CPA means Certified Public Accountant and this is a designation, which is offered to eligible accountants who clear the Uniform Certified Public Accountant Examination conducted by the United States. Along with this, the accountants must also posses the required state educational qualification and experience. The CPA license provided to the candidates, who clear this exam, protects the general public from inefficient accountants who perform substandard work. The first law of accountancy was passed the year 1896 by the New York state law, in order to test the credentials of the accountants. After this law was passed accounting evolved as a profession and was tagged with the licensing requirements and this profession followed with some professional ethics and certain working standards.

Many states followed this lead and ultimately fifty-four jurisdictions accepted the public law accounting legislation. The licensing authority solely lies in the hands of the Board of Accountancy as well as for compliance with the state laws. Most of the accountants practicing in the US hold the CPA license and those practicing without it are prohibited. As a result in most of the cases the CPA certification was not allowed to be used outside the state until professionally licensed or certified by that particular state.