CPA Overview
Introduction
Certified Public Accountant is the title given to accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional education and experience requirements mandated by the state. Most employers require accountants to have completed a Bachelor’s degree in a related field as well as certification in a specialized concentration or area.
It is highly recommended for accountants to achieve certification, which will dramatically improve potential career opportunities and job security. According to the United States Bureau of Labor Statistics, employment of accountants and auditors is expected to grow 16 percent from 2010 to 2020. In the year 2010, there were 1, 216,900 total employed accountants and auditors in the United States.
Test Format
The Uniform Certified Public Accountant (CPA) Examination must be passed in order to obtain licensure as a CPA. CPAs are the only accounting professionals who are licensed. This type of license is issued only by the state boards of accountancy in the 55 jurisdictions of the United States. These boards are on the only entities that possess the authority to issue CPA licensure.
The purpose of the Uniform CPA Examination is to demonstrate a candidate’s level of technical knowledge and the skills necessary for licensure in protection of the public interest. The Examination is utilized by the Boards of Accountancy (state boards) in order to provide assurance that the candidate is educated, skilled, and knowledgeable in the field of accounting.
The Uniform CPA Examination consists of four sections: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation. These sections take 14 hours total to complete. Until 2003, the Uniform CPA Examination was offered twice a year in the standard paper-and-pencil format. However, in April 2004, the computer-based CPA Examination replaced the more traditional format. In 2009, the computer-based CPA Examination reached a record number of one million administrations.
Resources
Prometric is the leader in technology-enabled testing for information technology certification, academic admissions and professional licensure. For the Uniform CPA Examination, Prometric offers data communication, registration, scheduling, testing systems and software as well as information on available test centers at which candidates are authorized to take the CPA Examination.
The Uniform CPA Examination Candidate Bulletin is the official handbook for individuals planning to take the Uniform Certified Public Accountant (CPA) Examination. This handbook covers the application process, exam scheduling, test center rules and procedures, information about scoring, exam structure and topics, responsibilities of CPA Examination partners, and contact information for Boards of Accountancy.
Uniform CPA Examination Tutorial reviews the Examination’s format, navigation functions, and tools, and familiarizes students with the types of questions included in the Examination—multiple-choice and case studies called simulations.
Importance of Certification
Accountant who have obtain their certification are distinguished from other accountants by strict state and licensing requirements, including education, examination, and experience. CPAs who land jobs in the public practice are required to take Continuing Professional Educational courses in order to keep current on CPA services. CPAs are highly respected and recognized within the public. As a result, they must follow a stringent code of professional ethics. CPAs are among the most trained and experienced tax advisors. Obtaining certification and maintaining the certification will increase the potential for a variety of job and other professional related opportunities. For example, certification allows CPAs to become a partner in a CPA firm, teach college level classes, and offer financial and investment guidance.
Resources
National Association of State Boards of Accountancy provides information board of accountancy licensure requirements by jurisdiction as well as requirements for taking the CPA Examination.
This Way To CPA.com is a website for college students and professionals who are interested in becoming a CPA.
State and Territory Requirements
Services and Responsibilities of CPAs
Accountants and auditors perform a variety of specialized services. Among these are examining financial documents for accuracy and compliance with laws and regulations, computing taxes owed and preparing tax returns, evaluating accounting systems for efficiency, and suggesting ways to reduce costs and maximize profits. Public accountants typically offer accounting and auditing services for corporations, governments, and individuals. CPAs generally have their own businesses or work for large public accounting firms.
Many public accountants concentrate in a particular area or focus, such as forensic accounting, securities fraud and embezzlement, bankruptcies and contract disputes, and other criminal financial transactions. Many forensic accountants work with law enforcement personnel and lawyers throughout criminal investigations, providing technical skills and knowledge on a variety of accounting and finance issues.
What Accountants and Auditors Do.
2011 Trends In the Supply of Accounting Graduates and the Demand for Public Accounting Recruits is a publication exploring current trends in accounting and the increasing demand for public accounting professionals.
Robert Half Salary Calculator enables users to calculate finance and accountings salaries in particular areas.
