Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. In the United States they will have passed theUniform Certified Public Accountant Examination and will have met additional state education and experience requirements for membership in their respective professional accounting bodies and certification as a CPA. Individuals who have passed the exam but have not either accomplished the required on-the-job experience or have previously met it and who have lapsed their continuing professional education or have requested to be converted to inactive status are, in many states, permitted the designation "CPA Inactive" or an equivalent phrase. In most U.S. states, only CPAs who are licensed are able to provide to the public attestation (including auditing) opinions on financial statements. The exceptions to this rule are Arizona, Kansas, and North Carolina where the "CPA" designation and the practice of auditing are not restricted. Many CPAs are members of the American Institute of Certified Public Accountants or their state CPA society.

Many states prohibit the use of the designations "Certified Public Accountant" by a person who is not certified as a CPA in that state. As a result, in many circumstances, an out-of-state CPA is restricted from using the CPA designation until a license or certificate from that state is obtained.

Texas additionally prohibits the use of the designations "accountant" and "auditor" by a person not certified as a Texas CPA, unless that person is a CPA in another state, is a non-resident of Texas, and otherwise meets the requirements for practice in Texas by out-of-state CPA firms and practitioners.[1]

Many other countries also use the title CPA to designate local public accountants.

Contents

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1Services provided 2CPA exam 3Other licensing and certification requirements

o 3.1Work experience requiremento 3.2Ethicso 3.3Continuing professional education

4Other accounting designations sometimes confused with CPA 5Inter-state practice

o 5.1Practice mobility 6AICPA membership 7State CPA association membership 8See also 9References 10External links

Services provided[edit]

The primary functions performed by CPAs relate to assurance services. In assurance services, also known as financial audit services, CPAs attest to the reasonableness of disclosures, the freedom from material misstatement, and the adherence to the

applicable generally accepted accounting principles (GAAP) in financial statements. CPAs can also be employed by corporations—termed "the private sector"—in finance functions such as Chief Financial Officer (CFO) or finance manager, or as CEOs subject to their full business knowledge and practice. These CPAs do not provide services directly to the public.

Although some CPA firms serve as business consultants, the consulting role has been under scrutiny following the Enron scandal whereArthur Andersen simultaneously provided audit and consulting services which affected their ability to maintain independence in their audit duties. This incident resulted in many accounting firms divesting in their consulting divisions, but this trend has since reversed. In audit engagements, CPAs are (and have always been) required by professional standards and Federal and State laws to maintain independence (both in fact and in appearance) from the entity for which they are conducting an attestation (audit and review) engagement. However, most individual CPAs who work as consultants do not also work as auditors.

CPAs also have a niche within the income tax return preparation industry. Many small to mid-sized firms have both a tax and an auditing department. Along with attorneys and enrolled agents, CPAs may represent taxpayers in matters before the Internal Revenue Service.

Whether providing services directly to the public or employed by corporations or associations, CPAs can operate in virtually any area of finance including:

Assurance and attestation services Corporate finance  (merger and acquisition, initial public offerings, share and debt

issuings) Corporate governance Estate planning Financial accounting Governmental accounting Financial analysis Financial planning Forensic accounting  (preventing, detecting, and investigating financial frauds) Income tax Information technology, especially as applied to accounting and auditing Management consulting  and performance management Tax preparation  and planning Venture Capital Financial reporting Regulatory reporting