A Certified Public Accountant (CPA) designation signifies a high level of expertise and professional commitment within the accounting field. Achieving licensure requires satisfying a rigorous set of standards known informally as the “Three Es”: Education, Examination, and Experience. These prerequisites ensure a candidate possesses the necessary academic knowledge, has passed the demanding Uniform CPA Examination, and can apply their skills in a practical setting. The experience component is often the most complex step for candidates to navigate as they transition from academic study to professional practice.
The Mandatory Experience Requirement
The requirement for practical experience ensures that prospective CPAs develop professional judgment and competency before licensure. This hands-on training allows candidates to translate theoretical knowledge into real-world application. The experience mandate protects the public by verifying a candidate’s ability to perform complex accounting tasks with accuracy and integrity.
Most jurisdictions require candidates to complete either one or two years of qualifying experience, often measured in hours (typically 1,500 to 2,000). This practical work must generally be completed within a specific timeframe, such as a set number of years immediately preceding or following the application for licensure. The goal is to ensure the candidate’s professional experience is recent and relevant to current accounting practices and standards.
Clarifying the Supervision Mandate
The question of whether a candidate must work under a CPA relates directly to the verification process for mandatory experience. In the vast majority of U.S. jurisdictions, qualifying experience must be formally supervised and attested to by an actively licensed CPA. This professional acts as the guarantor of the candidate’s competency and ethical behavior during the work period.
The supervising CPA monitors the candidate’s work and evaluates their proficiency in various accounting functions. This oversight includes assessing the candidate’s judgment, technical skills, and adherence to professional standards. Once the experience is complete, the supervisor certifies the candidate’s professional competence by signing an official affidavit or experience form provided by the state board of accountancy.
The supervisor must often be licensed in the state where the candidate seeks licensure or meet specific state reciprocity requirements. Some state boards require the supervisor to have been licensed for a minimum number of years or to hold a license that is active and in good standing. This strict requirement ensures the person vouching for the candidate’s experience is fully qualified and accountable to a regulatory body. The primary purpose of this mandate is to confirm that the candidate has been properly mentored and has learned to exercise the discretion expected of a licensed accountant.
Defining Acceptable Work Experience
Qualifying experience is defined by the nature and scope of the accounting services performed, not merely the position title. State boards mandate that the experience must utilize the high-level skills acquired through education and tested on the CPA examination. This ensures the candidate engages in work requiring professional judgment and technical proficiency, rather than routine tasks.
Acceptable work often includes:
Performing attest services, such as audits and reviews.
Financial statement preparation.
Tax representation before government agencies.
Management advisory services or internal audit functions.
The focus is on the complexity of the tasks and the level of responsibility exercised. General bookkeeping, clerical tasks, data entry, or other administrative duties typically do not qualify toward the experience requirement.
Understanding State Regulatory Differences
Confusion stems from the significant variations in experience rules across the 55 U.S. jurisdictions. Some states use a two-tier system, granting a CPA certificate upon passing the exam, but requiring experience completion before issuing the actual license to practice. Other states use a one-tier system, granting the license only after all three requirements—education, examination, and experience—are met.
Some jurisdictions provide limited exceptions to the CPA supervisor requirement, often for candidates working outside of public accounting. A few state boards may permit a non-CPA supervisor, such as a partner in a public accounting firm or a Chief Financial Officer in industry, to sign off on the experience. When this exception is granted, the state board often mandates that the scope and nature of the work must still be reviewed and verified by the board itself or by another licensed CPA to ensure compliance with professional standards.
Many states also require candidates to complete a separate ethics course or pass a state-specific ethics examination, often after the experience is completed and before the license is issued. These varying requirements underscore the necessity for candidates to consult the specific rules of the state board where they intend to seek licensure. The lack of uniformity means that experience that qualifies in one state may not be deemed acceptable in another.
Completing the Licensure Process
After successfully passing the Uniform CPA Examination and completing the required supervised work experience, the candidate must finalize administrative steps to receive the official license. This involves submitting a comprehensive application packet to the state board of accountancy, including official transcripts, proof of passing the examination, and payment of initial licensure fees.
The most important documentation is the affidavit or experience form signed by the supervising CPA. This document serves as the formal verification that the candidate has met the required duration and scope of professional experience. Once the state board reviews and approves all submitted materials, the official CPA license is issued, granting the candidate the legal authority to practice as a CPA within that jurisdiction.