Steps to Becoming a CPA

Becoming a CPA is not easy but it can be lucrative.

A Certified Public Accountant (CPA) has earned one of the most financially lucrative professional designations one can pursue. Not limited to pure accounting positions, CPAs find work in finance, investment, private practice, auditing and executive management. Earning the CPA designation is not easy.The "Three E's" of education, examination, and experience guide the typical steps toward becoming a CPA.

Education

A prospective CPA should first earn a bachelor's degree in accounting. Most states mandate at least 150 hours of accounting study at an accredited college or university. For those who earn similar degrees, such as finance or business administration, more circuitous routes to becoming a CPA are available. Candidates who have sat for the CPA examination understand why this education requirement is important, as this multi-part test covers all nuances of the accounting profession.

CPA Examination

The CPA exam is a "uniform" test of accounting knowledge in all states, Guam, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Along with measuring the technical competence of candidates, the Boards of Accountancy, which administer the examination and the awarding of CPA certificates, attempt to evaluate character attributes of candidates using interviews, letters of reference and employment information.

Ethics Examination

Some states also require the completion of a separate ethics exam, authored by the American Institute of CPAs (AICPA). A successful candidate must earn a score of 90 percent or above and complete this examination within two years prior to applying for a CPA certificate. As a result of some notable failures of large public companies and the emergence of forensic accounting as a prominent specialization, ethics have become an increasingly important component of the profession.

Experience Requirement

Experience requirements vary by state. Typically, working one or two years as a staff accountant for a CPA firm, for a government, or for a private company is acceptable. Most states will accept CPA certification in another jurisdiction as meeting the experience requirement. Much like licensed attorneys, CPAs holding certificates in one state receive responsive consideration from another, even if no agreement for reciprocity exists between the two states.

References

• Becoming a CPA FAQs
• Typical Steps to Becoming a CPA
• Steps to Becoming a CPA

Resources

• Resources to Learn Requirements for CPA Licensure