M NCPA FACTS ABOUT THE CPA EXAM AND CERTIFICATION

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1 M NCPA FACTS ABOUT THE CPA EXAM AND CERTIFICATION 2015/2016 CPA CERTIFICATION THE FUTURE IS SO BRIGHT

2 THE CPA CREDENTIAL WHY IT S IMPORTANT CPAs are taking care of business in every industry and there s no sign of a slow-down. According to the Bureau of Labor Statistics, employment of accountants and auditors will continue to grow through the next decade. Accountants who have their CPA certification will have the best job prospects with a wide range of career opportunities. The CPA is one of the most recognized and respected credentials in the business world. CPA is to accounting what MD is to the medical community. And with job titles like Managing Partner, Chief Financial Officer and Controller, CPAs command a presence in virtually every type of business environment. Ready to start? Before you do, there are a few things you need to know. TABLE OF CONTENTS CPA exam: Education requirements...3 CPA exam: Overview...4 CPA exam: How to apply CPA certification...7 Key contacts...8 Roger CPA Review...9 Frequently asked questions...10 Gleim CPA Review...11 CONTACT INFORMATION Minnesota Society of Certified Public Accountants ext MINNESOTA SOCIETY of CERTIFIED PUBLIC ACCOUNTANTS

3 CPA EXAM: EDUCATION REQUIREMENTS Education requirements to take the CPA exam and earn the CPA certificate depend on the accreditation level of the college or university from which you earned your degree and which state you apply to take the exam. This brochure covers only Minnesota requirements. EDUCATION REQUIREMENTS FOR THE CPA EXAM The table below breaks down requirements to sit for the CPA exam for each accreditation level. Level 1 accreditation requirements College or university is accredited Bachelor s degree or higher that includes at least 24 semester hours of accounting at the upper division (300 level or above) or graduate level, including coverage of financial accounting, auditing, taxation and management accounting Level 2 accreditation requirements bachelor s degree Business school or college of business within school is accredited Bachelor s degree and completed at least 24 semester hours in accounting at the undergraduate or graduate level, including coverage of financial accounting, auditing, taxation and management accounting An additional minimum of 24 semester hours in business-related or accounting courses at the undergraduate or graduate level are also required Level 2 accreditation requirements graduate degree Business school or college of business within school is accredited Graduate degree and completed at least 24 semester hours in accounting at the undergraduate level or 15 semester hours at the graduate level or an equivalent combination, including coverage of financial accounting, auditing, taxation and management accounting The CPA credential really indicates a level of professional experience and commitment to on-going learning. Companies are looking for it. Finance committees are looking for it. Boards are looking for it. Bob Sannerud, CPA CFO, Lifelink III Level 3 accreditation requirements Accounting program or department within school is accredited Graduate degree with a concentration in accounting Once you ve met the education requirements to sit for the exam, you re ready to begin the CPA exam process. In the state of Minnesota, candidates are eligible to sit for the exam with a minimum of 120 credits providing the accounting requirements have been met. However, 150 semester hours are required to apply for CPA certification (see page 7 for details). 3

4 CPA EXAM: OVERVIEW Meeting the education requirements was the first step in becoming a CPA. Now comes the CPA exam. The computerized exam consists of four parts for a total of 14 hours of testing time. Each exam section is taken individually and can be taken in any order. EXAM SECTIONS EXAM FORMAT EXAM DIFFICULTY The four sections of the exam include: Auditing and Attestation (AUD) Financial Accounting and Reporting (FAR) Regulations (REG) Business Environment and Concepts (BEC) Each exam section contains both multiple choice testlets as well as case studies called simulations. Each CPA exam is different, but all exams are equivalent in terms of difficulty and content. Questions are randomly selected from a pool of available questions specific to the topic and difficulty required. EXAM FEES AND COST Fees to sit for the exam are approximately $1,000, including the application fee along with the individual exam fees. For current pricing by state, visit When you factor in the cost of a review course with application fees, multiple exam section fees, the selfstudy ethics exam (see page 7 for details) and the initial CPA certificate application fee, you can expect to pay closer to $3,000 - $4, Testlets Each exam section is broken into three smaller groups called testlets. This is a group of related questions. The exam format for each section is primarily multiple choice. Simulations All sections, with the exception of Business Environment and Concepts (BEC), also consist of six to seven task-based simulations, or condensed case studies. BEC is the only section that contains written simulations rather than task-based simulations. Simulations involve a variety of tasks, including searching databases, completing written communication exercises and working with spreadsheets and forms. MINNESOTA SOCIETY of CERTIFIED PUBLIC ACCOUNTANTS TESTING WINDOWS The calendar year is divided into four exam windows. The exam is offered two of the three months in each window, a minimum of five days a week. Candidates can take each section once per testing window. TESTING AVAILABLE CLOSED MONTHS NO TESTS January/February March April/May June July/August September October/November December

