The AICPA recently announced the
creation of a new specialty credential in forensic accounting known as the Certified in Financial Forensics
(CFF) credential. The trend in the field of
accounting, much like other professional
services, is that practitioners are becoming more specialized in various areas. In
addition to the CFF, there are numerous
professional designations available to
accountants and many practitioners hold
one or more of these.
Smart Business spoke to Semrawit
Berhane, CPA, CVA, MPA, senior associate at Tauber & Balser, P.C. in the
Forensic Accounting & Litigation Services Group, about the various designations available and why it is important to
select credentialed practitioners.
What are some examples of credentials
held by accountants?
- Certified Public Accountant (CPA) —
The CPA credential is a license conferred
on a qualified accountant who has satisfied the education, experience and examination requirements of his or her jurisdiction necessary to be certified as a public accountant. - Certified Valuation Analyst (CVA) —
The CVA is an accreditation awarded by
the National Association of Certified
Valuation Analysts to ascertain that a
CPA has obtained a required level of
knowledge in business valuations. - Accredited in Business Valuation
(ABV) — The ABV is a business valuation credential similar to the CVA but is
awarded by the American Institute of
Certified Public Accountants (AICPA). - Certified Fraud Examiner (CFE) —
The CFE credential established by the
Association of Certified Fraud Examiners denotes expertise in fraud prevention, detection and deterrence. - Certified Management Accountant
(CME) — The CME is an accreditation
conferred by the Institute of Management Accountants that indicates that the
designee has passed an examination and
attained certain levels of education and experience in the practice of accounting
in the private sector.
Why are credentials important?
Obtaining credentials has always been
a critical avenue for professionals to distinguish themselves and highlight their
qualifications in a particular area. The
accounting field is no different. Selection
of credentialed accountants for your
accounting needs is essential for the following reasons:
- Credentials indicate that a practitioner has expertise and the required technical training in a particular field. This distinguishes accountants who have in
depth knowledge of a specialized subject
matter from those that may not have as
thorough an understanding of the area. - Designations denote that one is qualified either through formal education
and/or on-the-job training. For example,
the CVA business valuation credential
indicates to the public that a holder of the designation has successfully completed a
rigorous training and testing process. In
addition, a requirement to becoming a
CVA is that the applicant must be a CPA
registered in his or her state. An accountant is granted a CPA license only after
demonstrating the necessary education
and work experience and passing a set of
very difficult exams. This provides a user
of the practitioner’s services the comfort
of knowing that a certain level of standards set by a professional body has been
met by the practitioner. - Most professionals with credentials
are required to continue their education
even after obtaining their designation.
Classes, seminars and conferences are
offered year-round by various organizations focusing on many different topics
affecting a practitioner’s practice areas.
To maintain credentials, accountants
usually take the required number of
courses and are therefore up-to-date
with current developments and trends in
the industry. - Finally, most certifications require
that the individual be ethical and of good
character. CPAs, for example, are bound
to a code of professional conduct and
subject to discipline by both their state
board of accountancy and the AICPA for
ethics violations.
How many is too many?
I recently attended a conference where
one of the speakers had 13 credentials,
most of which I had never heard of. The
designations noted above are just a few
of the numerous designations available.
While credentialing verifies expertise in
an area and demonstrates a commitment
to one’s profession, it is important to
understand what a practitioner’s various
designations represent and determine if
they are relevant to your needs.
SEMRAWIT BERHANE CPA, CVA, MPA, is a senior associate at Tauber & Balser, P.C. in the Forensic Accounting & Litigation
Services Group. She has experience in various matters including financial investigations, damages and business valuations. Reach her
at (404) 814-4922 or [email protected].
