Savanna Hoffman
The path to obtaining a Certified Public Accountant (CPA) license in the United States can be challenging for international students due to varying state requirements. While most states allow international candidates to be licensed, specific eligibility criteria must be met, including residency requirements in certain states. International students must also navigate different educational prerequisites, work experience requirements, and specific rules about who can sit for the CPA exam. This article will explore the best states for international students to obtain their CPA license, highlighting the unique considerations for this group of candidates.
| Characteristics | Values |
|---|---|
| Best States for CPA for International Students | Alaska, Virginia, Guam, North Dakota, California (before 2014), Colorado (before 2009) |
| Number of Papers in Exam | 4 |
| Paper Topics | Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), Regulation (REG) |
| Exam Duration | 4 hours each |
| Exam Availability | Year-round in all states except South Carolina |
| Exam Locations | The US and international CPA Exam testing centers |
| Exam Requirements | 120-150 semester hours of coursework, including business law, accounting, finance, taxation, and auditing; some states require a Social Security Number or Citizenship |
| License Requirements | Vary by state; may include working experience, residency, and evaluation of foreign academic credits by members of the National Association of Credentials Evaluation Services (NACES) |
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What You'll Learn
International CPA Exam testing centres
The CPA Exam is a highly sought-after accounting qualification in the United States, and while it is challenging for non-US citizens, it is not impossible. International students can take the CPA Exam in their home country or a nearby one, as the exam is offered in several international cities.
To take the exam in an international location, you must first select a participating US jurisdiction. Nine jurisdictions do not participate in the international administration of the exam. The Uniform CPA Exam is offered year-round in all states except South Carolina.
The CPA Exam has four papers of four hours each: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). Each of the four sections costs $371.55 USD.
International candidates must have a valid passport or national ID card to apply. If your passport does not require your signature, you must provide a secondary form of identification that includes your signature.
To schedule your exam, you can go through Prometric, which offers self-study and live classes in collaboration with global partners. You can also visit nabsa.org for more information on the international administration of the exam.
Best States for International Students
When considering the best state to apply for the CPA Exam, several factors come into play, such as credit hour requirements, work experience requirements, and recognition of international qualifications. Here are some states that have been recommended for international students:
- Alaska: Allows candidates to sit for the exam before graduation, so 3-year degree holders can take the exam if they fulfil the required accounting credit hours. The working experience requirement is flexible, but it is recommended to check with the state board before applying.
- Virginia: Requires only one year of relevant work experience, and the supervisor does not need to be a CPA. However, Virginia has a strict requirement for a social security number, which may be a challenge for international candidates.
- North Dakota: Similar to Virginia, North Dakota requires 150 credit hours and one year of relevant work experience. If finding a CPA to work under or verify experience is challenging, North Dakota may be a good option.
- Colorado: While some restrictions have been implemented, Colorado used to be very attractive to international candidates. Members of ICAI and ACCA were automatically qualified for the exam, and Chartered Accountant (CA) qualifications from specific countries were accepted.
It is important to note that requirements and rules can change, so it is essential to review the most up-to-date information when planning to take the CPA Exam.
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State requirements
Colorado
Colorado used to be a popular state for international candidates as they did not require 150 credit hours, and members of ICAI and ACCA were automatically qualified for the CPA exam. However, since December 2009, the state has restricted these rules. While it still accepts Chartered Accountant (CA) qualifications from specific countries, it no longer accepts CA qualifications from other jurisdictions, such as India. Additionally, as of 2012, Colorado no longer considers a CA certificate equivalent to a four-year accounting degree in the US.
California
California requires 150 semester hours, 48 accounting credit hours, and 10 credit hours in ethics for licensure. While a social security number (SSN) is not needed to take the exam, it is required by the state board to grant the license.
Montana
Montana previously allowed candidates to obtain a standalone CPA certificate upon passing the exam. However, it now follows the standard 150-hour rule and requires one year of relevant experience.
Virginia
Virginia offers flexibility in its work experience requirements. While one year of relevant experience is needed, Virginia does not require the supervisor or verifier of experience to be a CPA. This means that as long as you work in accounting, you can qualify for a license. However, Virginia has a strict requirement for a social security number, which may pose an obstacle for international candidates.
North Dakota
North Dakota is similar to Virginia in that it requires 150 credit hours. However, if finding a CPA to work under or verify experience is challenging, North Dakota may be a viable option.
Alaska
Alaska is a popular choice for international candidates as it allows students to sit for the exam before graduation. Three-year degree holders can take the exam if they have sufficient accounting credit hours. The working experience requirement is relatively vague, and it is recommended to check with the state board before applying.
Guam
In Guam, an "inactive" license can be obtained without an SSN, work experience, or the completion of 150 credit hours. However, this is on the condition that the individual does not practice within Guam territory or hold themselves as a Guam CPA.
