GTACF3 Accounting and Finance Research Project: Professional Bodies

This report provides a comprehensive overview of accounting and finance, focusing on the roles and responsibilities of professional accountants. It delves into the various branches of accounting, including financial, cost, management, tax, forensic, fiduciary, and auditing. The report explores the knowledge, skills, and educational pathways required to become an accountant, as well as the importance of the professional code of conduct, including ethics, fundamental principles, and potential threats. Furthermore, it examines the differences and similarities between key professional accounting bodies such as CPA Australia, IPA Australia, and Chartered Accountants Australia and New Zealand (CAANZ). The report highlights the significance of ethical behavior and adherence to professional standards in maintaining the integrity and credibility of the accounting profession. This research project offers valuable insights for students and professionals alike, providing a solid foundation for understanding the intricacies of the accounting and finance field.

ACCOUNTING AND FINANCE
YEAR 12 - GENERAL
RESEARCH PROJECT 2
Name: PHAN VU DIEU LINH
Class: GTACF3
PROFESSIONAL ACCOUNTING ASSOCIATIONS
Table of content
Introduction 2
Discussion 2
Findings 2
Accountants 2
- Who are they? 2
- What types of work do they do? 2
- What knowledge and skills do they have? 2
- How does one become an accountant? 3
- What are the different branches of accounting? 4
Nature and purpose of professional code of conduct 5
- What is ethics? 5
- Why is it important? 5
- Fundamental principles 5
- Threats to accountants 6
Differences and similarities between the different professional accounting
bodies 6
- CPA Australia 6
- IPA Australia 6
- Chartered Accountants Australia and New Zealand (CAANZ) 7
References 7

I. Introduction
Professional accountants are powerful as they deal with all matters associating
with the client’s financial well-being. As they are professional, they have a
professional code of conduct which includes their ethics; the fundamental
principle, such as integrity, objectivity, professional competence and due care,
confidentiality, and professional behavior; and threats faced by professional
accountants are self-interest, self-review, advocacy, familiarity, and intimidation.
Professional accounting bodies also need to focus on accountants, some
accounting bodies are CPA Australia, IPA Australia, and Chartered Accountants
Australia and New Zealand CAANZ.
II. Discussion
From all walks of life and social backgrounds, accountants still play an
indispensable role since they are the essential personnel who access the
monetary data of individuals and businesses. To secure the data and ensure the
trust of others, accountants have to follow all the requirements of the code of
ethics for professional accountants and meet the standards of different
accounting bodies.
III. Findings
Accountants
- Who are they?
Accountants are professionals who report business transactions, manage
bookkeeping, prepare financial documents and point out business issues.
- What types of work do they do?
The accountants analyze revenue and expenditure trends. Then they create
weekly, monthly and annual reports on the financial well-being of the business to
suggest ways to decrease costs, enhance revenues and magnify profits.
They keep up to date with tax laws and changes; ensure that statements and
records comply with laws and regulations; calculate taxes owed, measure tax
returns, secure prompt payment.
They also control payroll which decides payroll requirements, manages payroll
data, plans and runs monthly payrolls.
- What knowledge and skills do they have?
Analytical skills - they need to have detail-oriented eyes to guarantee every
detail is accurate and current. Since they always interpret figures and data, they
have to have an extra examination in detail, an analytical mind and numerical
competence knowledge. Hence, accounting is suited to people who are good with
numbers and who are well organized.

