What Is CPA? A Complete Guide to Certified Public Accountant

2026-01-27
What Is CPA? A Complete Guide to Certified Public Accountant

CPAs are Certified Public Accountants who have met the necessary educational criteria, passed their examination, completed the appropriate work experience and have adhered to the ethical and licensing criteria of the jurisdiction they serve. 

The CPA credential also designates the CPA as a trusted financial expert on behalf of a client; the CPA has a professional obligation to represent their client honestly and upfront.

CPA Licensing and Regulatory Authority

State boards of accountancy issue the CPA license. Each U.S. state has established its own licensing criteria, including educational and exam relevance. State boards are empowered by law to award the CPA designation, which grants CPA’s an exclusive authority to offer statutory auditing, tax return preparation and representation before the Internal Revenue Service (IRS).

As a result of these statutory authorities granted to CPA’s, they are commonly found in public accounting firms and corporate finance departments as well as within the tax and audit practices of firms. The majority of CPAs also hold either an Accounting degree or MBA.

Role and Responsibilities of a CPA

CPAs play a critical role in delivering professional accounting services in Dubai, helping businesses maintain compliance, transparency, and financial accuracy across regulatory frameworks.

  • The CPA is an accountant who holds a professional certification. The CPA functions primarily as the client adviser and controller of an entity’s financial affairs. 
  • A CPA acts to minimize the risks of fraud and misappropriation of company assets by assisting the client to develop effective internal controls, establish ethical accounting practices and to understand the tax laws that govern their business. 
  • A CPA also acts as a competent representative to the IRS for his/her client, ensuring compliance with all federal tax laws, regulations, procedures, and guidelines. 

Ultimately, the career potential for CPA’s is almost limitless!

Services Offered by Certified Public Accountants (CPAs)

CPAs serve a variety of industries and sectors. Their range of services includes the following:

1. Auditing and Assurance

  • Conduct external or internal audits.
  • Evaluate financial statements for correctness and conformity.
  • Analyze internal controls and risk management systems.

2. Taxation

  • Employ a tax strategy and comply with tax laws.
  • Complete individual and corporate tax returns.
  • Defend clients in tax audits and disputes.

3. Financial Accounting and Reporting

  • Formulate and prepare an individual’s financial statement using GAAP principles.
  • Oversee an organization’s accounting system/processes.
  • Provide confirmation that the organization is in compliance with state and federal regulations.

4. Advisory and Consulting

  • Determine an organization’s value in addition/effectively integrating into a merger or acquisition.
  • Forecast a company’s financial future and set budgets according to past performance.
  • Support businesses with risk analysis, internal control reviews, and corporate governance aspects.

5. Forensic Accounting

  • Detecting and preventing fraud.
  • Assist with litigation through expert testimony.

Why Become a CPA?

Obtaining your CPA designation offers many benefits to individuals:

  • Worldwide Recognition: The CPA designation is well respected in the United States, the Middle East, and by multinational corporations worldwide.
  • Increased Earning Potential: CPAs earn some of the highest salaries of any professional discipline.
  • Diverse Career Opportunities: CPAs can work in public practice, private industry, government, and academia.
  • Professional Authority The CPA license provides the holder with the legal ability to sign audit reports.
  • Job Stability: Demand for CPAs will continue through all economic conditions.

Requirements to Become a CPA

In order to be eligible for the CPA license, a person must meet specific requirements established by the state in which the applicant resides. Generally, these requirements include:

Education Requirements

  • Completion of 150 credit hours of postsecondary education.
  • A minimum of a Bachelor’s Degree in Accounting or Finance.
  • A small number of states will accept international Characteristics/Qualifications such as (CA, ACCA, CMA) as satisfactory for evaluation.

Examination Requirements

  • Passing all four sections of the CPA Exam

Experience Requirements

  • 1–2 years of supervised work experience under a licensed CPA

Ethics Requirement

  • Passing an ethics exam (required by many states)

CPA Exam Structure

The CPA Exam is conducted by the American Institute of Certified Public Accountants (AICPA) and consists of four sections:

  1. AUD – Auditing and Attestation
  2. FAR – Financial Accounting and Reporting
  3. REG – Regulation (Taxation & Business Law)
  4. ISC / BAR / TCP – Discipline Section
  • Candidates choose one specialization:
  • Information Systems and Controls (ISC)
  • Business Analysis and Reporting (BAR)
  • Tax Compliance and Planning (TCP)

Each section is four hours long and scored on a scale of 0–99, with 75 as the passing score.

