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Glossary/Profession and credentials

CPA (Certified Public Accountant)

A CPA is an accountant licensed by a US state board of accountancy after meeting education, examination, experience, and ethics requirements; only licensees may issue audit and review reports in most states.

CORAA TeamUpdated November 5, 2026

Definition

Certified Public Accountant (CPA) is a license, issued by a state board of accountancy, not a degree or a membership. Candidates usually meet education requirements, pass the Uniform CPA Examination, complete a period of qualifying experience, and satisfy an ethics requirement. Licensees must then keep up with continuing professional education and follow the board's rules and the profession's ethics standards. Requirements differ by state.

Why it matters in an audit or review

State accountancy laws generally reserve audit and review attest work for licensed CPAs and CPA firms. Firms performing attest work often need a firm license, a peer review, and partner ownership by licensees. A person working under a CPA's supervision may do audit work without being licensed, but the licensed CPA signs the report and is responsible for it.

Example

Illustrative: a staff accountant has passed all exam sections but has not completed the experience requirement. The accountant can work on audits under supervision, but cannot sign the report or use the CPA title until licensed.

Common mistakes

Assuming a passed exam equals a license. The board grants the license after all requirements are met.

FAQ

Does the AICPA license CPAs?

No. State boards license. The AICPA is a professional association.

Sources

  • AICPA and NASBA, Uniform Accountancy Act (model law) and individual state accountancy acts and board rules
  • NASBA, CPA licensure requirements by jurisdiction

Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error

Related terms

  • CPA Exam
    The CPA Exam is the four-section Uniform CPA Examination: three core sections (FAR, AUD, REG) plus one discipline section (BAR, ISC or TCP), each scored 0 to 99 with 75 required to pass.
  • 150-hour rule
    The 150-hour rule is the education requirement in most US states that CPA licensure candidates complete 150 semester hours of college credit, including a bachelor's degree and specified accounting and business courses.
  • CPE (continuing professional education)
    CPE is the continuing education that CPAs must complete to keep a license and AICPA membership, with hour totals set by state boards, the AICPA, and GAGAS for government work.
  • AICPA (American Institute of CPAs)
    The AICPA is the national professional association of CPAs. It sets auditing standards for nonissuers through the ASB, issues the Code of Professional Conduct, runs the Peer Review Program, and develops the CPA Exam.
  • NASBA (National Association of State Boards of Accountancy)
    NASBA supports the 55 state boards of accountancy, operates the National Candidate Database and CPA Examination Services for CPA Exam candidates, and runs the National Registry of CPE Sponsors. It does not license CPAs.

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