American Institute of Certified Public Accountants (AICPA):
The AICPA is a non-profit organization of Certified Public Accountants in the U.S. It was founded in the year 1887 with the name American Association of Public Accountants. It is integral to standard-setting and rule-making in the CPA to serve as an advocate for public groups and legislative bodies.
AICPA provides more than 4,50,000 members around 150 countries all over the world with information, resources, and leadership to provide the services of CPA professionally. From 1887 to 1970, the AICPA acted as the only body setting accepted professional and technical standards for the public accountants in many areas. But, in the year 1970, FASB took the responsibility of setting GAAP. In some cases, the AICPA retains standard responsibilities in some of the areas like business valuation, professional ethics, financial statement auditing, firm control quality, and attest services.
The members of the AICPA represent professionals in public practice, business, education, and government. Offices which are located in Washington D.C, New York City, New Jersey, North Carlina, Texas, Lewisville, and Ewing. CPA is a designation which is earned by accounting professionals who satisfy having a good experience and pass accounting exams. The accounting industry is proliferating well with financial planning. The AICPA sets excellent standards for maintaining and obtaining the CPA designation to make sure in meeting the performance standards.
History of the AICPA:
AICPA obtained in 1957, but the organization traces many iterations beginning with AAPA (American Association of Public Accountants) in 1887. The subsequent interactions contained IPA (Institute of Public Accountants) in 1916 and AIA (American Institute of Accountants) in 1917. In 1921 the American Society of Accountants with American Institute of Accountants. Recently, in 2012, the AICPA partnered with CIMA (Chartered Institute of Management Accountants) to create CGMA (Chartered Global Management Accountant). In 2014, both CIMA and CGMA combined created GMAPs (Global Management Accounting Principles) to formalize good practices in the management accounting field. After 2017, there was a formation of a third international association which is used to seek in strengthening the accounting profession with the combination of knowledge and skills in public accounting. However, both CIMA and AICPA provide all the benefits.
New Auditing Standards:
Across the response of auditors in public accounting, the industry is failed to apply a healthy scepticism to the statements of clients. In 2019, AICPA proposed a new standard to promote scepticism as a general auditing standard including with the sections 540 and 122, related disclosures, fair value accounting estimates, and auditing estimates of the AICPA standards.
The AICPA sets ethical standards for the U.S auditing and professional, ethical standards of federal, non-profit, government and private organizations. I hope you have understood the function of AICPA. Any questions? Comment below.
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