- Eric Butts, CPA & Bryan Kesler, CPA
- ✎ Updated
- ❯ Home / CPA Exam Requirements
-
-
The A.C.E.S. framework to quickly determine if you meet the typical CPA exam requirements
-
Read the fine print: key CPA exam requirement variations you should check before applying
-
How to apply once you meet your state’s CPA exam requirements
-
CPA exam requirements by state: why it pays to know the difference between testing and licensing
2024 CPA Exam Requirements: Do You Qualify to Sit for The Exam?
-
2024 CPA Exam Requirements: Do You Qualify to Sit for The Exam?
Trying to understand the CPA exam requirements can make you want to pull your hair out since requirements vary by state.
And even that statement is a little misleading because there are actually 55 jurisdictions where you can sit for the CPA exam (I’ll still refer to them as “states” in this post since this is primarily a U.S. focused test)...but there’s some good news.
State CPA exam requirements by state are converging and you can quickly tell if you’re on the right track using a framework I created that you can remember with a simple acronym: A.C.E.S.
The A.C.E.S. framework to quickly determine if you meet the typical CPA exam requirements
Age: All 55 jurisdictions now require you to be at least 18 years old to sit for the CPA exam. Gone are the days of CPA prodigies sitting for the exam before finishing high school.
Citizenship: If you’re a U.S. citizen, you’re well on your way because nearly every state requires U.S citizenship as a requirement for the CPA exam. Alabama, Louisiana, North Carolina, and Hawaii are the few exceptions to this rule.
Education: Many states require a bachelor’s degree in accounting from an accredited institution and 20 credit hours in general business. General business coursework includes courses such as microeconomics, macroeconomics, and general management. Accounting coursework might include accounting theory, managerial accounting, and cost accounting. (Read below to find your specific state requirements.)
Social Security Number: Similar to the citizenship requirement, it’s tough to find a state that doesn’t require your social security number to sit for the exam. But you don’t have to -- because I’ve done it for you. New York, Illinois, Montana, South Dakota, and Wisconsin are the only states that don’t have a social security number as a CPA exam requirement.
If you check all the boxes of the A.C.E.S framework above, you can feel reasonably comfortable you qualify for the CPA exam.
Read the fine print: key CPA exam requirement variations you should check before applying
While the A.C.E.S framework is a great start to knowing if you qualify to test, there are a couple of key things to consider before you move forward, especially if you’re borderline on the educational requirements -- like a non-accounting major.
If you’re wondering how this can make sense when most states require an accounting degree, here’s what I mean. The vast majority of states have an educational equivalency qualification where 20 or 24 credit hours in accounting satisfies the accounting major requirement.
This is good news for you because many people may find it too expensive to go back to school to get a Masters or an additional bachelor’s degree. But looking into a community college may offer you exactly what you need to close any gaps in meeting educational requirements.
What’s even better is you can often find online courses that are not only cheaper but provide you the flexibility of working on your own schedule.
The other area that’s worth paying closer attention to once you meet A.C.E.S is if there’s a residency requirement in the state where you intend to sit for the CPA exam. This requirement is all over the board, from no residency requirement to wanting you to sign that you intend to remain a resident.
Others don’t require you to be a resident at the time you sit but you have to be a resident with some number of days of taking the exam.
Students who go to school out of state need to pay special attention to this. If you plan to work where you go to school but haven’t gotten around to getting a new license, you may end up needing to do that before you sit for the exam. (You may need to put your school mailing address on your government issued identification.)
You can also sit in a more favorable state and transfer CPA credit after you pass. I was able to do this in Illinois, even though I knew I would be working in Missouri. The education requirements in Illinois at the time allowed me to sit sooner than if I applied in Missouri so after I passed in Illinois I was able to complete some paperwork and transfer my CPA credits to Missouri to become licensed there. Be sure to check with your state boards before doing this to ensure you don’t run into any issues.
All of that is to say, you still need to check the details of your jurisdiction once you know you have the typical requirements covered.
Once you confirm you’re ready to apply for the CPA exam, the application process has a number of steps.
