American Institute of Certified Public Accountants (AICPA) | Complete Guide

What is an AICPA?

The American Institute of Certified Public Accountants (AICPA) is a United States professional organization certifying public accountants. It was established in the year 1887 and is the largest accounting association in the world, with over 431,000 members in 137 countries. AICPA is responsible for laying down ethical standards and U.S. auditing standards. Moreover, AICPA develops and grades the Uniform CPA Examination.

A person must pass the CPA Examination to become a Certified Public Accountant (CPA) in the United States. AICPA as a professional organization also designs and offers professional education programs, resources, and other learning tools to help Certified Public Accountants (CPAs) enhance their skills and stay updated about the rules and regulations. AICPA plays a major role in advancing the accounting profession and supporting the professional development of CPAs. The National Association of State Boards of Accountancy (NASBA) also plays an important role in the CPA Examination by helping each State Board to evaluate CPA candidates, determine educational requirements, and move candidates through the CPA exam process. NASBA is a nonprofit group responsible for overseeing the accountancy profession in the United States and administering the Uniform CPA Examination.

Geeky Takeaways

• The American Institute of Certified Public Accountants (AICPA) is a professional organization representing Certified Public Accountants (CPAs) in the United States.
• AICPA functions as a regulatory body that sets ethical standards and U.S. auditing standards to be followed strictly by CPAs in the U.S.
• AICPA is a professional organization that is also responsible for offering educational programs to CPAs and for conducting CPA examinations in the United States to produce new talented CPAs.
• responsible for overseeing the accountancy profession in the United States and administering the Uniform CPA Examination.
• The average salary of a CPA in the USA is $73,464.
• CPA certification offers diversify career opportunities and desgination including Budget Analyst, Tax Examiner, Business Systems Analyst, Internal Auditor, and many more.

Benefits of AICPA Certification

AICPA Certification offers you the designation of a Certified Public Accountant (CPA) that comes with several benefits including:

1. Professional Worthiness: Obtaining a certificate of Public Accountant by AICPA represents your knowledge and experience in the world of accountancy. The CPA designation demonstrates that you possess the necessary skills required to handle complex financial matters.

2. Diverse Career and Better Career Opportunities: The CPA qualification offers a wider range of career opportunities like auditing, forensic accounting, tax accounting, consulting roles, etc. AICPA certification enhances your career and offers better advancement opportunities within the accounting field. Well-established companies always prefer to hire CPAs for accounting, auditing, tax, and finance positions. CPAs enjoy a competitive edge in the job market.

3. Higher Earning Potential: CPAs attract higher salaries in comparison to non-certified accountants due to their expertise, knowledge, and specialized skills. Employers tend to offer higher compensation packages to CPAs in comparison to others. Moreover, CPAs also enjoy greater job security due to their professional credibility.

4. Global Recognition: AICPA is the largest accounting association in the world and AICPA Certification is recognized across the globe. It is considered one of the most demanding designations that is respected and demanded internationally due to its credibility.

5. Networking Opportunities: AICPA membership enables access to a vast network of accounting professionals through conferences, seminars, and online communities. This offers CPAs mentorship, guidance, and potential business partnerships. This provides networking benefits to its members.

6. Continuing Professional Education: AICPA membership requires continuous learning process by fulfilling continuing professional education (CPE) requirements. This is important to stay updated with the latest industry trends, regulations, and best practices, enhancing their skills and knowledge throughout their careers.

7. Ethical Conduct: AICPA professionals are known for their ethics and professionalism. A strong foundation of ethical principles and professional standards of AICPA certifications ensures integrity, objectivity, and professionalism in their work.

AICPA Eligibility

A. Educational Requirements:

• Candidates must have completed a bachelor’s degree or higher from a recognized educational institution in accounting and business-related courses. However, this requirement may vary depending on the state’s specific requirements.
• Some states may require candidates to complete certain specific coursework in areas like accounting principles, auditing, financial reporting, taxation, and business law, typically at both undergraduate and graduate levels.

B. Experience Requirements:

Candidates must have relevant work experience in the field of accounting often ranging from one to two years of supervised work experience under a licensed CPA. This requirement may vary as per the state requirement.

C. Examination Requirements:

Candidates shall pass the Uniform CPA Examination (CPA Exam) conducted by AICPA. The candidates are expected to qualify all three core sections including Auditing and Attestation (AUD) Financial Accounting and Reporting (FAR) and Taxation and Regulation (REG) and Discipline sections including Business Analysis and Reporting (BAR), Information Systems and Controls (ISC) and Tax Compliance and Planning (TCP) within a period of 18 months, by earning a minimum score of 75 on each part.

