Purpose of the CPA Examination – Why Are You Required to Pass The CPA Exams?
Like many others, you probably have asked yourself at some point why the heck the government is requiring us to pass the CPA exams after 4 years of college education.
Well, the CPA Board exam is designed primarily to test the entry-level knowledge and skills of Accountancy graduates necessary to protect the public interest once these newcomers are immersed in the workforce.
Finance and Accounting is a very sensitive part of the organization. Most companies rely heavily on financial information generated by Finance professionals in their decision making processes. Without proper training and skills, an accountant can lead the business astray. That’s why the government has to test the new and upcoming professionals in what is called as the CPA board exam.
To protect public interest, the skills and knowledge that the Finance person must have are:
1. Analytical Skills — This is the ability to organize, process, and interpret data to develop options for financial decision making.
2. Judgment and Discernment — This is the ability to evaluate options analyzed and presented for decision-making and come up with an appropriate conclusion.
3. Communication Skills — This is the ability to effectively elicit and/or express information through written or oral means.
4. Business Acumen — This is the ability to recognize and comprehend the meaning of reports and numbers and the application of a particular decision to a set of options and circumstances.
5. Universal and Global Conformity – This is the ability to uniformly and correctly apply, in business decisions and professional advice, the knowledge of accounting and finance principles in accordance with global norms and rules.
Passing the CPA examination is just one of many screening criteria of the government and private sector to assure the competence of those licensed to perform professional accounting services both in public or private practice. Other considerations include educational requirements, work ethics and experience.
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