What Is the American Institute of Certified Public Accountants?

The American Institute of Certified Public Accountants (AICPA) is a national accounting professional organization in the United States and the world's largest professional association of accountants, with nearly 370,000 members in 128 countries and regions around the world.

Basic Information

Chinese name

American Institute of Certified Public Accountants

Foreign name

American Institute of Certified Public Accountants

Shorthand

AICPA

Nature

National Accounting Professional Organization

Established

1887

Member

370 thousand

The American Institute of Certified Public Accountants was founded in 1887 under the name American Association of Public Accountants (AAPA). In August 1887, New York State law officially recognized the American Institute of Public Accountants. In 1896, the New York legislature passed the Act on the Management of the Public Accountant's Career, and for the first time introduced the title of "CPA". It was renamed the Institute of Public Accountants in 1916 and had 1,150 members. In 1917 it was renamed the American Institute of Accountants. In 1936, the AIA merged with the American Society of Certified Public Accountants, founded in 1921. 1957 changed its name to: American Institute of Certified Public Accountants.

The American Institute of Certified Public Accountants has the power to formulate rules, the right to supervise business, and the right to punish some violations. The American Institute of Certified Public Accountants manages certified public accountants and accounting firms through the following aspects:

(1) Formulate guidelines and rules. Including the development of auditing standards, tabulation and review standards, other assurance standards, quality control standards, consulting services and tax practice standards, and a code of professional conduct.

(2) Organize the examination and examination of certified public accountants.

(3) Conduct follow-up education.

(4) Promote and supervise the implementation of guidelines and plans.

The American Institute of Certified Public Accountants' Strategic Planning Committee and the American Institute of Certified Public Accountants' Strategic Objectives approved by the American Institute of Certified Public Accountants in November 1995 defined the American Institute of Certified Public Accountants' mission as:

Provide members with resources, information, and lead members to strengthen their capabilities, so that members can enhance the provision of high-level and valuable professional services for the benefit of the public, employees and customers.

The American Institute of Certified Public Accountants has broken down its mission into the following five areas:

(1) Support

As a representative of the United States Certified Public Accountant, he interacts with governments, legal bodies, and other organizations to protect and enhance the interests of members.

(2) Registration and permission

Seek possible uniform (state) registration and licensing standards to protect and enhance the reputation of certified public accountants;

(3) Communication

Promote public recognition of CPA expert status, integrity, objectivity, and ability, and monitor the needs and opinions of CPAs.

(4) Recruitment and education

Encourage high-quality individuals to become certified public accountants and support the development of outstanding college programs.

(5) Standards and implementation

Establish professional standards to assist members to continuously improve their professional conduct, professional execution and professional capabilities; to monitor professional implementation in order to strengthen advanced standards and requirements.

Management Committee:

The American Institute of Certified Public Accountants has a management committee that determines its activities and policies, and has approximately 263 members from various states.

The committee meets twice a year.

Board of Directors:

The board of directors, as the executive committee of the management committee, is responsible for the work of the association's management committee during the intersessional period.

The board of directors has 23 members, including: 16 directors, 3 public representatives, 1 chairman, 1 vice chairman, 1 previous chairman, and 1 president, who is a member of the association.

Joint trial committee:

The Joint Trial Board relies on adjusting disciplinary costs between states and the American Institute of Certified Public Accountants to provide uniform enforcement of professional standards. This decision is valid for all states and members of the American Institute of Certified Public Accountants.

High committees and boards:

According to the American Institute of Certified Public Accountants, the following committees and boards of directors are senior problem-solving organizations designated by the American Institute of Certified Public Accountants:

Accounting and Inspection Services Committee

Accounting Standards Executive Committee

American Institute of Certified Public Accountants

Auditing Standards Committee

Examination Board

Follow-up Education Management Committee

Information Technology Executive Committee

Advisory Services Executive Committee

Personal Financial Plan Executive Committee

Private Company Business Executive Committee

Professional Ethics Executive Committee

SEC Business Unit Executive Committee

Tax Executive Committee

Women's Employment Executive Committee, etc.

The General Assembly decides the work and policies of the association, which consists of about 263 representatives from various states and regions. The power of the General Assembly includes determining the policies and procedures of the association and implementing resolutions. The council, as the executive committee of the general assembly, is responsible for the work of the association's council during the intersessional period and holds five meetings each year.

