Does AICPA Accreditation of Nonaudit Services Add Value? The Case of Personal Financial Planning

2000 ◽  
Vol 14 (1) ◽  
pp. 49-67 ◽  
Author(s):  
D. Shawn Mauldin ◽  
Mark Wilder ◽  
Morris H. Stocks
Keyword(s):  
Financial Planning ◽  
The Other ◽  
Differential Effects ◽  
Relative Value ◽  
Professional Attributes ◽  
Financial Planners ◽  
The Future ◽  
Financial Planner ◽  
Nonaudit Services ◽  
Personal Financial Planning

The AICPA has taken the position that accreditation of CPAs in specific areas of practice is an important aspect of repositioning the CPA profession for the future. The AICPA currently offers two designations exclusively to CPAs, one of which is the Personal Financial Specialist (PFS) designation. However, the issue of accrediting CPAs by granting official AICPA designations is a complex and highly debated issue with opposing sides having compelling arguments supporting their positions. CPAs and other professionals specializing in personal financial planning have opportunities to obtain designations other than the PFS. This paper examines the relative value of these alternative options for financial planners. Specifically, the research was designed to examine the differential effects of alternative financial-planning accreditations on users' perceptions. These perceptions relate to various professional attributes of a financial planner such as their knowledge and expertise, objectivity, and level of trust and ethics possessed. In addition, these perceptions relate to fees charged and the influence that the designation has on the public's choice of a financial planner. Our results indicate that the CPA designation used in conjunction with the PFS designation is generally perceived to signal a higher level of professional attributes than the other designations examined in the study. In addition, a CPA with a PFS designation has a significantly greater influence on the public's choice of a financial planner than do the other designations. These results suggest that important benefits may accrue to CPAs from holding the PFS specialty accreditation.

scholarly journals The factors influencing the use of financial planners

2017 ◽  
Vol 9 (1) ◽  
pp. 76-92 ◽  
Author(s):  
Bomikazi Zeka ◽  
Jasmine Goliath ◽  
Xolile Antoni ◽  
Riyaadh Lillah
Keyword(s):  
Financial Planning ◽  
The Other ◽  
Intention To Use ◽  
Perceived Benefits ◽  
Financial Advice ◽  
Significant Relationships ◽  
Factors Influencing ◽  
Financial Planners ◽  
Financial Planner ◽  
The One

Individuals need to seek professional financial advice to achieve their financial goals. However, some do not see the value of consulting financial planners, and show little intention to use financial planners. Furthermore, there is a lack of research explaining why these individuals do not make use of financial planners. This study aims, therefore, to investigate the factors that could possibly influence individuals’ intentions to make use of a financial planner: awareness, perceived image, trust, and perceived rewards. To achieve this, a hypothesised model and hypotheses were developed and empirically tested. The results of the study indicated that there are significant relationships between perceived image and rewards, on the one hand, and intentions to use a financial planner, on the other. Thus financial planners must portray a positive image and deliver the perceived benefits of engaging in financial planning if individuals are to recognise the value in making use of their services.

Evaluating the Evolution of the Personal Financial Planning Industry: Mutualism, Commensalism, or Parasitism?

2021 ◽  
Vol 12 (1) ◽  
pp. 42-42
Author(s):  
Bryan Teoh Phern Chern
Keyword(s):  
Social Media ◽  
Financial Literacy ◽  
Financial Planning ◽  
Business Models ◽  
Service Providers ◽  
Personal Finance ◽  
Easy Access ◽  
Finance Management ◽  
Financial Planners ◽  
Personal Financial Planning

The financial planning and advice industry has been experiencing healthy growth for the past five years and is expected to accelerate this growth following the Covid-19 pandemic (IBISWorld, 2021). The pandemic has led to higher equity yields and appreciating asset value, directly increasing the total value of assets under management (AUM) held by financial planners and advisors. The industry in the US alone has surpassed $52.9 billion in 2021. As the economy is expected to improve, this figure is expected to follow suit. Not included in these figures are the explosion of online personal finance bloggers and influencers. Some YouTube and TikTok videos have raked in billions of views regarding personal finance (Smith, 2021). Many of these online contents have benefitted viewers and prompted them to start making good decisions regarding their personal wealth, spreading financial literacy to the masses. However, poor financial advice may be spread out as easily to viewers. The Wall Street Journal has reported on this issue back in 2005 where blogs and magazines have been found to give both good and bad advice on budgeting, saving, and overall personal finance management (Cullen, 2005). Whatever the net effect of this phenomenon, the easy access through social media has amplified it. This article briefly journeys through the evolution of personal finance management and personal financial planning, including the new trends this industry is moving towards. Subsequently, this article will look into the risk and rewards of the current personal financial planning and advice industry, including certified financial planners and uncertified personnel (social media influencers, financial gurus), as to whether consumers are benefitting as a whole, or otherwise. A disclaimer to this research is that the findings and opinions towards the industry do not encompass all the service providers in the business as there are many other influencing factors such as business models, individual agenda, and unique circumstances of each provider and consumer. Keywords: Conflict of interest; financial planning; financial experts; Influencers; Personal finance

