The American Institute of Public Accountants, known as the AICPA, is a non-profit organization for Certified Public Accountants (CPAs) in the United States. From its start, the AICPA has focused on gaining respect for the accountancy profession by implementing ethical and professional standards. The AICPA was the only regulatory body setting accounting standards until the Financial Accounting Standards Board (FASB) took over responsibility in the 1970s.
The AICPA was founded in 1887, previously being called the American Association of Public Accountants. Then, in 1916, the AICPA rebranded into the Institute of Public Accountants. Again, in 1917, the name was changed to the American Society of Public Accountants. 1921 and 1936 also saw changes to the structure of the AICPA. Finally, in 1957, the AICPA finalized its name as The American Institute of Certified Public Accountants.
Over the past few decades, the AICPA has taken on many notable partnerships and initiatives. In 2012, the AICPA partnered with the Chartered Institute of Management Accountants (CIMA) to create the Chartered Global Management Accountant (CGMA) designation. The AICPA and CIMA also developed standards for management accountants in 2014.
More recently, the AICPA partnered with the National Association of State Boards of Accountancy (NASBA), the agency that issues the CPA exam, to transform the CPA licensure process. The CPA Evolution Initiative created a new testing method to earn a CPA license, focusing on compliance and planning, business analysis and reporting, and information systems and controls. The CPA Evolution Initiative tests new items relevant to accounting today.
Currently, the AICPA has over 597,000 members located across the United States. Although many of these members are CPAs, non-CPA accounting professionals can also join, such as finance professionals and accountants wanting to take the CPA exam and become licensed. Here are some of the primary goals of the AICPA:
AICPA members are required to follow specific regulations to build trust with the public and ensure competence, professionalism, and integrity within the accounting profession. Protecting the public is also done by requiring continuing education for members to maintain memberships.
The AICPA advocates for CPAs and CGMAs by communicating with regulators to gain clarity on tax and financial reporting issues, like best practices for reporting accounting estimates. The AICPA also takes on public interest programs, like the Feed the Pig campaign and the 360 Degrees of Financial Literacy site to showcase the importance of accountants.
The AICPA code sets ethical and professional standards that accountants must follow. This includes regulations for conducting assurance services and ethical standards to protect the integrity of the profession. Most public practices will retain an AICPA license.
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