certified-public-accountant

Certified Public Accountant

Certified public accountant is an individual who has qualified the exam of certified public accountant and he has been given the license to ensure that, he is being practicing as CPA in various countries. The public accountants work towards offering various kinds of services to the organizations in the field of manufacturing, education, non-profit organizations and health care. In the United States of America, each of the 50 states is being providing license to their CPA in the geographical area. CPA is in need to ensure that, he passes the CPA exam in the geographical area. The requirements of the state are different in comparison to requirements of other states in the course of doing CPA. Most of the CPAs are being working as members of American institute of certified public accountants and do work towards achievement of their goals.

Public Accounting

Public accounting includes a firm of accountants wherein, there are various people who are being qualified as public accountants and work towards ensuring that they carry out the activities regarding public accountants. The services are being provided to public accountants on the basis of the size of the expertise of the individuals who are being doing the activities. The people are being working in a firm for providing services to various categories of firms.

The services being provided by certified public accountants include services in the name of the following:

a.       Preparation of financial statements of the firm and getting involved in auditing and assurance.

b.      Work is being related to tax procedures along with filing of returns and efficient planning of taxes.

c.       Providing advisory and consultancy services.

Becoming a CPA

            For ensuring that a person becomes a CPA, he has to ensure that, he obtains at least 150 college credits for ensuring that, he becomes eligible for CPA exam. The individual has to ensure that, he writes the exam and the duration of the exam to be undertaken by the individual is 18 months.

CPA Exam

            There are four sections which are required to be written by the individuals in the course of writing of CPA exam. A total of 14 hours are being taken by the people for writing up of the CPA exam. The four parts of the exam are required to be completed by the people in a period of 18 months in any order. The parts of the exam which are required to be completed by the individual include the following:

a.       Auditing and attestation

b.      Business environment and concepts

c.       Financing accounting and reporting

d.      Regulation

The testing components which are being included in the exams are the following:

a.       Multiple choice questions

b.      Talk based simulations

c.       Written communication tasks

Requirements of CPA Examination

·         The person has to ensure that, he earns 150 college credits wherein, the person has to ensure that, he studies for an additional year other than normal college education being undertaken by the organization.

·         Once the person is being eligible for sitting in the exam, he is required to clear Uniform certified public accountant examination.

·         This examination is being undertaken by American institute of public accountants

·         It is being administered by National Association of State Boards.

Issuance of CPA License

            The CPA license is being issued by American Institute of Certified Public Accountants. For ensuring that a person obtains license of CPA, it is essential for him to make sure that, he works towards three areas such as education, experience, and education. The basic requirement to ensure that, license is being obtained by the person is the requirement regarding ensuring that, CPA exam is being cleared by the person at a particular point of time.

            There are two systems being followed by each state after clearance of the examination by the individual.

a.       One tier-system: In few of the states, the person is being given certification and license at the point when, he passes the CPA exam and meets the requirements regarding work experience.

b.      Two-tier system: The individual becomes certified once he passes the CPA exam but he will obtain license only at the time when, he carries out a particular level of work experience.

Ethics

            Here, there is introduction of fifth exam which is being required by the person to ensure that, he becomes CPA. There are over 40 states which are being required for appearing in CPA exam. The ethics and examination is being obtained by the person for learning the rules and regulations in general and for ensuring that, particular state of professional service is being identified.

Continuing Professional Education

            To ensure that, the individuals continuously learns new things, it is being necessary for him to make sure that, he obtains continuing professional development hours up to the level of 40 hours every year which is minimum to the level of 20 hours in a year. 1 CPE is being provided to the person for each 50 minutes of instructions being required to be carried out by the person.

CPA Job Description

            In the course of job description, CPA is being involved in the area of doing the working in various kinds of firms, businesses, government agencies, non-profit organizations and providing assistance in the course of ensuring that, proper results are being generated by the people. CPA works towards aligning his activities with the goals of the organization and provides help to the clients in the course of filing up of returns and doing planning regarding budgets along with tax strategies.

Services Provided

            The services being provided by CPAs include the following categories of services.

a.       Forensic accounting

b.      Business valuation

c.       Financial investment

d.      Auditing

e.       Tax planning

f.       Financial reporting

g.      Corporate governance

h.      Advisory and insurance services