scholarly journals Personal Financial Planning

2021 ◽  
Vol 1 (2) ◽  
Author(s):  
Hadijah Febriana ◽  
Jeni Irnawati ◽  
Vega Anismadiyah ◽  
Vidya Amalia Rismanty ◽  
Wirawan Suryanto
Keyword(s):  
Everyday Life ◽  
Financial Planning ◽  
Financial Management ◽  
Boarding School ◽  
Knowledge And Skills ◽  
Face To Face ◽  
Direct Training ◽  
12Th Grade ◽  
The Future ◽  
Personal Financial Planning

Pelatihan ini bertujuan agar para santri di Yayasan Pondok Pesantren Yatim Al Hanif yang masih berusia remaja memahami pentingnya perencanaan keuangan untuk membantu para santri tersebut dalam mengatur keuangan saat ini atau di masa yang akan datang agar keuangannya bisa berjalan dengan baik. Dalam kegiatan ini metode yang dilakukan kepada para santri berupa pelatihan langsung dengan tatap muka di  aula yang melibatkan para santri kelas 12 dan pendamping di yayasan tersebut, selanjutnya diskusi dan tanya jawab. Hasil kegiatan adalah bertambahnya keilmuan dan keterampilan para santri di Yayasan Pondok Pesantren Yatim Al Hanif, khususnya di bidang keuangan yaitu perencanaan keuangan yang akan menjadi bekal para santri dalam mengelola keuangan baik di masa saat ini atau di masa yang akan datang. Ilmu yang didapatkan pada kegiatan ini diharapkan mampu diterapkan dalam kehidupan sehari-hari baik untuk diri sendiri atau keluarga.Kata Kunci: Perencanaan Keuangan This training aims to make students at the Yatim Al Hanif Islamic Boarding School Foundation, who are still in their teens, undersrabd the importance of financial planning to help these students manage theiw finances now or in the future so that their finances can run well. In this activity, the method applied to the students was ni the form of direct training with face to face training in the hall involving 12th grade students and assistants at the foundation, then discussion and question and answer. The result of the activity is the increase in knowledge and skills of the students at the Yatim Al Hanif Islamic Boarding School Fundation, especially in the financial sector, namely financial planning that will provide the students with financial management in the present or in the future. The knowledge gained in this activity is expected to be able to be applied in everyday life for both yourself and your family.Keywords: Personal Financial Planning

Psychological Aspects of Financial Planning

2017 ◽  
Author(s):  
Dave Yeske ◽  
Elissa Buie
Keyword(s):  
Financial Planning ◽  
Planning Process ◽  
Employee Benefits ◽  
Investment Planning ◽  
Integrated Strategies ◽  
Interdisciplinary Practice ◽  
Strategic Process ◽  
Financial Planners ◽  
Unique Domain ◽  
Personal Financial Planning

This chapter discusses personal financial planning, which is an interdisciplinary practice that employs a six-step process to develop integrated strategies for individuals and families to efficiently mobilize their human and financial capital to achieve their life goals. Financial planning draws from various disciplines, including counseling, psychology, finance, economics, and law. It includes budgeting and cash flow planning, risk management, insurance planning, investment planning, retirement and employee benefits planning, tax planning, and estate planning. The strategic process whereby financial planners develop integrated strategies that draw from all these fields in pursuit of client goals is the profession’s unique domain. Heuristics and mental biases to which clients may be prone overlay the entire financial planning process, however. Financial planners should understand and consider these issues when developing recommendations uniquely suited to each client, maximizing the probability that the client will embrace and implement the recommended strategies.

