Requirements for CPA Certification: Education, Exam, Experience, and Licensure, Lecture notes of Accounting

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What Does It Take to

Become a CPA??

Presented by ThisWayToCPA: AICPA’s new website for college students and CPA exam candidates

What Is a CPA?

• Stands for Certified Public Accountant
• Trusted financial advisor who helps

individuals, businesses, and other

organizations plan and reach their

financial goals

• All CPAs are accountants, but not all

accountants are CPAs

Education

• Requirements vary by state/jurisdiction

(see state requirements)

• Most states now require 150 semester

hours

• Number of accounting hours (in the 150

total) is dependent on state

requirements

Uniform CPA Examination

• Computer-based format
• Consists of 4 sections
  • Auditing and Attestation (AUD)
  • Business Environment and Concepts (BEC)
  • Financial Accounting and Reporting (FAR)
  • Regulation (REG
• Same test no matter where it is taken
• Passing score is 75 on a 0-99 scale
• Question types include multiple choice, simulation and written communication
• Eligibility to sit for exam depends on state (see state requirements)
• Click here for more exam information

Licensure

• Licenses gives the right to practice public

accounting

• Some states require Ethics exam (see

state requirements)

• Must comply with rules of professional

conduct

• Licensure timeline

Maintaining the License

• Continuing Professional Education (CPE)
  • Typically 40 hours per year
  • Types (e.g., computer-based vs. group/

classroom learning) of CPE vary by

jurisdiction

• May need Ethics training and compliance
• Subjects vary depending to type of

license and area of employment

• Renewal every period

State Society Membership

• State CPA Society vs. State Board of Accountancy
  • Society is a membership organization
  • Board sets policy
• How do State Societies and AICPA differ?
  • National vs. state/jurisdiction
  • Work closely together in many cases

Let’s Review

Educa&on

• Bachelor’s degree
• 150 semester hours Exam
• Apply to sit based on state requirements
• Pass all 4 parts with a 75% or higher Experience
• 1-­‐2 years in accoun&ng
• Under a CPA Most requirements are determined by the state/jurisdic&on in which you hope to prac&ce. In general, this is a summary of the steps to CPA licensure.

Tips

• Understand your state/jurisdiction’s requirements
• Take it one step at a time!
  • Focus on the education requirement first
  • Become eligible to sit for the Uniform CPA Examination
  • Study for (and pass!) the CPA Exam
  • Gain the required experience

What Is ThisWayToCPA?

• AICPA’s new website for college

students and CPA exam candidates

• A virtual warehouse chock full of the

information (and motivation) you need

to pursue a career in accounting

• Includes features like Find Your Fit,

CPA Profiles, and an online community