What is a CPA license?
A CPA license symbolizes the highest degree of competence and knowledge in the accounting profession. A license holder is a well-qualified professional who upholds the credibility and integrity of the profession.
Kindly note that a CPA Certificate and a CPA license are two different terms. You avail the former after passing the CPA Exam. However, it does not permit you to practice the profession. In contrast, the latter is issued on completing all state-specific requirements after clearing the CPA Exam. The license allows you to work as a CPA.
Besides, you must fulfil the state-specific Continuing Professional Education (CPE) requirements for license sustenance every 1-3 years.
Education Requirements for CPA License
To take the CPA Exam, you must have 120 hours of education equivalent to a bachelor’s degree. This is mandatory in all states. Apart from that, you may need 30 hours of additional education. This requirement may vary by state. Let’s discuss the standard requisites in detail.
US-based Candidates
All the state boards (except the US Virgin Islands) require at least 150 semester hours of education at an accredited college or university for licensure.
It includes
- 30 semester hours in accounting subjects
- 24 semester hours in business administration subjects
- At least 15 semester hours in upper-division or graduate-level accounting
That is to say, CPA licensure demands an initial 120 credit hours as an undergraduate and additional 30 hours, total amounting to 150 credit hours.
International Candidates
The education requirements remain the same (150 credit hours) for international candidates.
Moreover, NASBA offers International Evaluation Services (NIES) for students who have studied outside the US. It provides an online application for non-US-based candidates to meet the individual state requirements.
Just visit the NASBA Requirements webpage and know the country-specific details.
| NIES Particulars | Details |
|---|---|
| Supporting US Jurisdictions | 53 |
| Fee | $25-$350 (varies as per the evaluation service) |
| Required Education Documents (General) | Documentation for international post-secondary education (each year) Complete set of official English translations for non-English documents Transcripts and degree certificates (Diplomas) Syllabi & course descriptions |
| Education Verification Option | A paid alternative for students whose university can’t issue official educational documents. |
| Deadline for Application Status Update | 1-year (after that, your application will be closed with no refund, and any official/replaceable documents will be destroyed) |
Uniform CPA Exam Requirements
The Uniform CPA Exam is an American Institute of Certified Public Accountants (AICPA)-administered computerized set of tests designed to evaluate your competency as a newly licensed CPA. This is a primary requirement for the CPA license.
AICPA collaborates with the National State Board of Accountancy (NASBA) and State Boards of Accountancy to conduct the exam. The exam remains the same for all state boards. However, your eligibility to sit for the exam varies by state.
US-based Candidates
You must pass the four CPA Exam sections, each four-hour long, within 18 months. You should score at least 75 points in each section on a scale of 0-99.
- Auditing & Attestation (AUD Exam)
- Regulation (REG Exam)
- Business Environment & Concepts (BEC Exam)
- Financial Accounting & Reporting (FAR Exam)
A majority of state boards require you to earn at least 120 credit hours to sit for the exam. However, please check with your jurisdiction for exceptions. Also, you must take up the exam in English only.
Moreover, CPA Exam questions consist of various types, namely, multiple-choice questions (MCQs), task-based simulations (TBSs), and written communication tasks (WCTs).
International Candidates
As mentioned above, CPA Exam remains the same for both US and non-US based candidates. However, the latter need to pay an additional fee amount to sit for the exam.
Now, candidates can take the CPA Exam in any of the 17 designated international locations. This includes India, Nepal, Scotland, England, Ireland, Germany, Japan, South Korea, Brazil, Bahrain, Egypt, Jordan, Kuwait, Lebanon, the United Arab Emirates (UAE), Saudi Arabia, and Israel.
However, they must have a valid passport or national ID to apply for the exam at an international location.
International Qualification Examination (IQEX)
IQEX is for accounting experts who are the members of non-US professional associations. These associations must have entered into Mutual Recognition Agreements with the US International Qualifications Appraisal Board (IQAB) on behalf of the US accounting profession.
