The Certified Public Accountant (CPA) designation represents the highest level of professional certification in accounting, signifying a mastery of financial principles and ethical practice. Attaining this title involves meeting specific benchmarks in education, examination, and professional experience. Requirements for licensure are set by individual state boards of accountancy, and in Indiana, the process is established by the Indiana Board of Accountancy (IBOA). This guide details the steps required to become a licensed CPA in Indiana.
Understanding Indiana’s Education Mandates
The initial step toward licensure involves completing a total of 150 semester hours of college education. This exceeds the typical 120 hours required for a standard bachelor’s degree, so candidates must acquire the additional credits through a graduate program or supplemental undergraduate coursework. While a bachelor’s degree from an accredited institution is a prerequisite, the 150-hour rule is the overarching requirement for qualifying for the license.
The IBOA specifies a distribution of coursework within the 150 hours to ensure candidates possess a foundational knowledge base. Candidates must complete a minimum of 24 semester hours in accounting subjects at the undergraduate level, or 15 semester hours if taken at the graduate level. These accounting hours must include specific subjects such as financial accounting, auditing, taxation, and managerial accounting.
Candidates must also complete 24 semester hours of business administration and economics courses. These credits can be acquired at either the undergraduate or graduate level and broaden the candidate’s understanding of the larger business environment. This requirement allows for flexibility, permitting up to six semester hours each in business and tax law, as well as computer science courses, to count toward the total business credit hours.
A significant distinction in Indiana is that candidates may apply to sit for the CPA Examination once they have completed 120 semester hours of college credit. This allows aspiring CPAs to begin the testing phase earlier in their academic career. However, the full 150 hours must be completed before the final license application can be submitted. The IBOA utilizes this phased approach to reduce barriers for entry into the examination process.
Navigating the CPA Examination Process
Once the minimum 120 semester hours are met, the candidate applies through the National Association of State Boards of Accountancy (NASBA) to take the Uniform CPA Examination. The application process begins with an educational evaluation and the creation of an account on the CPA Portal, which confirms eligibility. After eligibility is confirmed, the candidate receives a Notice to Schedule (NTS). This is a time-sensitive document authorizing the scheduling of the exam sections with the testing provider.
The CPA Exam is a four-section, computer-based test designed to assess the knowledge and skills required for a newly licensed CPA. The four sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and a final section covering a specific discipline (e.g., Business Analysis and Reporting or Information Systems and Controls). Each section is scored on a scale of 0 to 99, and a minimum score of 75 is required to pass.
The examination process utilizes an 18-month rolling window for passing all four sections. The 18-month clock begins on the date the candidate passes their first section, and all remaining sections must be passed before the window closes. If a candidate fails to pass all four sections within this timeframe, the credit for the section passed first will expire, requiring the candidate to retake that section.
Indiana candidates benefit from a continuous testing model, allowing them to take or retake an exam section at any time without waiting for specific testing windows. This flexibility helps manage the study schedule and the pressure of the 18-month timeline. The entire examination process is managed through the NASBA portal, which coordinates scheduling and score reporting.
Fulfilling the Professional Experience Requirement
Successfully passing the CPA Examination marks a significant milestone, but the next step involves acquiring the professional experience mandated by the IBOA. The requirement for licensure under the 150-hour education rule is one year of qualifying work experience. This experience must be gained subsequent to completing the educational requirements and demonstrates the candidate’s ability to apply theoretical knowledge in a practical setting.
Qualifying experience is broad, encompassing work in public accounting, industry, government, or academia, provided the duties involve the use of accounting, attest, tax, or consulting skills. The experience must be full-time, or the part-time equivalent, generally translating to approximately 2,000 hours over a twelve-month period. This practical training ensures the newly licensed CPA possesses the judgment and professional skills necessary.
Indiana’s experience requirement includes a verification process, requiring the experience to be attested to by an active Certified Public Accountant. This verifying CPA does not necessarily have to be the candidate’s direct supervisor but must possess direct knowledge of the quality and nature of the candidate’s work. The verifying CPA submits an official Experience Verification Form directly to the IBOA, confirming the required duration and scope of work.
The work experience component confirms that the candidate is capable of performing the functions of a CPA with competence and integrity. This phase bridges the gap between academic study and professional practice, ensuring the new licensee is prepared for the complex responsibilities of the CPA title. Completing this requirement is the final hurdle before submitting the official license application.
Applying for the Official Indiana CPA License
With the education, examination, and experience requirements met, the final stage is the formal application for the Indiana CPA license through the Indiana Professional Licensing Agency (IPLA). This administrative step consolidates all prior achievements and initiates the board’s final review. The application requires official college transcripts to verify the completion of the 150 semester hours and the required coursework distribution.
The candidate must also submit the verified Experience Verification Form, confirming the completion of the one year of qualifying professional experience. While many states mandate a separate ethics exam, Indiana does not require a pre-licensure ethics examination. This simplifies the final application process, though the candidate must still confirm they meet the state’s standards of good moral character.
The application is accompanied by various administrative fees, including an educational evaluation fee and a final license issuance fee. The IBOA reviews the entire application package to ensure all statutory and regulatory requirements have been satisfied. Upon approval, the candidate officially transitions from a CPA Exam passer to a fully licensed Certified Public Accountant, authorized to practice in the state.
Continuing Education and License Renewal
Once the CPA license is granted, the professional enters a cycle of compliance to maintain competency and ethical standards. Indiana CPAs must renew their license on a triennial basis, with the renewal cycle ending on June 30th. To qualify for renewal, the licensee must complete a mandatory number of Continuing Professional Education (CPE) hours during the three-year reporting period.
The total CPE requirement is 120 hours over the three-year cycle, with a stipulation that no fewer than 20 hours must be completed in any single calendar year. This annual minimum prevents professionals from deferring education until the end of the reporting period, ensuring a continuous commitment to learning. The IBOA also mandates specific subject requirements within the total hours.
Licensees must complete a minimum of 12 hours in Accounting and/or Auditing topics during the triennial period to stay current with financial reporting and assurance standards. Additionally, at least four hours of CPE must be dedicated to Ethics. This ethics requirement can be fulfilled through a minimum of four hours in ethics coursework or a Board-approved competency-based course. A maximum of 60 hours (50% of the total requirement) can be acquired through formal self-study programs.