Everyone in the business space regards CPAs with the highest esteem. Certified Public Accountants (CPAs) hold the most prestigious credential an accountant can achieve and it’s administered by the AICPA.
The CPA exam is among the most difficult and most demanding professional tests, and those who pass the exam are rewarded throughout the business and finance spaces.
Certified Public Accountants are found anywhere that money is exchanged. They consult with small business owners, work with IT departments, government agencies, and even found in major corporations.
Becoming a CPA in California is the best catalyst to boost your career in finance or public accounting. Unfortunately, the CPA requirements in the state of California are somewhat difficult to navigate, however, you’ll be glad you did.
Ultimately, you’ll be able to undertake more responsibilities, get promoted, and earn a better salary package as a CPA in California.
Typically, it requires significant work and isn’t easy. You must first satisfy the state-specific requirements, including meeting certain high standards of educational excellence in university/college coursework, passing the CPA exam, and fulfilling a specific amount of work experience in accounting.
However, becoming a California CPA in California is extremely feasible. The following will inform you on how to fulfill the California Board of Accountancy (CBA) requirements and become a Certified Public Accountant in California.
California CPA Requirements
Contents
To be qualified to sit for the CPA exam, applicants must have fulfill the necessary California Board of Accountancy requirements, including:
Personal Qualifications
To be eligible to take the CPA exam in California and become a CPA in California, you don’t need to be either a citizen of the United State or a resident of the state of California. Additionally, there are no age restrictions to achieving the most prestigious accounting credential.
However, you must have a valid Social Security Number (SSN) or an alternative like an Individual Taxpayer Identification Number.
Educational Qualifications
The CBA requires applicants to have at least 150 semester hours of undergraduate work (bachelor’s degree included). Furthermore, these 150-course hours must have specific content, including:
24 Semester Hours of Accounting Subjects or Equivalent Quarter Hours
The 24 semester hours of accounting subjects include these study areas:
- Accounting
- Auditing
- Financial Reporting
- External or Internal Reporting
- Taxation
- Financial Statement Analysis
If the above specific terms aren’t part of your course descriptions, the following are also eligible under the CBA:
- Attestation
- Assurance
- Bookkeeping
- QuickBooks
- Cost
- Peachtree
To fulfill the business-related subject requirement, your course descriptions need to include these areas:
- Business Administration
- Business Management
- Mathematics
- Finance
- Business Law
- Business Communications
- Economics
- Computer Science/Information Systems
- Marketing
- Statistics
20 Hours of Accounting Study Subjects
To satisfy the CBA’s 20 hours accounting study requirements, you need to fulfill the following:
- At least 6-semester credits in accounting subjects (please see above)
- 14-semester credits in business-related subjects (please see above)
- 9-semester credits in other academic work relevant to accounting and business (maximum 3 credits from any one area): skills-based courses (English, Journalism, and the Physical, Life, Natural, and Social Sciences), foreign language/cultural and ethics studies, and industry-based courses (Architecture, Engineering, and Real Estate).
- Maximum 4-semester credits in internships/independent studies in accounting and/or business-related subjects
If you’ve completed a Master of Accounting, Laws in Taxation, or Taxation degree, it’ll satisfy the accounting study CPA requirement.
10 Units of Ethics
Note: There is no requirement to take a CPA review course in order to qualify to sit for the CPA exam in California, although most candidates do find a study guide necessary to prepare for the exam.
The CBA requires you to submit official, sealed transcripts from all educational institutions you’ve attended. These are reviewed to ensure that they meet the exact standards of the Board.
For current students, before submitting, you should review your record with your academic advisor and ensure that you’ve fulfilled every required coursework.
Most accounting departments are familiar with state requirements, especially institutions within either of California’s public university systems.
Finally, regardless of the state you’re in, ensure that your university or college is regionally or nationally accredited.
CPA Exam and Fees
The CPA exam is a CBA prerequisite for applying for full licensure. It’s a standardized test administered through the AICPA and includes four parts:
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Business Environment and Concepts (BEC)
- Regulation (REG)
Each exam section can be taken individually. Also, keep in mind that several candidates need to retake the exam, so take time to adequately prepare and don’t be demoralized if you need to attempt any section again.
If this is your first attempt, all four sections of the uniform test will cost $773.80 – an additional $100 is included to this fee (this is the one-time application fee). All re-examination candidates must pay a registration fee of $25 plus exam fees.
| Application Fee | $100 |
| Re-examination Registration Fee | $25 |
| Examination Fees | |
| Auditing and Attestation (AUD) | $193.45 |
| Financial Accounting and Reporting (FAR) | $193.45 |
| Business Environment and Concepts (BEC) | $193.45 |
| Regulation (REG) | $193.45 |
You shouldn’t apply and pay for exam sections you’re not prepared to take within nine months because the CBA’s “Notice to Schedule (NTS)” expires nine months after issuance.
California CPA License Requirements
Pass All Four Sections of the CPA Exam
You are required to pass all sections of the CPA exam to qualify for CPA licensure in California. To be successful in each test, you must score 75 or higher.
Work Experience Requirements
To become a fully licensed CPA in California, the CBA requires that you have some verifiable work experience.
You must have one year of experience in accounting, compilation, attest, financial advisory, management advisory, taxes, or consultation. This work experience may occur in any type of accounting firm (public, private, or governmental). Non-public accounting work is eligible but must be supervised by an active US CPA.
Your supervisor will need to fill out a Certificate of General Experience (CGE) form that will be submitted to the board.
This first year of qualifying experience must include 500 hours of auditing procedures. To document your attest experience, the CBA needs a Certificate of Attest Experience (CAE), duly signed by a professional that’s licensed and authorized to perform attest services.
Pass the California Professional Ethics Exam (PETH)
All CPA candidates are also required to pass the California Ethics Exam.
The course materials and online test cost $150. Applicants get a 20% discount if they’re registering as California CPA (CalCPA) member. The exam includes 50 multiple-choice questions (MCQs) and must be completed within 12 months from the purchase date.
You have to get a score at least 90 to pass. Test results are only valid for two years, as you complete all CBA licensing requirements.
You’ll have three attempts to pass the exam with a score of at least 90%. If you fail all three attempts you can contact them at 1 (800) 922-5272 and they will grant you access to three additional ethics exams for free. If you fail these three attempts they will sell you three more for $75 – i.e. 50% of the original purchase price.
Additional licensing fee requirements include:
| Application Fee | $250 |
| Annual Permit to Practice Fee | $120 |
| Notary Fee | $65 |
Finally, fill out and submit all paperwork required by the California Board of Accountancy. Check out the Board’s website below to get more information.
Additional California CPA Exam Resources
To get additional about obtaining your CPA credentials in California, visit the California Board of Accountancy website.
CALIFORNIA BOARD OF ACCOUNTANCY
2000 Evergreen Street,
Suite 250 Sacramento, CA 95815-3832
Phone: 916-561-1703