Talk:Certified Public Accountant

From Wikipedia, the free encyclopedia
Business and economics Portal
This article is within the scope of the Business and Economics WikiProject.
Start rated as start-Class on the assessment scale
Top rated as top-importance on the assessment scale

Contents

[edit] Omission

A curious omission in this article is that (at least until the changes described in the article made Nov. 2003), only 5% of those people who took the CPA test for the first time passed it. AFAIK, this makes that test the most difficult of any professional certification tests. (I'd add this fact to the article, but I don't have a citable source for it -- although every accountant appears to know it.) -- llywrch 18:52, 3 October 2005 (UTC)

The percentage of passing is indeed one of the lowest in terms of Board examinations. A number of CPAs who are engaged in providing managerial services to corporate clients also take the Bar to better equipped themselves in issues involving legalities and taxation. Modelwatcher 06:14, 23 November 2006 (UTC)

[edit] Education

I want to know what percentage of CPAs have no more than a bachelor's degree? -Amit

[edit] Should PA redirect here?

Is simply Public Accountant similar? There is no article, and PA does not redirect here, but I ran accross this today: "b) A partnership may assume or use the title or designation "public accountant," the abbreviation "PA," or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the partnership is composed of public accountants if it is a registered firm, if a majority of its partners who are individuals hold a PA registration, a CPA certificate, or a foreign certificate, and if a majorit" (source unknown). Someone linked this on irc after spending a frustrating amount of time looking for the definition of PA applying to business... Comments? ∴ here…♠ 04:35, 20 October 2005 (UTC)

The designation Public Accountant does exist in a majority of U.S. states, as a lower level alternative to CPA. However, most states that have had this category of accountant have passed laws to close the designation to new entrants. About 10 states (eg Delaware) have an ongoing category of licensed accountant at a lower level than CPA. Psnae 02:20, 24 June 2006 (UTC)

[edit] Use of "buddy-buddy"

Instead of the paragraph stating the CEO's should not be buddy-buddy with his or her outside accountants, a more appropriate statement should make reference to the rules of independence by which every CPA is bound. It should also include a reference to Sarbanes-Oxley Act of 2002. The statement used is much too broad and is misleading. [This comment was by JohnPatterson on 14 March 2006].

Dear fellow editors: Pursuant to comment by John Patterson, I made some edits. I think a reference to Sarbanes-Oxley would also be good, but I'm short of time today and I'd like to take time before I add anything on that law. Possibly someone else can get to it before I do. Yours, Famspear 21:40, 14 March 2006 (UTC)

[edit] General business advice: CPAs and attorneys

Dear fellow editors: I would like to comment on the following entry from the main article:

Many in the business world feel it necessary to work in conjunction with a licensed attorney as CPAs are unable to provide legal advise [sic; should be “advice”] to their clients.

It’s not clear from this passage what the editor was trying to say. Perhaps he or she was trying to say that some people use an attorney for general business advice in addition to a CPA. Perhaps the editor was trying to say some people use an attorney for general business advice instead of a CPA. In any case, I argue the entry “as is” raises more questions than it answers. The implication may have been that because business has so many inherent legal questions, a businessman would need a lawyer “instead of” a CPA for general business advice. However, that argument somehow proves too much; business has so many inherent accounting issues, a businessman would be just as likely (if not more likely) to need a CPA “instead of” an attorney. I don’t want to put words in my fellow editor’s mouth. I would like to point out that many business people would not look upon either an attorney or a CPA as somehow being their sole provider of general business advice.

Generally, the more sophisticated the business, the more likely that business is to work with a group of advisers – attorneys for legal advice, CPAs for accounting advice, insurance people for insurance advice, and so on. You wouldn’t necessarily feel it necessary to work with an attorney instead of a CPA merely because CPAs are unable to provide legal advice. You would want to work with an attorney in addition to a CPA – not because the CPA cannot practice law without an attorney’s license – but because the attorney does provide legal advice. Business people need both legal and accounting advice from time to time.

There certainly is “overlap” between the two professions – though many of us don’t acknowledge it. Much of the tax advice given by CPAs, for example, really is legal advice (hey, don't tell anybody!) – though it’s never called “legal” advice, and many CPAs and attorneys don’t normally think of tax advice as being "legal" advice.

I have practiced as an attorney and as a certified public accountant, and I have a total combined legal and accounting experience of -- well, let's say over 20 years and leave it at that. Maybe someone else has a different perspective. I don't want to change the entry in the main article in this case, at least not at this point, as I may be all wet. Anybody have any thoughts? Yours, Famspear 03:08, 8 May 2006 (UTC)

[edit] Link to CPA Australia

Is this external link appropriate for this page? Does anyone object to its removal? Because in the CPA Australia context, CPA stands for Certified Practicing Accountants and members of CPA Australia are members of a Professional Body, and not licenced in the U.S as Certified Public Accountnants. Regards,Smorter 02:36, 10 June 2006 (UTC)

[edit] Uniform CPA Exam

Doesn't the information on the Uniform CPA Exam belong in an article of its own? Psnae 02:20, 24 June 2006 (UTC)

[edit] CPA - Not just a U.S. designation

CPA is also used as a designation for qualified accountants in many countries other than the U.S., including Singapore, Israel, Malaysia, South Africa, the Philippines and the Republic of Ireland. Plus Australia, where there's only a slight difference of name (certified practising accountant). This article ought to reflect the international use of the term CPA, perhaps with country specific versions such as Certified Public Accountant (United States). Psnae 02:25, 24 June 2006 (UTC)

[edit] The law tested on CPA exam

I added a correction regarding the law that's tested on the CPA exam. The CPA exam still tests both state and federal law. General contract law and Uniform Commercial Code, both of which are still tested, are creatures of state law, not federal law. The fact that what is being tested are the general principles (not specifically identified to, say, Vermont or Missouri or Nevada) does not change the fact that contract law and UCC are state laws. Yours, Famspear 21:34, 10 May 2007 (UTC)

PS: The law of agency is also still tested. That's primarily state law. Famspear 21:58, 10 May 2007 (UTC)