What Are the Requirements to Become a CPA?
Understand the rigorous standards and multi-faceted journey required to achieve the prestigious Certified Public Accountant designation.
Becoming a Certified Public Accountant (CPA) signifies a high level of expertise and trust within the accounting profession. This designation marks an individual as a proficient financial professional capable of handling complex financial matters. CPAs are uniquely qualified to perform specific tasks, such as auditing financial statements and representing clients before the Internal Revenue Service (IRS), setting them apart from general accountants.
The CPA credential opens doors to diverse career opportunities across public accounting firms, private corporations, government agencies, and non-profit organizations. CPAs often advance into leadership roles like controllers or chief financial officers. The demand for CPAs is consistently strong, with projected growth in accounting and auditing roles, highlighting the value and stability of this profession.
Educational Foundation
The journey to becoming a CPA begins with a strong educational foundation, typically requiring 150 semester hours of college coursework. This “150-hour rule” extends beyond the traditional 120 semester hours of a typical bachelor’s degree, aiming to provide a deeper and broader understanding of accounting and business principles. Individuals commonly fulfill this requirement by pursuing a master’s degree in accounting or business, or by combining a bachelor’s degree with additional coursework.
The 150 semester hours must include a specified number of accounting and business-related courses. Common accounting subjects include financial accounting, auditing, taxation, and managerial accounting. Business courses often encompass economics, finance, business law, information systems, and statistics. Aspiring CPAs should consult their state board of accountancy, as specific requirements vary by jurisdiction.
The Uniform CPA Examination
After establishing the necessary educational foundation, candidates proceed to the Uniform CPA Examination, a rigorous assessment of accounting knowledge and skills. This exam is divided into four core sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). Each section evaluates a distinct area of expertise crucial for the accounting profession.
The AUD section covers auditing procedures, professional responsibilities, and specific engagements. BEC assesses knowledge of the business environment, including corporate governance, economic concepts, financial management, and information technology. FAR focuses on financial accounting standards for businesses, non-profits, and governmental entities. REG tests understanding of federal taxation, business law, and professional ethics.
The exam format includes both multiple-choice questions and task-based simulations, which require candidates to apply their knowledge to realistic scenarios. Candidates must achieve a minimum score of 75 on each section to pass. Typically, all four sections must be passed within an 18-month rolling window, meaning that once a candidate passes the first section, they have 18 months to pass the remaining three. Eligibility to sit for the exam often requires completing a certain number of educational credits, though not necessarily all 150 hours required for licensure.
Gaining Professional Experience
Beyond academic achievements and passing the Uniform CPA Examination, aspiring CPAs must gain relevant professional experience. This practical component ensures candidates apply their knowledge in real-world accounting environments under qualified supervision. The typical requirement ranges from one to two years of experience, often translating to approximately 2,000 hours of qualifying work.
The nature of this experience is defined to include various accounting, auditing, tax, or financial advisory services. Acceptable settings for this experience can span public accounting firms, private industry, governmental bodies, or non-profit organizations. Supervision by an actively licensed CPA is required. This supervising CPA is responsible for verifying the candidate’s experience, confirming the work performed aligns with professional standards, and attesting to the candidate’s competence and ethical conduct.
State-Specific Licensing Application
Upon successfully completing the educational requirements, passing the Uniform CPA Examination, and fulfilling the professional experience criteria, the final step is to apply for licensure through a state board of accountancy. Licensure is granted by individual state boards, and while general requirements are consistent, specific application procedures and additional prerequisites can vary by jurisdiction.
The general application process involves submitting official academic transcripts, verified Uniform CPA Examination scores, and documented professional experience forms. Some states may also require candidates to complete a separate ethics examination, such as the AICPA Professional Ethics Exam, before a license is issued. Additionally, applicants typically pay an application fee, which varies by state. The processing time for a license application can range from several weeks to a few months, depending on application volume and board efficiency.