Info 1: American Institute of Certified Public Accountant definition
Info 2: how AICPA works
Info 3: AICPA vs GASB
info 4: example for AICPA
Quick pick
The American Institute of Certified Public Accountants is an organization that is used to test and qualify any individual as a public account.
Opening information:
American Institute of Certified Public accountant occupied five matters. America means country, institute means firm, certified mean licensed, public accountant means societies auditor.
American Institute of Certified Public accountant means licensed societies auditor of one country. So now let’s have a look who is a AICPA, how the AICPA works, and what is the difference between the AICPA and GASB, finally one clear and brief example about the American Institute of Certified Public accountant.
Info 1: American Institute of Certified Public Accountant definition
Whenever anyone needs a degree in any of the skills or subjects to work based on their career, they are almost need to attend a University or college to get such a qualification.
Were that University use the exam to qualify the any individual at any number of years, if the person lack the marks or test qualification then he or She won’t allowed to perform such job anyway.
This same concept applies to American Institute of Certified Public accountant (AICPA). When any of the humans need to perform their career as certified public accountant, they aren’t only enough to have an auditing degree, they must be required to pass the exams that are possessed by the AICPA based on their minimum requirements.
Therefore the qualified individuals would able to perform the audit for any public company with government Authorization and license anyway.
let’s dive to know what are the exam requirements to pass and their functions and works that related to the public market.
Info 2: how American Institute of Certified Public Accountants (AICPA) works
American Institute of Certified Public Accountants doesn’t represent any of the specific things or objects, instead, it’s a firm that is used to qualify a certain individual as a public accountants.
However any of the person who need to be certified public accountant (CPA) must need to pass the exam which are handle by the AICPA institution to take the uniform CPA exam.
Therefore the person who doesn’t pass the exam of the AICPA couldn’t able to became as a CPA in the United States of America, but for the other countries had different kind of tests and exam as chatted accountant exam to perform as CPA in the public.
Moreover any of the individual who perform the activities of audit to any public organization without a member of AICPA, the Security and Exchange Commission won’t takes such financial report into the acceptance account.
Clearly the AICPA candidate must need to write correct at least of 75 percent to questions to pass the exam. This rules and pass requirements also same and applies to the International candidate too.
According to the AICPA all the accountant and auditing lesson are taken in the standard of general accepted accounting principle (GAAP), because this GAAP is the one which are used to generate accountants and audits in all the private and public companies.
After the 1973 the Financial Accounting Standard Board (FASB) also take an option and responsible to rule the General accepted accounting principal method for all the public companies with authorization support of Security and Exchange Commission (SEC).
Clearly this American Institute of Certified Public accountant would be replaced with Frontend as financial accounting standard board (FASB) since 1973 as non profit organization.
So the FASD accounting would be accepted by the general accepted American Institute of Certified Public accountant and state Board of Accountancy.
Most of the confuse the AICPA and Governmental Accounting Standards Board (GASB), so let’s jump into know the key difference in it anyway.
Info 3: AICPA vs GASB
The American Institute of Certified Public accountant (AICPA) is the one who is create and setting the Generally accepted accounting principle (GAAP).
On the other side, GASB are the government entities who works and purpose with development of economy of the country. were they won’t involved in the setting and created a GAAP instead they are following and using the General accepted accounting principle.
To make more clear about the AICPA, let’s seen into one brief example below.
Info 4: example for AICPA
Say you are accountant who works for under one Private company as a employee but that’s doesn’t mean your a certified public accountant who could able to perform all the activities for any public Companies.
You need to register and taken a exam that’s demands by the non profits organization to got licensed
as public person by the authorized accounting firm.
Which that firm is what called here as American Institute of Certified Public accountant.