Is the CPA Exam Different in Each State?
Unpack the CPA exam: while content is uniform nationwide, discover the critical state-specific differences for exam eligibility and licensure.
A Certified Public Accountant (CPA) holds a professional designation that signifies a high level of expertise and ethical conduct in the accounting field. This license is awarded by individual state boards of accountancy and allows professionals to provide a range of accounting services to the public, including auditing and tax preparation. The CPA designation is widely recognized and valued, often leading to enhanced career opportunities and increased earning potential. Obtaining this credential involves meeting education, examination, and experience requirements.
The Uniformity of the CPA Exam Content
The content and structure of the CPA Exam, known as the Uniform CPA Examination, are standardized across all U.S. states and territories. This means a candidate taking the exam in one state will encounter the exact same test as a candidate in any other state. The American Institute of Certified Public Accountants (AICPA) develops and grades the exam, ensuring its consistency and relevance. The National Association of State Boards of Accountancy (NASBA) administers the exam, working in partnership with Prometric test centers.
The Uniform CPA Examination consists of three core sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). Additionally, candidates choose one of three discipline sections—Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP)—to complete the four-section exam.
State-Specific Requirements to Sit for the Exam
While the CPA Exam itself is uniform, the requirements to qualify and apply to sit for the exam vary by jurisdiction. Each state’s Board of Accountancy sets its own specific criteria, which can include educational prerequisites, residency, or citizenship. Most states require candidates to have a bachelor’s degree and meet the “150-hour rule,” meaning 150 semester hours of college coursework. Some states allow candidates to sit with 120 hours if they are close to completing the full 150.
The specific types of coursework required also differ, with most states mandating a certain number of accounting credits, typically between 24 and 30 hours, along with business-related subjects. Candidates must apply to their chosen state’s Board of Accountancy, submitting transcripts and any required proof of eligibility. This application process can take several weeks for approval.
State-Specific Requirements for Licensure
Passing the Uniform CPA Examination is a significant step, but it is only one component of becoming a licensed CPA. Licensure requirements, often referred to as the “three Es”—Education, Examination, and Experience—also vary by state. While the exam is standardized, the experience component is determined by each state’s Board of Accountancy.
Experience requirements typically involve completing a certain number of hours of accounting work, often ranging from one to two years. This work must usually be supervised by a licensed CPA and can encompass roles in public accounting, industry, government, or academia. Many states also require candidates to pass a separate ethics examination or complete an ethics course, which is specific to that jurisdiction’s regulations and professional conduct standards.
CPA Mobility Across States
The concept of CPA mobility allows licensed CPAs to practice across state lines without obtaining a separate license in every state where they provide services. This framework is largely based on the principle of “substantial equivalency,” where a CPA’s home state license is recognized in other states if its requirements align with the Uniform Accountancy Act (UAA). The UAA, co-developed by the AICPA and NASBA, provides a model for consistent regulation across jurisdictions.
Most states have adopted these mobility rules, enabling CPAs to serve clients virtually or in person across the country with a single license. While mobility simplifies practice, CPAs are generally subject to the disciplinary authority of the state where they are performing services. In some instances, CPAs may still need to provide notice or register with the state board in the jurisdiction where they are practicing, particularly if establishing a physical presence.