Guides
What Is a CPA? Meaning, Role, and How It Differs From an Accountant
A CPA is a Certified Public Accountant, an accountant who holds an active license from a U.S. state board of accountancy. To earn the credential, a person must pass the Uniform CPA Examination, complete roughly 150 semester hours of college education, and meet a supervised experience requirement (often one year). The license lets a CPA do work that unlicensed accountants cannot, most notably signing audit opinions on financial statements.
Every CPA is an accountant, but most accountants are not CPAs. The difference is licensure: a CPA has passed a rigorous exam, met state education and experience rules, and agreed to a binding code of professional conduct. That license, granted by a state board (not a company or a school), is what carries legal weight when documents go to the IRS, the SEC, lenders, or investors.
What does CPA stand for and what is a CPA?
CPA stands for Certified Public Accountant. A CPA is a state-licensed accounting professional authorized to provide public accounting services, including auditing, attestation, tax, and advisory work. The title is protected by state law: a person may not call themselves a CPA or hold out as one without an active license in that jurisdiction.
The credential exists because the public relies on financial statements they cannot verify themselves. Banks, shareholders, and regulators need an independent professional to stand behind the numbers. State boards created the CPA license to identify accountants who meet a uniform bar of competence and are subject to discipline if they fail their duties. There are 55 U.S. licensing jurisdictions (all 50 states plus DC, Puerto Rico, Guam, the U.S. Virgin Islands, and the Northern Mariana Islands), each with its own board.
What does a CPA do?
A CPA performs accounting work that requires a license or a higher level of assurance: auditing financial statements, issuing attestation reports, signing and filing tax returns, representing clients before the IRS, and advising on complex tax and financial matters. Many CPAs also do the same day-to-day accounting a non-CPA does, but the licensed services are the reason clients seek them out.
CPA work generally falls into these categories:
- Assurance and audit. Examining financial statements and issuing an opinion on whether they are fairly stated. Public companies must have their financials audited by a CPA firm registered with the PCAOB.
- Tax. Preparing and signing returns, planning to reduce liability legally, and handling IRS notices, exams, and appeals.
- Advisory and consulting. Guiding decisions on entity structure, mergers, valuations, and controls.
- Industry and government roles. Serving as a controller, CFO, internal auditor, or forensic accountant inside a company or agency.
For a plain-language look at how audited numbers are built, see our guides on how to read an income statement and how to read a balance sheet.
What can only a CPA do?
Only a licensed CPA can issue an audit or review opinion on financial statements under U.S. standards. That single reserved act, expressing formal assurance on financial information, is the clearest line between a CPA and an accountant. Signing an audit report, giving an unqualified (“clean”) opinion, and attesting to internal controls are functions the law restricts to CPAs.
Several duties are effectively CPA-only or carry extra weight when a CPA performs them:
- Signing audit and attestation reports. Compilations, reviews, and audits under AICPA or PCAOB standards must be issued by a CPA or CPA firm.
- Auditing SEC filers. Public company audits require a firm registered with the Public Company Accounting Oversight Board (PCAOB), which means CPAs.
- Unlimited IRS representation. CPAs (like enrolled agents and attorneys) can represent any taxpayer before the IRS on any matter, including audits and appeals. Unlicensed preparers generally cannot.
Non-CPA accountants can still keep books, prepare financial statements without an opinion, run payroll, and prepare many tax returns. What they cannot do is attach assurance to the numbers.
CPA vs accountant: how they differ
The core difference between a CPA and an accountant is the license. An accountant is anyone who records, classifies, and reports financial data, and the title requires no credential. A CPA is an accountant who has passed the CPA Exam, met state education and experience rules, and holds an active license, which allows audit, attestation, and unlimited IRS representation.
| Feature | Accountant (non-CPA) | CPA |
|---|---|---|
| License required | No | Yes, from a state board |
| Education | Bachelor’s typical | ~150 semester hours in most states |
| Exam | None required | Uniform CPA Exam (4 sections, score 75+) |
| Experience | Varies | Often 1 year, supervised |
| Can sign audit opinions | No | Yes |
| Unlimited IRS representation | Generally no | Yes |
| Continuing education | Optional | Required (CPE, often ~40 hours/year) |
| Bound by AICPA/state code of conduct | Not directly | Yes |
| Typical pay premium | Baseline | Often 10 to 25% higher |
CPAs and accountants are not the only tax and advisory professionals. If you are weighing which credential fits a specific need, our comparison of CPA vs EA vs tax attorney breaks down scope and when to hire which.
How to become a CPA
Becoming a CPA generally follows a path known as the “three E’s”: Education, Examination, and Experience. A candidate completes the required college credits, passes all four sections of the Uniform CPA Exam within a rolling window, and documents qualifying work experience before a state board issues the license.
The typical steps are:
- Education. Earn a bachelor’s degree and, in most states, complete about 150 semester hours, including specified accounting and business coursework. A standard degree is 120 hours, so many candidates add a fifth year or a master’s.
