ources of Information

Irrespective of the education path you choose, it is important that your preparation include a broad general education in the arts, humanities and sciences. Visit the AICPA Web site (www.aicpa.org) for information about colleges and universities that offer accounting programs: http://aicpa.org/collegelist/index.htm For more information about accounting, visit www.StartHereGoPlaces.com. For specific education and work experience requirements for CPA certification in each state, visit the National Association of State Boards of Accountancy at www.nasba.org. To learn about the new computer-based CPA exam, visit www.cpa-exam.org.

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Sources

Academic and Career Development American Institute of Certified Accountants 1211 Avenue of the Americas, New York 10036-8775 www.aicpa.org

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TAKIN CARE OF BUSINESS is the federally registered trademark of S.B. Anderson, CPA, PC, used by permission. 6876-046

ising Requirements for the Profession

The traditional service provided by CPAs is the annual audit of public companies. CPAs are the only professionals granted the authority by the Securities and Exchange Commission (SEC) to audit public companies. The SEC requires all public companies to undergo an annual audit of their financial statements. If companies do not have an audit performed, their shares cannot be traded in public markets. Thus, the role of the CPA in performing annual audits of public companies is crucial to the exchange of capital in a free enterprise market system. The rapid evolution of new business practices and the development of increasingly complex business transactions and models has led to significant increases in official accounting and auditing pronouncements and the proliferation of new tax laws. As a result, the knowledge base required for professional practice in accounting has greatly expanded. In addition to the increased complexities of business, improvements in technology have had a major effect on information systems, internal control procedures, and auditing methods. With more sophisticated approaches to auditing and other assurance services now in use, and with the increase in business demands for a variety of highly technical accounting services and greater efficiency, the requirements for effective professional practice have increased sharply. Accounting firms and other business entities need better educated and more committed graduates who can advance to high-level positions quickly. Individuals who have the technical competence to perform the necessary services, including the ability to analyze and evaluate complex business problems and the interpersonal skills and maturity to make decisions in a service-oriented environment, are in demand. A Certified Public Accountant (CPA) in todays world must possess: 1. excellent communication skills 2. a high level of technical competence 3. a commitment to service 4. strong analytical skills, and 5. the ability to work well with people

ducation requirements to become a CPA

To maintain a curriculum that addresses the new developments in the field of accounting and in technology, as well as to expose students to a vast array of business issues, a majority of states require 150 credit hours of education as a prerequisite to CPA certification. There are a variety of ways to meet the education requirement; however, most programs lead to a graduate degree. For instance, many colleges and universities design their accounting program so that the credit hours meet the requirements for a Bachelor of Science (BS) in accounting while leading to a Master of Business Administration (MBA) in accounting, finance, marketing, management or information systems. Some colleges and universities offer a 150 credit hour program whereby students earn a Master's degree in accounting, often called a Master of Professional Accountancy (MPA). Still yet, other programs offer a curriculum in which students earn a Bachelor of Science (BS) in accounting as well as a Master of Science in accounting (MS) or taxation (MST). Regardless of your program of choice, visit the National Association of State Boards of Accountancy to determine the required coursework stipulated by the respective State Boards of Accountancy (www.nasba.org) in the state or states you plan to practice in. The following table summarizes the pass rate by degree on the November 2000 CPA Examination for first-time candidates.

Test Sections

Candidates with Advanced Degrees

Candidates without Advanced Degrees

Auditing Business Law and Professional Responsibilities Financial Accounting and Reporting Business Enterprises Accounting and Reporting Other Areas Passing all parts

43%

28%

44%

29%

Requirements

45%

26%

43% 28%

26% 15%

CPA Candidate Performance on The Uniform CPA Examination, *Source: NASBA, 2001

In addition, students with a Masters degree receive starting salaries that are approximately 10 to 15 percent higher than the starting salaries of those with a bachelors degree.

enefits of a Graduate Degree

The high standards of a graduate level program allow you to more fully develop the needed skills, particularly those of communication, presentation, and interpersonal relations, and to integrate them with the technical knowledge thats required. It has been demonstrated that students with a graduate degree have a substantially higher rate of success on the Uniform CPA Examination, an important measure of technical competence.

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Benefits

Graduate ion t a c i f i t r e c CPA . t n e m e c n a v d Career a