What Is a CPA? Your Gateway to Financial Expertise

In a financial landscape that grows more complex every year, the Certified Public Accountant (CPA) credential stands as one of the most respected designations a professional can earn. Whether you are considering a career shift into accounting or looking to elevate your existing expertise, understanding what a CPA is—and what a CPA can do—is the first step toward advancing your financial career.

This post explores the key CPA responsibilities that set certified professionals apart, the differences between accountants and a CPA and how the role of a CPA continues to evolve in modern business.

What Does CPA Stand For? What Is a CPA License?

CPA stands for Certified Public Accountant. A licensed CPA is a finance professional who has demonstrated competency across the “4 E’s”—education, experience, ethics and the exam (the Uniform CPA Examination).³ The American Institute of Certified Public Accountants (AICPA) describes the CPA license as a credential that signals the holder has met educational, experience, ethical and examination standards and is legally authorized to provide audit opinions and represent clients before the IRS.⁴

CPA licensure is administered at the state level rather than through a single national license. Each of the 55 U.S. jurisdictions (50 states, the District of Columbia and U.S. territories) has its own Board of Accountancy responsible for licensing the CPAs who practice in that state or jurisdiction.⁵ In Illinois, for example, candidates must pass all four sections of the Uniform CPA Exam and complete an ethics examination as required by the Illinois Board of Examiners to earn certification.⁶ Most jurisdictions also require a separate ethics assessment beyond what is tested on the CPA Exam itself.⁷

The national CPA association most closely associated with maintaining ethical and professional guidelines is the AICPA. All AICPA members must adhere to its Code of Professional Conduct, which establishes standards of integrity, objectivity and independence.⁸ The National Association of State Boards of Accountancy (NASBA) supports licensure administration and emphasizes that ethical behavior is fundamental and nonnegotiable for the profession.³ The CPA Exam is administered by the AICPA (American Institute of CPAs), which develops the exam content.

NASBA plays a key operational role, including:

• Manages candidate applications in many jurisdictions
• Maintains the National Candidate Database
• Issues Notices to Schedule (NTS)
• Facilitates score reporting to state boards

Together, these organizations help ensure that the CPA designation remains a symbol of trust and expertise. Learn more about new pathways to CPA licensure in Illinois and how they may apply to your career goals.

What Does a CPA Do? Exploring Key CPA Responsibilities

Understanding what a CPA does requires looking beyond basic number crunching. At a foundational level, accountants and auditors prepare and examine financial records, according to the BLS.² However, the scope of what a CPA can do extends well into analysis, compliance and advisory work. CPA responsibilities often include analyzing financial information and records, preparing reports related to budgeting, cost control, employee compensation and new product development, and calculating taxes.⁹ For example, CPAs may conduct forensic accounting investigations, advise on mergers and acquisitions or help organizations implement internal controls to safeguard assets.

What distinguishes a licensed CPA from other accounting professionals is licensure-backed authority. CPAs are held to high ethical standards and often serve as guardians against fraud and mismanagement, helping detect and deter financial irregularities.⁴ This public-trust function means organizations, investors and regulators rely on CPAs to provide credible, independent financial assessments. Explore additional career opportunities for CPAs to see how these responsibilities translate into diverse professional paths.

Tax Preparation and Strategy

One of the most visible CPA responsibilities is helping individuals and businesses navigate complex tax codes. CPAs may advise on tax planning and compliance, helping clients understand options within the law to manage their tax obligations effectively. The IRS grants CPAs, attorneys and enrolled agents unlimited representation rights, meaning they may represent taxpayers before the IRS in all matters, including audits, collections and appeals.¹⁰

This authority is significant. According to the IRS, unenrolled return preparers and annual filing season program participants have more limited representation rights, often restricted to clients whose returns they personally prepared and signed.¹ CPAs can formally act on behalf of taxpayers using power of attorney, file documents and provide written tax advice on federal tax matters.¹¹ This distinction helps explain why a CPA’s role in tax strategy—not just tax filing—carries meaningful value for clients and employers alike.