Kindly note that IQEX is not a substitute for the CPA Exam. Instead, it is used to test areas particularly associated with the US accounting practice.
Let’s view the details.
| IQEX Particulars | Details |
|---|---|
| Content (Topics) | Ethics, Professional & Legal Responsibilities, Business Law, & Taxation (US Accounting) |
| Eligibility Requirements | CPA Australia Chartered Accountants Australia & New Zealand (CAANZ) CPA Canada (CPAC) Hong Kong Institute of CPAs (HKICPA) Chartered Accountants Ireland (CAI) Instituto Mexicano de Contadores Publicos (IMCP) Institute of Chartered Accountants of Scotland (ICAS) South African Institute of Chartered Accountants |
| Exam Fees | $835 |
| Refund Policy | No refund (Request an NTS extension or partial fund in extreme cases) |
| Applicants with disabilities | Upon qualification, exam administration accommodations are available in accordance with the provisions of the Americans with Disabilities Act (ADA) |
Experience Requirements for CPA License
Similar to education and exam, the experience requirements for CPA licensure are also the same for both US-based and international candidates.
A majority of US jurisdictions require a year of work experience (around 2000 hours) in public accounting. However, it may extend to two or more years for a few states. In addition, a licensed CPA must verify the experience certificates.
Many jurisdictions also permit non-public accounting experience. However, the number of years of experience required is usually higher than that needed for public accounting.
Moreover, some jurisdictions have a one-tier system under which candidates must pass the CPA exam and meet the experience requirements to attain both the CPA certificate and the license.
While other jurisdictions have a two-tier system under which you receive the certificate on passing the exam and the license on gaining the relevant experience. Kindly check with your state board for further details.
NASBA Experience Verification
For getting your experience certificate verified, NASBA offers an Experience Verification service. It provides you with access to an interview with a licensed CPA to sign off on the experience requirement.
It is available for both domestic and international CPA aspirants. Also, the service incorporates an extensive authentication of the candidate’s work experience.
CPA Ethics Exam
A few state boards require you to prove yourself as a respectful and honorable citizen to earn an accounting license. Hence, check with your BOA for the CPA Ethics Exam accordingly.
Most of the state boards approve the AICPA’s Professional Ethics self-study course for licensure. However, some state boards offer state-specific ethics courses or exams.
Here are the details.
| Particulars | Details |
|---|---|
| When to Take | After you pass the CPA ExamUsually within 2 years of passing the exam within 1 year of purchasing the AICPA ethics material |
| What to Study (State-Specific) | AICPA Professional Ethics Self-Study Course, orState-board specific Ethics Exam/Course |
| How to Study & Qualify | Sign-up for the course. Get an ethics textbook. Go through the specified study materialAttend the exam |
| Exam Type/ Format/ Questions | Timed & open bookMCQs Online/on-paper |
| No. of Attempts | 3- 6 attempts (may vary by state) |
| Minimum Passing Mark | 90 |
| Result Timeline | Online – Immediate ResultPen-and-Paper- email the answer sheet and wait for a few weeks |
Continuing Professional Education (CPE)
Once you fulfill all the requirements and attain your CPA license, you must ensure that it stays active. For this, CPAs must undertake CPE. It helps to sustain your professional expertise and industry know-how. It also enhances the quality of services rendered.
The newly licensed CPAs must comply with all applicable CPE rules and regulations of their respective state board. Typically, CPAs must indulge in learning activities and earn 40 credits every 1-3 years (varies by state). For this, they can pick a self-study course or any free and paid CPE courses provided by NASBA and AICPA.
Now that you know all about the CPA licensure requirements, start prepping up NOW! Focus on your goals since the start of your college and boost your skills with time.
Once you have cleared the CPA Exam, acquire the additional education and experience requirements and take the ethics exam as soon as possible. This will help you earn the reputed title in no time and enjoy its benefit over a lifetime!
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