Function

• A CPA reviews a company's operating controls and mechanisms and ensures such mechanisms are adequate and functional. A control is a set of instructions that senior management puts into place to prevent operating losses resulting from technological malfunction, error, fraud and employee carelessness or neglect. A certified general accountant also reviews financial reporting systems and ensures that accounting statements are complete and accurate. A complete set of accounting reports include a balance sheet (also called statement of financial position), a statement of profit and loss (otherwise known as statement of income), a statement of cash flows and a statement of retained earnings (or statement of equity). A CPA also provides tax-advising services to clients and helps them abide by federal, state and local laws and regulations.
  
  

Education

• A bachelor's degree in accounting, auditing or taxation is usually necessary for a certified general accountant license. Certification requirements vary by state, but liberal arts majors generally need 24 semester hours in accounting or auditing to meet academic criteria.
  
  

Examination

• An accountant must pass a comprehensive certified general accountant examination before receiving a license. The American Institute of Certified Public Accountant administers the CPA exam on behalf of state accounting boards. The CPA exam has four parts—Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation. The Auditing and Attestation section tests a candidate's knowledge of auditing tools, GAAS and GAGAS. The Business Environment and Concepts section covers economic concepts and management topics, such as corporate management analysis, microeconomics and macroeconomics, that accountants must understand. Financial Accounting and Reporting tests an accountant's expertise in U.S. GAAP and international financial reporting standards. The Regulation part covers business laws and fiscal regulations.
  
  

Experience

• A certified general accountant usually meets experience requirements by working two years under the leadership of an accountant with an active license. Duties must relate to auditing, financial accounting and reporting or taxation. A CPA can meet experience criteria in private practice or at a public accounting firm.
  
  

Continuing Education

• A certified general accountant must take periodic continuing professional education (CPE) courses to maintain an active license and conform to regulatory requirements. The U.S. Securities and Exchange Commission and the Public Company Accounting Oversight Board require CPAs to attend yearly CPE training sessions covering taxation, accounting, ethics and auditing topics.