Requirements for Certified Public Accountants
Certified Public Accountants, or CPAs, represent a subset of all accountants who achieve a higher standard within the profession. CPAs meet minimal standards above those required to become a standard accountant. Although the minimal standards vary by state, some commonalities exist.
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CPA Exam
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All states require accountants to pass the uniform CPA exam prior to receiving a license and practicing as a Certified Public Accountant. The exam consists of four parts: auditing and attestation, business environment and concepts, financial accounting and reporting and regulation. The computerized exam is administered at testing sites throughout the country. Exam candidates must pass all four sections within 18 months.
Work Experience
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The majority of state accountancy boards require individuals to acquire work experience in public accounting and have their work verified by a CPA before receiving their license. A handful of states, such as Oregon and Georgia, allow individuals to apply general finance work experience toward receiving their license. Acquiring work experience demonstrates a proficiency in practical application of accounting concepts.
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Minimal Education
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Most states require CPA candidates to earn 150 credit hours before sitting for the CPA exam. The requirement to earn 150 credit hours adds an additional year of higher education beyond the typical four-year accounting degree. Many students opt to pursue a master's degree while earning the additional credits.
Ethics
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Nearly all states require CPA candidates to pass an ethics exam in addition to the uniform CPA exam before receiving their license. The purpose of the ethics exam is to instill a measure of integrity in CPAs who will work for employers and individuals in the future. The format of the ethics exam varies by state, although many utilize the AICPA course titled "Professional Ethics for CPAs."
Continuing Education
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Licensed Certified Public Accountants must maintain their skills and update their knowledge continually in order to keep their license. Continuing education communicates to the public that the licensed CPA knows about updates in the industry and in reporting requirements. Most states require a minimum of 40 continuing education hours annually.
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