- Sit for the CPA Exam. Apply through your state board and NASBA, then pass all four sections.
- Pass all sections in the window. Candidates must pass the remaining sections within 30 or 36 months of passing their first, depending on the state. Each section requires a scaled score of 75 or higher.
- Complete experience. Most states require about one year (often around 2,000 hours) of accounting experience, frequently verified by a licensed CPA.
- Meet ethics and licensing requirements. Many states require an ethics exam. Once approved, the board issues the license.
The 150-hour rule has shifted recently. Several states have added alternative pathways that allow licensure with 120 hours plus additional experience. Our State CPA Licensure Tracker shows the current status for all 55 jurisdictions.
The 2024 CPA Exam structure (CPA Evolution)
Under the CPA Evolution model launched in January 2024, the exam has three mandatory Core sections plus one Discipline section the candidate chooses. This replaced the older four-fixed-section format.
| Section | Type | Focus |
|---|---|---|
| Auditing and Attestation (AUD) | Core | Audit process, ethics, evidence |
| Financial Accounting and Reporting (FAR) | Core | Financial statements, GAAP, transactions |
| Regulation (REG) | Core | Federal tax, business law, ethics |
| Business Analysis and Reporting (BAR) | Discipline | Data analysis, reporting, advanced financial topics |
| Information Systems and Controls (ISC) | Discipline | IT audit, security, SOC engagements |
| Tax Compliance and Planning (TCP) | Discipline | Individual and entity tax, planning |
All three Core sections are required. Candidates pick one Discipline, which does not restrict what they can practice after licensure; a CPA is a CPA regardless of the discipline chosen.
What does a CPA cost, and what do they earn?
CPA fees depend on the service and market, and CPA pay generally runs above non-credentialed accountants. For consumers, tax and advisory rates vary widely by complexity and region. For CPAs themselves, the credential tends to add a measurable premium over the life of a career.
The U.S. Bureau of Labor Statistics reported a median wage of about $81,680 for accountants and auditors as of May 2024, a figure that blends CPAs and non-CPAs. Industry surveys often place the CPA pay premium in the range of 10 to 25% over comparable non-credentialed accountants, with the gap widening at senior levels. Actual figures depend on role, location, firm size, and specialization.
If you are a business owner comparing what you might pay, see how much a CPA costs for a small business for current bookkeeping, tax, and advisory rate ranges.
Frequently asked questions
Is a CPA the same as an accountant?
No. All CPAs are accountants, but most accountants are not CPAs. “Accountant” is an unregulated job title that anyone doing accounting work can use. “CPA” is a legally protected license granted by a state board after a candidate passes the Uniform CPA Exam and meets education and experience rules. The license authorizes audit and attestation work that accountants cannot perform.
How long does it take to become a CPA?
Most candidates take about five to seven years total. That typically includes four years for a bachelor’s degree, an extra year of coursework to reach roughly 150 semester hours, plus time to pass all four exam sections and complete about one year of qualifying experience. Timelines vary by state and by how quickly a candidate passes the exam within its 30 to 36 month window.
Can a CPA represent me before the IRS?
Yes. CPAs have unlimited representation rights before the IRS, meaning they can represent any taxpayer on any matter, including audits, collections, and appeals, regardless of whether they prepared the return. Enrolled agents and attorneys share this right. Unlicensed tax preparers generally have limited or no representation rights, depending on their status.
Do CPAs have to keep their license current?
Yes, in every jurisdiction. CPAs must complete continuing professional education (CPE), commonly around 40 hours per year or 120 hours over three years, with specific ethics requirements in many states. They must also renew their license periodically and stay in good standing with the state board, which can suspend or revoke a license for misconduct.
What is the difference between the CPA Core and Discipline sections?
Since January 2024, the CPA Exam has three required Core sections (AUD, FAR, and REG) that every candidate must pass, plus one Discipline section chosen from BAR, ISC, or TCP. The Core tests foundational skills all CPAs need. The Discipline lets candidates show deeper knowledge in one area. Choosing a discipline does not limit the work a CPA may do after licensure.
Does a CPA license work in every state?
Not automatically, though mobility rules make cross-state practice easier. A CPA is licensed in a specific jurisdiction, but most states have adopted practice mobility provisions that let a CPA in good standing serve clients across state lines without a second license. Rules differ, and firm-level registration may still be required, especially for attest work. Requirements vary by state and by the type of service provided.
Is becoming a CPA worth it?
For many accountants, the credential pays off through higher earnings, broader authority, and access to roles closed to non-CPAs, such as signing audit opinions or becoming an audit firm partner. Surveys often cite a pay premium in the 10 to 25% range. The trade-off is the cost and time of the exam, extra education, and ongoing CPE. Whether it is worth it depends on career goals and the type of work sought.
Reviewed by The Ledgerism Editorial Team. Last reviewed: July 2026.