Institute of Certified Public Accountants

Each state in the United States also has its own professional organization of certified public accountants, the State Institute of Certified Public Accountants. Similar to the American Institute of Certified Public Accountants, the Association of State Certified Public Accountants is a self-regulatory organization of state certified public accountants. It provides self-discipline supervision and services to members. The basic functions of the state association include: promoting the formulation of relevant regulations on the state's certified public accountant industry; cooperating with the American Institute of Certified Public Accountants, responsible for the mutual inspection of the state accounting firm; conducting follow-up education and training; implementing industry penalties and disciplinary measures. A unique feature of the State Association of Certified Public Accountants is that they attach great importance to serving non-practising members who account for nearly half of their members. A large proportion of these members hold positions in companies and government departments. Many state associations have CFO training centers. To provide the latest knowledge training for non-practicing members.

Corresponding to the US federal system, the State Institute of Certified Public Accountants performs its functions independently in accordance with the constitution of the State Association. It is not a branch of the American Institute of Certified Public Accountants, and there is no subordinate relationship with the American Institute of Certified Public Accountants. The American Institute of Certified Public Accountants gives certain guidance to the work of state associations, and cooperates and assists each other. In the United States, CPAs often voluntarily join more than two CPA associations, one of which is the American Institute of Certified Public Accountants and the other is the Institute of Certified Public Accountants in the state where they practice.

Accounting committee

Because the United States is influenced by the federal system and the industry management models such as lawyers and physicians that have been formed earlier, the legislation and administration between the states are mutually independent and incompatible with each other. The American Association for Injection cannot follow the example of the United Kingdom. The accountant's certificate of registration began in the early 20th century. According to the independent legislative power of the state, the states successively promulgated the laws of the state, established accounting committees, and were responsible for the registration of the state's registered accountant industry. State accounting committees are legally authorized organizations in nature, that is, statutory organizations; their operating expenses come from registration fees and other fees collected from certified public accountants and firms according to law, without the need for taxpayers to bear them. The composition of the state accounting committee is regulated by the state accountant law, and its members are mostly appointed by the governor, and generally 1/2 or 2/3 or more are certified public accountants. The primary responsibility of the State Accounting Board is the registration of a certified public accountant, which is valid locally.

National Federation (NASBA)

In view of the contradiction that registration is implemented by each state and the accounting service market is a national market, driven by AICPA, the state accounting committees established the National Federation of State Accounting Committees (NASBA), which is a coordination organization. In 1984, NASBA and AICPA jointly issued the Unified Accountant Act (UAA), which is not a federal law passed by the US Congress, but a model accountant law promoted by NASBA and AICPA in all states across the country. The bill has been endorsed by most state accounting boards and implemented in different ways.

The test will be a computer test after April 2004. The test time cannot be taken in the third month of each quarter. The total CPA exam time is 14 hours, with 4 test subjects: auditing and assurance (4.5 hours), financial accounting and reporting (4 hours), laws and regulations (3 hours), business environment and concepts (2.5 hours). In addition to the test time, an additional half an hour will be provided as time to prepare and participate in the survey. The test questions are multiple choice questions and case questions.

What is more interesting is that the test score is between 0-99 points and 75 points are passing points, but they are not necessarily passing points. The passing grade of the exam is determined by the State Accounts Board of New York on behalf of the states.

At present, the global passing rate of the CPA unified exam in the United States is about 50%, and the passing rate of BEC subjects is as high as 60% or more. Take the 2018 AICPA passing rate as an example!

At present, there are training institutions in Beijing and Shanghai that organize the examination training of American CPAs. In addition to participating in domestic studies, trainees also need to travel to Guam or elsewhere in the United States to participate in learning and examinations. Currently, many domestic institutions provide the entire application process Agents, including overseas special examination room receptions, the American Institute of Certified Public Accountants' examinations are no longer as troublesome as in the past, and the number of applicants has increased year by year. At the American Institute of Certified Public Accountants' 2009 Annual Conference, Barry C. Melancon, President and CEO of the American Institute of Auditors and Ernest A. Almonte also expressed their enthusiastic attention and support for the training status of the American Institute of Certified Public Accountants and the development prospects of their members. They stated that China will be the largest market for the international promotion of the American Institute of Certified Public Accountants. With the listing of Chinese companies in the United States and the expansion of American companies' operations in China, they are glad to see that more and more Chinese accountants have obtained the United States The Institute of Certified Public Accountants is qualified and plays a role.

laws and regulations

Before the turn of the century, the development of non-governmental auditing in the United States was achieved with the help of professional accountants who came with a large influx of British capital. After entering this century, the American civil audit quickly embarked on the road of independent development, surpassing the UK in theory and practice, and leading the way.