Controllership - as their work involves lots of clients as well as documents, they
need to have experience in controlling the problem and keeping track of
important paperwork while following proper guidelines.
Integrity - this is the fundamental component because they play a direct role in
how the business’s money is managed. Therefore, they should be transparent in
their financial report and decision-making to engage in a trustworthy
relationship.
Information technology - accounting requires knowledge of different types of
computer applications with finance-related software systems. They are also
expected to use various accounting tools like timekeeping software, payroll
software, resource management software, etc.
Communication skill - accountants have to know how to persuade and convince
others. Their ability to effectively communicate, convey ideas and proposals are
extremely important in this field as they have to influence their stakeholders
every day, support co-workers or convince management about the possibility of
a particular project.
- How does one become an accountant?
1. Earn a Bachelor’s Degree
It is the minimum obligation to let people know accounting principles and
theories. The Bachelor degree could be a Bachelor of Accounting or a Bachelor of
Accounting and Finance. People will learn the fundamentals, such as Generally
Accepted Accounting Principles (GAAP) and take subjects like auditing and
accounting information systems.
2. Choose to become whether an accountant or CPA
All CPAs are accountants, but not all accountants are CPAs. CPAs are required to
obtain experience and satisfy the standard requirements to get the licensure.
Also, CPAs earn more and can achieve more success than accountants.
3. Decide on a special accounting major
People should strive to be an accountant major in a particular sector. This makes
accountants valuable to potential customers. Some accounting specialties are tax
accounting, business valuation, governance finance, auditing, international
accounting, etc.
4. Earn a Master’s in Accounting Degree
Getting a master’s in accounting can give accountants a more profound
understanding of the industry and increase their earning potential.
5. Obtain Accounting Certification
Apply to participate in a Certified Practising Accountants (CPA) program or
apply to become a member of a recognized accounting institution, such as
Chartered Accountants Australia and New Zealand (CA ANZ).

- What are the different branches of accounting?
Financial Accounting
Financial accounting includes reporting and classifying business transactions
with the help of financial statements. All financial statements, such as income
statements, balance sheets and cash flow statements must be recorded concisely
and correctly to present management or stakeholders.
Cost Accounting
Cost accounting focuses on estimating costs, internally to evaluate a company’s
operations. Cost accounting documents and interprets actual costs to make
decisions on how to diminish cost, or when to invest more.
Management Accounting
This provides data about a company’s procedures for managers in order to make
choices, not necessarily follow GAAP accounting rules. Management accounting
includes budgeting and forecasting, cost analysis, financial analysis, reviewing
past business decisions and more. These help to develop the company’s
administration, magnify profits, and manage planning and budgets.
Tax Accounting
This involves organizing a plan for tax time and the preparation of tax returns.
This also helps businesses minimize taxes or the consequences of tax decisions.
Moreover, tax accounting figures out a business’s income tax and other taxes and
how to legally reduce the amount of tax owing.
Forensic Accounting
Forensic accounting focuses on legal affairs. This serves lawyers, law
enforcement, insurance companies, government organizations, financial
institutions, etc.
Fiduciary Accounting
This manages any account and activities that involve the administration and
guardianship of property. Fiduciary accounting tracks and reports receipts and
disbursements from accounts. This serves trusts, receiverships and estates.
Auditing
There is external and internal auditing. External auditing includes an
independent third party that reviews a company’s financial statements to ensure
they are correct and comply with GAAP. Internal auditing points out and stops
tax issues or prepares the business for an outside audit.

