Certified Public Accountant (CPA)

The CPA designation is regarded as the highest mark of distinction for accountants in the United States and is a requirement to practice as a financial statement auditor.

CPA Requirements

1. Education

• Most states require 150 semester hours of college education.

• Some states allow candidates to take the CPA exam after completing 120 hours but require 150 hours to receive the CPA certificate.

2. Examination

• Administered by the AICPA, the CPA exam covers four areas: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and Business Environment and Concepts (BEC). Candidates are tested on ethics, professional responsibilities, risk assessment, evidence-gathering, and reporting.

3. Experience

• Most states require 1-2 years of supervised work experience under a CPA, either in public accounting or a relevant professional field.

4. Licensing

• CPAs must meet state-specific requirements and may apply for licenses in multiple states. Substantial equivalency agreements streamline licensing across states with similar requirements.

5. Continuing Education

• CPAs are required to complete Continuing Professional Education (CPE) courses to maintain their licenses.

Other Certifications

1. Certified Internal Auditor (CIA)

• Focuses on internal auditing principles and practices.

• Requires a bachelor’s degree and two years of internal auditing experience.

2. Certified Management Accountant (CMA)

• Emphasizes financial planning, performance, and analytics.

• Requires a bachelor’s degree, two years of experience, and passing a two-part exam.

3. Certified Information Systems Auditor (CISA)

• Specializes in auditing information systems and controls.

• Requires five years of professional IT audit experience.

4. Certified Fraud Examiner (CFE)

• Focuses on fraud prevention, detection, and investigation.

• Requires two years of experience in a fraud-related field.

5. Chartered Accountant (CA)

• Equivalent to CPA in countries like Canada, the UK, and Australia.