Confusion can easily arise around occupational groups with similar education and work assignments, and the perception that different occupational titles are synonyms for the same thing is in some cases quite widespread.
In like lawyers and attorneys , it namely important differences between accountants and auditors, and these are important for you as a client in relation to the requirements that apply to your business and hence what you need help. Let’s start with the accountant:
No company is required to hire an external accountant, which means that companies can use their own employees to perform these tasks. The employees who prepare the company’s accounting and accounting are then typically called accountants, without necessarily having the proper education. However, since all companies themselves are responsible for the proper preparation of the accounts, most choose to hire external accountants who have been approved by the Financial Supervisory Authority as “authorized accountants”. You can just choose to hire an external accountant, but then you have to follow the requirement to hire an authorized accountant . Accountants without authorization are not allowed to perform accounting services for companies other than those in which they are employed.
Certified public accountant
According to the Accounting Regulations, an authorized accountant is a person who has completed a bachelor’s degree in economics and administration with accounting profiling. This study provides an in-depth study of accounting, accounting, taxation, financial accounting and jurisprudence, as well as knowledge of, among other things, business and social economy as well as accounting methods .
In addition to passing this bachelor’s degree, the person must have at least two years of approved practice within the last 5 years and an approval from the Financial Supervisory Authority in order to obtain the title of authorized accountant. Approved practice means accounting according to accounting and accounting legislation, and of the two years of practice, at least one of these must be with an authorized accountant or an accounting firm. The application to the Financial Supervisory Authority for authorization is made electronically. Therefore, if you are going to apply for an authorization you should make sure that you have met all the requirements and that you have attached all the necessary documentation before submitting the application.
Once you have your authorization approved, you carry the title of authorized accountant and thus have the right to perform accounting services for others. This means that you can take on accounting assignments for the purpose of giving a complete overview of a company’s financial position. The most important task of authorized accountants is to prepare the annual accounts of companies liable to accounting. All authorized accountants are listed in the Accounting Register.
Most accounting firms choose to outsource the accounting work to authorized accountants, mainly for two reasons. First, accounting and accounting can be time-consuming tasks, and if you do not have the right education and practice, the work will take longer and be less effective than hiring a professional to do so. Second, it is far safer to use an authorized accountant, and the probability of errors or omissions occurring is very small. As auditing companies are required to use an auditor to audit the financial statements, it is beneficial to have an authorized accountant in advance, as this reduces the workload of the auditor.
At present, there are two types of approved auditors: registered accountant and state-authorized public accountant. However, due to changes in the Auditors Act, it appears that only the title of state-authorized public accountant will eventually be used.
There are other ways to get the approved accountant training, including taking both a bachelor’s and master’s degree in finance and administration, and then completing a one-year MRR course. You may also have the basis for taking a one- or two-year master’s degree in accounting and auditing if you have a bachelor’s or master’s degree in law or economics.
As a state-authorized public accountant, you have many job opportunities, and are sought after by the extensive area of expertise. For companies that are subject to auditing, a registered or state-authorized public accountant is required to audit the financial statements that have been prepared by either an authorized accountant or the company’s own employees. The main difference between registered and state-authorized public accountants is that the latter can take on audit assignments from all companies, including those that are listed, while the former cannot take on assignments for listed companies.
Summary: The difference between accountants and auditors
At this point, it is nice to summarize a little and clarify what the main differences are between accountants and accountants, especially considering which of them you need help with in relation to the various tasks.
Accountants require a master’s degree, while accountants need only a bachelor’s degree.
Authorized accountants can prepare accounting and accounting, including the financial statements of other companies. In other words, if your company is accountable but not accountable, it is sufficient to employ an authorized accountant.
The auditor’s most important task is to check these financial statements and ensure that they do not contain errors or omissions, and that it complies with relevant regulations and legislation. If your company is subject to audit, it means that you need to associate an auditor who can audit the financial statements.
State-authorized public accountants / auditors can take on assignments for all companies, including those listed on the stock exchange. Registered auditors can take on assignments for all companies except those listed.
Both authorized accountants, registered auditors and state-authorized public accountants are committed to continuing education to maintain and develop their expertise. Failure to fulfill the requirement of continuing education may result in the authorization being lost.
Accountants and auditors thus have similar education and duties, and if you run a large company you will probably have a lot to do with both. In addition to performing practical tasks for you, they are also solid and credible counseling devices, and can provide you with advice and guidance that will provide great value.