Auditing and Assurance Services

Audit and assurance services represent one of the clearest examples of what a CPA can do that many non-licensed accountants cannot. In most U.S. jurisdictions, CPA licensure is required to sign audit and attestation reports, a critical function that ensures financial transparency, accuracy and regulatory compliance.⁴

Independence is foundational to this work. The AICPA requires that accountants in public practice maintain independence in fact and appearance when providing auditing and other attestation services.¹² For public-company audits, CPAs must comply not only with AICPA and state-board rules but also with Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) independence requirements.¹³ This multi-layered oversight ensures that CPA audits carry credibility with investors, lenders, boards and regulators—reinforcing the profession’s role in helping detect and deter fraud and mismanagement.

CPA vs. Accountant: Why Licensure Matters

While all CPAs are accountants, not all accountants hold CPA licensure. The distinction between general accountants and a licensed CPA comes down to legal privileges, professional standing and career opportunity. Requirements vary by state, and readers should check their state board of accountancy for specific details.

One of the most consequential differences is legal authority. According to the IRS, CPAs, attorneys and enrolled agents may represent taxpayers before the IRS in all matters, including audits, collections and appeals.¹ In addition, in most U.S. jurisdictions, CPA licensure is required to sign audit and attestation reports.⁴ These privileges make the CPA credential particularly valuable for accountants in leadership, management or specialized financial roles within organizations that need compliance assurance and regulatory credibility.

The credential also signals rigor and trustworthiness to employers. The AICPA frames the CPA license as a symbol of trust, expertise and integrity in the business world.⁴ The BLS notes that completing certification in a specific field of accounting, such as becoming a licensed Certified Public Accountant, may improve job prospects.²

Salary data reinforces the market value of certification. The BLS median annual wage for all accountants and auditors was $81,680 in May 2024, with the top 10% earning more than $141,420.² These figures illustrate why pursuing certification can be a powerful investment in long-term earning potential. Discover more about the benefits of being a CPA and how the credential supports career advancement.

The Evolving Role of a CPA in Modern Business

The role of a CPA has expanded well beyond traditional bookkeeping. Today’s certified professionals serve as strategic financial advisers, helping organizations with forecasting, risk management and data-driven decision-making. A 2025 Journal of Accountancy article notes that automation creates a chance for CPAs to transcend their historical role as processors of financial information to become business advisers.¹⁴

As routine tasks become automated, CPAs can dedicate more time to higher-value work—such as analysis, strategic recommendations and client advisory services.¹⁴ The advanced analytical and technology skills developed in a master’s in accountancy program align closely with these evolving demands. Clients and employers now expect their accountants to provide real-time insights, proactive guidance and strategic partnership.¹⁴ CPAs can also leverage their internal-control and reporting backgrounds to become strategic risk advisers, helping organizations identify, monitor and manage enterprise risks.¹⁵

The demand for certified professionals remains strong. The BLS projects 5% employment growth for accountants and auditors from 2024 to 2034, faster than average, with about 124,200 openings each year.² By contrast, bookkeeping, accounting and auditing clerk roles are projected to decline 6% over the same period—a clear signal that routine work is being automated while higher-skill accounting roles remain resilient.¹⁶

The AICPA reports that three-in-four firms that recruited new staff in 2024 planned to hire the same amount or more in 2025, and firms hired 11,985 new graduates in 2024.¹⁷ At the same time, pipeline pressures—including the time commitment required to meet licensure requirements—suggest that those who do earn the credential may face less competition and can often benefit from greater job security for CPAs over the long term.

Advance Your Financial Career With an Online Master’s in Accountancy From DePaul University

The CPA credential opens doors to leadership roles, higher earning potential and lasting career stability. Earning a master’s degree is one of the most efficient ways to meet the education requirements for licensure—and to develop the advanced analytical and advisory skills that today’s employers demand.

DePaul University’s Online Master’s in Accountancy is designed to help highly motivated professionals, including career changers without an undergraduate accounting background, gain the coursework necessary to sit for the CPA exam. The fully online, flexible format allows you to work while you earn your degree and explore admissions requirements for starting in as little as 12 months.

Through DePaul’s program curriculum, students develop competencies in technology, data analytics and auditing that align with the evolving demands of the profession. Whether you aspire to lead audit teams, advise C-suite executives on tax strategy or guide organizations through complex financial decisions, this program can position you for the careers and professional development outcomes you envision.

Take the next step toward becoming a CPA. Contact us today to learn how DePaul’s Online Master’s in Accountancy can accelerate your path to financial expertise, or download a program brochure to explore the program at your own pace.