Does The Accountant Cosider as a Hard Job ?

DOES THE ACCOUNTANT CONSIDER AS A HARD JOB ?

Is accountant a hard job? For me is yes. According to the PayScale, we can know that one to four years experiences of accountant is thirty-five per cent,  but with more than five years experiences are gradually decreases, accountants with more than 20 years of experiences for only six per cent. The statistics tell us that the accountant is not an easy job, otherwise wouldn’t have so many accountants will choose to leave the accounting firm in a few years later as an accountant. 

PayScale, https://www.payscale.com/research/MY/Job=Accountant/Salary/b58d422f/Kuala-Lumpur

Below are the cons of being an accountant:

EDUCATION IS ON GOING

If you want to make progress in your career as an accountant, you need to plan on continuing education in future.  Actually, more education received is the main key to improve status and increase wages. Besides that, there several types of certificates are available for accountants such as CMA, ACCA, and CFA. However, the most prestigious is tending to be CPA certificate. It not only can make higher salary but also creates more opportunities for career development. These certificates take a lot of time and energy even sacrifice your leisure time to get it. So, it is not easy to earn a certificate.

BORING

If you are a person who is enjoying routine, regulations and rule, accountant is a quite suitable job for you. However, if you are a creative and hyper person and don’t like to do the same works every day in the office for hours, the regular works will be grind and bored for you.

THERE IS A BUSY SEASON

If you want to be an accountant, you will be prepared to work overtime. This is because accountant is usually a standard nine to five job. Usually, this does apply all year round, but at the time of tax season or the end of the year, when workload is high, you will spend a lot of time in the office, even work at night and in weekend. For example, the busy season as an accountant is from January to April in the Malaysia every year in order to submit the report to Lembaga Hasil Dalam Negeri.

STRESS

Usually, stressful goes along with busy season which I mentioned above. ‘Economia’ reported that 32% of the accountants feel stress in their daily lives. In addition, the heavy workload also will make you difficult to balance your daily work and life. Hence, you must ask yourself, how well do you cope with stress. If you can calm down under pressure, then you may suitable for this job. But if you are very easy to feel tired, accountant is not suitable for you.

When choosing a career path, it is important to weigh the pros and cons before making a final decision. For example, being an accountant has some advantages, such as being able to work from home and earn high salaries. However, this professional also has some cons. The primary disadvantages of being an accountant include factors such as working really long hours and having to continually take classes for as long as you practice.

Source: https://www.youtube.com/watch?v=OtD5_sb75y0

Published by ENGINEERED TRUTH, Date: 4 May 2018, Title: Why I Quit Accounting

 

 

Freddie Mac's Accounting Scandal

 FREDDIE MAC'S ACCOUNTING SCANDAL

 

https://www.aim.org/newswire/disgusted-freddie-mac-makes-2nd-largest-profit-in-history/attachment/freddie-mac/

In 1968, the U.S. Congress chartered Fannie Mae to be a government-sponsored enterprise (GSE). Then, another company which named Freddie Mac was also chartered by the U.S. Congress in 1970. Freddie Mac was established by having missions of giving more chances or home ownership and bearable rental price as well as to pacify the country's mortgage markets. The company's set up by having a board that consist of 18 members. The shareholders of the company had selected 13 members while the remaining five members were appointed by the President of the United States.

Government-Sponsored Enterprise (GSE) is a company that having special privileges that other businesses may do not have. This is because, the company that under GSE has a direct relationship with the government. For instance, Freddie Mac not need to pay state and local taxes in United State. 

On top of that, one of the largest purchasers of home mortgages in US is Freddie Mac. They become a secondary market to link with mortgage lenders and investors.  The Freddie Mac company works like this, it will purchase home mortgage from mortgages leader. One of the examples of mortgage leaders is commercial bank.

Then, they will repackaging them and sell to other people. Furthermore, the distinction between cost of buying mortgage from bank and the price sell to other people is the way how they make profit. We can take the example of, if Freddie Mac buy a home mortgage from bank by$ 10 million, then resell them to people for $15 million, they can get$ 5 million as profit in this case.

After that, the bank have money to issue more home mortgage .As a result, it can boost the capital in home loan market.

How was scandal happened ?

An accounting scandal erupted at the government-sponsored company, Freddie Mac in June 2003 when it disclosed that it had misstated earnings by almost $5 billion. They mostly under-reported for the year 2000 to 2002 to smoother quarterly volatility in earnings and meet Wall Street expectations. Fannie and Freddie were created by Congress to make mortgages more affordable and buy blocks of home loans from lenders and bundle them into securities for sale to those investors from worldwide. 

On 9 June 2003, without providing any new information about the nature of the accounting issues, Freddie Mac company's top executives Glenn, Clarke and chairman and chief executive Leland Brendsel were expelled from the company. The action shocked Wall Street that the nation of second-largest buyer and guarantor of home mortgages, Freddie Mac had a reputation as a steady performer and reliable corporate player. It also raised the specter of an Enron-like financial scandal, and Freddie’s stock price plunged by nearly 20%. 

A subsequent report stated that Freddie Mac’s board of directors found that accounting controls had been weaken and certain accounting decisions as well as market transactions had been implemented to reduce volatility in reported earnings. Mortgage finance company which is Freddie Mac FRE revealed that it had understated earnings almost $5 billion by paying $50 million to settle federal charges that it misstated earnings against the law over a four-year period.

The Securities and Exchange Commission (SEC) announced the settlement that Freddie Mac neither admitted nor denied wrongdoing in the protocol but he agreed to avoid from future violations of the securities laws. On 21 August 2003, the Office of Federal Housing Enterprise Oversight (OFHEO) recommended that Freddie Mac’s replacement CEO be fired as he involved in the accounting problems. Greg Parseghian was removed and replaced in December 2003 by Richard F. Syron.

Freddie paid $125 million civil fine in the year 2003 through the settlement with the OFHEO which blamed the management misconduct for the inaccurate accounting. There were some former Freddie Mac executives: former President and Chief Operating Officer, David Glenn, ex-chief financial officer, Vaughn Clarke, former senior vice presidents, Robert Dean and Nazir Dossani that agreed to pay $515,000 in civil fines to settle the SEC's negligent conduct charges and make compensation which was a total of $275,548.

The SEC said that the $50 million from Freddie Mac will be distributed to those shareholders injured by the alleged accounting fraud. The settlement with the company was subjected to court approval.

Source: https://www.youtube.com/SGYVb3mpkY4

Published by mangofinancial, on May 7, 2012

Title: FANNIE and FREDDIE MAC accounting scandal