How to Become a
Certified Public Accountant in New York State
A Dynamic Profession

With a degree in accounting, you don't just learn a business, you learn the business world. With a CPA license, you will open doors of opportunity.

The accounting profession includes jobs at certified public accounting firms, providing such services as auditing and accounting, tax, personal financial planning, and management consulting for diverse clients—individuals and businesses, from the biggest conglomerates to the smallest, start-up companies.

You could work for the state or federal government, on Wall Street, at an agency for the homeless, or for a rock-and-roll band touring the world. Or you could teach.

This brochure answers some questions about what you need to do to take the first steps toward becoming a certified public accountant (CPA) in New York State.

WHAT IS THE DIFFERENCE BETWEEN AN ACCOUNTANT AND A CPA?

All CPAs are accountants, but all accountants are not CPAs. CPAs are distinguished from other accountants by stringent state licensing requirements, including education, examination, and experience. CPAs are also required to take Continuing Professional Educational (CPE) courses to keep current on all facets of CPA services. They must adhere to a strict code of professional ethics that the public recognizes and respects highly. CPAs are among the most extensively trained and experienced tax advisers. Only accountants who are CPAs are part of a licensed profession that provides you with a sense of pride and prestige and gives recognition to your achievements.

WHAT ARE THE EDUCATION REQUIREMENTS?

To fulfill the education requirement for licensure, you must complete:

• an accounting program approved by the New York State Education Department as licensure qualifying, or
  
• a program determined by the Department to be equivalent to a registered program, or
  
• 15 years of public accounting experience acceptable to the New York State Board for Public Accountancy.

For a listing of current licensure qualifying programs, see the NYS Education Department's Inventory of Registered Programs (http://www.nysed.gov/heds/irpsl1.html). Please note: If your program is not listed, contact your school to determine if it is a NYS licensure qualifying program.

The curriculum requirements can be met by courses at the undergraduate or graduate level or by any combination of the two. You must have an overall average in the accounting subjects of "C" or better at the undergraduate level and "B" or better at the graduate level. Courses in federal taxation, professional auditing, and advanced financial accounting must be taken at the upper-division level (third or fourth year of an undergraduate program) or in a higher-degree program. All prerequisite accounting courses must be completed before these courses are attempted.

If your application (Form 1 and fee at http://www.op.nysed.gov/cpaforms.htm) is postmarked prior to August 1, 2009, you may complete one of the three options below (after August 1, 2009, all candidates will have to complete 150 semester hours of college education before taking the CPA exam):

Option 1 (only available through August 1, 2009)
A bachelor's or higher degree and a minimum of 120 semester hours in the following areas:

• 24 semester hours in accounting, with courses in accounting principles (including advanced financial accounting), cost accounting, United States federal taxation, and professional auditing; and
  
• 6 semester hours or 4 graduate credit hours in business law, including coverage of the Uniform Commercial Code; and
  
• 6 semester hours in finance; and
  
• 3 semester hours in business statistics; and
  
• 21 semester hours in business and accounting electives; and
  
• 60 semester hours in liberal arts and sciences; and
  
• 6 semester hours of economic principles, which may be used toward fulfilling either the business elective or liberal arts requirement.

Option 2
A bachelor's or higher degree and 150 semester hours in the following areas, which include but are not limited to at least:

• 33 semester hours in accounting, with courses in financial accounting theory and principles (including advanced financial accounting), managerial accounting, U.S. federal tax accounting, auditing, and computer auditing; and
  
• 36 semester hours in general business electives, including business statistics, commercial law, computer science, economics, finance, and quantitative methods; and
  
• 60 semester hours in liberal arts and sciences, including mathematics/sciences, social sciences, humanities, economics, and computer science.
  
• The curriculum must also include the study of business/accounting communications, ethics/professional responsibility, and accounting research.

Option 3
Fifteen years of public accounting experience acceptable to the NY State Board for Public Accountancy may be substituted for education for admission to the CPA examination. This experience must be earned under the direct supervision of a U.S. certified public accountant or a New York State public accountant, involve the application of U.S. generally accepted accounting principles (GAAP) and generally accepted auditing standards (GAAS), and contain substantial exposure to auditing and financial statement preparation.

