Page 48 - Encyclopedia of Business and Finance

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American Institute of Certified Public Accountants

are fulfilling other requirements to become CPAs in their Firm membership in these centers is voluntary. Member
states), accounting students, and international affiliates. firms demonstrate their commitment to quality by sign-
In total, membership in 2005 was approximately 350,000. ing on and complying with membership requirements.
The AICPA’s Audit Committee Effectiveness Center,
PRIMARY ACTIVITIES a Web-based resource center of best practices, guidance,
and tools, was launched in early December 2003 to sup-
The AICPA’s primary mission is providing leadership, port the corporate governance process of company audit
resources, and information to enable CPAs to perform
committees. The components of the center are the Audit
services in a professional manner for the benefit of the
Committee Toolkits (corporate, not-for-profit, and gov-
public as well as for employers and clients. Activities are
ernment), Audit Committee Matching System, Audit
broadly characterized as advocacy, communication,
Committee e-Alerts, and a bank of materials containing
recruitment and education, and standards and perform-
information for and about audit committees.
ance. To carry out its mission, the AICPA works with local
The CPA profession’s commitment to the public
CPA societies in fifty-five accountancy jurisdictions (the
good extends beyond financial reporting. In 2003 the
50 states plus Washington, D.C., Puerto Rico, the U.S.
AICPA, working with state CPA societies, launched the
Virgin Islands, Guam, and the Northern Marianas award-winning 360 Degrees of Financial Literacy pro-
Islands).
gram, which takes a broad leadership role in volunteering
The AICPA represents CPAs before governments, to educate the American public, from schoolchildren to
regulatory bodies, and other organizations in protecting retirees. In 2005 the AICPA published objective guides on
and promoting members’ interests while preserving public two public policy issues—Social Security reform and tax
confidence in the financial reporting system. It also pro- reform. Through its volunteer member committees and
motes public awareness of and confidence in the integrity, professional staff, the AICPA also establishes, monitors,
objectivity, competence, and professionalism of CPAs. As and enforces professional standards, as well as assists
part of its efforts to enhance the public’s understanding of members in continually improving their professional con-
the skills, knowledge, and character of CPAs, the AICPA duct and performance. The AICPA develops the Uniform
launched the CPA Ambassador Program, which has pro- CPA Examination, which is administered to all candidates
vided public speaking and media training to more than for the CPA designation in all states and U.S. licensing
600 CPAs across the nation. jurisdictions. A computerized CPA exam was launched in
As individuals, CPAs take their public interest April 2004. The new examination is more closely aligned
responsibilities seriously. The profession, with the leader- with the real-world environment of entry-level CPAs and
ship of the AICPA, has taken many steps to uphold the allows for a better evaluation of their qualifications.
faith of investors in U.S. financial markets. Those efforts A weekly e-newsletter and the monthly CPA Letter
have focused on detecting and preventing fraud, improv- and Journal of Accountancy are among many periodicals
ing audit quality, contributing to more-effective corporate distributed and available online. The AICPA houses the
governance, and enhancing the value of business financial nation’s most extensive accounting library and publishes
reporting. numerous volumes of technical standards and topical
publications. The AICPA is a major provider of educa-
The CPA profession has enhanced fraud-related stan-
tional courses and materials for continuing professional
dard setting and related education and training activities.
education, a requirement of most jurisdictions for the
The AICPA has collaborated with the Association of Cer-
continued licensing of CPAs and membership in the
tified Fraud Examiners to establish an Institute for Fraud
AICPA.
Studies at the University of Texas at Austin. The AICPA
In 2001 the AICPA launched a comprehensive effort
has also established a relationship with the Federal Bureau
of Investigation (which employs many CPAs) and devel- to recruit late high school and early college students into
the accounting profession. The flagship of this program is
oped several antifraud training programs.
the interactive Web site (http://www.startheregoplaces.
The financial statement audit is a key service of pub- com). Through connection to the collegiate academic
lic accountants. To maintain quality of this service, the community, cooperative curriculum development, and
AICPA has three centers, each focused on audit quality in the distribution of promotional materials, the AICPA aids
different environments: in encouraging qualified accounting students to sit for the
Uniform CPA Examination.
1. audits of publicly held companies
Focused information and tools for members working
2. governmental, or Yellow Book, audits
in specialized areas led to the establishment of seven Web-
3. audits of employee benefit plans based communities: personal financial planning, business

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 25