CPA
Back to GlossaryDefinition
A state-licensed accounting professional who meets education, exam, and experience requirements and upholds ethical standards.
Summary
CPA stands for Certified Public Accountant, a professional license that allows individuals to provide accounting services to the public. CPAs must pass a rigorous four-part exam, meet education requirements (typically 150 credit hours), and complete supervised work experience. They are authorized to perform audits, prepare tax returns, provide financial consulting, and attest to financial statements. CPAs are held to high ethical standards and must complete continuing education to maintain their license.
Usage Context
Understanding the CPA credential is important when studying career paths in accounting, professional ethics, auditing standards, and the regulatory environment of the accounting profession. It's particularly relevant when discussing who can perform certain accounting functions and the credibility behind financial attestations.
Common Confusions
- Thinking all accountants are CPAs - many work without the certification
- Confusing CPA with other accounting certifications like CMA or CIA
- Assuming CPAs only do taxes - they provide many services
- Not understanding that CPA requirements vary by state
- Thinking the CPA exam is just one test rather than four separate sections
