When an accountant becomes a CPA then he or she gains a higher stander in the eyes of businessmen. The reason is one needs minimum education to become a CPA. A person has to pass a tough exam in four parts. Then have to agree with each code of ethics.
Structure of CPA Firms
Accountants offer tax consulting and auditing to their clients. An accountant firm is organized as a sole proprietorship or to establish a good partnership with businessmen. These firms are structured as public organizations too.
Mainly businessmen run a sole proprietorship. In a proprietorship, businessmen hire temporary accountants for their business. However, most CPA firms work in partnership with business organizations.
The hardest part of CPA
According to several students, the most challenging part of CPA is financial auditing and reporting, or FAR. The pass rate of this section of CPA is nearly 50%. Therefore, students have to study efficiently to pass the exam.
Why is it hard?
Students have to study four parts of CPA before appearing in the exam. Each section consists of different types of accounting knowledge. Moreover, the first part is FAR which is the most difficult one for students.
Certified accountant vs uncertified accountant
- A certified accountant can perform some specific roles that an uncertified accountant cannot. The performances are auditing public companies and making financial statements that are audited. The financial statements include an income statement or balance sheet.
- A certified accountant can perform taxation, forensic accounting, and personal financial planning.
- Uncertified accountants cannot perform these duties. They have to pass the CPA exam to get permission for doing such duties.
To sum up, CPA helps an organization in more easy business activity. This also helps companies to develop their future business. Certified accountants make financial statements that help stakeholders to take financial decisions for companies.
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