A Certified Public Accountant (CPA) is a highly respected designation representing a license to practice public accounting, which includes the ability to perform financial audits and issue opinions on financial statements. CPA requirements are not uniform across the United States, as they are governed by the individual boards of accountancy in the 55 U.S. jurisdictions (the 50 states, the District of Columbia, and four territories). This state-level regulation means the answer to whether a degree is necessary depends entirely on the jurisdiction where a candidate seeks to be licensed. Aspiring CPAs must select a jurisdiction and adhere to its specific rules regarding education, experience, and examination before they can use the title.
The Standard Educational Requirement for CPA Licensure
The overwhelming majority of state boards adhere to the 150-semester-hour rule. This standard mandates that a candidate must complete 150 semester hours of college-level education before they can be granted a CPA license. A typical bachelor’s degree comprises approximately 120 semester hours, meaning that candidates must complete an additional 30 hours of specialized coursework.
The total credits must include a specified concentration of accounting and business courses. Many states require candidates to complete a minimum number of upper-level accounting courses, often ranging from 24 to 36 semester hours, that cover subjects like auditing, taxation, and financial reporting. A comparable number of general business-related credits, such as business law, finance, and economics, are also typically mandated to ensure a well-rounded professional background.
State Variations on the Degree Requirement
While the 150-hour rule is the dominant standard, virtually every state board requires a candidate to hold at least a bachelor’s degree from an accredited institution as a prerequisite for full CPA licensure. The true variation lies in the field of study and the total credit hours required.
A small number of states, including Alaska, Georgia, Hawaii, Maine, and Massachusetts, do not require the bachelor’s degree itself to be in accounting. This allows candidates with degrees in fields like history or engineering to qualify, provided they have completed the requisite number of accounting-specific courses. Furthermore, a growing number of states are introducing alternative pathways to licensure. These legislative changes, adopted by states like Ohio, Virginia, Utah, and Texas, seek to address talent shortages by substituting educational hours for professional experience.
These new pathways typically allow a candidate with a traditional 120-hour bachelor’s degree to qualify for licensure by completing two years of relevant work experience, rather than the standard one year required under the 150-hour path. This structure maintains the bachelor’s degree requirement but allows professional experience to substitute for the fifth year of college education.
Strategies for Meeting the 150 Credit Hour Mandate
Candidates pursuing the traditional 150-hour route have several strategies for accumulating the final 30 credits beyond a typical 120-hour bachelor’s degree. A common approach involves enrolling in a graduate program, such as a Master of Accountancy (MAcc) or an MBA with an accounting concentration. This automatically fulfills the credit requirement while also providing advanced technical knowledge, and these master’s degrees are often designed to align with the CPA Examination content.
For those who already possess a degree and seek a less time-intensive option, enrolling in a certificate program or simply taking standalone undergraduate or graduate courses can bridge the 30-hour gap. Taking these supplemental courses at a local community college or through accredited university extension programs can be a cost-effective method. Candidates must confirm with their state board that the courses are accepted, particularly concerning whether the credits are classified as upper-level accounting or business electives.
Another strategy is to utilize credit-by-examination programs, such as the College-Level Examination Program (CLEP) or DANTES Subject Standardized Tests (DSST), if the specific state board accepts them. These exams allow a candidate to earn college credit by demonstrating proficiency in a subject, which can provide a quick way to acquire some of the general elective credits needed for the total 150-hour count.
The Essential Experience and Ethics Requirements
The educational component is only one of three requirements for CPA licensure; candidates must also satisfy professional experience and ethics requirements. Most state boards require a minimum of one to two years of qualifying work experience, which typically translates to 1,500 to 2,080 hours. This experience must be relevant to the accounting profession, covering areas such as financial statement preparation, auditing, or tax work.
Across nearly all jurisdictions, this experience must be supervised and verified by a currently licensed CPA who is in good standing with the state board. The supervising CPA must attest that the candidate has demonstrated competency in the required professional skills and judgment. This practical application of knowledge is considered an important part of preparing a CPA for the responsibilities of public practice.
Separately, nearly all states mandate the completion of an ethics requirement, which is distinct from the four sections of the Uniform CPA Examination. This is frequently satisfied by passing the self-study Professional Ethics Exam administered by the American Institute of Certified Public Accountants (AICPA), though some states require a specific ethics course from an accredited educational institution.
Steps to Certification After Meeting Prerequisites
Once the educational and experience requirements are met or nearing completion, the candidate applies to the State Board of Accountancy, often through the National Association of State Boards of Accountancy (NASBA), to confirm eligibility to sit for the CPA Examination. Upon approval, the candidate receives a Notice to Schedule (NTS), which is a time-sensitive document allowing them to book their testing appointments.
The candidate must then pass all four sections of the Uniform CPA Examination: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and a discipline section. A passing score must be achieved on all four sections within a rolling 30-month window, which begins when the first section is successfully passed. Failing to pass all sections within this period results in the loss of credit for the earliest passed section.
After successfully passing the examination and satisfying all educational, experience, and ethics prerequisites, the candidate submits a final application package to the State Board of Accountancy. This package includes transcripts, proof of supervised work experience, and the passed ethics exam score. Upon final review and approval by the board, the candidate is officially granted the CPA license.