Last Updated: October 19, 2024
Getting a CPA Certification
A CPA is a Certified Public Accountant who has passed the examination and eligibility requirements as required by their state's Board of Accountancy. It can be taken by domestic and international students who wish to practice as a public accountant. The examination is taken by students who wish to enter both government and private sectors. The essential components for earning a CPA certification are education, examination, and experience. An additional component called an ethics examination can be added based on the jurisdiction from which they are taking the examination.
Candidates who wish to become certified public accountants will be able to verify whether they meet the eligibility requirements based on their jurisdiction. After this, they can apply through NASBA’s CPA Central portal. The NASBA or the National Association of State Board of Accountancy will verify the eligibility requirements depending upon the candidate's jurisdiction.
Eligibility for CPA Certification
The eligibility requirements that one must meet to be a CPA are decided by the jurisdiction in which they are taking the examination. This generally includes the number of college credit hours earned and the years they have to intern under a licensed CPA who can verify their work experience.
Eligibility requirements for the CPA examination
- Completion of at least 120 credit hours of academic coursework focused on accounting.
- The minimum age requirement differs by state; some states do not impose any age limit, while others mandate that candidates must be at least 18 years old.
- Certain states mandate that candidates must be residents of that state, while others stipulate that candidates must be US citizens. Additionally, some states do not impose any residency requirements.
- Candidates generally take the CPA examination in the jurisdiction they wish to practice as certified public accountants. However, some states will require candidates to be residents for at least 6 months before scheduling the test if they have to choose that jurisdiction. For this, they will have to require a physical residence, a permanent place of business, or at least regular employment in the state of choice.
Eligibility requirements for the CPA License
- Achieve a minimum score of 75 in each CPA exam section.
- Earning additional credit hours to have a total of at least 150.
- Candidates who have cleared all the sections of the CPA examination will sometimes have to also take an Ethics examination before applying for licensure. Candidates will sometimes have to take only the Ethics examination provided by the AICPA or the one provided by their state. A few states, like Kentucky, Michigan, Pennsylvania, etc., do not have an Ethics examination.
- Obtain 1-2 years of pertinent work experience as mandated by their state.
Course Content for CPA Exam
The CPA examination consists of three Core sections and one out of three Discipline sections. These sections are as follows:
Core Exam Sections
The following sections are the mandatory sections to pass the CPA exam:
Auditing and Attestation (AUD)
This section deals with auditing and ethics.
| Area | Content | Allocation |
| Area 1 | Ethics, Professional Responsibilities, General Principles | 15-25% |
| Area 2 | Assessing Risk and Developing a Planned Response | 25-35% |
| Area 3 | Performing Further Procedures and Obtaining Evidence | 30-40% |
| Area 4 | Forming Conclusions and Reporting | 10-20% |
Financial Accounting and Reporting (FAR)
This section deals with both finance and accounting. It also focuses on the documentation involved in financial accounting.
| Area | Content | Allocation |
| Area 1 | Financial Reporting | 30-40% |
| Area 2 | Select Balance Sheet Accounts | 30-40% |
| Area 3 | Select Transactions | 25-35% |
Taxation Regulation (REG)
This section deals with accounting regulations and professional responsibilities for tax practice.
| Area | Content | Allocation |
| Area 1 | Ethics, Professional Responsibilities and Federal Tax Procedures | 10-20% |
| Area 2 | Business Law | 15-25% |
| Area 3 | Federal Taxation of Property Transactions | 5-15% |
| Area 4 | Federal Taxation of Individuals | 23-32% |
| Area 5 | Federal Taxation of Entities | 23-33% |
Discipline Exam Section
Candidates must complete one of the discipline sections of their choice to pass the CPA exam.
Business Analysis and Reporting (BAR)
This section assesses a candidate's ability to analyze financial information, interpret results, and provide financial forecasts, trends, variances, and potential areas for improvement.
| Area | Content | Allocation |
| Area 1 | Business Analysis | 40â€"50% |
| Area 2 | Technical Accounting and Reporting | 35â€"45% |
| Area 3 | State and Local Governments | 10â€"20% |
Information Systems and Controls (ISC)
This discipline assesses candidates' expertise in IT and data governance and proficiency in data management.
| Area | Content | Allocation |
| Area 1 | Information Systems and Data Management | 35â€"45% |
| Area 2 | Security, Confidentiality and Privacy | 35â€"45% |
| Area 3 | Considerations for Systems and Organization Controls (SOC) Engagements | 15â€"25% |
Tax Compliance and Planning (TCP)
This discipline assesses candidates' understanding of U.S. tax compliance for individuals and entities.
