The Certified Public Accountant (CPA) designation represents expertise and integrity in the financial world. Earning this license signifies mastery of accounting principles, auditing standards, and federal tax law. Becoming a licensed CPA requires commitment to education, examination, and supervised practice. The Arkansas State Board of Public Accountancy (ASBPA) oversees the multi-step process candidates must follow. This guide outlines the requirements, from academic qualifications to final licensing steps, necessary for licensure in Arkansas.
Meeting Arkansas’s Education Requirements
Arkansas mandates the “150-hour rule,” requiring candidates to complete a minimum of 150 semester hours of college education, including a bachelor’s degree or higher, to qualify for the full license.
The ASBPA distinguishes between the hours needed to sit for the exam and the total needed for licensure. To qualify to take the Uniform CPA Examination, a candidate must have a bachelor’s degree, 30 semester hours of upper-level accounting courses, and 30 semester hours in business courses other than accounting.
The upper-level accounting coursework must include specific subjects. All accounting and business courses submitted must be completed with a grade of “C” or better.
- Financial accounting
- Management accounting
- Governmental or not-for-profit accounting
- Federal taxation
- Auditing and attestation
- Accounting information systems
While a candidate may be approved to sit for the exam with 120 hours, the full 150 hours must be completed before the final license application can be submitted. Candidates should confirm their curriculum with the ASBPA before applying.
Applying for and Scheduling the Uniform CPA Examination
The administrative phase begins once a candidate meets the minimum educational requirements to sit for the exam. Candidates submit their application directly to the ASBPA, which reviews transcripts and determines eligibility based on the required 120 semester hours and specific coursework.
The application requires submitting transcripts, a color copy of government-issued identification, and payment of required fees. Once approved, the ASBPA issues an Authorization to Test (ATT) and forwards eligibility notification to the National Association of State Boards of Accountancy (NASBA).
NASBA then issues a Notice to Schedule (NTS), which grants permission to schedule the exam sections. The NTS is time-sensitive, typically valid for six months, and must be used to book test dates and locations through Prometric.
Candidates pay an application fee to the ASBPA and separate examination fees to NASBA for each section. Failure to schedule and take the sections before the NTS expires requires a new application and fee payment.
Passing the CPA Exam Sections
The Uniform CPA Examination covers the technical knowledge and skills required of a newly licensed accountant. It consists of four distinct sections, and candidates must achieve a minimum score of 75 on each section to pass.
The four sections are:
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
- A final discipline section chosen from Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).
Candidates must pass all four sections within a rolling 30-month window. This window begins on the date the score of the first passed section is released. If remaining sections are not passed within this period, the credit for the earliest passed section expires and must be retaken.
The structure, known as CPA Evolution, allows candidates to select a focus area that aligns with their career trajectory. Careful planning is necessary to navigate the testing schedule successfully and complete the examination within the required window.
Gaining the Required Professional Experience
Arkansas mandates a period of qualifying professional experience in addition to passing the CPA Examination. Candidates must complete a minimum of one year of experience, defined as at least 2,000 hours of qualifying work.
This experience can be gained before or after the CPA Exam, but must be completed within one to three years preceding the licensure application. The work must utilize accounting, attest, management advisory, financial advisory, tax, or consulting skills.
Experience can be gained across various sectors, including public accounting firms, private industry, government, or academic institutions. A licensed CPA from any U.S. jurisdiction must directly supervise and verify the experience.
The supervising CPA signs the Experience Affidavit form, confirming the candidate’s work meets the standards set by the ASBPA.
Completing the Final Licensing Steps
After passing the CPA Examination and fulfilling the experience requirement, candidates must complete the final administrative steps for licensure. Arkansas requires applicants to demonstrate an understanding of state-specific professional conduct and rules.
This is satisfied by completing a mandatory one-hour self-study ethics course and passing an associated exam focused on the Arkansas Accountancy Law and Board Rules.
The final step involves submitting the application packet to the ASBPA. This packet must include official transcripts verifying the 150 semester hours, the signed Experience Affidavit, and proof of passing the state-specific ethics course.
Candidates must also authorize a state and national criminal background check. The Board reviews all documentation to ensure compliance before issuing the CPA license, authorizing the candidate to use the CPA title and practice public accountancy.
Maintaining Your CPA License Through Continuing Education (CPE)
A CPA license requires ongoing maintenance through Continuing Professional Education (CPE) to remain active. Arkansas CPAs can choose to fulfill the CPE requirement either annually (40 hours) or triennially (120 hours over 36 months).
The ASBPA mandates specific content requirements. All licensees must complete at least four hours of CPE in accounting professional conduct and ethics during the 36-month period.
One hour of this ethics training must specifically focus on Arkansas State Board of Public Accountancy laws and rules, often satisfied through a Board-provided course.
CPAs engaged in public accounting must ensure a minimum percentage of their hours are completed in technical subjects such as accounting, auditing, or taxation. The license must be renewed annually by submitting the CPE report and paying the associated fee to the ASBPA.