Certified Public Accountant

A Certified Public Accountant (CPA) is the statutory title of qualified accountants in the United States who have passed the Uniform CPA Examination and have met additional state education and experience requirements for certification as a CPA. The CPA designation is the most widely recognized and respected credential in the accounting profession in the U.S.

Individuals who are certified as CPAs are licensed by their respective state boards of accountancy. The license provides the authority to offer attestation services, such as financial audits, to the public. While any accountant can prepare a tax return, only CPAs (along with attorneys and enrolled agents) have unlimited rights to represent taxpayers before the Internal Revenue Service (IRS).

Services provided

CPAs provide a wide range of services in public accounting, corporate business, government, and education. Key services include:

• Assurance and attestation services: These involve providing an independent and objective examination of financial information. The most common attestation service is a financial audit, which is an opinion on a company's financial statements.
• Tax services: CPAs assist individuals and businesses with tax planning, compliance, and preparation of tax returns.
• Financial advisory: This includes personal financial planning, estate planning, and corporate finance advisory on topics such as mergers and acquisitions.
• Forensic accounting: CPAs investigate financial fraud, analyze financial data for legal proceedings, and provide expert testimony in court.
• Consulting services: CPAs advise organizations on business strategies, operational efficiency, and information technology systems.

Licensing requirements

To become a CPA, candidates must meet requirements set by their state board of accountancy. While specific requirements vary by state, they are all built upon the "Three Es": Education, Examination, and Experience.

Education

Most states require candidates to have completed 150 semester hours of college-level education, which is 30 hours beyond a typical four-year bachelor's degree. This is commonly known as the "150-hour rule." The curriculum must include a significant number of accounting and business courses.

Uniform CPA Examination

All candidates must pass the Uniform CPA Examination, which is developed and graded by the American Institute of Certified Public Accountants (AICPA) and administered by the National Association of State Boards of Accountancy (NASBA). The exam consists of multiple sections that cover a wide range of accounting principles and practices, including auditing, taxation, and financial accounting.

Experience

Candidates are required to have a certain amount of relevant professional experience. Most states require 1-2 years of experience working in public or corporate accounting, under the supervision of a licensed CPA.

Continuing professional education

To maintain their license, CPAs are required to complete Continuing Professional Education (CPE) courses annually. These requirements ensure that CPAs stay current with changes in the accounting profession, including new tax laws, regulations, and technologies.

See also

• Accountant
• Chartered Accountant
• Auditing
• American Institute of Certified Public Accountants
• Forensic accounting

External links

• American Institute of Certified Public Accountants (AICPA)
• National Association of State Boards of Accountancy (NASBA)