Question

Research the education and experience requirements for a person to become a NC CPA. Also, research the continuing education requirements once a CPA is licensed. Is this too much or too little?

Research and discuss the NC CPA Board’s rules regarding the unauthorized use of the CPA title rules. Why is it such a big deal?

Answer 1

Sol:

The CPA is a state-issued license bestowed on hard-working accountants who pass a stringent set of qualifications.

North Carolina’s general protocols for CPA licensure are fairly straightforward. Applicants for the license must pass protocol with outstanding academic results, excellent examination scores and requisite practical experience. The state only requires that applicants be 18 years of age, U.S. Citizens and that they have a Social Security number for starters. For education, you must complete 120 semester hours and a bachelor’s degree program though you’ll need 150 hours for the license. When you take the CPA exam, you need to pass each portion with a minimum score of 75. Your work experience must be equivalent to one year of full-time employment with a public accountancy firm or four years in academia, a self-employed setting or in the general field of accounting. The state also requires a state-specific ethics exam.

Academic Standards

North Carolina has many excellent colleges for accountancy, including public and private schools. If you are educated in the state, your advisor will surely be familiar with the requirements set forth by the North Carolina State Board of CPA Examiners. First of all, make certain that your degree is from an institution with the proper accreditation credentials. The board recognizes programs accredited by the following agencies:

• Southern Association of Colleges and Schools
• Middle States Association of Colleges and Schools
• Western Association of Schools and Colleges
• New England Association of Schools and Colleges
• Northwest Commission on Colleges and Universities
• North Central Association of Colleges and Schools
• Council on Occupational Education
• Western Association of Schools and Colleges
• New England Association of Schools and Colleges

For full licensure, you will need 150 semester hours and have at least matriculated with a bachelor’s degree. There are two sets of requirements for the Board:

Requirement 1

Your accounting concentration must meet one of the following rubrics:

• Concentration 1–30 hours of undergraduate accounting courses including a maximum of six hours in accounting principles and a maximum of three hours in business law
• Concentration 2–20 semester hours of graduate accounting courses
• Concentration 3–A combination of undergraduate and graduate courses, including a maximum of four graduate hours of income tax courses for any of the concentrations

Requirement 2

24 credit hours with three credits in eight of the following:

• Computer technology
• Communications
• Ethics
• Economics
• Social science/humanities
• Finance
• Law
• International environment
• Statistics
• Management

Or a master’s degree or higher in one of the following fields:

• Tax law
• Accounting
• Finance
• Economics
• Business administration
• Law degree

Experience

To complete the experience portion of the process, you will need to work for one full year under a CPA whose license is held by any U.S. state or the District of Columbia. The state counts one full year as 52 weeks of full-time work, not including any vacation or time off. Alternately, you can work for four years in the field of accounting, teaching accounting at the college level, or as a self-employed accountant to satisfy the requirement.

Upon completion of the CPA exam, CPAs must meet requirements defined by their licensing state board of accountancy to maintain the license. For dedicated professional accountants, earning a CPA license is just the beginning.

Many state licensing boards require that CPAs maintain and improve their skills through continuing professional education (CPE) courses and other opportunities for professional development.

The intricate and ever-changing rules and regulations of the state boards of accountancy present challenges to CPAs and firms when trying to understand and comply with CPE requirements.

UNAUTHORIZED USE OF CPA TITLE

North Carolina’s accountancy law allows that anyone can practice public accountancy by paying a privilege license fee to the NC Department of Revenue. However, anyone residing in this State who is not licensed by the NC State Board of CPA Examiners as a CPA or not granted the practice privilege by NCGS 93-10 is restricted to using the term “accountant” in connection with his or her name on all reports, letters of transmittal, or advice, and on all stationery and documents used in connection with his or her services as an accountant, and must refrain from the use in any manner of any other title or designation in such practice while in this State. The exception to this restriction is when an individual residing in this State who is licensed by another jurisdiction wishes to provide a résumé to a prospective employer, the individual may use “CPA” or “certified public accountant” on his or her résumé. However, the individual must clearly indicate the jurisdiction in which he or she holds a CPA certificate as well as the status of that certificate if other than active (inactive, lapsed, retired, etc.).

• It is unlawful for any person who has not received a certificate of qualification or not been granted a practice privilege under NCGS 93-10 admitting the person to practice as a certified public accountant to assume or use such a title, or to use any words, letters, abbreviations, symbols or other means of identification to indicate that the person using same has been admitted to practice as a certified public accountant [NCGS 93-3].
• It is unlawful for any firm, copartnership, or association to assume or use the title of certified public accountant, or to use any words, letters, abbreviations, symbols or other means of identification to indicate that the members of such firm, copartnership or association have been admitted to practice as certified public accountants, unless each of the members of such firm, copartnership or association first shall have received a certificate of qualification from the State Board of Certified Public Accountant Examiners or been granted a practice privilege admitting each member of the firm, copartnership, or association to practice as a certified public accountant; provided, however, that the Board may exempt those persons who do not actually practice in or reside in the State of North Carolina from registering and receiving a certificate of qualification under this section [NCGS 93-4].
• It is unlawful for any corporation to assume or use the title of certified public accountant, or to use any words, letters, abbreviations, symbols or other means of identification to indicate that such corporation has received a certificate of qualification from the State Board of Certified Public Accountant Examiners admitting it to practice as a certified public accountant [NCGS 93-5].

A person licensed as a CPA in another jurisdiction who moves to North Carolina with the intention of using the CPA title (whether in public practice, industry, government, or education) must obtain a certificate of qualification from the Board prior to using the CPA title in any way in this State. Oral or written statements such as “I am a licensed CPA in another jurisdiction” when used in connection with the individual’s name on all reports, letters of transmittal, or advice, and on all stationery and documents used in connection with the individual’s services as an accountant do not exempt the individual from obtaining a certificate of qualification from the Board.  Non-resident CPAs who wish to practice in North Carolina may do so only in accordance with NCGS 93-10.