AICPA- (American Institute of Certified Public Accountants)

 It is the world’s largest member association that sets ethical standards for the profession
and U.S auditing standards for audits of private companies, non-profit organizations,
federal, state and local governments.
 The AICPA also serves as an advocate for legislative bodies and public interest group. The
Board of Directors of AICPA are the one who leads the organization. The Board of
Directors serves as the executive committees for the governing council and the one that
establishes organization policies.

HISTORY

 In the year 1887, the association was formed and was called as American Association of
Public Accountants (AAPA). Since then, it became the rule-making and standard-setting
organization to maintain uniform standard in CPA profession. AICPA was the first
organization to create the original Financial Accounting Standard under GAAP before it
was handed over to Financial Accounting Standard Board or the FASB. The founders were
mainly English and Scottish chartered accountants who also practices accounting in the
United States.
 It was in the year 1916 when the American Association of Public Accountants was
succeeded by the Institute of Public Accountants and had a membership of 1,150.
 The AAPA consist of committees, the first Bylaws of AAPA established three committees,
the Finance and Audit, Committee on Elections, Qualifications and Examination, and the
Committee on Bylaws. These committees are of great help in terms of the purpose of the
organization. The number of committees continuously grew up until now. The AICPA
establishes the world's largest accounting database in 2000.
 The name changed into American Institute of Accountants in 1917 and remained so until
1957 when it was again changed to its official land current organization name.
 The American Society of Certified Public Accountants was formed in 1921 and acted as a
federation of state societies.
 The Society was merged into the Institute in 1936 and, at that time, the Institute agreed
to restrict its future members to CPAs.

PURPOSE

The AICPA is responsible for:

1. Establishing professional standards

The association sets the standards in financial statement auditing, private
practice, CPA firm quality control, business valuation, financial planning, and professional
ethics. It also disciplines members who are accused of misconduct while in active
professional practice.
2. Recruiting and educating prospective members
AICPA develops the Uniform Certified Public Accountants examination for CPA
practitioners. Students and other individuals seeking to practice as Certified Public
Accountants are required to pass the CPA examination. AIPCA also publishes journals and
newsletters to educate and inform CPAs on any issues that are of concern to CPAs. The
association also conducts seminars on a continuous basis to update its members on any
developments in the profession and changes in laws that may affect them.
3. Certification and licensing of new members
AICPA grants the CPA designation to accounting professionals who pass a series of
accounting exams and meet the experience requirements before venturing into private
practice. The body also offers credentialing programs for members who specialize in
certain areas.
4. Public interest campaigns
The AICPA is involved in various public interest programs, including:
 Feed the Pig Campaign
With this program, the AICPA encourages the Americans aged 24-
35 years to take control of their finances and attain financial stability. It
also has website that provides saving tips and free resources to help
 Americans manage their spending habits and work towards reducing debts
and growing their savings.
 360 Degrees of Financial Literacy
The campaign is a national volunteer effort sponsored by the AICPA
and Ad Council to help Americans understand their finances and develop
money management skills. It recognizes financial education as a lifelong
process and it provides money management resources for all categories of
people, from teens, students, employed, parents, homeowners, to retirees.

MEMBERSHIP BENEFITS

1. ADVOCACY- AICPA also protects the profession of its members in the

legislative, regulatory and public policy arenas and report to them all the issues
that can affect their firm, business and career.
2. COMMUNITY- AICPA also expands the networking opportunities of its
members by providing conferences, volunteer groups and task forces.
3. DISCOUNTS- The association has the program called Member Discount
Program that offers savings on the products and services that their members
are using every day such as Lenovo, FedEx and more.
4. PROFESSIONAL DEVELPOMENT- AICPA also helps their member to develop
their professions by giving up-to-date information and guidance on standards,
an annual subscription to journal of Accountancy, career information, tools
and more.
5. PROFESSIONAL GUIDANCE- AICPA also gives resources and key developments,
new rules, hot topics, and emerging trends in the CPA profession and the ever-
changing accounting world.
6. NEWS AND PUBLICATIONS- They also give their members a newsletters and
magazines from the Journal of Accountancy to CPA Letter Daily, for the latest
news and developments in the accounting profession.
CERTIFICATES AND CREDENTIALS

1. CPA ( Certified Public Accountant)

The CPA Exam consists of four, four-hour sections: Auditing and Attestation (AUD),
Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR) and
Regulation (REG). The examiner must pass all four sections within 18 months, earning a
minimum score of 75 on each part.
2. Personal Financial Specialist (PFS)
Allows CPAs to demonstrate their knowledge and expertise in personal financial
planning. Whether a CPA specializes in personal financial planning with their clients or
interacts with other financial planning professionals, the CPA/PFS credential adds
credibility. CPA/PFS credential holders have a specific experience, education and
examination requirement that sets them apart from other CPAs and financial planners.
3. Accredited in Business Valuation (ABV)
Is granted to the CPAs and qualified valuation professionals who demonstrate
considerable expertise in valuation through their knowledge, skill, experience and
adherence to professional standards. Candidates for examination must have passed the
ASA credential exam of the American Society of Appraisers, CFA exam level III of the CFA
Institute or CBV credential exam of the Canadian Institute of Chartered Business
Valuators.
4. Certified in Financial Forensics (CFF)
Positions forensic accounting professionals for increased demand in one of the
fastest-growing specialty areas for CPAs. To become a CFF Credential holder, the CFF
Roadmap serves as a step-by-step guide illustrating how a CPA, at any level of expertise,
can utilize the resources provided to FVS Section members to embark on the journey of
obtaining the AICPA's CPA-exclusive forensic accounting credential.
5. Certified Information Technology Professional (CITP)
Acknowledges the CPA professional who has received additional training in the
areas of Emerging Trends, Security and Privacy, Business Solutions, IT Assurance and Risk
and Data Analytics.
6. Certified in Entity and Intangible Valuations (CEIV)
Credential for CPAs and Finance Professionals who perform fair value
measurements for entities and intangible assets for financial reporting purposes. This
includes business combinations, testing goodwill and other long-lived assets for
impairment, estimating the fair value of intangible assets such as customer relationships,
patents and more
7. Certified in the Valuation of Financial Instruments (CVFI)
This will be granted by the AICPA to qualified individuals who demonstrate
considerable expertise in performing and or reporting on fair value estimates of financial
instruments for financial reporting purposes through their knowledge, skills and
experience. CPAs and valuation professionals who want to apply for the CVFI credential
must: maintain AICPA membership in good standing, hold a bachelor’s degree or
equivalent and meet minimum education, experience and examination requirements.