| Area | Content | Allocation |
| Area 1 | Tax Compliance and Planning for Individuals and Personal Financial Planning | 30â€"40% |
| Area 2 | Entity Tax Compliance | 30â€"40% |
| Area 3 | Entity Tax Planning | 10â€"20% |
| Area 4 | Property Transactions (disposition of assets) | 10â€"20% |
CPA Exam Format
Each section of the CPA exam deals with a particular part of accounting, finance, and taxation. Each section is 4 hours long. Candidates can schedule each exam section in the order and on the days they want. They are not obligated to attempt all CPA exam sections in one sitting. Typically, most jurisdictions allow up to 18 months to pass the remaining sections to retain credit for those already completed.
There is a multiple-choice part and a task-based part. The initial two testlets consist of multiple-choice questions (MCQs), while the following three testlets feature task-based simulations (TBSs). Once a testlet is completed and submitted, candidates cannot return to it. Progression to the next testlet is contingent upon the submission of the previous one. Candidates are permitted to take breaks between each of the Exam testlets. It is important to note that the Exam timer will continue to run during breaks taken after tests one, two, and four. However, if a break is taken after testlet three, the timer will pause for 15 minutes, resuming once this period concludes.
| Exam Section | MCQ Questions (Weightage) | Task-Based Simulation Questions (Weightage) |
| AUD â€" Core | 78 (50%) | 7 (50%) |
| FAR â€" Core | 50 (50%) | 7 (50%) |
| REG â€" Core | 72 (50%) | 8 (50%) |
| BAR â€" Discipline | 50 (50%) | 7 (50%) |
| ISC â€" Discipline | 82 (60%) | 6 (40%) |
| TCP â€" Discipline | 68 (50%) | 7 (50%) |
Score Release Dates for CPA Examination
CPA Exam scores are made available continuously throughout the year. The following score release dates indicate when candidates can anticipate receiving their scores after testing.
Core section administration and score release schedule
| Test Dates | Score Release Date | Test Date | Score Release dates |
| July 1 - September 25, 2024 | October 31, 2024 | October 1 - December 26, 2024 | January 29, 2025 |
| January 23, 2025 | February 7, 2025 | February 14, 2025 | February 25, 2025 |
| March 9, 2025 | March 18, 2025 | March 31, 2025 | April 9, 2025 |
| April 23, 2025 | May 8, 2025 | May 16, 2025 | May 28, 2025 |
| June 8, 2025 | June 17, 2025 | June 30, 2025 | July 10, 2025 |
| July 23, 2025 | August 7, 2025 | August 15, 2025 | August 26, 2025 |
| September 7, 2025 | September 16, 2025 | September 30, 2025 | October 9, 2025 |
| October 23, 2025 | November 7, 2025 | November 15, 2025 | November 25, 2025 |
| December 8, 2025 | December 16, 2025 | December 31, 2025 | January 13, 2026 |
Discipline section administration and score release schedule
| Test Dates | Score Release Date | Test Date | Score Release dates |
| July 1 - July 31, 2024 | September 10, 2024 | October 1 - October 31, 2024 | December 10, 2024 |
| January 1 - 31, 2025 | March 14, 2025 | April 1 - 30, 2025 | May 16, 2025 |
| June 1 - 30, 2025 | July 17, 2025 | July 1 - 31, 2025 | September 11, 2025 |
| October 1 - 31, 2025 | December 16, 2025 |
Cost of Taking CPA Certification
The overall expense of getting the CPA license can vary significantly based on several factors, primarily influenced by the jurisdiction in which the candidate is seeking certification. Each state or territory in the United States has specific requirements, fees, and regulations regarding the CPA exam, which can lead to cost differences. Some common costs that each state imposes are:
| Cost | Amount |
| Education Evaluation Application | ~$150 |
| Exam Fees | ~$350-450 per section |
| Retake Fees | Same as initial exam fee |
| License Fees | $400+ |
All applicants must submit a fee for the education evaluation application, which determines their eligibility for the CPA Exam. The overall cost for taking all four sections of the CPA Exam ranges from approximately $1,100 to $1,500. Candidates re-taking the CPA Exam must pay the examination fee again for any sections they wish to retake.
No refund is given if the candidate does not take the test within the stipulated period. In extreme circumstances, the candidate can check with their state board to see if they can get a partial refund or an extension.