WHAT DO I NEED TO KNOW ABOUT THE CPA EXAM?

New York State recognizes the Uniform CPA Examination, prepared and graded by the American Institute of Certified Public Accountants (AICPA). In New York, the examination is administered by CPA Examination Services, a division of the National Association of State Boards of Accountancy (NASBA).

The exam lasts 15-1/2 hours over two consecutive days. The passing score is 75.0 for each of the four examination parts: financial accounting and reporting; business law and professional responsibilities; accounting and reporting; and auditing. You will be granted credit when you pass any two or more subjects at a single examination. Thereafter, subjects may be passed singly, provided you successfully pass all subjects of the examination within a consecutive three-year period.

If you intend to take all or part of the CPA examination in New York, you must send the licensure application Form 1 and fee (http://www.op.nysed.gov/cpaforms.htm), postmarked by the deadlines below, to:

New York State Education Department
Division of Professional Licensing Services, Fee Section
89 Washington Avenue
Albany, NY 12234-1000

The deadlines for new candidates are:

• February 1, to take the exam in May
  
• August 1, to take the exam in November
• If you have completed any post-secondary education outside of the United States, are already licensed, passed the exam in another jurisdiction, or are planning on taking the exam and wish to have the Department determine if your education meets New York State requirements, use Form 2
  (http://www.op.nysed.gov/cpaforms.htm). Forward Form 2 to your school for completion and return to the New York State Education Department so they can evaluate your education for admission to the exam.

Repeat applicants must register by telephone or online with CPA Exam Services by the deadlines below. Send your application and fee to:

New York Service Unit
CPA Examination Services
PO Box 198529
Nashville, TN 37219-8529
Phone: 1 (800) CPA-EXAM
(615) 880-4200
Web: www.nasba.org

The examination application deadlines for readmission are:

• March 1, to take the exam in May
  
• September 1, to take the exam in November.

Be sure to request both an education review and examination application from CPA Examination Services. If you have been educated entirely in the United States, CPA Examination Services will review your education for admission to the exam.

• Be sure to demonstrate that you have either fulfilled the education requirements prior to taking the examination or will fulfill them within 60 days after taking the exam.

Reasonable Testing Accommodations
Applicants with disabilities requesting reasonable accommodations for an examination need to contact CPA Examination Services and provide several types of documentation by the application-filing deadline (as described previously).

Religious Observance
If you are seeking accommodations for an examination because of religious reasons, you must notify CPA Examination Services when you file the examination application.

WHAT COUNTS TOWARD PROFESSIONAL EXPERIENCE?

An applicant must present evidence, satisfactory to the State Board for Public Accountancy, of diversified experience involving the application of generally accepted accounting principles and the application of generally accepted auditing standards in the practice of public accountancy, or the satisfactory equivalent thereof as determined by the State Board. The documentation of experience must demonstrate diversified experience that would enable the applicant, once licensed, to conduct and report on an independent audit of a small but complex entity with a minimum of supervision.

Two years of qualifying experience full-time or its part-time equivalent are required for licensure. Applicants who have completed advanced study in an approved accounting program or its equivalent may petition for a waiver of one year of experience. A significant portion of public accounting experience—a minimum of 75%—must be in the areas of auditing services and financial statement preparation; at least one-half of this time must consist of auditing services alone. Full-time employment is considered to be a 5-day, 35–40–hour week, excluding overtime. Acceptable part-time (no less than 20 hours per week) experience will be considered on the basis of one week of experience for every two weeks worked. See the instructions for Employer Form 4b (http://www.op.nysed.gov/cpaforms.htm) for further detail on qualifying experience.

In the case of non-public accounting, a minimum of 75% of the experience must consist solely of auditing services. Experience in private or governmental accounting or auditing of a character and for a length of time satisfactory to the State Board may be determined to be substantially equivalent to audit experience obtained by independent accountants engaged in public practice which includes the attest function. This experience shall be devoted principally to the comprehensive application of generally accepted accounting principles and generally accepted auditing standards to diversified field examinations. These examinations shall culminate in the submission of independent reports on financial records and statements that are relied upon by a third party. Limited scope auditing activities shall not be accepted as equivalent experience. See the Board policy statement (http://www.op.nysed.gov/cpapolicy.pdf) regarding non-public audit experience for further information.
Experience must be attested to by a CPA licensed in a division of the United States or by a public accountant licensed in New York, provided such individual supervised the applicant in the employing organization.