How to apply once you meet your state’s CPA exam requirements
Applying for (and getting through) the CPA exam follows a 6-step process put out by NASBA that doesn’t include the key step of CPA exam preparation because they assume you’re ready to test before you even apply. More on that in a second.
The 6 steps to apply for the CPA exam are:
Submit application and pay application fees: This includes making sure you application forms are filled out accurately and completely and properly submitting any transcripts. The fees cover evaluating your application.
Roughly 60% of states allow you to apply through NASBA’s CPA Exam Online Application System.
The states below require you to apply through their state boards of accountancy:
Receive your authorization to test (ATT): Once your application is approved for your state, you’ll receive an ATT which allows you to pay for the sections of the exam you want to take. This is separate from the application fee and generally, if you don’t choose your test sections within the 90 days, you lose your application fee and have to re-apply and pay all of the fees again.
Receive your notice to schedule (NTS): The NTS tell is the official documentation of which sections you’re allowed to take based on your application and any exam fees paid.
A key point to remember here is you name needs to exactly match your ID. The one exception is a middle initial can be used interchangeably with middle name. Also, you must bring the NTS with you to the exam or… no test (or refund) for you.
It’s also important to note that your NTS has a shelf life -- NTS expirations varies by state but almost all allow at least 6 months (Texas is the exception with only 90 days). You’ll find many resources recommend you not apply until you’re ready to take a section because these fees are not refundable, but having the date on the calendar may be the cure you’re looking for if you’ve been putting off studying for a while.
-
Schedule your exam: You can schedule your exam at any of the authorized Prometric test centers. (Read more here to find the closest test center or to schedule your exam.) The CPA exam follows a continious testing schedule meaning that you can schedule your exam at anytime. It's crucial to focus on minimizing the time between when you sit and when your score is released to minimize any downtime in studying. However, you MUST schedule at least 5 days prior to the test date. The reality of the situation is tests are performed in physical locations and are subject to space constraints. To give yourself the best chance of landing your first choice test date and location (and to give yourself enough time to study), try to schedule your test 8-12 weeks out.
Take the exam: By the time you reach this step, all you have to do is show up and execute what you know. You’ve put in the time to prepare. (And even if you didn’t, cramming the morning of isn’t going to change the outcome.) For showing up, you need to show up early and MUST be at least 30 minutes prior to the test start time to avoid forfeiting fees. Also, bring a sweater (no hoodies and be sure to keep to a single layer). The last thing you need when you’re trying to focus on the test is goosebumps from the test facility not knowing any temperature between melting and frigid.
Receive your scores: NASBA or the state boards publish score release schedules. Most candidates will get an email to log onto the NASBA website to see their score when they’re available. If you test in California, Illinois, Kentucky, or Maryland, you’ll need to contact the state board of accountancy for your scores.
Getting through the CPA exam is the toughest part of the CPA journey, but if you’re looking to maintain an active CPA license, you may have a couple of final loose ends to address before you’re officially clear to put those precious three letters behind your name.
CPA exam requirements by state: why it pays to know the difference between testing and licensing
Two areas typically come up where there’s a misunderstanding of common requirements to sit for the CPA exam: 1) work experience and 2) the much discussed 150 hour requirement.
First, on work experience -- it’s not a requirement to test but you should expect to need at least 1 year of experience before you could receive your license.
Earlier in this article, I mentioned 120 hours being a typical educational requirement, so what gives? The reason people sometimes get confused on this is because most states now require 150 hours to obtain your CPA license. This is another opportunity to take advantage of educational equivalency if you aren’t looking to invest in a pricey Masters degree.
The good news is if you plan to sit in a 120 hour state, you can (and should) worry about hitting the 150 hour hour requirement for licensing after you pass.
Now that you have an understanding of the typical CPA exam requirements, here’s what to do next. If you have A.C.E.S. covered, time to dive into the details on your specific state requirements so you can get your exam scheduled.
If you’re not quite there on A.C.E.S. then you know where your next focus needs to be to close the gaps.
Because the truth is if you’re an accounting professional, there is no higher designation than the CPA in terms of the credibility it gives you and the job prospects it offers, so keep going. You got this.
Once you hit your A.C.E.S. requirements the next step is to find a CPA Review Course and a CPA exam mentor.