGFM designation, the first certification broad enough to cover the whole field of government financial management–federal, state and local. It does not test persons in a specific area, but measures a wide range of knowledge and skills that professionals need to succeed in the federal government financial environment or to meet the unique challenges faced by state and local government financial managers.
 
Chartered Financial Analyst (CFA)

Chartered Financial Analysts, represented by the Association for Investment Management and Research, are employed as securities analysts, portfolio managers, strategists, consultants, educators, and other investment specialists in a variety of fields, including investment counseling and management, banking, insurance, and investment banking and brokerage firms.

The Chartered Financial Analyst (CFA) Program is a globally recognized standard for measuring the competence and integrity of financial analysts, administered by the Association for Investment Management and Research (AIMR). Three levels of examination measure a candidate's ability to apply the fundamental knowledge of investment principles at a professional level. The CFA exam is administered annually in more than 70 nations worldwide. Earn your charter to demonstrate knowledge of capital markets and to position yourself as a candidate for rapid career growth.

AIMR is an international, nonprofit organization of more than 50,000 investment practitioners and educators in more than 100 countries, AIMR's members are employed as securities analysts, portfolio managers, strategists, consultants, educators, and other investment specialists. These professionals practice in a variety of fields, including investment counseling and management, banking, insurance, and investment banking and brokerage firms.
AIMR's mission is to serve its members and investors as a global leader in educating and examining investment managers and analysts and sustaining high standards of professional conduct. AIMR's membership is global in scope, and its activities are worldwide.
 
Certified Business Manager (CBM)

The CBM is to a business manager as the CPA is to an accountant, as the PE is to an engineer, and as the CFA is to an investment analyst. The CBM is designed to complement existing specialty certifications (CPA, CIA, etc.), to validate a business professional’s practical business experience and knowledge, and to act as an efficient preparatory tool for a graduate business program.

The credential takes a comprehensive MBA curriculum and presents it in a certification format, teaching and measuring the skills and knowledge required to become a successful manager in the global business community.

The CBM program provides a generalized business education at the graduate level, covering essential subject matter useful to business practitioners. At the core of CBM certification is its exam and continuing education – CBM Lifetime Learning. The CBM Exam covers 10 essential areas/modules of business (i.e. Accounting, Finance, Information Technology, Marketing Management, Human Resource Management, International Business and Quality Management) and their cross-functional applications in three, three-hour-long parts. Each part contains 150 multiple-choice questions.

The CBM Exam syllabus, the study materials, and the continuing education program are revised regularly to reflect the ever-changing face of this new era of global business economy.
While the benefits offered by the CBM are varied and applicable to anyone currently practicing in a business, looking to enter a business field, or just wanting to self-test. The CBM is useful to anyone in a position where his or her specialized knowledge is not sufficient, such as:

• Professionals looking to make a career advancement
• Specialists who want to understand other aspects of business besides their own
• People entering undergraduate/graduate business school and want a head start on business fundamentals
• Small business owners/entrepreneurs who are required to understand the "big picture"
  (ABV) – Accredited in Business Valuation

The Accredited in Business Valuation (ABV)

The ABV program provides specialized access to information, education, tools, and support that enhance credential holders' ability to make a genuine difference for their clients and employers. ABV credential holders may brand or position themselves as premier business valuation service providers who differentiate themselves by going beyond the core service of reaching a conclusion of value and creating value for clients through the strategic application of this analysis. All individuals must obtain their CPA credentials prior to becoming an ABV.