Certified Public Accountant (CPA)

What It Is:

A Certified Public Accountant (CPA) is an accounting professional who has passed the Uniform CPA examination and has also met additional state certification and experience requirements. 

How It Works/Example:

To become a CPA, a person must: A) complete a college-level accounting program, B) pass the Uniform CPA Examination, and C) have a certain amount of professional work experience in accounting -- typically one year. 

The CPA examination is developed and graded by the American Institute of Certified Public Accountants. The exam has four sections: auditing and attestation, financial accounting and reporting, regulation, and business environment and concepts. Nearly 14 hours long in total, the CPA examination also includes a writing skills exercise, multiple choice questions and case studies.

Once a person becomes a CPA, they can specialize in one specific area of finance or a wide range of services, including:

• Corporate Finance
• Corporate Business
• Estate Planning
• Financial Accounting
• Financial Analysis
• Financial Planning
• Forensic Accounting
• Income Tax
• Information Technology
• Management Consulting
• Performance Management
• Tax Preparation and Planning
• Venture Capital

CPAs are required to complete a minimum number of continuing professional education (CPE) courses in order to retain the CPA designation.

Other countries have different designations for the CPA qualification. The Canadian equivalent to a CPA is a Chartered Accountant (CA).

Why It Matters:

The CPA designation is granted by the American Institute of Certified Public Accountants in order to maintain industry-wide, professional standards.

A CPA designation is a certification of expertise in the field of accounting. Only a CPA can provide an opinion to the public regarding publicly distributed financial statements.