A Certified Public Accountant or "CPA" is the designation for public accountants who are licensed to practice in the United States. A public accountant is an individual who performs accounting-related work on behalf of external clients, often for regulatory purposes. The interests and standards of the profession are centrally guided by the American Institute of Certified Public Accountants or "AICPA." Large public companies enlist the help of CPA firms annually in order to provide the SEC with audited financial statements and the IRS with their corporate tax return. CPA's play an important role in giving confidence to investors to trust the financial statements they are analyzing. Each state has their own CPA board which determines the requirements of obtaining licensure, but typically, CPAs must have the following: The independence of CPA's in relation to the clients they serve is one of the most important foundations of the profession. In 2002, independence was compromised as a "Big Five" firm, Arthur Andersen, willfully destroyed documentation which proved Enron's accounting fraud and became one of the largest accounting frauds in history. In response, regulators passed the Sarbanes Oxley Act of 2002 which largely shapes the CPA-client relationships and auditing standards of today. Because of their knowledge of financial accounting and critical thinking skills, common career paths for CPAs include CPA Firm Partner, Controller, Chief Financial Officer, Consultant, Financial Analyst, and Forensic Accountant. Finance Strategists collaborates with first class financial firms across the country to guarantee that you are connected only to the best financial advisors in the arena. Click on the link to connect to a financial advisor in West Hartford, CT. If you live outside the area, please check out our financial advisor page instead.Define CPA in Simple Terms
How Do CPAs Work?
CPA License Requirements
Sarbanes Oxley Act of 2002
Careers for CPAs
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Certified Public Accountant Definition FAQs
What does CPA stand for?
CPA stands for Certified Public Accountant.
What is a CPA?
A Certified Public Accountant or CPA is the designation for public accountants who are licensed to practice in the United States.
How do CPAs work?
Large public companies enlist the help of CPA firms annually in order to provide the SEC with audited financial statements and the IRS with their corporate tax return.
Why were CPA designations implemented?
In 2002, independence was compromised as a Big Five Firm, Arthur Andersen, willfully destroyed documentation which proved Enron’s accounting fraud and became one of the largest accounting frauds in history.
What are the requirements to become a CPA?
Exact requirements differ by state but typically, CPAs must have the following: 120-150 school credit hours, one-full year of experience with an established CPA firm, and pass four standardized tests in the areas of financial accounting, taxation, auditing, and business concepts.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.