CPA Certificate vs License: What’s the Difference?

An active CPA may apply to the Board for a change to inactive status by submitting an online request. An individual on inactive status is no longer considered a CPA and is not subject to the renewal fees or continuing professional education requirements. Although an individual on inactive status is allowed to keep, but not display, the physical CPA certificate issued by the Board, they cannot use the title “certified public accountant” in any manner. The total educational program shall include an undergraduate accounting concentration and related courses in other areas of business administration or the substantial equivalent of the foregoing.

You can check with your state’s board of accountancy to verify your eligibility. In an effort to reduce the use of paper, effective January 1, 2022, licenses issued or renewed will only be sent electronically unless a paper copy of the license is requested during the application or renewal process. In response to an application to reinstate a permit, the Board may require additional continuing education hours. 150 semester hours of college education, including a baccalaureate or higher degree conferred by an accredited college or university. All CPA individual permits, CPA firm permits, and CPA firm licenses are issued on an annual basis from July I to June 30 of each calendar year. Act 41 allows for portability of out-of-state professional licensees coming to work in Pennsylvania. Act 41 does this by granting all boards and commissions within the Commonwealth the authority to endorse licensees from other states, territories or jurisdictions who are active, in good standing and without discipline against their license or criminal conviction.

History of the CPA Designation

Nsed” as a CPA outside the US is because most people think of a “license” in UK/commonwealth terms. License in those terms refers to getting an audit license or qualification after one has already been certified/admitted to membership as a CA or ACCA. Typically requires 1-2 years of working experience supervised and/or verified by a CPA licensee. Ask about the office hours of the CPA; determine whether the office is open year-round; inquire if the CPA is available to take telephone inquiries. Check whether the CBA has taken any enforcement actions against the CPA. The CBA maintains a database of its Public Enforcement Documents where you can determine any enforcement action taken against a licensee. Let us know what type of degree you’re looking into, and we’ll find a list of the best programs to get you there.

For example, it raises awareness of the SOAR Program amongst members through training and seminars during which it invites SEC representatives to explain the review process and allows members to ask any questions. PICPA will also include topics such as “Common Errors on Financial Statements” within its trainings to cover common comments and findings raised by SEC as a result of the reviews of financial statements. In this way, PICPA members become more cognizant of the SEC’s views with respect to disclosures that need to be in the financial statements. As such, CPAs are often accountants that perform the same duties and functions as an accountant without the designation. These include performing audits of public U.S. companies and preparing audited financial statements for a company, such as a balance sheet or an income statement. If an individual or firm licensee does not renew his/her license to practice timely, the license will move to a “Lapsed” status .

The Path to CPA

Most states require CPAs to complete continuing education credits annually to maintain their certification. CPAs can pursue continuing education through professional organizations and colleges, both in person and online. The same legislation also mandates that CPAs must comply with continuing professional development requirements issued by the BOA and approved by the PRC. CPD is required to be offered in coordination with the accredited national professional accountancy organization—the PICPA. In order to fulfill its mandate, PICPA formed a CPD Council to offer comprehensive CPD courses.

Multiple-choice questions count for 50% of the total score and tasked-based simulations count for the other 50%.

Licensure

Applicants seeking renewal of their CPA permit shall complete no less than 120 hours of continuing professional education, including a minimum of four hours of ethics, during the three-year period preceding renewal. A minimum of 40 CPE hours shall be completed each calendar year effective January 1, 2022. Programs of learning shall meet the standards set forth in the Statement on Standards for Continuing Professional Education Programs jointly approved by NASBA and AICPA.

Other countries have certifications equivalent to the CPA designation, notably, the chartered accountant designation. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas. The bylaws of 51 state and/or territorial CPA societies provide for their participation in a Joint what is a cpa Ethics Enforcement Program so that, depending upon membership status, actions taken by one or more of these societies or the AICPA are in the names of both the society and AICPA. Whether you need to obtain your initial CPA license or are a licensed CPA needing to practice in a new location, we’ve outlined the steps you need to take. To find more information about the CPA profession, including salary facts and choosing a specialization, take a look at the AICPA’s This Way To CPA website.