What is a Certified Public Accountant?

A certified public accountant is an accountant who has passed all parts of the CPA examination, as administered by the American Institute of Certified Public Accountants, and who has completed all additional work and educational requirements of their local state accounting regulatory agency. A CPA is authorized to render an opinion on the fairness of a client's financial statements. The CPA designation implies a certain minimum level of competency, and so is highly prized among accountants.

Why are there so few CPAs?

The number of CPAs has been declining as a proportion of the total workforce, because of the expense of a five-year undergraduate college training requirement. In addition, the turnover rate among new hires at CPA firms is quite high. This means that someone contemplating the CPA certification must consider the excessively high cost of college training, followed by the considerable risk of washing out of a CPA firm.