Amidst a critical CPA crisis, Alabama presents a unique opportunity for those considering the CPA licensing process. A recent report by the Alabama Daily News highlights a concerning trend: the number of people taking the CPA exam has been on a steep decline nationwide.
In 2010, about 101,000 candidates took the CPA exam, but by 2022, this figure had dropped to just 67,000.
The state is facing a looming gap in its accounting workforce. With a significant number of current CPAs approaching retirement within the next 15 years, the demand for skilled accountants is expected to surge. This scenario presents a golden opportunity for individuals in Alabama. By pursuing CPA licensing now, you could be entering a profession that is not only in high demand but also offers substantial prospects for career growth and stability.
Let’s look at what it takes to get licensed in the Yellowhammer state.
Steps to Get a CPA License in Arizona
- Educational Requirements: Fulfill the necessary educational qualifications, including specific accounting and business-related courses.
- CPA Exam: Successfully pass the CPA exam. Enhance your chances of passing on the first attempt by enrolling in a reputable CPA review course.
- Experience Requirement: Complete the required amount of verified work experience in accounting under the supervision of a licensed CPA.
- Ethics Exam: Pass the AICPA Ethics Exam, an essential step to ensure adherence to professional standards.
- Application Process: Accurately complete and submit all the necessary CPA license application forms.
- Licensing Fee: Pay the applicable fee for the CPA license application.
CPA Licensure Requirements in Alabama
Alabama, as one of the four remaining two-tier states, has specific requirements for CPA licensure. This structure means that candidates who pass the CPA exam receive a certificate initially. However, to obtain a full CPA license, they must document appropriate work experience. The details of these requirements are outlined below, divided into general requirements, education, and work experience.
General Requirements
- Age: Candidates must be at least 19 years old.
- Citizenship: US citizenship is required.
- Residency: Alabama residency is not a requirement for CPA licensure.
Education Requirements
To be eligible to sit for the CPA exam, candidates must meet one of the following educational criteria:
- Accounting Coursework: Complete at least 33 semester hours in accounting at the upper division undergraduate and/or graduate level. Introductory courses are excluded. This coursework must include minimum requirements in specific subject areas.
- Graduate Degree in Accounting: Obtain a graduate degree in accounting from a program accredited in accounting by the American Assembly of Collegiate Schools of Business (AACSB) or a comparable accrediting organization recognized by the Board.
- Graduate Degree with Accounting Coursework: Earn a graduate degree from a program accredited in business by the AACSB or a comparable accrediting organization, and complete a course of instruction that includes all of the requirements specified in the first option.
Work Experience Requirements
In Alabama, the work experience requirements for CPA licensure are distinct, depending on the type of employment. These requirements are crucial for candidates who have passed the CPA exam and are seeking full licensure.
Public Accounting Experience
- Duration: One year (equivalent to 2,000 hours) of full-time employment.
- Scope: Experience must be in the field of public accounting, under the supervision of a licensed CPA.
- Verification: The experience must be verified by a licensed CPA who can attest to the quality and nature of the work.
Non-Public Accounting Experience
- Duration: Two years (equivalent to 4,000 hours) of full-time employment.
- Scope: Experience can be in various sectors, including:
- Private Sector: Roles in industry or corporate accounting.
- Government: Positions in local, state, or federal government agencies dealing with accounting, auditing, or finance.
- Academics: Teaching accounting or related subjects at a recognized educational institution.
- Verification: The experience must be verified by a CPA or an individual who holds a comparable position in the organization and can vouch for the candidate’s work.
Documentation and Verification
- Record-Keeping: Candidates are responsible for maintaining detailed records of their work experience, including the nature of work, duration, and the supervisor’s contact information.
- Submission: These records must be submitted as part of the CPA licensure application process.
- Approval: The Alabama State Board of Public Accountancy reviews and approves the work experience documentation as part of the licensure process.
Ethics Course and Exam Requirements
An integral part of the CPA licensure process in Alabama is the completion and passing of the AICPA Ethics Exam. This requirement underscores the importance of ethical standards and practices in the accounting profession. Below is a detailed overview of the Ethics Course and Exam requirements:
AICPA Ethics Exam
- Requirement: Passing the AICPA Ethics Exam is a mandatory step for all CPA candidates in Alabama. This exam assesses a candidate’s understanding of ethical practices and professional responsibilities in the accounting field.
- Content: The exam is based on the AICPA’s Code of Professional Conduct and covers a range of ethical scenarios and dilemmas that CPAs may encounter in their professional careers.