Applying for CPA Certification
- Step 1: Determine Eligibility- Candidates who wish to take the CPA exam will be able to find the eligibility requirements they are supposed to meet on the official website of NASBA. The eligibility requirements can vary based on the jurisdiction from which one is taking the examination, and it will also be different for international candidates who wish to practice within the US.
- Step 2: Submit CPA Application- Once the eligibility requirements have been met, candidates will be able to apply for the CPA examination by using the online CPA portal on the NASBA website. During this step, they must upload the necessary documents for verification.
Upon verifying the documents, candidates will receive a Notice to Schedule the examination. Candidates can choose a date within the next 6 months after receiving this notice.
- Step 3: Schedule CPA Exam Section- Candidates will be able to schedule their CPA exam by using Prometric. Those who are from the US will be able to schedule their examination for any center in the world but international candidates will have to check for locations that are available to them before scheduling the examination.
- Step 4: Take Examination- Since the CPA examination contains multiple sections, candidates are given a total of 18 months to clear all the sections with the necessary marks. After clearing all four sections, candidates will be able to take the Ethics examination if it is required in their jurisdiction.
- Step 5: Apply for Licensure- Clearing the examinations is not enough to gain a CPA certification. Candidates will now have to apply for their license by verifying that they have completed the necessary number of college hours in the required field. Candidates will require 150 college credit hours with a concentration in accounting and a certain number of years of experience verified by a licensed CPA.
Notice to Schedule
Once candidates have applied for the CPA Exam, confirmed their eligibility, and paid the necessary fees to register for the CPA Examination Sections, they will receive a Notice to Schedule (NTS) from NASBA/CPA Examination Services. This document will be accessible for viewing and printing through their CPA Candidate Portal once all requirements for its issuance have been fulfilled. The NTS is the 'ticket' for candidates to schedule and take the exam. Candidates can register for multiple Exam sections simultaneously; however, all sections must be completed within the timeframe established by their State Board of Accountancy. Candidates must schedule and complete the Exam section(s) within the timeframe specified on their NTS. If the designated period elapses without scheduling and taking the Exam, all fees will be forfeited.
Validity of CPA Certification
Once an individual passes the CPA exam and meets the experience requirements, they are granted CPA certification. This certification does not have an expiration date but to maintain their CPA certification, CPAs must complete a certain number of Continuing Professional Education (CPE) hours within a specified period (often annually or biannually). The exact requirements vary by state or jurisdiction. While the certification does not expire, CPAs must adhere to their state board's regulations regarding renewal. This often includes submitting proof of completed CPE hours and possibly paying a renewal fee. If a CPA fails to meet the CPE requirements or does not renew their certification, they may be placed in an "inactive" status. While they may still hold the title of CPA, they may not be able to practice public accounting until they fulfill the requirements to reactivate their certification.
If the state mandates it, candidates who are required to renew their CPA licensure might have to retake their Ethics examination.
Earning CPE Hours for License Renewal
CPE is one of the requirements for CPA professionals to ensure they are current in their knowledge of the field they are working in. They must provide proof of their Continuing Professional Education to be eligible for license renewal. Candidates are generally required to have at least 40 hours of CPE every year to keep their license active.
The reporting period for CPAs is generally after every 3 years; by this time, they are supposed to have around 120 CPE hours. This number can increase or decrease based on the jurisdiction in which one is practicing.
Candidates can either be part of the NASBA or the AICPA, where the former serves the state boards of CPAs, and the latter is for individual CPAs. Candidates who are AICPA members will require 120 hours of CPE, whereas NASBA members must meet different state-mandated requirements.
Calculating CPE Hours
1 CPE credit hour is considered to be equal to 50 minutes of continuing professional education. Since candidates are required to have an estimated 120 credits in all, this can add up to 6,000 minutes of continuing professional education.
The continuing professional education that one takes can be in the form of university classes, trade shows, in-house training programs, conferences, etc.
Top CPA Certification Prep Programs
While most candidates will choose to prepare for the CPA examination as part of their undergraduate or graduate program, some students can take an additional prep course. A few of the best courses they can choose from include-
- American Institute of CPAs Prep Course
- UWorld CPA Prep Course
- Ninja CPA Prep Course
- Roger CPA Prep Course
- Surgent CPA Exam Prep Course
- Becker CPA Exam Review Course
- Gleim CPA Exam Course
- Wiley CPA Exam Prep Course
