The 150 Hour Rule

You must have at least a US bachelor’s degree in accounting / business. You must have the minimum credit hours required for accounting / business study. In addition you must have one more year of study.

This will total 5 years and is known as the 150 hour rule. The 150 rule is in effect in 45 states. Some states though, do not adhere to this regulation.

The CPA Uniform Exam

The CPA requirements can be summed up by the three Es. These are education, experience and examination. The actual test is the same throughout the United States. But the requirements of each state differ.

Once you meet these requirements, you can apply for the Uniform CPA Exam. The Individual State Boards of Accountancy will determine the other requirements. However the prerequisites mentioned earlier will almost certainly be needed. For overseas accountants, the International Qualification Examination is usually taken.

1 Tier and 2 Tier System

The states may use a 1 tier or 2 tier system. Under the 1 tier system, an examinee that passes the test will be granted the license after attaining a specified working experience / hours. The CPA requirements and process for the 2 tier system is different. Here the license and certification are given simultaneously.

Issuance of CPA certificates rather than licenses is increasingly becoming the norm. The 2 tier states can issue a certificate without any work experience needed. In some places like Massachusetts, a superior academic background is given importance over the working experience. But other states still demand working experience.

Ethical Exams

An increasing number of state boards have implemented ethical examinations. Most use the AICPA self-study Professional Ethics for CPAs CPE course. But other states have designed their own tests. Currently 40 state boards make use of these tests. Be sure to check the status in your own area, as it may differ.

The CPE

The CPA requirements also come with the CPE (Continuing Professional Education). These are tests undertaken to renew their license / certificate. The frequency is two to three years.
The total time is 40 to 80 hours. The study can consist of seminars or self study.

However the study is conducted, the CPA must pass the test to get the credit. Most now include the ethics test. This takes at least 2 hours and up to 8 hours.

Duties

The most basic task of the CPA involves public accounting and auditing. They can also work as business advisors. These individuals also prepare tax records and statements.

In addition they work as financial analysts, IT for accounting and venture capital. Debt management, corporate governance and various forms of forensic accounting can also be part of their duties.

Because some CPA requirements are state dependent, it’s best to review the regulations in your area. This will ensure you meet the prerequisites.

Arizona

The minimum degree required for applicants is any baccalaureate degree. Aside from this, applicants should finish 24 semester hours on accounting as well as 12 semester hours in advanced or intermediate accounting. Other than these, applicants should also complete 18 semester hours in other courses related to accounting like business law or financial management. It is also necessary that applicants be at least 18 years old.

Arkansas

In Arkansas, applicants should finish 150 semester hours before they become eligible to sit for the exam. It is necessary that applicants for the exam have baccalaureate degrees and completed 20 hours in advanced accounting. To prove that they completed the requirements, they need to present a copy of their transcripts to the state board before their applications will be approved by the state board.

Alabama

The accounting board of Alabama requires physicians to finish a baccalaureate degree and additional graduate courses in accounting. Applicants should have at least 33 semester hours in courses related to accounting, 27 semester hours in business management courses as well as three semester hours for courses related to business law. Applicants should be at least 19 years of age before they can be allowed to take the exam.

Minnesota

In Minnesota, to be eligible for the exam, applicants should have a baccalaureate degree and should complete 24 semester hours on courses related to business administration and law. To be qualified for the examination, applicants should be a resident of the state. If an applicant is not a resident of Minnesota, it is important that the applicant works or studies in the state. The minimum age requirement for the exam is 18. Above all, the state board, requires applicants to present proofs that they are eligible to take the exam such as copy of transcript and certificate of residency.