D. Process:

1. Meet the educational and experience requirements mentioned above.

2. Apply to the state’s Board of Accountancy as per their specific requirements and application process.

3. Get yourself registered under the CPA Certification Program and qualify all the for sections of the CPA Examination.

4. Obtain your license of CPA by your state’s Board of Accountancy.

E. Fees:

Registration fee	&100 – $400
Paper Fee	$1000 for 4 CPA papers, generally 250 USD for each paper.
International Testing Fee	$390 per CPA Exam section
Evaluation Fee	$90 -$150 (Approx)
CPA Exam Retake Fee	$50-$200
CPA Review Course	$1,000-$4,000
Ethics Exam Fee	$250 and $320

Registration Fee – Basis of Section Opted

One section at a time	$63
Two sections at a time	$81
Three sections at a time	$99
Four sections at a time	$177

Application Fee: Application fee cost $344.80 per section amounting to around $1100- 1500.

AICPA Licensure

After meeting all the educational requirements and qualifying CPA Exam, you will be licensed as a CPA by your state’s Board of Accountancy. State Licensing Fee varies between $100 and $500.

Benefits of Licensure

1. Legal Authority to Practice: CPA license provides legal authority to practice as an accountant in the United States.

2. Better Career and Salary Potential: A licensed CPA are offered diversified career opportunities and better salary package.

3. Trustworthiness: Employers trust licensed CPAs as due to the rigorous education, experience, and examination requirements. Ethical code and standards adds professionalism and increases their credibility.

4. Global Regconition: Although CPA license is specific to the United States, it is recognised globally due to its credibility and professional standards.

5. Professional Development: CPA License requires continuous learning and development to stay updated about the recent trends nad industrilas changes. This help members to develop professionally.

Salary After AICPA

Average base salary of CPA is $96,000. This salary can range from $59,866 to $154,180 per year. Salary of CPA in the US varies depending on factors like experience level, location, industry, and company size. For example, CPAs who work in New York City, NY earn the highest average salary at $145,685 per year. Top companies that recruit for CPAs in United States are Valintry services, BJC Healthcare, Suncoast Drivers, Mid Oregon Personnel, and Intuit.

Note: Information and data about CPA Salary were obtained from the from Indeed website

AICPA Exam Structure

The AICPA (American Institute of Certified Public Accountants) Exam is the gateway to becoming a licensed CPA in the United States. Its structure is designed to rigorously assess the knowledge and skills essential for practicing public accounting. Latest AICPA Exam Structure in January 2024, introduces a new exam structure designed to bridge skill gaps and enhance specialization for accountants.

Each 4-hour exam section includes both multiple-choice questions (MCQs) and task-based simulations (TBSs). Each section has five testlets: two with MCQs and three with TBSs. Sections are scored on a 0-99 scale with a 75 needed to pass. MCQs and TBSs are usually weighted 50/50 (except for ISC, which weights MCQs at 60%). You have 18 months from passing your first section to pass the remaining three. However, many states are adopting a longer 30-month timeline – check with your state board for specifics.

Core Section (Mandatory for all CPAs)

1. Regulation (REG)

REG section consists of 72 MCQs and 8 TBSs, focusing on common tax situations. It assesses your knowledge of tax practice, including ethics, U.S. business law, and federal tax compliance for individuals and businesses.

• Ethics, Professional Responsibilities and Federal Tax Procedures
• Business Law
• Federal Taxation of Property Transactions
• Federal Taxation of Individuals
• Federal Taxation of Entities

2. Auditing and Attestation (AUD)

AUD section consists of 78 MCQs and seven TBSs. AUD section tests your knowledge of auditing processes, standards, and ethics.

• Ethics, Professional Responsibilities and General Principles
• Assessing Risk and Developing a Planned Response
• Performing Further Procedures and Obtaining Evidence
• Forming Conclusions and Reporting

3. Financial Accounting and Reporting (FAR)

FAR section consists of 50 MCQs and seven TBSs. It assesses your knowledge of financial accounting and reporting frameworks for for-profit, not-for-profit, and government entities

• Financial Reporting
• Select Balance Sheet Accounts
• Select Transactions

Discipline Section (Choose one)

1. Business Analysis and Reporting (BAR)

The BAR Discipline section tests a newly licensed CPA’s knowledge and skills in analyzing financial statements (including comparisons to budgets/forecasts, transaction impact, and investment alternatives), technical accounting/reporting requirements for for-profit businesses (FASB/SEC standards, revenue recognition, lease accounting), and governmental accounting standards (GASB). Note that some advanced technical accounting topics, like revenue recognition and lease accounting, overlap with the FAR Core section.