Ethics Course
- Purpose: The Ethics Course is designed to prepare candidates for the Ethics Exam. It provides comprehensive coverage of the AICPA’s Code of Professional Conduct and other relevant ethical guidelines.
- Format: The course includes study materials, case studies, and practice questions that help candidates understand and apply ethical principles in various accounting contexts.
- Pricing: The AICPA Ethics Exam course, along with the corresponding exam, is priced at $320, with a discounted rate of $250 for members of the AICPA.
Additional Requirements
- Registration: Candidates must register for the Ethics Course and Exam through the AICPA or authorized providers.
- Completion Timeframe: It’s important to check the specific deadlines for completing the Ethics Exam as part of the CPA licensure process in Alabama.
- Verification: Upon successful completion of the Ethics Exam, candidates must submit proof of passing as part of their CPA licensure application.
Licensure Fees for CPA in Alabama (Updated 2024)
As the CPA profession evolves, so do the components of the CPA exam. Understanding the updated fee structure is crucial for candidates planning their journey towards becoming a Certified Public Accountant in Alabama. Here’s an overview of the licensure fees, reflecting the changes brought by the CPA Evolution initiative:
Initial Application Fee
- Amount: An initial application fee of $100 is required.
- Purpose: This fee is applicable when submitting your application for CPA licensure in Alabama.
- Payment: The fee must be paid at the time of application submission.
CPA Exam Fees
- Cost Per Section: Each section of the CPA exam costs $254.80.
- Updated Exam Sections: The CPA exam now includes revised sections to align with the CPA Evolution model. These sections are designed to reflect the changing skills and competencies required in the accounting profession.
- Total Exam Fees: Given that there are four sections in the exam, if a candidate attempts each section once, the total exam fees would be $1,019.20.
- Payment: These fees are paid when scheduling each section of the exam.
Additional Fees
- Retake Fees: If a candidate needs to retake any section of the exam, the fee of $254.80 per section is applicable again.
- Other Costs: Candidates should also budget for additional expenses such as study materials, review courses, and any fees for rescheduling or canceling exam sections.
| Fee Per Exam Section: | $254.80 |
| Application Fee: | $100 |
CPA Evolution and Exam Changes in Alabama
The CPA Evolution is a significant transformation in the CPA licensure model, set to take effect in 2024. This initiative, jointly proposed by the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA), aims to align the CPA profession with the rapidly changing skills and competencies required in the business world. Here’s what CPA candidates in Alabama need to know about the upcoming changes:
General Changes in the CPA Exam
- New Structure: The CPA Exam will transition to a core-plus-discipline model. This model includes a combination of core subjects and specialized disciplines.
- Core Sections: All candidates will be required to complete core sections in Auditing and Attestation (AUD), Business Environment and Concepts (BEC), and Financial Accounting and Reporting (FAR).
- Discipline Sections: Candidates will choose one discipline to focus on: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).
- Updated Content: The exam content will be updated to include more emphasis on technology and analytical skills, reflecting the evolving nature of the accounting profession.
Specifics for Alabama CPA Candidates
- State Board Adoption: The Alabama State Board of Public Accountancy will adopt these changes in line with the national rollout. Candidates should stay informed through the Board’s communications.
- Transition Plan: Candidates who have started the CPA Exam under the current model but have not completed it by 2024 will need to understand the transition rules. The Alabama Board will provide specific guidance on how credits from the current exam sections will apply to the new structure.
- Preparation Resources: The AICPA will offer updated study materials and resources to help candidates prepare for the new exam format. Alabama candidates should utilize these resources for effective preparation.
- Licensing Requirements: While the exam structure is changing, the core licensing requirements in terms of education, ethics, and experience remain in place. Candidates should continue to fulfill these requirements as per Alabama’s regulations.
Action Steps for Candidates
- Stay Informed: Regularly check updates from the Alabama State Board of Public Accountancy and the AICPA regarding the CPA Evolution.
- Plan Accordingly: Familiarize yourself with the new structure and start preparing for the core and discipline sections relevant to your career goals.
- Seek Guidance: Utilize resources and advisement from educational institutions, CPA review courses, and the Alabama State Board to navigate these changes effectively.
