Information for ACCA Members in Public Practice
ACCA members wishing to act as auditors in the USA must obtain appropriate local recognition. In most states this is a three-tier process. Members must:
apply to the state board of accountancy for the state in which they wish to be registered, and provide details of their qualifications to be assessed by a foreign credentials evaluator as at least equivalent to a USA bachelor’s degree;
if their application to the state board is accepted, pass the AICPA Uniform Final Examination; and
gain two years of practical experience in the office of a CPA firm.
When submitting an application to a foreign credentials evaluator, members are advised to send as much information as they can. This should include the following:
details of all their qualifications, including school qualifications (credit is given for A levels);
a transcript of their Association examination history as well as syllabus details and information about the Association;
if any of their qualifications were gained by attendance at school/college, a letter from the college confirming their attendance and number of hours attended.
The AICPA is responsible for the Uniform Final Examination which all 54 state boards of accountancy have adopted as their final qualifying examination. The examination covers four subjects: Accounting & Reporting (double paper); Auditing; Business Law & Professional Responsibilities and Financial Accounting & Reporting. Each examination paper consists of 60% multiple-choice questions and 40% essay or problem solving questions. Some states require candidates to pass a separate ethics examination.
Recognition of the ACCA qualification varies from state to state, and currently each application is judged on its own merits. A major barrier is that only 35 out of the 54 state boards of accountancy will consider an application from someone holding a qualification gained outside of the USA. These 35 state boards are:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia, Virgin Islands, West Virginia, Wisconsin, Wyoming.
Another barrier is that, when considering qualifications, the state boards require evidence of attendance at courses with equivalent hours to a USA degree: this can prove a problem for those who have gained professional qualifications by private study or through correspondence courses. All states evaluate potential CPA candidates from three standpoints; examination, education and experience. Some states also impose residency requirements.
Becoming a CPA is not straightforward . Each state assesses an applicant’s education before allowing him/her to sit the uniform final examination. The majority of states have a "120 hour rule" that specifies the subject areas and frequently the number of "semester-hours" in each subject area. Those without a four year accounting degree may have to return to college full-time for up to two years. Some states will allow A-levels or equivalent to be treated as equal to another year of university studies. Also, while some boards allow accounting studies undertaken for professional examinations to be credited, others do not. The amount of such credit also varies, in some cases covering only the core accounting education requirement imposed by certain states.
By now, most states have implemented the "150 Hour Rule." This rule requires CPA candidates to have 150 semester-hours of educational credit which translates to five years of university studies. While some states will take into account a university degree (3 years = 90 semester hours), A-levels (at least 30 semester hours) and professional studies (at least 30 semester hours) to meet that requirement, others will not. To make up the shortfall, CPA applicants can usually take courses locally part-time, or sit state exemption exams. Alabama, Florida, Hawaii, Mississippi, Tennessee, and Utah already have 150 Hour Rules. The majority of the remaining states have passed legislation which will require 150 hours of education.
Experience requirements differ by state, sometimes quite significantly. Some state boards give credit for relevant experience outside the USA, others give no credit at all for such time. Time in the USA generally must be under the supervision of a licensed CPA. Also, many state boards specify the type of experience required, such as audit and related work.
Various states require residency or a permanent place of business in the state before applicants can be granted a CPA licence, and some states require applicants to be a US citizen.