It is important to note that each state has its own specific requirements, and international candidates should carefully review the eligibility criteria and residency requirements for each state before making a decision. Additionally, most states require an evaluation of foreign academic credits by a recognised third-party service, such as those listed by the National Association of Credentials Evaluation Services (NACES).
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Education requirements
International students intending to take the CPA exam in the US must meet specific educational requirements, which vary across different states. The majority of states require candidates to possess at least 120 semester hours of coursework from an accredited institution, with some states mandating 150 semester hours. Candidates must also typically complete coursework in business law, accounting, finance, taxation, and auditing.
While some states allow candidates to sit for the exam upon completion of their bachelor's degree, others require 150 semester hours to be completed before taking the exam. It is important to note that international candidates must choose and apply to a specific US jurisdiction, and the requirements may differ for each jurisdiction. For example, certain states may have residency requirements or require significant business conduct within their jurisdiction for at least six months.
Some states, like California, require 150 semester hours, 48 accounting credit hours, and 10 credit hours on ethics for licensure. On the other hand, Alaska allows candidates to sit for the exam before graduation, making it a popular choice for international students with 3-year degrees. Alaska also has a vague working experience requirement, allowing for flexibility in the interpretation of "relevant experience".
The National Association of State Boards of Accountancy (NASBA) provides information on the requirements for each jurisdiction, and the NASBA International Evaluation Services (NIES) tool can help international students find jurisdictions that meet their educational and documentation specifications. Additionally, the University of North Alabama (UNA) offers affordable online accounting courses to help international students earn the necessary credits.
It is recommended that international students start the application process early, allowing sufficient time for the evaluation of educational credentials, approval of exam applications, travel arrangements, and obtaining a US visa if necessary.
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Work experience requirements
The work experience requirements for international students to become Certified Public Accountants (CPAs) in the United States vary across different states and jurisdictions. While all jurisdictions mandate work experience for licensure, the specifics of these requirements differ.
In many states, work experience must be directly supervised by an active CPA with a valid U.S. license. However, some states may permit work experience to be verified by a CPA licensed by a U.S. jurisdiction or an international certification equivalent. For example, North Dakota requires work experience to be supervised by a CPA, while Virginia does not have this requirement.
The duration of work experience required also varies. While two years of professional accounting or tax preparation experience is recommended, only some states mandate this duration. Additionally, certain states, like Montana, require one year of relevant experience.
It is important to note that the criteria for obtaining a CPA license differ across states, and international candidates must meet specific eligibility requirements. Candidates with foreign academic credits must have their credentials evaluated by members of the National Association of Credentials Evaluation Services (NACES).
To summarise, while work experience is universally required for CPA licensure in the United States, the specifics of these requirements depend on the chosen state and jurisdiction. International students should carefully review the requirements of their desired state to ensure they meet the necessary work experience criteria.
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Residency requirements
It is important to note that the requirements vary from state to state, and international candidates should carefully review the specifications of their desired state board. For example, states like New York and California might have more stringent requirements, while others may offer more flexibility for international students.
Additionally, candidates should be aware that most State Boards of Accountancy require an evaluation of foreign academic credits by a third-party service approved by the state. This evaluation is necessary to ensure that the credits meet the state's CPA education requirements.
The path to obtaining a CPA license as an international candidate can be confusing, with various considerations such as education, experience, and residency requirements. It is recommended that candidates research the specific requirements of their chosen state board and utilize resources like the NASBA website, which provides information on participating jurisdictions and their respective requirements.
Overall, understanding and fulfilling the residency requirements is a crucial step for international students seeking to obtain a CPA license in the United States. By carefully reviewing the specifications of their desired state board, candidates can ensure they meet the necessary eligibility standards.
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Frequently asked questions
The requirements for the CPA Exam vary from state to state. Most states require 150 semester hours to take the exam, but some states allow you to sit for the exam after earning your bachelor's degree. Candidates must have at least 120 credit hours towards a four-year degree from an accredited institution.
There are two ways to apply for the CPA Exam: through the State Boards of Accountancy or NASBA. First, select a U.S. jurisdiction and apply via a participating State Board of Accountancy. Second, wait for the Notice to Schedule letter. Third, apply to take the tests abroad and complete the international registration procedure. Fourth, schedule to take the exam at a foreign location.
Colorado used to be one of the most attractive states for international candidates as 150 credit hours were not necessary, and members of ICAI and ACCA were automatically qualified for the CPA exam. However, on 9 December 2009, the State Board restricted this rule. Virginia is also a good option as it offers flexibility in working experience requirements.
Some challenges include residency requirements, citizenship or Social Security number requirements, and having to get foreign academic credits evaluated by a third-party service.
Yes, since 2011, the CPA exam has been offered in other countries. International candidates can take the exam in their own country or in a nearby country if there is no test center available.