Completing either 1 or 2 below can reduce the experience requirement to one year:

1. The 120-semester-hour education requirement described previously as "Option 1," plus a post-baccalaureate degree and completion of at least 30 graduate semester hours in accounting or business, including the following six graduate courses, within or in addition to the course of study:

• advanced auditing
• finance
  
• economic analysis
• advanced taxation
  
• accounting theory
• quantitative measurements

2. The 150-semester hour education requirement, including a bachelor's or higher degree, described under "Option 2" in the Education Requirements.

Please note: All requirements listed under 1 or 2 above must be completed to earn the one-year experience reduction. No partial reductions can be granted. After August 1, 2009, 150 semester hours will be required to take the CPA exam.

If your employer submits a Certification of Employer (Form 4B) (http://www.op.nysed.gov/cpa4b.pdf) where a percentage of time is shown in item 7 A of the form, Auditing Services, and the part-time box in question #4, Section II, on the same form is also checked, the employer should provide a statement describing the nature of the fieldwork engagements performed for which experience credit is claimed, setting forth as much of the following as is practical, and indicating the extent to which you have applied generally accepted accounting principles and generally accepted auditing standards:

a. Nature, purpose and location of a sample of representative engagements and a brief outline of the type of auditing procedures employed by the applicant.
b. The approximate time the applicant was involved on each engagement.
c. The type of reports issued on each engagement. A sample independent audit report on financial records and financial statements must be included.

In addition, item 5 on the form should show the number of hours worked per week and the number of weeks or months of the part-time service included in the total experience claimed.
This additional documentation of your experience will be
included with your file for review by the Licensing Committee.

WHY ARE CERTIFICATION REQUIREMENTS SO STRINGENT?

The State Education Department and State Board for Public Accountancy recommend candidates for certification who are qualified to plan and conduct an audit and provide the services of a public accountant competently and professionally. CPAs protect the public's interest, and these stringent requirements ensure a high caliber of professionals in the field.

WHAT IS THE NEW YORK STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS?

The New York State Society of Certified Public Accountants is a membership-based organization formed to protect the interests of its members and the general public with respect to the practice of accountancy and to help accounting professionals succeed in their careers. That is our bottom line.

Who Is Eligible For Membership?

Membership in the Society is open to all CPAs in the United States. In addition, Associate Membership is available for undergraduate students, college graduates pursuing a CPA license, college professors teaching accounting, professionals working in CPA firms, and any person holding a license recognized by the International Federation of Accountants outside the United States.

Members enjoy:

Opportunities to Network: Obtain access to hundreds of accounting professionals through participation in one of 17 local NYSSCPA chapters across New York State. More than 65 statewide committees provide similar access to the best and the brightest.

Discounted Professional Education: The educational arm of the Society, the Foundation for Accounting Education, provides year-round seminars and conferences to meet your need for quality continuing professional education. Best of all, these programs are available to NYSSCPA members at a discount.

Technical Assistance and Know-how: Accounting is a complex and diverse discipline. Take advantage of the knowledge and savvy of your fellow experienced members who volunteer to assist in resolving questions posted on our "Ask the Expert" site on the Web.

The CPA Journal: Rated the most popular service by our members! The only peer-reviewed magazine for and by certified public accountants. That means you will get practical advice from working professionals like yourself. In some CPA firms, this magazine is required reading.

The Trusted Professional: The Society's newspaper will provide you with timely Society and accounting news, written in to-the-point prose.

Online 24/7: The Society is online at www.nysscpa.org. You can access virtually all of our services via the Web at your convenience. You can review and register for courses, check the latest accounting news, and review your personalized, secure Web page that tracks any CPE credits taken with the Foundation for Accounting Education.

Group Benefits: We offer quality liability insurance, credit card, and other group benefits that can extend to your business and family. Many of these programs take advantage of group discounts obtainable only via membership in the Society.