Generation difference in hiring financial planners in Malaysia

2017 ◽  
Vol 35 (4) ◽  
pp. 583-595 ◽  
Author(s):  
Meysam Safari ◽  
Shaheen Mansori ◽  
Stephen Sesaiah
Keyword(s):  
Decision Making ◽  
Generation X ◽  
Financial Planning ◽  
Emerging Market ◽  
Influential Factors ◽  
Content Type ◽  
Gen Y ◽  
Financial Planners ◽  
Financial Planner ◽  
Gen X

Purpose The purpose of this paper is to document a gap between generation X and Y’s behavior toward decision making for hiring a professional financial planner in context of an emerging country. Design/methodology/approach This research is based on a public survey in Malaysia on the effect of five major contributing factors (namely, awareness, acceptability, affordability, accessibility and assurance) on the decision to hire a professional financial planner. The study further shed light into the difference among the influential factors among generation X and Y. Findings Although awareness, acceptability, affordability and assurance have demonstrated significant effect on decision making in general, their impact varies among different age groups. Results of moderation tests on the role of age suggest that for Gen X, the determinant factor is only their acceptability of the financial planning service. However, awareness, affordability, acceptability and assurance are critical factors for Gen Y respondents. In contrast to Gen Y, the Gen X respondents tend to have more awareness toward their needs for financial planning; they have gained enough experience to assess the credibility of the planner and test their assurance; and have higher earnings to afford the financial planners services. Originality/value Findings of this study are novel as it provide first hand picture from an emerging market in South-East Asia. Moreover, the study documents generation gap in financial decision making process.

scholarly journals Professionalism and Ethics in Financial Planning

2007 ◽  
Vol 2 (1) ◽  
Author(s):  
June Smith ◽  
Anona Armstrong ◽  
Ronald D. Francis
Keyword(s):  
Control Systems ◽  
Financial Planning ◽  
Ethical Climate ◽  
Ethical Reasoning ◽  
Analytical Framework ◽  
Individual Characteristics ◽  
Ethical Framework ◽  
Ethical Decisions ◽  
Financial Planners ◽  
Financial Planner

The purpose of this paper is to describe the analytical framework and methodology of a proposed study of the ethical reasoning of financial planners and the cognitive frameworks used to make ethical decisions in the provision of financial planning advice. The framework will draw on previous studies of individual characteristics such as ethical reasoning and the values and ethical development of a financial planner and consider the influence of situational and contextual factors such as organisational ethical climate and culture and the formal and informal control systems within an organisation. This is a significant study because the relationships financial planners have with their clients and the ethical framework that underpins them are pivotal to the ability of the financial planner to provide professional and effective independent advice.

On the role of the dispute between "non-possessors" and "Josephites" in the culture of Moscow's prediction

1998 ◽  
pp. 61-62
Author(s):  
N. S. Jurtueva
Keyword(s):  
The Other ◽  
Moral Transformation ◽  
15Th Century ◽  
The Future ◽  
Secular Power

In the XIV century. centripetal tendencies began to appear in the Moscow principality. Inside the Russian church, several areas were distinguished. Part of the clergy supported the specificobar form. The other understood the need for transformations in society. As a result, this led to a split in the Russian church in the 15th century for "non-possessors" and "Josephites". The former linked the fate of the future with the ideology of hesychasm and its moral transformation, while the latter sought support in alliance with a strong secular power.

‘Newness which never perishes’? Schoenberg’s ambivalent reception of Haydn

2010 ◽  
Vol 51 (1-2) ◽  
pp. 215-224
Author(s):  
Alexander Carpenter
Keyword(s):  
The Other ◽  
Major Influence ◽  
Musical Style ◽  
The Past ◽  
Other Hand ◽  
The Future ◽  
Music Tradition

This paper explores Arnold Schoenberg’s curious ambivalence towards Haydn. Schoenberg recognized Haydn as an important figure in the German serious music tradition, but never closely examined or clearly articulated Haydn’s influence and import on his own musical style and ethos, as he did with many other major composers. This paper argues that Schoenberg failed to explicitly recognize Haydn as a major influence because he saw Haydn as he saw himself, namely as a somewhat ungainly, paradoxical figure, with one foot in the past and one in the future. In his voluminous writings on music, Haydn is mentioned by Schoenberg far less frequently than Bach, Mozart, or Beethoven, and his music appears rarely as examples in Schoenberg’s theoretical texts. When Schoenberg does talk about Haydn’s music, he invokes — with tacit negativity — its accessibility, counterpoising it with more recondite music, such as Beethoven’s, or his own. On the other hand, Schoenberg also praises Haydn for his complex, irregular phrasing and harmonic exploration. Haydn thus appears in Schoenberg’s writings as a figure invested with ambivalence: a key member of the First Viennese triumvirate, but at the same time he is curiously phantasmal, and is accorded a peripheral place in Schoenberg’s version of the canon and his own musical genealogy.

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