Many CPAs are members of the American Institute of Certified Public Accountants and their state CPA society.
[3] In 1660, the first person who would conduct an audit was chosen in order to be able to manage the money that was raised by England in Virginia, United States.
Frank Broaker was licensee #1 and he received his certificate solely through previous experience as a public accountant and did not take an examination, commonly referred to as grandfathering.
The first person to receive the CPA through examination and previous experience was Joseph Hardcastle, who would go on to become an accounting theorist and New York University professor.
The National Association of State Board of Accountancy (NASBA) collected and analyzed data from 1996 to 1998 to verify the effectiveness of the measure.
[11] To become a CPA in Australia, it also requires a certain amount of education and experience to be eligible working in some specific areas in the accounting field.
Along with attorneys and Enrolled Agents, CPAs may represent taxpayers in matters before the Internal Revenue Service (IRS).
[17] Whether providing services directly to the public or employed by corporations or associations, CPAs can operate in virtually any area of finance including: To become a CPA in the United States, the candidate must sit for and pass the Uniform Certified Public Accountant Examination (Uniform CPA Exam), which is set by the American Institute of Certified Public Accountants (AICPA) and administered by the National Association of State Boards of Accountancy (NASBA).
[18] To qualify for the CPA examination in the United States, individuals typically need a bachelor's degree from an accredited institution with a minimum number of accounting and business-related credit hours (ranging from 120 to 150), and specific coursework in subjects such as auditing and financial accounting.
Candidates must apply through their state's Board of Accountancy, pay the requisite fees, and may need to pass an ethics exam.
Other states have a one-tier system whereby an individual would be certified and licensed at the same time when both the CPA exam is passed and the work experience requirement has been met.
[20][needs update] A number of states are two-tiered, but require work experience for the CPA certificate, such as Ohio and Pennsylvania.
AICPA guidelines (which are adopted by many state boards) grant licensees 1 hour of CPE credit for every 50 minutes of instruction.
One significant change was in 2013, when the Association to Advance Collegiate Schools of Business (AACSB) mandated that information technology be included in all accredited accounting programs.
In today's digital age, many organizations require the professional services of CPAs to conduct business on an interstate and international basis and have compliance responsibilities in multiple jurisdictions.
[31] Differing requirements for CPA certification, reciprocity, temporary practice and other aspects of state accountancy legislation in the 55 U.S. licensing jurisdictions (the 50 states, Puerto Rico, the District of Columbia, the U.S. Virgin Islands, Guam and the Commonwealth of the Northern Mariana Islands) make the interstate practice and mobility of CPAs more complicated.
[31] The American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) have analyzed the current system for gaining practice privileges across state lines and have endorsed a uniform mobility system.
This model approach is detailed through the substantial equivalency provision (Section 23) of the Uniform Accountancy Act (UAA).
The UAA is an "evergreen" model licensing law co-developed, maintained, reviewed and updated by the AICPA and NASBA.
[31] Uniform adoption of the UAA's substantial equivalency provision creates a system similar to the nation's driver's license program by providing CPAs with mobility while retaining and strengthening state boards' ability to protect the public interest.
The system enables consumers to receive timely services from the CPA best suited to the job, regardless of location, and without the hindrances of unnecessary filings, forms and increased costs that do not protect the public interest.
[31] As of October 2012, a total of 49 out of the 50 states and the District of Columbia had passed mobility laws and were in the implementation and navigation phases.
[34] The CPA designation is granted by individual state boards, not the American Institute of Certified Public Accountants (AICPA).
To become a full member of AICPA, the applicant must hold a valid CPA certificate or license from at least one of the fifty-five U.S. state/territory boards of accountancy; some additional requirements apply.
Governance Mark Koziel is the CEO of the Association of International Certified Professional Accountants (AICPA & CIMA) and the American Institute of CPAs.