What is AICPA? AICPA Assessment

AICPA Exam Subjects

1. Audit and certification: including knowledge of audit procedures, generally accepted auditing standards and other attestation-related standards, as well as the skills required to perform entrusted audits.

2. Financial accounting and reporting: includes knowledge of accounting standards for businesses, non-profit organizations, and government organizations, and the skills required to apply them.

3. Regulations: including knowledge of federal tax laws, professional ethics, professional and legal responsibilities, and commercial laws, as well as the skills required to apply them.

4. Business environment: including basic knowledge of general business environment and theory, understanding the basis of accounting treatment of commercial transactions and the skills required for its application.

Development History

In August 1887, New York State law formally recognized the American Institute of Public Accountants.

In 1896, the New York legislature passed the "Act to Regulate the Profession of Public Accountants," which first introduced the title of "Certified Public Accountant" (CPA).

In October 1905 and October 1936, AICPA merged with the American Institute of Public Accountants and the American Institute of Certified Public Accountants, respectively.

In 1916, it was renamed the Institute of Public Accountants and had 1,150 members at the time.

In 1917, it was renamed the American Institute of Accountants.

In 1917, AICPA published the "Method of Preparing Balance Sheets" in the form of a Federal Reserve Board announcement, which became the first accounting standard with "authoritative support".

In 1932, the Committee on Accounting Procedure was established, marking the AICPA's systematic study of accounting standards.

In 1936, the AIA merged with the American Society of Certified Public Accountants, which had been founded in 1921.

In 1957, it was renamed the American Institute of Certified Public Accountants.

In 1959, the Accounting Principles Board replaced the Accounting Procedure Committee and continued to develop and publish accounting standards.

Since 2004, the CPA exam has been administered by computer.

The development history of CPA law in the United States

In 1896, the New York State legislature passed the first law in the United States to establish the CPA system, laying the foundation for other states to later regulate the CPA profession.

In 1916, the American Institute of Certified Public Accountants, the predecessor of the American Institute of Certified Public Accountants, promulgated the first model law in the United States to regulate the practice of certified public accountants.

In April 1980, the National Association of Accountancy Boards of America issued a model CPA law that reflects the legislative policies developed over the years. Since the members of the National Association of Accountancy Boards of America are the state boards of accountancy, which are responsible for implementing existing laws and making recommendations to state legislatures, it is more appropriate for the National Association of Accountancy Boards of America to formulate legal policies related to CPAs, which should be recognized by all parties and used as a reference.

In January 1983, the American Institute of Certified Public Accountants and the National Association of Boards of Accountancy jointly established a committee to study and formulate a new CPA model law, the Uniform Accounting Act of 1984. This law is a forward-looking law that has received support not only from the CPA industry but also from the public. Later, after several revisions, the law was renamed the "Uniform Accounting Act".

Auditing Standards

In 1939, the AICPA established the Auditing Procedure Committee. This was a direct response to the McKesson & Robbins case. The committee made several recommendations on the review of inventory and accounts receivable, the hiring of independent auditors, and the format of audit reports. On this basis, it formed Auditing Procedure Bulletin No. 9, Expansion of Auditing Procedures. In 1948 alone, the committee issued 10 generally accepted auditing standards.

In 1972, AICPA established the Auditing Standards Executive Committee to replace the Auditing Procedure Committee.

In 1977, the Auditing Standards Committee was reorganized into the Auditing Standards Board. In view of the public's criticism of the auditing of American certified public accountants, the AICPA established the Accounting Firm Department in 1977, extending professional self-discipline from individuals to entities. Later, it was divided into two parts, namely the Public Company Department (SEC Practice) and the Private Company Department (Private Companies Practice). They provide organizational guarantees for peer review.

Examination Standard Development

In 1959, AICPA established the Follow-up Vocational Education Department, and vocational education gradually became an important function of the association.

In 1971, the AICPA passed a resolution urging state CPA associations to require practicing CPAs to receive continuing education.

By 1987, 48 states had established this mandatory requirement.

In January 1987, the AICPA passed a resolution by unanimous vote: starting from the year 2000, the CPA education requirement will be raised from four years to five years, or 150 credits.

In 1990, AICPA required all its members to complete 120 hours of continuing education within three years, with no less than 20 hours per year.

AICPA in China

Application conditions

Guam is the first choice for candidates from China and even Asia to take the AICPA exam

Bachelor's degree, 120 total credits, 24 accounting credits, including 3 financial accounting credits, 3 auditing credits and 3 taxation credits; 24 business credits, including 6 economics credits, 3 finance credits and 3 business law credits.

The exam is available every month except March, June, September, and December. Please note that the exam cannot be taken on a U.S. national holiday, and the exam is not available on Saturdays and Sundays.

Advantages

1. The value of the certificate is improved and its recognition is enhanced

The American Certified Public Accountant certification body is the AICPA, the world's largest and most influential accounting organization, with a group of more than 300,000 accountants. It is likely to influence global accounting development trends to a certain extent. As international accounting standards are constantly updated, the influence of US GAAP is also increasing.

2. AICPA certificates are recognized more widely

Among the world's top 500 companies, American companies account for more than 30%. They are basically spread all over the world, and their economic network is very developed, so the certificate is applicable to almost more than 100 countries in the world.

3. The examination cycle is short and the effect is obvious

Relatively speaking, there are still advantages in the four subjects of the AICPA exam, namely auditing, financial reporting, business theory and environment, and laws and regulations. Except for the months of March, June, and September and holidays each year when the exams cannot be taken, as long as you are fully prepared, you can apply for the exam at any time. On Gaodun Tribe, it takes as fast as four months to obtain an AICPA certificate, and you can pass one subject per month on average!

For some financial executives, AICPA can directly lead to a qualitative leap, such as common "routines" such as promotion and salary increase, but the most important thing is the inexhaustible confidence and the courage to compete when facing customers and opponents.

4. The exam focuses more on improving professional standards and cultivating abilities, rather than simply taking exams

AICPA exam preparation is very helpful for financial professionals to make self-summary and comprehensive understanding. After the entire preparation period, there will be great improvements in both financial knowledge and skills. The exam focuses on the combination of theory and practical operations, rather than memorizing all the dead principles.

5. AICPA Association includes overseas elites

The overall organization is huge, basically including financial bigwigs from home and abroad. Everyone in the financial circle knows them, which is also a great help in accumulating personal connections.