What is a Certified Public Accountant or CPA?

In some states, people can work as an accountantnumber of years of experience working under the
even if they have no formal education or experiencesupervision of a licensed CPA. Two years of
whatsoever. In order to impose standards of qualitysupervised work experience is common in most areas.
and respectability upon the accounting industry, theIn some jurisdictions, this time is reduced to one year if
idea of a CPA was born.A CPA is someone who hasthe potential CPAs have an advanced degree or
earned a board-certified accounting license thattakes extra accounting classes. The final step is to
guarantees that he or she has at least the entry-levelpass a grueling CPA exam consisting of four parts:
skills required to be a good accountant.If an accountantRegulation, Auditing, Business Environment and
acts in an incompetent or unethical way, his or herBusiness Concepts, and Financial Accounting. Each
CPA license can be revoked. Furthermore, a CPA ispart of the test may be taken separately, but they
required to receive continuing education in themust all be completed within a certain length of time,
accounting field, to ensure that he or she stays up tousually 18 months.If all four tests are not completed
date with the latest updates and changes inwithin 18 months of passing the first, that first test is no
information. Each CPA license is granted for only onelonger counted. The CPA exam is uniform throughout
of the 55 U.S. jurisdictions, which include each state,all 55 jurisdictions. Some jurisdictions acknowledge
plus the District of Columbia, the U.S. Virgin Islands,accountants who have all qualifications except the
Guam, Puerto Rico, and the Commonwealth ofCPA exam with the title PA - Public Accountant. What
Northern Mariana Islands. If a Certified Publicdoes a CPA Do? The three major areas of work for
Accountant wants to work in other jurisdictions, he orCPA firms have traditionally included accounting and
she must obtain a license for each one separately.auditing services, preparing and filing taxes for
What are the Steps to Becoming a CPA? In order tobusinesses and individuals, and advising companies on
be licensed as a Certified Public Accountant, anmanagement and compliance policies. People with
applicant must pass requirements known as "Thebusinesses, investments, or other complicated taxes
Three E's" - education, examination, andshould think about using a CPA.Recently, new areas of
experience.Thebusiness have opened up for accounting professionals,
specifics of these requirements vary from jurisdictionincluding forensic accounting, where accountants
to jurisdiction. To fulfill the education standard, mostsearch through records for traces of criminal activity,
areas require a bachelor's or master's degree inpersonal financial planner services to help clients
accounting, or in another field if it includes a minimumdetermine budgets and investment strategies, and
number of accounting classes. Next, the prospectiveinformation technology specialties like filing taxes online
Certified Public Accountants must have a specifiedwith the IRS's new efile options.