American Institute of Certified Public Accountants (AICPA)

AICPA Certified Public Accountants Accounting Auditing Taxation Securities and Exchange Commission Professional Resources
In the USA, the professional organization of certified public accountants. The Institute provides technical advice and guidance to its members and such government bodies as the Securities and Exchange Commission. It issues many influential publications in the areas of accounting, auditing, and taxation.
On this page

What is the American Institute of Certified Public Accountants (AICPA)?

The American Institute of Certified Public Accountants (AICPA) is a professional organization for certified public accountants (CPAs) in the United States. Founded in 1887, the AICPA provides technical advice and guidance to its members and key government bodies like the Securities and Exchange Commission (SEC). Its primary mission is to set ethical standards, auditing standards, and provide educational guidance to improve the performance and standards of the accounting profession.

Examples

  1. Educational Programs: The AICPA offers various educational certification programs like the Certified Public Accountant (CPA) exam, which is a key requirement for becoming a CPA in the United States.

  2. Technical Guidance: The AICPA provides numerous resources, including standards for auditing, accounting, and ethics that are essential for maintaining professionalism and accountability in the field of accounting.

  3. Publications: Influential publications such as the Journal of Accountancy and CPA Letter Daily provide accountants with the latest news, trends, and academic research in the field of accounting, auditing, and tax.

Frequently Asked Questions (FAQs)

What is the primary role of the AICPA?

The primary role of the AICPA is to provide technical advice, set standards, and offer guidance for CPAs in various areas, including accounting, auditing, and taxation.

Who can be a member of the AICPA?

Membership is generally reserved for certified public accountants (CPAs), although there are different categories of membership available for students, educators, and international professionals.

What kind of resources does the AICPA provide?

The AICPA provides a vast array of resources including professional development courses, audit standards, ethical guidelines, publications, and personal finance advice.

How does the AICPA influence the accounting profession?

The AICPA influences the accounting profession by setting standards for ethical practice, developing and administering the CPA exam, and providing ongoing education and resources for CPAs.

What is the CPA Exam?

The CPA Exam is a comprehensive exam administered by the AICPA that must be passed to become a certified public accountant in the United States. It covers topics such as auditing, regulation, financial accounting, and business concepts.

Certified Public Accountant (CPA) A professional designation given to accountants who have passed the CPA exam and met other state certification requirements.

Securities and Exchange Commission (SEC) A U.S. government agency responsible for regulating the securities industry and enforcing federal securities laws.

Auditing The examination of financial records and statements to ascertain their accuracy and adherence to established standards.

Ethics in Accounting Principles that govern the conduct of accountants, ensuring they act with integrity, objectivity, and professionalism.

Online References

Suggested Books for Further Studies

  1. “Wiley CPAexcel Exam Review 2021 Study Guide + Question Pack” by Wiley

    • A comprehensive guidebook specifically designed for aspiring CPAs.

  2. “Accounting Handbook” by Joel G. Siegel and Jae K. Shim

    • Provides detailed explanations of accounting principles and standards.

  3. “Auditing and Accounting Guide: Health Care Entities” by AICPA

    • In-depth coverage of auditing practices specific to healthcare entities.

  4. “Professional Ethics: AICPA’s Comprehensive Course” by Robert H. Montgomery and Jack W. Eby

    • Detailed exploration of professional ethics standards set by the AICPA.

Accounting Basics: “American Institute of Certified Public Accountants (AICPA)” Fundamentals Quiz

### When was the AICPA founded? - [ ] 1901 - [ ] 1925 - [x] 1887 - [ ] 1950 > **Explanation:** The American Institute of Certified Public Accountants (AICPA) was founded in 1887. ### Who administers the CPA Exam? - [ ] SEC - [ ] IRS - [ ] Local State Boards - [x] AICPA > **Explanation:** The AICPA administers the Certified Public Accountant (CPA) Exam, which is a requirement for becoming a CPA. ### What kind of publications does the AICPA issue? - [ ] Legal documents - [x] Influential publications in accounting, auditing, and taxation - [ ] Medical journals - [ ] Technological reports > **Explanation:** The AICPA issues influential publications in the areas of accounting, auditing, and taxation. ### Can students join the AICPA? - [x] Yes, there are membership categories for students. - [ ] No, only certified professionals can join. - [ ] Only educators can join. - [ ] Only international professionals can join. > **Explanation:** The AICPA offers membership categories for students, educators, and international professionals as well as CPAs. ### What agency does the AICPA provide technical advice to? - [ ] IRS - [x] Securities and Exchange Commission (SEC) - [ ] Federal Reserve - [ ] FBI > **Explanation:** The AICPA provides technical advice and guidance to government bodies such as the Securities and Exchange Commission (SEC). ### What is the primary mission of the AICPA? - [ ] To regulate the banking industry - [ ] To provide legal services - [ ] To offer financial investment advice - [x] To set ethical and auditing standards and provide educational guidance for CPAs > **Explanation:** The AICPA's primary mission is to set ethical and auditing standards and provide educational guidance to improve the performance and standards of the accounting profession. ### Which of the following resources is NOT provided by the AICPA? - [ ] Audit standards - [ ] Professional development courses - [ ] Personal finance advice - [x] Real estate listings > **Explanation:** The AICPA does not provide real estate listings; rather, they offer resources such as audit standards, professional development courses, and personal finance advice. ### Is the CPA Exam a requirement to become a certified public accountant? - [x] Yes, passing the CPA Exam is a requirement. - [ ] No, there are alternative exams. - [ ] Only experience is required. - [ ] Only education is required. > **Explanation:** Passing the CPA Exam administered by the AICPA is a requirement to become a certified public accountant in the United States. ### Who benefits from the educational programs offered by the AICPA? - [ ] Only lawyers - [ ] Only government officials - [x] CPAs, accounting students, and educators - [ ] Only bankers > **Explanation:** The educational programs offered by the AICPA benefit CPAs, accounting students, and educators. ### What ethical responsibilities does the AICPA uphold? - [ ] Legal drafting - [ ] Property appraisal - [x] Integrity, objectivity, and professionalism in accounting - [ ] Real estate development > **Explanation:** The AICPA upholds ethical responsibilities involving integrity, objectivity, and professionalism in accounting.

Thank you for embarking on this journey through our comprehensive accounting lexicon and tackling our challenging sample exam quiz questions. Keep striving for excellence in your financial knowledge!

Tuesday, August 6, 2024
American Jobs Creation Act of 2004
American Institute of Certified Public Accountants (AICPA)
AICPA January 1, 1
Auditing Standards Board January 1, 1
Certified Public Accountant (CPA) January 1, 1
Accounting January 1, 1
Adjusted Basis January 1, 1
American Institute of Certified Public Accountants (AICPA) January 1, 1
Apportionment January 1, 1
Appropriation (Accounting) January 1, 1
Attribute January 1, 1
Audit Limited January 1, 1

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.