5 CPA EXAM: HOW TO APPLY In Minnesota, you can sit before or after graduation. Pre-graduation application: You can apply to sit for the exam up to 180 days prior to your expected graduation date. You can sit for all or part of the exam up to 90 days prior to your expected graduation date, provided you have met all education requirements except having an official transcript. You need to submit to NASBA a final transcript showing proof that you have completed the education requirements within 150 days of sitting for your first exam section. JAN FEB MAR APR MAY JUNE JULY AUG Apply Closed window Sit for exam Graduate Sit for exam Closed window Send official transcript Sit for exam Sit for exam This chart shows an example for a candidate who plans to sit in April. Before you apply, consider your preferred timeline. If you don t plan to sit for an exam section until after graduation, don t apply in January. Your paperwork is good for only six months and could expire before you re ready to take the exam. Post-graduation application: Graduates who meet the requirements to sit for the CPA exam can apply at any time. Applications are available and processed by CPA Examination Services (CPAES). Applications and information about how to apply for the CPA exam can be found on the National Association of State Boards of Accountancy s (NASBA) website, APPLICATIONS You apply online and pay with a credit card (Visa, MasterCard, or Discover only). Upon completion, submit your application, application fee and fees for the sections you re applying to take to CPAES along with any other required materials. Applications take approximately four weeks to process. NOTICE TO SCHEDULE Upon approval of your exam application, you will be sent a Notice to Schedule (NTS) via mail or . Your NTS is valid for six months and will list the earliest and latest date you can take the CPA exam, as shown below. You must have your NTS to schedule and take the test. Schedule your exam sections online at EXAM SECTION SECTION ID LAUNCH CODE (PASSWORD) EARLIEST YOU CAN TAKE THE EXAM LATEST YOU CAN TAKE THE EXAM AUD /28/15 11/28/15 BEC /28/15 11/28/15 FAR /28/15 11/28/15 REG /28/15 11/28/15 NOTICE TO SCHEDULE 5

6 TEST SITES The CPA exam is available at over 300 Prometric test centers across the United States. The scores are stored in the National Candidate Database, giving you the flexibility to take the exam at any test center location. Generally, exam sections can be scheduled six days a week - Monday through Friday between 8:30 a.m. and 5:30 p.m. and Saturday between 8:30 a.m. and 4:30 p.m. Days and times may vary by location. Test locations convenient for Minnesota residents: Duluth, MN Bloomington, MN Fargo, ND Rochester, MN Sioux Falls, SD Woodbury, MN GRADING You must receive a score of at least 75 in each of the four sections to pass. Once you ve completed an exam section, your answers are sent to CPAES for scoring. CPAES will send a letter notifying you of your exam results. Scores are also available online at You must have your exam section ID number from your NTS and date of birth to access scores online. Scores are released on target dates based on when you took the section. The following sample timeline shows target release dates. If you take your test by: APRIL/MAY (Q2) TESTING WINDOW AICPA receives your Exam data files from Prometric by: Your score will be released by the target date: April 20 April 20 May 5 May 15 May 15 May 27 May 31 June 1 June 9 May 31 *After June 1 June 18 Once you pass a section of the exam, you have a maximum of 18 months to pass all remaining sections of the exam in order to retain credit on your first passed section. After 18 months, if you haven t passed all remaining sections, you lose credit for the first passed section and must retake that section. 6 MINNESOTA SOCIETY of CERTIFIED PUBLIC ACCOUNTANTS

7 EXAM PASS RATES The following list is the 2014 pass rates by exam section. These statistics are for national exam candidates and are not Minnesota specific. JAN FEB APR MAY JULY AUG OCT NOV AUD 47% 49% 47% 42% BEC 53% 58% 58% 52% FAR 44% 48% 51% 46% REG 49% 52% 45% 44% CPA CERTIFICATION IN MINNESOTA The CPA exam was your biggest hurdle in becoming a CPA. However, there are a few more things you must do in order to become certified. Once you have passed all four sections of the CPA exam, you have three years to complete the remaining requirements to become certified in Minnesota. EDUCATION REQUIREMENT FOR CERTIFICATION In the state of Minnesota, you re eligible to sit for the exam with 120 credits providing you ve met the accounting requirements. To apply for your CPA certificate however, 150 semester hours are required. Once again, the education requirements depend on the accreditation level of your school. Level 1 accreditation requirements Bachelor s or higher degree with additional semester credits totaling 150 semester hours, including: 24 hours of upper division or graduate level courses in financial accounting, auditing, taxation and management accounting 24 hours in undergraduate or graduate level courses in businessrelated subjects or accounting No more than 6 hours from internships Levels 2 & 3 accreditation requirements Bachelor s degree with additional semester credits totaling 150 hours. No specific courses are needed if exam requirements are met. 150 college credits There is currently nothing that dictates specific course requirements for the additional 30 credits. Aside from accounting, auditing and tax, CPAs are often called upon to have a broad base of business knowledge, from organizational management and marketing to information technology. Expanding general business knowledge will make you more valuable to an employer. WORK EXPERIENCE FOR CERTIFICATION In Minnesota, you must have one year of work experience in public accounting, business and industry, government or education. Experience can be earned before, during or after you ve completed the CPA exam and must be verified by a CPA, active or inactive. Examples of acceptable work experience include: Accounting Attest Compilation Financial advisory Tax Consulting skills For specific questions regarding what is considered acceptable experience, contact the Minnesota Board of Accountancy (see page 8 for list of key contacts). ETHICS EXAM FOR CERTIFICATION Minnesota requires candidates to complete a self-study ethics exam in order to become certified. The ethics exam is available for purchase through the AICPA in on-demand or book format and costs approximately $150. History has proven how crucial a reliable, trustworthy CPA is to a business. The role of a CPA is one that holds an irreplaceable key in any business, and without a good one, you are lost. Kate Russell, CPA Redpath and Company, Ltd. 7

