Monday, December 27, 2010

How to become CPA | Steps for CPA exam | CPA exam online

How to become CPA:

  • Stands for Certified Public Accountant
  • Trusted financial advisor who helps individuals, businesses, and other organizations plan and reach their financial goals
  • All CPAs are accountants, but not all accountants are CPAs
  • The CPA credential is a symbol of trust and professionalism in the world of business 
3 E’s are required for licensure:
Exam or Uniform CPA Examination
State Boards of Accountancy determine the laws and rules for each state/jurisdiction
Visit NASBA (National Association of State Boards of Accountancy) for each state’s requirements.
Requirements vary by state/jurisdiction
Most states now require 150 semester hours
Number of accounting hours (in the 150 total) is dependent on state requirements

Uniform CPA Examination:

Computer-based format
Consists of 4 sections
Auditing and Attestation
Business Environment and Concepts
Financial Accounting and Reporting
Same test no matter where it is taken
Passing score is 75 on a 0-99 scale
Question types include multiple choice, simulation and written communication
Eligibility to sit for exam depends on state

Many states require the candidate to have 1 – 2 years experience under a CPA

—Additional requirements vary by the candidate’s:
—Education – e.g. Graduate degree vs. 150 hours of undergraduate
—Employer(s) – e.g. Public accounting firm vs. industry
—Type of work – e.g. Tax professional vs. auditor.