| Industry | Accounting and Finance |
|---|---|
| Founded | 1887 |
| Headquarters | New York City, NY, USA |
| Other Offices | Washington, DC; Durham, NC; Ewing, NJ |
| President & CEO | Barry C. Melancon, CPA |
| Chairman | Gregory J. Anton, CPA (Oct. 2011 - Sept. 2012) |
| Members | 370,000 |
| Member's Designations | CPA, FVS, PFP, ABV, CITP, CFF |
| Website | www.aicpa.org |
Founded in 1887, the American Institute of Certified Public Accountants (AICPA) is the national professional organization of Certified Public Accountants (CPAs) in the United States, with more than 370,000 CPA members in 128 countries in business and industry, public practice, government, education, student affiliates and international associates. It sets ethical standards for the profession and U.S. auditing standards for audits of private companies, non-profit organizations, federal, state and local governments. It also develops and grades the Uniform CPA Examination. The AICPA maintains offices in New York City; Washington, DC; Durham, NC; and Ewing, NJ.[1] The AICPA will celebrate the 125th anniversary of its founding in 2012.
The AICPA’s founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, and a commitment to serving the public interest.
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The AICPA and its predecessors have a history dating back to 1887, when the American Association of Public Accountants (AAPA) was formed.[2] In 1916, the American Association was succeeded by the Institute of Public Accountants, at which time there was a membership of 1,150. The name was changed to the American Institute of Accountants in 1917 and remained so until 1957, when it changed to its current name of the American Institute of Certified Public Accountants. 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.
The use of committees began even before the AAPA was formed in 1887. At the first meeting of what would become the AAPA on December 22, 1886, those present authorized the appointment of a committee to draft rules and regulations. Beyond this first preliminary committee the first Bylaws of the AAPA in 1897 established three committees: Finance and Audit Committee, Committee on Elections, Qualifications and Examinations, and the Committee on Bylaws.[3] The number of committees grew continually over the years. In the 1940s there were 34 committees, by 1960, there were 89, and by 1970, the number had grown to 109.
In 1999 the nearly 120 existing committees underwent a re-organization with approximately half of the standing committees being replaced with a volunteer group model that placed an increased emphasis on the use of task forces. The increased use of task forces allowed for more targeted efforts with the task forces being given a specific assignment then disbanding upon completion of that assignment. Also, in 1999 the first tracking and management of task forces began. Collectively, more than 2,500 volunteers contribute to the AICPA, fulfilling its mission.[4]
The AICPA's mission is to provide members with the resources, information and leadership that enable them to provide valuable services in the highest professional manner to benefit the public, employers and clients. In fulfilling its mission, the AICPA works with state CPA organizations and gives priority to those areas where public reliance on CPA skills is most significant.
The AICPA sets generally accepted professional and technical standards for CPAs in multiple areas. Until the 1970s, the AICPA held a virtual monopoly in this field. In the 1970s, however, it transferred its responsibility for setting generally accepted accounting principles (GAAP) to the newly formed Financial Accounting Standards Board (FASB). Following this, it retained its standards setting function in areas such as financial statement auditing, professional ethics, attest services, CPA firm quality control, CPA tax practice, business valuation, and financial planning practice. Before passage of the Sarbanes-Oxley law, AICPA standards in these areas were considered "generally accepted" for all CPA practitioners.
In the early 2000s, federal public policy makers concluded that where independent financial statement audits of public companies regulated by the U.S. Securities and Exchange Commission are concerned, that the AICPA's standards setting and related enforcement roles should be transferred to a government empowered body with more enforcement authority than a non-governmental professional association, such as the AICPA could provide. As a result, the Sarbanes-Oxley law created the Public Company Accounting Oversight Board (PCAOB) which has jurisdiction over virtually every area of CPA practice in relation to public companies. However, the AICPA retains its considerable standards setting, ethics enforcement and firm practice quality monitoring roles for the majority of practicing CPAs, who serve privately held business and individuals.