CPA Evolution and Changes in 2024: Impact on Alabama CPA Candidates
The CPA Evolution is a significant transformation in the CPA licensure model, set to take effect in 2024. This initiative, jointly proposed by the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA), aims to align the CPA profession with the rapidly changing skills and competencies required in the business world. Here’s what CPA candidates in Alabama need to know about the upcoming changes:
General Changes in the CPA Exam
- New Structure: The CPA Exam will transition to a core-plus-discipline model. This model includes a combination of core subjects and specialized disciplines.
- Core Sections: All candidates will be required to complete core sections in Auditing and Attestation (AUD), Business Environment and Concepts (BEC), and Financial Accounting and Reporting (FAR).
- Discipline Sections: Candidates will choose one discipline to focus on: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).
- Updated Content: The exam content will be updated to include more emphasis on technology and analytical skills, reflecting the evolving nature of the accounting profession.
Specifics for Alabama CPA Candidates
- State Board Adoption: The Alabama State Board of Public Accountancy will adopt these changes in line with the national rollout. Candidates should stay informed through the Board’s communications.
- Transition Plan: Candidates who have started the CPA Exam under the current model but have not completed it by 2024 will need to understand the transition rules. The Alabama Board will provide specific guidance on how credits from the current exam sections will apply to the new structure.
- Preparation Resources: The AICPA will offer updated study materials and resources to help candidates prepare for the new exam format. Alabama candidates should utilize these resources for effective preparation.
- Licensing Requirements: While the exam structure is changing, the core licensing requirements in terms of education, ethics, and experience remain in place. Candidates should continue to fulfill these requirements as per Alabama’s regulations.
Action Steps for Candidates
- Stay Informed: Regularly check updates from the Alabama State Board of Public Accountancy and the AICPA regarding the CPA Evolution.
- Plan Accordingly: If you plan to take the CPA Exam in 2024 or later, familiarize yourself with the new structure and start preparing for the core and discipline sections relevant to your career goals.
- Seek Guidance: Utilize resources and advisement from educational institutions, CPA review courses, and the Alabama State Board to navigate these changes effectively.
Resources for Alabama Candidates
- American Institute of CPAs (AICPA) Alabama
- National Association of State Boards of Accountancy (NASBA) Alabama
- Alabama CPA Fee List
- Alabama CPE Quick Guide
- Alabama Society of CPAs (ASCPA)
- Local Chapters of the ASCPA
For more information, please visit the Alabama State Board of Public Accountancy or contact them at:
PO Box 300375
Montgomery, AL
36130-0375
Phone: 334-242-5700
Fax: 334-242-2711
Toll Free Phone: 1-800-435-9743
FAQs
In Alabama, candidates must have completed at least 33 semester hours in accounting (excluding introductory courses) at the upper division undergraduate and/or graduate level. Alternatively, candidates can have a graduate degree in accounting from an AACSB-accredited program or a graduate degree with the specified accounting coursework from an AACSB-accredited business program.
No, Alabama does not require CPA candidates to be residents of the state.
Candidates must be at least 19 years old to apply for the CPA exam in Alabama.
Candidates need one year of full-time employment in public accounting or two years in non-public accounting, which can include roles in the private sector, government, or academia.
Yes, passing the AICPA ethics exam is a requirement for CPA licensure in Alabama.
There is an initial application fee of $100. Additionally, each section of the CPA exam costs $254.80.
Alabama is a two-tier state, meaning candidates receive a certificate after passing the CPA exam but need to document appropriate work experience before being issued a full CPA license.
If you fail a section of the CPA exam in Alabama, you can retake that section. However, you will need to pay the exam fee of $254.80 for each section you retake. It’s important to review the AICPA’s guidelines on retaking exams, including any waiting periods and scheduling procedures.
Yes, once you are licensed as a CPA in Alabama, you are required to complete continuing professional education (CPE) to maintain your licensure. The Alabama State Board of Public Accountancy outlines specific CPE requirements, including the number of hours and types of courses that must be completed within a certain timeframe.
Yes, Alabama allows the transfer of CPA exam scores from another state. However, you must meet Alabama’s licensure requirements, including education and work experience. It’s advisable to contact the Alabama State Board of Public Accountancy for detailed information on the transfer process and any additional requirements that may apply.
Bryce Welker is a regular contributor to Forbes, Inc.com, YEC and Business Insider. After graduating from San Diego State University he went on to earn his Certified Public Accountant license and created CrushTheCPAexam.com to share his knowledge and experience to help other accountants become CPAs too. Bryce was named one of Accounting Today’s “Accountants To Watch” among other accolades. As Seen On Forbes
