CPA stands for Certified Public Accountant, which is a professional designation given to licensed accounting professionals. A CPA is an accounting professional who has met state licensing requirements to earn their CPA designation through educational and experience requirements and passing an exam. A CPA is different from an accountant, as anyone who does any type of accounting function can call themselves an accountant, but a CPA is someone who has earned a professional designation through a combination of education, experience, and licensing.
CPAs are not limited to one industry or job function, and they can perform other services as a result of the knowledge gained in exam preparation and continuing professional education (CPE) requirements. They can perform accounting duties such as tax preparation, auditing, and consulting. The CPA designation helps enforce professional standards in the accounting industry.
To become a CPA, one must meet high educational standards, pass the Uniform CPA Exam, and complete a specific amount of general accounting experience. The CPA exam covers topics like auditing, business environment and concepts, financial accounting and reporting, and regulation. Once someone has passed the exam and met the work experience requirement, they are eligible to apply for a CPA license with their state board of accountancy.