Due to private sector demand, the AICPA has created credentialing programs to allow designation of expertise in certain subject areas to establish through testing, experience and continuing education. The credentials are similar to state board certification for attorneys, which also recognize subject matter specific expertise. The AICPA credential for expertise in valuation is the Accredited in Business Valuation (ABV) designation. For financial planning, it is the Personal Financial Specialist (PFS) designation, and for forensic accounting, Certified in Financial Forensics (CFF). Beginning on January 31, 2012, the AICPA in joint venture with the British Chartered Institute of Management Accountants (CIMA) will issue the Chartered Global Management Accountant (CGMA) credential to voting members with appropriate experience.
The AICPA has many technical and professional committees and task forces that deal with numerous issues facing CPAs, their clients and the public. The AICPA also provides a wide array of telephone technical support, educational material, conferences and technical publications for its members. In addition, it offers specialization credentials in several areas, such as the Personal Financial Specialist designation for CPAs in personal financial planning. Other specializations are offered in the areas of business technology and business valuation. The AICPA's national technical conferences are well known for their excellence. The AICPA also publishes the Journal of Accountancy, the nation's oldest technical accounting journal, The Tax Adviser, CPA Letter Daily, and has an extensive website supporting all of these activities.
The AICPA provides substantial support to the accounting programs of colleges and universities involved with educating future CPAs.
The AICPA runs a number of public relations activities that include: having members available to the media to provide technical support in the areas of CPA practice expertise; operating an extensive high school and college student recruitment programs called "Start Here, Go Places." and ThisWayToCPA to encourage students to consider a CPA career; and getting the word out about the vital role that CPAs play in the U.S. economy in support of financial markets, small business and entrepreneurship.
The professional organization also runs extensive public interest programs. One of the most important is an award-winning program called 360 Degrees of Financial Literacy. The program, launched in 2004, is a multi-faceted effort, spearheaded by the AICPA with the support of state CPA societies. It encourages CPAs to take a broad leadership role in volunteering to educate the American public, from school children to retirees, on financial topics that apply to their particular stage of life. This program has an extensive website with a variety of financial literacy resources.
In 2006, the AICPA and the Ad Council launched a national campaign to encourage young adults aged 25–34 to “Feed the Pig” as a key step toward building a solid financial future for themselves and their families. Feed the Pig is a national multi-media campaign, featuring Benjamin Bankes, a smartly dressed, adult-sized anthropomorphic pig intended to evoke memories of the piggy bank, but has been widely criticized for looking creepy and scaring children. The campaign's purpose is to deliver a strong message about the importance and benefits of saving. A dedicated website provides free financial information and tools to help young "career builders" take control of their finances and build long-term financial security.
The AICPA has a Washington office and a political action committee. On behalf of its members, the AICPA monitors and advocates on legislative and other matters that affect the accounting profession. Working with state CPA societies and other professional organizations, the AICPA provides information to and educates federal, state and local policymakers regarding key issues. Whether serving as an information resource or offering recommendations, the AICPA represents the profession while protecting the public interest.
The AICPA's Political Action Committee is a contributor to U.S. Congressional representatives and Senators from both parties who sit on various legislative committees of relevance to CPAs.
CPAs are licensed by individual states, so they must follow the laws and regulations of the state they are licensed in. Once achieving state CPA licensure, by federal regulation, CPAs are automatically licensed to practice before the Internal Revenue Service, with essentially the same rights and duties as attorneys. For audits involving federal monies, the Government Accountability Office has issued additional standards commonly referred to as the Yellow Book.
The AICPA is a leading member of the International Federation of Accountants and the Global Accounting Alliance.
A joint venture owned by the AICPA and the (British) Chartered Institute of Management Accountants (CIMA) will issue a new Chartered Global Management Accountant (CGMA) professional credential beginning in 2012.
The AICPA is an affiliate of the Institute of Chartered Accountants of the Caribbean.[5]
The AICPA can suspend or terminate membership for failure to meet continuing professional education requirements, felony criminal convictions, conviction for any part in fraudulent filing of a tax return, or conviction relating to willful failure to file a tax return.
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