What are the functions of AICPA?
American Institute of Certified Public Accountants (AICPA):
AICPA is the US industry body recognized by the US Congress as the National Association of State Boards of Accountancy. It was founded with the name American Association of Public Accountants in the year 1887 It is also recognized by the US Department of Education as an agency designated by the U.S. Department of Education to provide training in financial management for its employees. Licensure by international endorsement is a streamlined application procedure that is only accessible to people who: are accredited in another country that has a Mutual Recognition Agreement with the National Association of State Boards of Accountancy, and the American Institute of Certified Public Accountants. It is the responsibility of AICPA to recognize external bodies in order to continue to practice throughout the United States.
AICPA provides the services of US CPA professionally for more than 4,50,000 members from around 150 countries worldwide with information, resources, and leadership. The AICPA acted as the only body, setting accepted professional and technical standards for public accountants in many areas. FASB took the responsibility of setting GAAP, in the year 1970. In some cases, the AICPA retains legal duties in business valuation, professional ethics, financial statement auditing, firm control quality, and attest services.
The members of AICPA represent professionals in different fields like public practice, business, education, and government. The locations of the AICPA offices are in New York City, Washington D.C, Lewisville, New Jersey, North Carlina, Texas, and Ewing. The US CPA designation is earned by professionals who have good experience and pass accounting exams. The excellent standards of AICPA are set for maintaining and obtaining the CPA designation to meet the performance standards.
History of the AICPA:
AICPA was created in 1957, but the organization traces many iterations beginning with the American Association of Public Accountants (AAPA) in 1887. The subsequent interactions contained the Institute of Public Accountants (IPA) in 1916 and the American Institute of Accountants (AIA) in 1917. In 1921 the American Society of Accountants with the American Institute of Accountants. In 2012, the AICPA partnered with the Chartered Institute of Management Accountants (CIMA) to create Chartered Global Management Accountants (CGMA). In 2014, both CIMA and CGMA combined created Global Management Accounting Principles (GMAP) to formalize good practices in the management accounting field. After 2017, a third international association was formed, which is used to strengthen the accounting profession with the combination of knowledge and skills in public accounting. However, both AICPA and CIMA provide all the benefits.
Conclusion:
The AICPA sets ethical standards for the U.S auditing and professional, federal, non-profit, government, and private organizations. I hope you have understood AICPA and its functions.
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