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CPA Exam | 150-Hour Rule
The CPA exam is used by the state boards of accountancy to measure the competence of CPA candidates. The exam provides an assessment of a CPA candidate's professional competence.
While the exam is the same no matter where it's taken, every board of accountancy has its own set of education and experience requirements that CPA candidate's must meet. Many states and jurisdictions now require -- or soon will -- 150 semester hours of education in order to qualify for a CPA certification. Contact NASBA to find out if your state has implemented the 150-hour rule.
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Important Note
Effective April 2004, the paper-based CPA exam is replaced by the computer-based test (CBT). Major changes to be aware of include the following:
Helpful Resources
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Candidate Requirements
Most states/jurisdictions require at least a bachelor's degree to be eligible to become a CPA. You do not have to major in accounting to become a CPA, although a thorough understanding of the practice will be extremely beneficial in your career and ability to pass the CPA Exam.
The AICPA believes that "CPAs must be broadly education professionals who are technically competent and who possess the analytical abilities, communication, interpersonal skills and cultural awareness that will enable them to serve the public in a complex and changing environment."
The AICPA recommends the following subject areas to focus on in order to become a well-rounded CPA.
Accounting
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Financial |
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Managerial |
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Audit |
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Tax | |
Behaviorial Sciences
Business Law
Communications
Economics |
Ethics
Finance
Globalization
Information Systems |
Legal and Social Environment
Marketing
Quantitative Applications
Total Quality Management | |
Experience
Most states and jurisdictions require at least two years public accounting experience. Many states and jurisdictions also accept non-public accounting experience -- for instance, industry or government -- although the number of years deemed acceptable are typically higher than for public accounting.
In addition, some states and jurisdictions have a one-tier system, whereby candidates must pass the CPA exam and fulfill the experience requirements to obtain both the certificate and license. Others have a two-tier system in which you can obtain the certificate upon passing the exam, then must fulfill the experience requirements to obtain the license to practice in public accounting. Because so many factors determine whether a state/jurisdiction is considered one- or two-tier, it is recommended that you contact your state board for interpretation.
Additional qualifications
Along with the education and experience requirements, the state boards issue general qualifications such as age, citizenship, and residency. Most states and jurisdictions set 18 as the age requirement or don't have one at all. Practically all of the states and jurisdictions do not require individuals to be U.S. citizens. About half of the states and jurisdictions have a residency requirement.
Application Process
To apply to take the CPA exam, contact your state board of accountancy, call (800) CPA-EXAM, or visit www.cpa-exam.org and get all of the necessary information on how to register for the exam. The CPA Candidate Bulletin provides more information on this process.
Need more info?
See
www.cpa-exam.org for official information, and check out these links:
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