• Business Analysis
• Technical Accounting and Reporting
• State and Local Governments

2. Information Systems and Controls (ISC)

The ISC Discipline section tests a newly licensed CPA’s skills in information technology (IT) audits, advisory services (including SOC engagements), and data management throughout its lifecycle. For SOC engagements, the exam focuses on using Trust Services Criteria (Security, Availability, Processing Integrity, Confidentiality, Privacy) within SOC 2® engagements, as well as planning, select procedures, and reporting for SOC 1® engagements.

• Information Systems and Data Management
• Security, Confidentiality and Privacy
• Considerations for System and Organization Controls (SOC) Engagements

3. Tax Compliance and Planning (TCP)

The TCP Discipline section tests a newly licensed CPA’s knowledge and skills in U.S. federal tax compliance (nonroutine, complex transactions) for individuals and entities, federal tax planning (implications of transactions/structures), and personal financial planning strategies connected to individual tax returns. This includes both preparing and reviewing tax returns.

• Tax Compliance and Planning for Individuals and Personal Financial Planning
• Entity Tax Compliance
• Entity Tax Planning
• Property Transactions (disposition of assets)

Section	Exam Time	MCQs	TBSs
REG – Core	4 hour	78	7
AUD – Core	4 hour	50	7
FAR – Core	4 hour	72	8
BAR – Discipline	4 hour	50	7
ISC – Discipline	4 hour	82	6
TCP – Discipline	4 hour	68	7

Note: Information and data for this AICPA Exam Structure were obtained from the AICPA and Becker websites.

AICPA Exam Tips

1. Understanding Requirements: Understanding CPA Exam structure and generating study plan is important. It is always advisable to understand your weakness nad strength before planning out things.

2. Stay Focu: Focus and consistency is key to success. Maintaining focus and consistency help to qualify professional examinations like CPA.

3. Rely on Official Study Materials: Always prefer official study materials provided by the AICPA to study and take practice exams to gain experience. .

4. Seek Professional Help: Consider enrolling in a CPA review course as they offer study materials, lectures, practice questions, and support from experienced instructors.

5. Embrace Your Confidence: Trust your abilities and stay calm and confident. Manage your time effectively to take maximum advantage.

AICPA Exam Resources

• The official website of AICPA.
• Those websites are dedicated to CPA candidates.
• CPA Review Courses offered by Becker, Wiley CPAexcel, and Surgent CPA.

Conclusion

The American Institute of Certified Public Accountants (AICPA) is a professional body in the United States that guides accountants by laying down ethical standards and U.S. auditing standards. AICPA as an educational body attracts those individuals interested in accounts to obtain a designation of Certified Public Accountant (CPA). AICPA is recognized globally and ensures the credibility of the profession. A person interested in becoming a member of AICPA must meet the eligibility criteria and qualify for the CPA Examination.

American Institute of Certified Public Accountants (AICPA)- FAQs

How do I become a member of the AICPA?

Membership in the AICPA is open to CPAs, accounting students, and accounting professionals who meet certain eligibility criteria. Individuals can apply for membership online through the AICPA website and pay membership dues to access member benefits and resources.

How many times can a candidate retake a CPA exam?

There is no limit on retaking the exam in case you have failed a section. However, if you clear a section, then you must pass the remaining sections within 18 months.

What is the CPA Exam, and how do I register for it?

The CPA Exam is a standardized test administered by the AICPA to assess the knowledge and skills of individuals seeking to become CPAs. Candidates must meet specific eligibility requirements and register for the exam through the National Association of State Boards of Accountancy (NASBA) website.

How do I maintain my CPA license and AICPA membership?

CPAs are required to fulfill continuing professional education (CPE) requirements to maintain their license and AICPA membership. This typically involves completing a certain number of CPE credits each year through approved courses, seminars, webinars, or self-study programs.

Where can I find resources and support for my accounting career?

The AICPA offers a wide range of resources, tools, and support to help accounting professionals advance their careers, including publications, research reports, webinars, conferences, networking events, and online communities. Members can access these resources through the AICPA website and other member portals.