The Role and Significance of A CPA Certification
Certified public accountant is a recognized global certification awarded by a professional body to the individual who passes the examination and meets certain professional requirements. Normally, the title is awarded to those accountants who meet strict professional qualifications. For instance, in the United States, this title is conferred upon the individuals who are able to pass the Uniform Certified Public Accounting Examination conducted by the American Institute of Certified Public Accountants. Moreover, the designation of a Certified Public Accountant allows individuals to start their practice as an approved certified public accountant.
The licensing of Certified Public Accountants also prevents incompetent individuals from obtaining the qualification. Apart from this, the certification also helped accounting to emerge as a profession with professional standards, a code of professional ethics as well as licensing requirements. In general, passing the Certified Public Accounting examination is essential for gaining approval from the professional body.
The examination conducted for obtaining the CPA certification generally consists of different subjects like auditing, financial accounting and reporting, Taxation, law etc. After an individual passes the examination, he/she is eligible to join an organization as a Certified Public Accountant. Such certification definitely provides better professional opportunities in the field of accounting.
The primary responsibility of a Certified Public Accountant is to offer assurance to the private organization, corporation, state authority or investor about the accuracy of a financial statement. Such statements include profit and loss accounts, loan applications, tax statements as well as other similar records. Apart from this, the individuals also handle various tasks associated with financial matters like preparation of taxes, giving advice to small-scale business, home-based businesses and corporations, financial consulting, auditing and basic record-keeping activities. Moreover, the dynamic nature of financial world entails the need for continuous education.
The certification of CPA also enhances the career prospects of an individual. Moreover, this allows an individual to make a choice between different fields of accounting such as Public accounting, government accounting, management accounting and internal auditing. These professionals are employed by large accounting firms and offer a variety of accounting services to the clients which includes nonprofit organizations, individuals, private companies and government.