License to Fill

License to Fill
Requirements for Becoming a CPA in New York State

The information provided below is subject to change. Students can keep up to date by visiting the “Frequently Asked Questions” page at www.nysscpa.org/futurecpas/faq.htm.

As of this writing, CPA candidates must submit to the New York State Division of Professional Licensing Services a licensure application and fee of $345; submit to the CPA Examination Services an initial application, fee and educational documentation; and have their education reviewed and approved.

Testing Requirement

The switch to computer based testing (CBT) beginning in April 2004 is probably the biggest change in obtaining the CPA credential. Candidates must pass the CBT to qualify for a CPA license.

New York state students will be able to take the 14-hour CBT in three “testing windows”: from April to May; July to August; and from October to November. In 2005, a fourth testing window will be added from January to February. The CBT has four sections similar to the written exam. They include the following:

Auditing and Attestation (4.5 hours): covers auditing procedures, generally accepted auditing standards and other standards related to attest engagements.
Financial Accounting and Reporting (4 hours): covers generally accepted accounting principles for business enterprises, not-for-profit organizations, and governmental entities.
Regulation (3 hours): covers federal taxation, ethics, professional and legal responsibilities, and business law.
Business Environment and Concepts (2.5 hours): covers knowledge of the general business landscape and ideas.

New York state is considering giving applicants 18 months (reduced from 36 months) to pass all four sections. The New York State Board for Public Accountancy may also switch to a pass/fail grade on each section based on a minimum score of 75. Officials anticipate the state Board of Regents to rule on these questions at its meeting in November.

Education Requirement

To fulfill the education requirement current students who postmark their CPA application (known as Form 1) prior to Aug. 1, 2009, have two options:

Option 1: Earn a bachelor’s or higher degree with 120 hours including, but not limited to, 24 in accounting; 21 hours in business and accounting electives; and 60 in liberal arts and sciences.
Option 2: Earn a bachelor’s or higher degree with 150 hours, including, but not limited to 33 hours in accounting (financial accounting theory and principles, managerial accounting, and others); 36 hours in general business electives; and 60 hours in liberal arts and sciences.

Graduate students must maintain a B or better; undergrads a C or better. (A third option allows individuals with 15 years experience in accounting under certain circumstances to earn the CPA credential).

Work Experience Requirement

Applicants must demonstrate two years qualifying experience in the practice of accountancy (or a satisfactory equivalent thereof as determined by the state board of accountancy). The experience must be attested to by a CPA or a public accountant, provided he or she supervised the applicant. Additional documentation of the student’s experience will be included with his or her file for review by the division of professional licensing services.

More Information

The National Association of State Boards of Accountancy maintains a useful website with a check-list of requirements, downloadable forms and other useful items. Go to www.nasba.org/nasbaweb.nsf/sit, click on “Uniform CPA Examination” and select “New York” from the pull-down menu.