The American Institute of Certified Public Accountants (AICPA) is a national professional association of CPAs in the United States. The AICPA establishes ethical standards for the accounting profession and plays a critical role in developing and grading the Uniform CPA Examination.
The body is involved in designing and overseeing the administration of the CPA exam through its Board of Examiners, an executive committee that is responsible for preparing and scoring the Exam.
Whether you’re exploring the accounting profession or planning to take the CPA exam, understanding the AICPA’s role in the CPA exam and the accounting profession will help you navigate your career.
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What is the AICPA’s Role in the CPA Exam?
The Uniform CPA Examination process overseen by a collaborative effort between the various U.S. State Accounting Boards, the National Association of State Boards of Accountancy (NASBA) and the AICPA. The AICPA’s most notable roles are establishing the CPA Exam Blueprints and for grading and scoring the exam.
The AICPA and NASBA also coordinate Mutual Recognition Agreements with overseas accounting firms to facilitate reciprocal credentialing. Agreements presently exist with Ireland, Canada, Hong Kong, Mexico, Scotland, and New Zealand. Accountants from these countries who meet certain eligibility criteria can sit for the International Qualification Examination (IQEX), rather than the standard CPA exam, to be certified to practice in the USA.
As the largest accounting association in the U.S., the AICPA is a valuable resource for members to obtain continuing professional education (CPE) credits to maintain their CPA license and obtain complementary accounting and business credentials to further their career.
What Does the AICPA Do?
The AICPA was originally founded in 1887 as the American Association of Public Accountants (APAA), and today serves the largest trade organization in the world for professional accountants, with more than 430,000 members from 145 countries around the globe. As a trade organization, it also serves as a lobbying arm for the profession and has the ability to influence policies and legislation impacting the industry.
For a deeper dive, here are the 5 primary functions of the AICPA:
Establish Best Practice Standards for Accounting Professionals
AICPA supports implementation of generally accepted accounting standards for CPAs. While the Financial Accounting Standards Board (FASB) and Securities and Exchange Commission (SEC) establish accounting rules, the AICPA provides technical and administrative support in enacting new accounting standards and establishing best practices.
Developing Credential Programs
For anyone renewing their CPA license and AICPA membership, CPE credits are mandatory. The AICPA offers a deep library and pipeline of CPE training programs and seminars that support various areas of specialization.
Additionally, the AICPA oversees licensing for a range of other accounting and finance credential programs, including the Personal Financial Specialist (PFS) and Accredited in Business Valuation (ABV) credentials.
Helping Accounting Professionals Through Leading and Sponsoring Advocacies
The AICPA regularly monitors legislative efforts and emerging issues that could have an impact on accounting practices and standards. Moreover, state CPA societies and other organizations collaborate with AICPA to disseminate information for educating local, state, and federal policymakers about accounting issues.
Even though every US state has its own governing body regarding accountancy, it is the AICPA that is responsible for supporting the development of new accounting standards. The AICPA prepares comment letters on technical proposals while contributing professional feedback for legislation that directly impact the accounting profession.
Commissioning Research
Due to the ever-changing business and political landscapes, a great deal of research and analysis is needed to understand the impact that new laws, technological developments, and other issues impact the accounting industry. The AICPA maintains a database of research and perspectives on emerging issues so that members can stay in the know on important developments.
The AICPA also prepares technical briefs and white papers on pending and approved legislation so that its members are never in the dark when it comes to new industry compliances.
Curating Publications Related to the Industry
The AICPA provides a vast library of CPE courses and conferences for members to support their ongoing training and career development. Members often receive discounts of 25% or more on various CPE courses and publications issued by AICPA. Over the course of a career, these discounts can more than easily exceed the cost of membership.
The organization also issues regular newsletters on the industry. Publications offered by AICPA include books, journals, and other trade publications covering topics such as accounting and auditing, business valuation, financial management and reporting, fraud and forensic strategies, practice management, and financial planning.
AICPA Membership Types and Tiers
The AICPA has several different membership types and tiers to choose from. If you work in a public accounting firm then your employer probably pays for your AICPA membership. If you’re in industry or self-employed though, you may find yourself researching which AICPA membership is right for you.
Here’s an overview of each AICPA membership type:
- Regular – This membership type is for CPAs who hold a current and valid license or who previously held a license in good standing.
- Affiliate – This membership is for those who do not possess a CPA license but have deep involvement in accounting or finance
- International Associate – This membership is for accounting and finance professionals who are members of approved partner organizations outside of the United States.
- Candidate – This membership is for those planning to take the Uniform CPA Exam and looking to join the profession.
- Student Affiliate – This membership is for college and university students interested in a career in accounting or finance.
- Retired – This membership is for those who have reached retirement age as determined by the Social Security Administration, and if employed, are working as a professional less than 20 hours per week on average.
Most active CPAs in the US will fall under the Regular membership category. However, your benefits as an AICPA member will vary greatly depending on which membership tier you select. Below is a summary of the benefits of each:
Most members will be best suited in one of the “Staff” tiers, whereas the “Partner” tier is better suited for seasoned accounting professionals and those looking for expanded access and practice-building resources. Regardless of which membership tier you select, you’ll get access to a range of quality CPE and discounts on various AICPA courses and other products.
Is AICPA Membership Worth It?
Regardless of which membership tier / type you choose, AICPA membership isn’t cheap. Depending on where you’re at in your career, you may or may not find value in an AICPA membership on top of other memberships, such as through your State CPA
The biggest perk of an AICPA membership is the free CPE access. While there are plenty of great free CPE resources available out there, you’ll often have to string together courses and credits from various providers. Having an AICPA membership can provide more of a one-stop shopping experience and makes things a bit simpler for recordkeeping purposes.
AICPA-sponsored CPE courses get mixed reviews and their agenda / library is not guaranteed to fit your exact developmental goals and needs, so you may still need to look for CPE elsewhere. If you need CPE or are exploring more robust CPE programs.
CPE Program Discounts
Bottom Line
Whether you realize it or not, the AICPA will have a huge impact on your career. Now that you know more about their involvement in the Uniform CPA Examination process, establishing best practices for the profession, and how they can support your ongoing training and development, you should have an easier time navigating your career.
Now all that’s left is to earn that CPA license!