Nature and purpose of professional code of conduct
- What is ethics?
Ethics of professional code of conduct give general outlines of how accountants
should behave, as well as specific guidance for specific situations. It distinguishes
what types of decisions are right from wrong, which are acceptable and
encouraged. The Code is based on the Code of Ethics for Professional Accountants
issued by the International Ethics Standards Board for Accountants (IESBA) of
the International Federation of Accountants (IFAC).
- Why is it important?
Since accountants work directly with accounting and finance, it is a sensitive
object towards laws and regulations. They may make mistakes or deliberately
pursue their own self-interest, such as cheating on taxes, making a price-fixing
agreement with competitors or mistaking the financial results. These will worsen
the business image and devalue its credibility. Therefore, ethics are valuable not
only as a personal accountant but also as an external statement of a company's
value and commitments.
- Fundamental principles
The main principles in the Code are:
 Integrity - To give professional service with integrity. Being sincere and fair
in every professional and company association. It also needs the business
planner to oversee both the letter and the spirit of the Code of Ethics.
 Objectivity - To present professional services objectively. Accountants can
not judge based on their own bias, self-interest or being influenced by
others. It needs to make sure the integrity of their work, and members must
appear to be independent.
 Competence - To keep the experiences, and knowledge essential to produce
professional services competently. By maintaining professional knowledge
and skill at the required level help to make sure clients can receive
competent professional service. The financial planner can create a
progressive engagement in training and professional development.
 Confidentiality - To protect the confidentiality of all client information
acquired as a result of professional accountants and not reveal any such
information to third parties without proper authority, unless there is justice
or right to disclose, or revealing it in the public and allowed by law.
 Professionalism - To comply with relevant laws and regulations and avoid
any action that discredits the profession. It improves and sustains the
profession’s public image and its capacity to fulfill the public interest.
- Threats to accountants
Ethics protects accountants from some threats, such as:

 Self-interest threats - this occurs as a consequence of financial or other
interests which inappropriately affect the accountant's judgment.
 Self-review threats - this occurs when a previous judgment is inappropriate
to evaluate by the accountant responsible for that judgement.
 Advocacy threats - this occurs when the accountants' objectivity may be
compromised due to the promotion of the client's position or opinion that
accountants make.
 Familiarity threats - this occurs when accountants have a long and close
relationship with clients to the point that they are sympathetic with others'
interests or too accepting of their job.
 Intimidation threats - this occurs when an accountant may be deterred from
acting due to threats, actual pressure, exercise undue influence over
professional accountants.
Differences and similarities between the different professional accounting
bodies
- CPA Australia
Certified Practising Accountant (CPA) is a finance, accounting and business
professional with a specific qualification in Australia. They work together with
local and international bodies to represent the views and concerns of the
profession to governments, regulators, industries, academia and the general
public.
People can apply to CPA by giving their personal information, supporting
documents, and paying the application fee. The accredited undergraduate degree
in accounting, finance and business areas should be done to meet minimum main
information. In addition, postgraduate training and gaining three years of
professional work experience is also required for new members which will be
under the guidance of a professional member.
Members can have an international qualification and are provided the
opportunity to continue professional improvement and receive special offers.
- IPA Australia
The Institute of Public Accountants is a professional organization for
accountants, representing members and students working in the industry,
commerce, government, academia and private practice. IPA members have an
important role in the lives of small business clients and are in an ideal position to
support the productivity, growth and prosperity of small businesses.
IPA provides two application options to choose from. One is fast track online
application which is an online form and an email to apply. The second option is a
paper-based application which requires you to print out the application form
and submit to the IPA office. Members also need to pay an application fee for the
paper-based option.
Members have free access to online resources which are developed to facilitate
the sharing of high-quality resources. Members are provided professional advice

which connects to specialist advisors across a range of industry sectors. Also, IPA
creates opportunities to continue professional development and expand
knowledge.
- Chartered Accountants Australia and New Zealand (CAANZ)
Chartered Accountants Australia and New Zealand ( CAANZ) is the professional
body representing Chartered Accountants. A Chartered Accountant can provide
expert advice to help set the business up for ongoing success. They generate
opportunities for members to self-develop, magnify value for clients.
A member can access a support network built on knowledge, experience and
trust. Members have supported tools to help to deal with complex professional
challenges. CAANZ engages with the government, regulators and standard-
setters to advocate on behalf of the accounting profession. Members are
protected by and obligated to comply with a professional and ethical framework.
IV. References
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Indeed.com. 2021. [online] Available at: <https://www.indeed.com/career-
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Ifac.org. 2021. [online] Available at:
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CAANZ. 2021. Codes of Ethics & Professional Standards for Members. [online]
Available at:
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Australiacouncil.gov.au. 2021. Code of Conduct | Australia Council. [online]
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