Accountancy is a diverse and intriguing discipline that constantly evolves. Almost every company requires an accountant ﹘ maybe for tax purposes, other financial transactions such as mergers, or even computer system audits.
And the peak of this illustrious profession is the Certified Public Accountant (CPA). CPAs have work experience and pass a demanding American Institute of Certified Public Accountants (AICPA) test that many consider the most challenging professional exam in the United States.
However, the qualifications for becoming a CPA differ by state. And here’s how to become an Alabama CPA.
Alabama CPA Requirements
Contents
Alabama is a two-tier state, with additional requirements for individuals who pass the AICPA examinations. However, your journey to becoming a licensed Alabama CPA will take you through many curves and turn. Here are the most critical things to consider:
Personal Qualifications
Alabama is among the few states that require CPAs to be citizens. You must be a citizen or give documentation that you legally reside in the United States to practice accounting in Alabama.
A valid Social Security number is also required. And the state also has a minimum age restriction ﹘ 19 years.
Educational Requirements
Before taking the exam, you must have completed at least 150 semester hours and graduated with a Bachelor’s degree.
Furthermore, for your work to qualify, you must fulfill one of the following:
A
At least 33-semester credit units in accounting (excluding introductory courses) at the upper-division undergraduate and/or graduate level. The minimum requirements in specific subject areas are as follows:
- 9 semester hours in financial accounting
- 6 semester hours in auditing
- 6 semester hours in taxation
- 3 semester hours management accounting
- 3 semester hours in governmental and not-for-profit accounting
- 6 semester hours in accounting electives
- 3 semester hours in business law concentrating primarily on the Uniform Commercial Code.
AND
27 credit hours of general business focusing on
- Management
- Marketing
- Finance
- Economics
- Business Ethics
- Business Communication
- General Business
B
Obtain a graduate degree in accounting from a program with a curriculum that has been accredited by the AACSB. A few other accreditations are also acceptable.
C
If you are a non-traditional student who didn’t major in accounting or take a CPA course, you can still sit for the test. You must obtain a graduate degree in business from an AACSB accredited program that meets all the credit hour requirements first listed in this section.
Alabama CPA Exam and Fees
Once you’re qualified to attempt the CPA exam, make sure that your checkbook is ready. That’s because the CPA exam is a four-part test, and costs and fees for all four sections in Alabama amount to nearly $1,000.
Furthermore, these fees may be forfeited if you fail to attempt registered sections within the scheduling period (6 months).
Also, how you attempt the four-part test depends on you. You can pay and take the tests independently. In addition, if you need to retake any section, the re-examination fee is $50 plus the cost of the specific test segment.
Here’s a breakdown of the fees:
| Application Fee | $100 |
| Re-examination Fee | $50 |
| Examination Fees | |
| Auditing and Attestation (AUD) | $215 |
| Business Environment and Concepts (BEC) | $185 |
| Financial Accounting and Reporting (FAR) | $215 |
| Regulation (REG) | $185 |
You have to pass all four CPA exam sections within 18-month from the date you passed your first exam section.
Thus, you’ll lose credit for any section passed outside the 18-month window, and will need to retake those sections.
A score of 75 or above is required to pass each section. Then, if you’ve passed, you’ll need to complete a few more steps before receiving your full CPA credentials.
Alabama CPA License Requirements
1. Education: 150 hours (including B.A.)
Complete 150 semester hours. Course work must include a degree in accounting/business-related discipline.
Course work must also include:
- 33-semester credits in upper-division accounting
- 27-semester credits in business-related courses
2. Pass All Four Sections of the CPA Exam
3. Pass the CPA Ethics Exam
The Ethics Exam is a unique component of the CPA licensing process in Alabama. It’s an open-book exam, administered by the AICPA and must be passed with 90% or above within two years of applying for your license.
The AICPA offers an online preparation course for the exam, as well as a CD-ROM with an 11-hour course and 40 MCQs (multiple-choice practice questions).
4. Fulfil Work Experience Requirements
After passing the rigorous AICPA CPA exams, Alabama issues you a certificate. However, before you become a full CPA, you need work experience.
The State of Alabama requires demands one year of work experience at a public accounting firm
Or, you can satisfy this requirement with two years of experience working at a private firm.
Remember that your work must be supervised by an actively practicing CPA to qualify.
5. Fees
You will be required to pay $75 in annual dues.
6. Documentation
Ensure that you have submitted all of your paperwork to the Alabama board.
Additional Alabama CPA Exam Information
Please visit the Alabama State Board of Public Accountancy’s website for additional information ﹘ contact information, testing times, locations, etc.