In 1896, New York State passed legislation that issued a public accountant certificate for the first time in the United States, and states have since followed suit. The biggest impact on the audit profession in the United States is the Securities Act of 1933 and the Securities Exchange Act of 1934. According to the requirements of these two laws, all registered companies and all unregistered large companies must ask an accounting firm to review the financial statements Some government agencies and public enterprises also commission audits by accounting firms.

The development of American CPA audits has gone through four periods. In the first period, in the second half of the 19th century, there were no statutory requirements for civil audits in the United States. The British-style detailed audit methods were mainly used to carry out audit operations. In the second period, the method of balance sheet audit was gradually transferred, and the theory and practice of audit also changed fundamentally during this period. The 1917 Balance Sheet Audit, the 1929 Balance Sheet Verification, and the 1936 Independent Public Accountant's Review of Financial Statements are sufficient examples of this shift. The third period is the period of auditing the financial statements. The Securities Act of 1993 and the Securities Exchange Act of 1934 clearly stipulated that when listing securities of various companies, they need to submit a listing application to the Securities and Exchange Commission and an exchange. Financial statements audited by a certified public accountant, and such audited financial statements will be submitted regularly every year thereafter. This rule is 15 years earlier than in the UK. In the fourth period, US audits have entered the stage of "three E" audits.

In the 1960s and 1970s, AICPA, the Securities and Exchange Commission, and the New York Stock Exchange successively issued announcements calling on major companies to establish audit committees, which were selected and hired by the audit committee to participate in the investigation of the company's operating responsibilities.

CPA Group

At present, the CPA community in the United States includes the American Institute of Certified Public Accountants, the State Institute of Certified Public Accountants, and the State Board of Accountants. The American Institute of Certified Public Accountants is a national accounting professional organization. Its purpose is to strengthen the unity of certified accountants nationwide, promote their mutual connection, and improve the professional level and professional ethics of professional accountants. The purpose of the State Association of Certified Public Accountants is the same as AICPA, but there is no affiliation between them. The State Accountants' Committee is the agency responsible for the management of the certification of public accountants and the granting of professional qualifications in accordance with state regulations. However, their management power is limited to individual public accountants and not to accounting firms.

The United States emphasizes that private auditing is a self-managed freelance and the government does not interfere. The government's Securities and Exchange Commission is a power to manage accounting and auditing. However, it only exercises supervisory functions, and delegates management work to accounting professional groups to implement self-management of the auditing profession. Restrictions on the firm depend only on disciplinary sanctions by the Securities and Exchange Commission and trials by the courts. At the same time, AICPA also established the CPA Office Bureau, setting up the Securities and Exchange Commission Business Office and the Private Company Business Office to implement a triennial inter-industry mutual inspection to express opinions on the quality control of the firm and provide appropriate guidance for the firm to follow professional standards. Guarantee, thereby improving the quality of self-management.

Certified Public Accountant

There are two types of professional accountants in the United States: one is a certified public accountant and the other is a public accountant. Registered public accountants are regulated by the Public Accountants Law of each state. Regarding the examination of registered public accountants, they are conducted simultaneously nationwide twice a year, but the organization and qualification of the examinations still belong to the powers of the CPAs of each state. There is no specific qualification examination system for the qualifications of public accountants, and they only need to register with the state authorities. Due to the irrationality of this dual professional accountant system, many states are no longer allowed to register for a new public accountant, and intend to rectify professional accountants into a single registered public accountant in the near future.

Features

(1) The audit team is huge. The professional body of auditors and accountants is the largest in the world.

(2) The development of civil audit in the United States has benefited from the promulgation and implementation of the Securities Law and the Securities Exchange Law, which has not only shifted from a state of laissez-faire to a standardized development track, but also strengthened the legal responsibility of auditors.

(3) Self-management and peer review. However, due to the constant occurrence of cases against CPA, members of Congress have severely criticized the Securities and Exchange Commission and AICPA, and have claimed that they will put civil audits under Congress. Therefore, it remains an open question whether civil audits in the United States are still self-managed by civil audit organizations or whether the Securities and Exchange Commission is authorized by Congress to set up a specialized agency for direct control.

(4) Audit Committee. Formed by the Securities and Exchange Commission in 1997, its purpose is to support the work of external auditors and strengthen the independence of auditing. The responsibility of the audit committee is not limited to hiring external auditors and reviewing audit reports, and it cannot participate in management decisions. It should raise the most challenging and comprehensive important issues for company activities.

(5) Rapid development. Mainly originated from: The stock company is the main economic form of the United States. The centralized economic situation formed by the developed securities market, the reorganization, merger, merger and failure of developed bank credit and commercial credit, and the auditing Claim.