8 KEY CONTACTS MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS (MNCPA) Visit the MNCPA website for exam, certification and career related information and resources. Select review course providers offer an MNCPA group discount x2 NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY (NASBA) NASBA approves exam applications. Visit the NASBA website for exam requirements, fees and application information. 800-CPA-EXAM ( ) AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) UNIFORM CPA EXAM SITE The AICPA develops exam questions, determines method of scoring and conducts analysis of exam results. Visit the AICPA website to find exam format, sample questions and tips about preparing for the exam. PROMETRIC TEST CENTERS Prometric centers are where you physically take the CPA exam. Visit the Prometric website to locate a test center and schedule, reschedule and cancel your exam MINNESOTA BOARD OF ACCOUNTANCY (BOA) The BOA is the regulatory body that enforces the laws, rules and standards governing the practice of accounting in Minnesota. Visit the BOA website to find information about CPA certification, including the application for CPA certification Exam and certification questions: vicky.oehrlein@state.mn.us General information questions: board.acct@state.mn.us 8 MINNESOTA SOCIETY of CERTIFIED PUBLIC ACCOUNTANTS

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10 FREQUENTLY ASKED QUESTIONS WHEN SHOULD I COMPLETE THE REQUIRED 150 SEMESTER HOURS? Many employers prefer to hire graduates who have completed the 150 hours. Not only does this enable employees to focus on work and the CPA exam, but they also meet requirements to work in other states. Firms that work in more than one state need employees who are substantially equivalent. Meeting the strictest requirement of 150 hours makes it easier for the employee and the firm. SHOULD I APPLY FOR ALL FOUR SECTIONS OF THE CPA EXAM AT ONE TIME? When you apply to take the CPA exam, you pay either the initial application fee or a registration fee each time you apply, therefore you re encouraged to apply for as many sections as you feel comfortable taking in a six month period. SHOULD I TAKE A REVIEW COURSE? Most candidates feel that investing in a CPA exam review course is important. Review courses are designed to teach specifically to the CPA exam and will help you become familiar with both the content and format of the exam. HOW DO I CHOOSE A CPA EXAM REVIEW COURSE? Look for a review course that works with your schedule and location to make the most of your time. You should also consider your study habits. Live review courses are a good option if you benefit from structured and focused study. Self-study and online CPA review courses are preferred by many exam takers because they offer flexibility and choice. HOW OFTEN CAN I TAKE THE CPA EXAM? Candidates can take each section of the exam four times a year. Candidates may take any or all four sections of the exam during any testing window. However, candidates are not allowed to take the same section more than once during any given testing window. CAN I RESCHEDULE A SECTION OF THE EXAM IF I NEED TO? You may reschedule your appointment at no charge as long as you reschedule at least 30 days in advance. If you reschedule between five and 30 days before your appointment, you must pay a fee to Prometric currently estimated at $34. If you reschedule within five days of your appointment, you will have to pay the full Prometric fee for the section you re rescheduling. WHAT IF I TAKE ONE OR MORE SECTIONS IN MINNESOTA AND THEN MOVE? WHAT WILL HAPPEN TO MY SCORES? When you take the exam, your scores become part of a National Candidate Database. This allows you to take part of the exam in one state and finish in another. Your scores are valid from state to state. HOW LONG DO I HAVE TO APPLY FOR MY CPA CERTIFICATE? You have three years from when you were notified that you passed the final section of the CPA exam to complete the remaining requirements of certification (education, self-study ethics exam, one year of experience) and apply for your initial certificate. Once all requirements are met, you can then apply for your CPA certificate through the Minnesota Board of Accountancy. If you do not meet all requirements within three years, you must also submit a report showing that you completed 120 hours of CPE. For an owner of a CPA firm or employee of a CPA firm, State Auditor or Legislative Auditor, you have 60 days in which to file your application for certification with the Minnesota Board of Accountancy once the exam, education and experience requirements are met. WHEN CAN I TAKE THE SELF-STUDY ETHICS EXAM? You can take the self-study ethics exam while in the process of taking the CPA exam or once you ve passed the CPA exam. A passing score can be earned no more than two years prior to certification or the ethics exam will need to be retaken. 10 MINNESOTA SOCIETY of CERTIFIED PUBLIC ACCOUNTANTS

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12 M NCPA FACTS ABOUT THE CPA EXAM AND CERTIFICATION 2015/2016 CPA CERTIFICATION THE FUTURE IS SO BRIGHT