| What is the difference between an accountant | | | | material misstatements or false/missing |
| and a Certified Public Accountant (CPA)? An | | | | information and meet the requirements of the US |
| accountant usually majors in accounting in college. | | | | GAAP (Generally Accepted Accounting Principles). |
| In order to become a Certified Public Accountant, | | | | A CPA can also prepare a reviewed financial |
| the accountant needs to work for an accounting | | | | statement. A reviewed financial statement is less |
| firm for a few years, acquire five hundred hours | | | | involved and complex then an audited financial |
| of auditing time, and pass a test from the | | | | statement, though some testing is performed to |
| American Institute of Certified Public Accountants | | | | verify information found in the financial |
| as well as from their state. A CPA also must take | | | | statements. A report is created by the CPA |
| 120 hours of continuing education courses every | | | | which describes findings and limitations of the |
| three years to maintain their license. | | | | review. The only financial statement that a |
| Only a Certified Public Accountant (CPA) can | | | | non-certified accountant can prepare is a compiled |
| prepare audited financial statements on behalf of | | | | financial statement. A report is issued with the |
| a business or non-profit organization. Audited | | | | complied financial statement which indicates no |
| financial statements are used to provide financial | | | | audited or review methods were used, and the |
| credibility, accountability and accuracy for a | | | | financial statements were compiled using only |
| business. These audited financial statements help | | | | information provided by the business. |
| provide a basis for various business decisions to | | | | Audited financial statements are the most |
| be made within and regarding a company. The | | | | professional and accepted method to report |
| purpose of audited financial statements is to | | | | financial accountability and accuracy to a |
| provide interested parties The CPA will certify | | | | company’s shareholders, bankers, creditors, |
| with a reasonable assurance that the | | | | government, and any other people with interest in |
| company’s financial statements are free of | | | | the company. |