CPA License Requirements & Renewal FAQs
CPA Licensing FAQs: Requirements and Licensure Explained
Becoming a Certified Public Accountant (CPA) involves more than passing the CPA Exam. Candidates generally must meet education, examination, experience, ethics, application, and other requirements established by the jurisdiction where they seek licensure.
The CPA Licensing FAQs at CPA Training Center answer common questions about CPA licensure and help accounting students, CPA candidates, and accounting professionals understand the licensing process.
Because CPA requirements can vary by jurisdiction and change over time, candidates should always verify current requirements with the appropriate state board of accountancy.
Common FAQs About CPA Licensing
What is a CPA license
A CPA license is a professional license issued by a state or other jurisdiction to an individual who has satisfied the applicable requirements to practice as a Certified Public Accountant. CPA licensure requirements can include education, examination, professional experience, ethics requirements, and other conditions established by the jurisdiction.
What does it take to get licensed as a CPA
The conventional three-part standard is education, examination, and experience - commonly summarized as the three Es. Education has historically meant 150 semester hours, the examination is the four-section CPA Exam, and experience is typically one year verified by a licensed CPA, with the definition of qualifying experience set by the state board.
How many sections are on the CPA Exam
The CPA Exam consists of four sections:
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
- One Discipline section: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP)
Candidates take all four sections and select one Discipline section.
What counts as qualifying experience
That varies more than candidates expect. Some boards accept experience in industry, government, or academia; others weight public accounting more heavily or require specific attest hours. The supervising CPA's verification is usually required, and boards may impose conditions on who can verify. Confirm before accepting a role intended to satisfy the requirement.
How often is a CPA license renewed
Most boards renew annually or biennially on a fixed cycle, sometimes staggered by birth month or license number rather than by calendar year. Renewal requires the fee, the CPE attestation, and any state-specific requirements such as a peer review affirmation for firms.
What is the difference between an active, inactive, and lapsed license
Active permits practice and use of the designation. Inactive is a voluntary status with reduced or waived CPE in exchange for restrictions on holding out as a practicing CPA - the permitted use of the title while inactive is state-specific. Lapsed means the license was not renewed and is no longer valid; practicing on a lapsed license is an enforcement matter, not a paperwork oversight.
How does a CPA reinstate a lapsed license
Typically by application, payment of back fees and penalties, and completion of a specified number of make-up CPE hours, sometimes including ethics. Some boards cap how long a license can remain lapsed before re-examination is required. The make-up hour requirement is frequently larger than a single cycle's worth.
Do you need an accounting degree to become a CPA
Not necessarily. Whether an accounting degree is required depends on the jurisdiction and its education requirements. Candidates with degrees in other fields may be able to meet CPA education requirements by completing additional accounting or business coursework.
Do you need a master's degree to become a CPA
A master's degree is not universally required for CPA licensure. The education requirements depend on the jurisdiction, and candidates should determine whether their existing education and coursework satisfy the applicable requirements.
What is peer review, and who is subject to it
A periodic review of a firm's accounting and auditing practice by an independent reviewer, required in most states for firms performing attest work. Sole practitioners performing compilations may still be in scope depending on the state. Firms that perform no attest work are generally exempt but often must affirm that fact at renewal.
Can a CPA license be suspended for something unrelated to accounting
Yes. Boards commonly have authority over acts of dishonesty, criminal convictions, and in some states failure to comply with tax or child support obligations. Discipline is public in most jurisdictions, and it typically follows the licensee into any other state where they hold or seek a license.
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