What is CPA ? Meaning, Definition, Acronym

There are plenty of questions in google about CPA such as What is CPA? What is the meaning of CPA? What is CPA Full Form? what it is stand for? What they do? How to Become a CPA? and so on. Today, in this article, we’ll explain What is a CPA.

What is CPA? Meaning & Definition

What is CPA - Meaning, Definition, Acronym

CPA Means Certified Public Accountant in United states. It is a designation provided to licensed accounting professionals. CPA is the title of qualified accountants in the USA. It is equivalent to the title of Chartered Accountant (CA) in other countries. The CPA license is provided by the Board of Accountancy for each state in USA. The American Institute of Certified Public Accountants (AICPA) provides resources on obtaining the license. The CPA designation was first established in law in New York State on April 17, 1896.

CPA Acronym

CPA is an abbreviation for Certified Public Accountant (US).

CPA stands for Certified Public Accountant.

Certified Public Accountant (CPA)

CPAs have a variety of options for careers for them, whether within private accounting (that is working for the accounting company) or in corporate accounting (working within a business) or even in government service. People with the CPA designation are also able to move into executive positions , such as chief financial officers or controllers. (CFOs).

All CPAs are accountants, but not all accountants are CPAs

What does a CPA do exactly?

As per the AICPA Five areas of expertise that are available to those who earn CPA designation are:

  • Corporate Finance
  • Auditing and reviewing
  • Tax preparation and Tax consulting
  • Consulting services
  • Financial management & planning
  • Litigation consultation

How to Become A CPA

In order to obtain the Certified Public Accountant (CPA) certification requires an undergraduate degree in finance, business administration or accounting. Candidates must also complete 150 hours of formal education and must have at least two years of experience as a public accountant. To earn the CPA designation, one must also be able to pass the Uniform CPA Examination.

How to Become a CPA – step by step guide

Furthermore, maintaining the CPA designation is contingent upon completing an exact number of continuing education hours per year.

Requirement to become a CPA

In accordance with section 23 in the UAA, an CPA who is licensed within a country that has requirements substantially similar to those set out by the UAA is considered to be substantially comparable. Some requirements may be included.

  • Obtaining 150 credit hours
  • Minimum one year of CPA experience;
  • Passing the Uniform CPA Examination.

CPA Exam

Each state requires some degree of accounting training in order to be a licensed CPA. In the majority of states, this is 150 hours of college-level accounting classes. Certain CPA accounting students complete the requirement while in college. A master’s degree, however, isn’t required to fulfill the requirement for education Some of the 150 credit-hour programs can lead to a master’s degree.

The CPA Exam can be the most challenging task for some candidates. This CPA Exam includes four separate sections that include Auditing and Attestation and business Environment and Concepts, Financial Accounting and Reporting and Regulation. Before starting, be certain to know how to pass the CPA Application process for the exam.

State laws differ widely in the extent to which a non-CPA can be permitted to use the term “accountant.” For instance, Texas prohibits the use of the names “accountant” or “auditor” by anyone who is who is not certified as CPA by a Texas CPA, unless that person is an CPA from another country, or is a non-resident of Texas and is in compliance with the rules for practicing in Texas by outside-state CPA companies and their practitioners.

Leave a Reply