CPA Exam Duration and Difficulty

  • Candidates must pass all four sections within an 18-month rolling window.
  • The CPA exam is considered challenging due to:
    • Extensive syllabus
    • Application-based questions
    • High professional standards

However, with structured preparation and consistent study, it is highly achievable.

What is the Average Salary for a CPA (Certified Public Accountant)?

  • Estimated Minimum Entry Level Salary (New CPA’s): $55,000 – $70,000/year
  • Estimated Average Median Salary For Mid-Level CPA’s: $80,000 – $120,000/year
  • Estimated Average Median Salary For Senior CPA Manager/Partner: $150,000 per year or higher.

A CPA’s salary will vary by location, professional experience, or specific industry.

Career Options for CPA’s

Public Accountant, Audit Manager, Tax Consultant, Financial Controller, Chief Financial Officer (CFO), Risk & Compliance, and Tax/Advisory Manager.

How to Become a CPA

1. Select a State Board of Accountancy in the US

2. Complete Required Educational Qualifications

3. Apply for a Credential Evaluation (if you are an international student)

4. Register and Successfully Pass All Parts of the CPA Exam.

5. Complete the Required Work Experience

6. Acquire your CPA licence

Is the CPA Worth It?

Absolutely! CPA is a long-term career investment. It provides you with professional credentials, opportunities for advancement, and financial security as a leader. The CPA designation is most valuable to a professional looking to gain international experience or who wants to focus or specialize in tax or audit services.

Conclusion

Earning your CPA credentials is more than just an accounting credential; it is also a professional license that represents your level of professional knowledge, skill, and integrity. Earning a CPA credential is one of the most powerful steps to a successful career in finance, accounting, or advisory services.

Frequently Asked QuestionsYour Top Queries Answered

  • What is a CPA (Certified Public Accountant)?

    A CPA is a Certified Public Accountant who has met specific educational requirements, passed the CPA examination, completed relevant work experience, and complied with ethical and licensing standards set by U.S. state boards of accountancy. CPAs are trusted financial professionals authorized to provide audit, tax, and advisory services.

  • What authority does a CPA license provide?

    A CPA license grants statutory authority to perform audits, prepare tax returns, and represent clients before the Internal Revenue Service (IRS). The license is issued by individual U.S. state boards, each with its own education, exam, and experience requirements.

  • What services do Certified Public Accountants offer?

    CPAs provide a wide range of services, including auditing and assurance, taxation, financial accounting and reporting, advisory and consulting, and forensic accounting. They serve clients across industries such as public practice, corporate finance, government, and advisory firms.

  • What are the eligibility requirements to become a CPA?

    To become a CPA, candidates generally need 150 credit hours of education, a bachelor’s degree in accounting or finance, successful completion of all four CPA exam sections, 1–2 years of supervised work experience under a licensed CPA, and completion of an ethics exam where required.

  • How difficult is the CPA exam?

    The CPA exam is considered challenging due to its extensive syllabus, application-based questions, and high professional standards. Candidates must pass all four sections within an 18-month rolling window; however, with structured preparation and consistent study, it is achievable.

  • Is becoming a CPA worth it?

    Yes, the CPA designation is a valuable long-term career investment. It offers global recognition, strong earning potential, job stability, legal authority in audit and tax matters, and diverse career opportunities across accounting, finance, taxation, and advisory roles.

AUTHOR BIO
Archana Mundhra

With over 18 years of experience across MIS, management control, and senior finance roles, Archana Mundhra has strengthened financial systems for companies in manufacturing, trading, services, and technology. As CFO Partner at The Total CFO Management Consultancy and Director at A2R Info Solutions Pvt. Ltd., she specialises in reporting frameworks, budgeting, process optimisation, and operational discipline. She believes finance is about understanding the story behind the numbers and using it to drive better decisions.

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