Join Your Exam WhatsApp group to get regular news, updates & study materials HOW TO JOIN

How is the Uniform CPA Examination Scored?

How is the Uniform CPA Examination Scored?

How is the Uniform CPA Examination Scored? OVERVIEW ABOUT CPA- The primary functions performed by CPAs relate to assurance services. In assurance services, also known as financial audit services, CPAs attest to the reasonableness of disclosures, the freedom from material misstatement, and the adherence to the applicable generally accepted accounting principles (GAAP) in financial statements. CPAs can also be employed by corporations—termed “the private sector”—in finance functions such as Chief Financial Officer (CFO) or finance manager, or as CEOs subject to their full business knowledge and practice. These CPAs do not provide services directly to the public.

Although some CPA firms serve as business consultants, the consulting role has been under scrutiny following the Enron scandal where Arthur Andersen simultaneously provided audit and consulting services which affected their ability to maintain independence in their audit duties. This incident resulted in many accounting firms divesting in their consulting divisions, but this trend has since reversed. In audit engagements, CPAs are (and have always been) required by professional standards and Federal and State laws to maintain independence (both in fact and in appearance) from the entity for which they are conducting an attestation (audit and review) engagement. However, most individual CPAs who work as consultants do not also work as auditors.

How is the Uniform CPA Examination Scored?

Whether providing services directly to the public or employed by corporations or associations, CPAs can operate in virtually any area of finance including:

  • Assurance and attestation services
  • Corporate finance (merger and acquisition, initial public offerings, share and debt issuings)
  • Corporate governance
  • Estate planning
  • Financial accounting
  • Governmental accounting
  • Financial analysis
  • Financial planning
  • Forensic accounting (preventing, detecting, and investigating financial frauds)
  • Income tax
  • Information technology, especially as applied to accounting and auditing
  • Management consulting and performance management
  • Tax preparation and planning
  • Venture Capital
  • Financial reporting
  • Regulatory reporting

CPA Positions in Public Accounting

In order to become a CPA in the United States, the candidate must sit for and pass the Uniform Certified Public Accountant Examination (Uniform CPA Exam), which is set by the American Institute of Certified Public Accountants (AICPA) and administered by the National Association of State Boards of Accountancy (NASBA). The CPA designation was first established in law in New York State on April 17, 1896

Eligibility to sit for the Uniform CPA Exam is determined by individual state boards of accountancy. Many states have adopted what is known as the “150 hour rule” (150 college semester units or the equivalent), which usually requires an additional year of education past a regular 4 year college degree, or a master’s degree. (As such, universities commonly offer combined 5-year bachelor’s/master’s degree programs, allowing a student to earn both degrees while receiving the 150 hours needed for exam eligibility.)

The Uniform CPA Exam tests general principles of state law such as the laws of contracts and agency (questions not tailored to the variances of any particular state) and some federal laws as well.

How is the Uniform CPA Examination Scored?

CPA Positions in Public Accounting  

In public accounting, the CPA serves many clients as an objective outsider or in an advisory capacity. Currently there are over 46,000 public accounting firms in the United States ranging in size from small local accounting practice to large international CPA firm. Below are some examples of public accounting positions and what they require:

Staff Auditor (1-3 years) performs the detail work of a financial audit under the supervision of a Senior. Staff Auditors will often start to direct small audits at the two-year level.

How is the Uniform CPA Examination Scored?

Tax Staff (1-3 years) prepares tax returns, researches tax questions, and counsels clients on tax problems under the supervision of a Tax Senior and/or Tax Manager.

Management Services/Consulting Staff (1-3 years) provides a variety of consulting and management advisory services and reviews the integrity of client systems under the supervision of a Senior or Manager.

Senior Auditor (3-6 years) works under the general direction of an Audit Manager. Responsibilities include the direction of audit field work, assignment of detail work to Staff, and review of their working papers. Also prepares financial statements, develops corporate tax returns, and suggests improvements to internal controls.

Tax Senior (3-6 years) works under the general direction of a Tax Manager and/or Tax Partner. Prepares or reviews tax returns for individuals and organizations, researches tax questions, offers suggestions for tax planning, and studies law for potential tax savings.

Management Services/Consulting Senior (3-6 years) works under the general direction of a Manager and/or Partner. Performs and/or supervises detailed consulting assignments involving various functional areas (computing, personnel, marketing) within client organisations.

Audit Manager (6+ years) supervises Seniors and Staff. Responsible for audit program approval, personnel scheduling, audit working papers review, financial statement disclosure footnote approval, day-to-day client relationships, determination of billings for engagements, and training and evaluation of Staff and Seniors. Achievement of this level is critical to long-term success within a CPA firm, since it is awarded only to those with Partner potential.

Tax Manager (6+ years) directs and reviews Staff and Senior Tax Staff, approves corporate tax returns prepared by Audit Staff, and is available to Audit Staff for consultation. Also performs tax planning and preparation for individuals, estates, trusts, and small businesses and researches unusual tax matters. Achievement of this level is critical to long-term success within a CPA firm, since it is awarded only to those with Partner potential.

Management Services/Consulting Manager (6+ years) maintains direct contact with corporate personnel. Responsible for internal control procedures, operational control procedures, operational budgets, business financing, analyses of projects or departments, and a variety of special purpose studies. Achievement of this level is critical to long-term success within a CPA firm, since it is awarded only to those with Partner potential.

Partner level is coveted since only about 2 percent of all persons entering CPA firms will reach this plateau. The financial rewards are significant. The Partner normally purchases equity in the firm and therefore shares in all profits. Typically, a professional must be a CPA to become a Partner. In larger firms, an equivalent position of Principal is available to deserving specialists who are non-CPAs. An Audit, Tax, or Consulting Partner is typically responsible for overall client-related activities.

Senior Partner performs all the duties of a Partner. The achievement of Senior Partner is obtained as a result of longevity with a firm and expert handling of instrumental accounts. The title of Senior Partner may also be attained through participation as a member of the Executive Committee, which is responsible for developing the firm’s policies, planning activities, or providing day-to-day management and administration of one or more branch offices or regions.

How is the Uniform CPA Examination Scored? Get Downloads Here!

You can download the filed by clicking the link here : LINK

CPA Positions in Public Accounting

www.cakart.inprovides India’s top CPA faculty video classes – online & in Pen Drive/ DVD – at very cost effective rates. Get CPA Video classes from www.cakart.in to do a great preparation for primary Student.

Watch  CPA  sample lecture Here
Watch CPA free downloads  Visit cakart.in downloads section

Leave a comment

Your email address will not be published. Required fields are marked *