CPA Reciprocity is complicated in a way that each state has different rules, and the rules keep changing. Before we get into the details, let’s take a look at the history and the recent development to streamline the CPA reciprocity rules:

CPA Reciprocity: Why the Need

As you may aware, the CPA license is granted by individual State Board of Accountancy in the US. Because of this legacy issue, CPAs often encounter difficulties when it comes to cross-border practice, i.e. providing public accounting service to their clients across jurisdictions.

In order to cater the out-of-state CPAs and accounting firms, each state had its own rules, regulations and requirements to allow these professionals to provide services in that state. This created a patchwork system that was inefficient and difficult to understand.

CPA Reciprocity: The Solution

To streamline the process and reduce additional licensing fees, the AICPA and NASBA have been promoting a “uniform CPA exam requirements”: All states are deemed equal and thus the license granted are considered the same throughout the United States.

Specially, the AICPA and NASBA have worked together a “Uniform Accountancy Act” with the following guidance on the CPA exam requirements for each state (known as the “3E”s):

• Fulfill the 150 credit hours of “Education”
• Pass the Uniform CPA “Exam”
• Accumulate at least one year of “Experience”

Most of the states have adopted this rule since 2007.

CPA Reciprocity: Current Status

Only Virgin Islands are NOT considered substantially equivalent.

The following are substantially Equivalent States but an alternative path still exists that allow candidates to get a CPA license without fulfilling the 3 Es above. In other words, these are “borderline” states that are recognized by some but not others in terms of reciprocity:

• California — until January 1, 2014
• Colorado — 2015
• New Hampshire — until July 1, 2014
• Vermont

Case Study: CPA Reciprocity in Illinois

For example, Illinois has adopted the Uniform Accountancy Act. It is obvious that it does not recognize Colorado, Puerto Rico and Virgin Islands, but it doesn’t allow reciprocity to states such as Delaware, New Hampshire and Vermont. California is considered “borderline” and may be approved under certain circumstances.

Source: Illinois State Board of Accountancy

Implications To CPA Exam Candidates

Please note that if you are picking a state to sit for the exam, please pay attention to the states that have yet to fully comply with the substantial equivalency test. The good news is, these states will eventually be fully recognized once they scrap away the alternative pathways.

Further Reading

• NASBA page on substantial equivalency
• CPA mobility resources from AICPA

Got A Question?

First of all, feel free to drop a question on my Facebook page.

You might also want to check out this book on 12 FAQs From International CPA Candidates which I am giving away for free.

All you need is to sign up for this (also free) newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Read CPA Reciprocity Rule and Substantial Equivalent States on I Pass the CPA Exam!!

Is it possible to become a CPA for H4 visa holders? 

I have lots of readers in this situation, and I know many of you are highly educated professionals who follow their spouse to the United States for a better future for your family. Since you aren’t allowed to work (for now, at least), wouldn’t it be nice to study for the CPA exam?

CPA for H4 Visa Holders: Common Obstacles

In order to do that, you need to get qualified for the exam, but it isn’t easy. Here are two common difficulties:

• No social security number
• Not able to fulfill the experience requirement, since work supervised by US CPA is required.

Let’s see how we can overcome these issues.

1. Social Security Number (SSN)

The CPA is a regulated industry, and SSN is the best way for the state board to track and regulate its licensees. Therefore, most states require their CPA exam candidates to submit their SSNs in the application form.

What is less known is that in some cases, the state board allows exemption to this rule if there is a valid reason. Some states request that you write a letter to explain the situation, while others may have an existing waiver form or an affidavit to fill in. They don’t usually specify this in their rules (because not many candidates fall into this category). You need to take the initiative to ask, and double check the procedure by email.

Because of this, the issue of SSN is likely less of a concern.

2. Work Experience

As part of the “3E”, candidates need to fulfill the experience requirement in order to get the license. 1-2 years are required, and this experience must be supervised and verified by an active US CPA.

This makes things exceedingly inconvenient for H4 visa holders because the previous experience (in your home country) is not likely to have been supervised by a US CPA, and then now that you are in the US, you are not allowed to work.

One of the solutions is to select a state that allows verification instead of strictly supervision of experience. Montana and Washington are two examples. There are other states, but they may not offer SSN waivers.

For example, if you used to work as a public accountant in India and you have someone whom you know who are a US CPA, then you can ask him/her to verify your previous experience for you. The same works for Washington but this verifier must be a US CPA licensee in good standing for at least 5 years.

One Possible State: North Dakota

If you fulfill the degree and 150 credit hour requirement, and that the only issue is the SSN and experience requirement, then North Dakota should work.

You don’t need SSN to apply to this state, and once you pass the CPA exam, you can get your experience verified by a supervisor (or former one in your home country). This person does not need to be a US CPA.

If You Don’t Have Enough Credit Hours…

Other obstacles for CPA for H4 visa holders include lacking the credit hours to fulfill the 150 credit hour rule, or that there are not enough accounting courses, especially for states that only count upper-division (intermediate/advanced) courses.

If you are determined to get the CPA qualification, you can first work on fulfilling the 150 credit and/or the accounting credit hours first. The articles below may help you get started:

• How to efficiently make up for credit hours
• Which states to consider for non-accounting majors (or those who lack accounting courses)
• General note to Indian or 3-year bachelor degree CPA exam candidates

If you have other questions, or you have stories to share, drop me a note on my Facebook page. Thank you and good luck!

Read CPA for H4 Visa Holders: Can You Get Qualified? on I Pass the CPA Exam!!

Update: A newer post on Foreign Credential Evaluation is available with updates and more tips!

The following is the original post.

Credential Evaluation Agencies comes to rescue if you attend a university outside the US or if your school is not regionally accredited. What they do is to “translate” your transcript into a US-equivalent in order to facilitate the review process by the State Board.

How To Pick Credential Evaluation Agencies

• Some states recognize all agencies that are members of the National Association of Credentials Evaluation Services (NACES) (more details below), but states such as Delaware only recognizes FACS for example. It is important to check your State Board’s websites for details.
• The foreign credential evaluation agency will ask you to pick a state before sending the transcripts, so be prepared. You may find this post on best states for international CPA candidates helpful.
• It takes anywhere from a few days to 4-6 weeks depending on the evaluation agency you are using, but please expect a possibility of 6-8 weeks in case you get hit in their “peak season”.
• Please expect to pay around US$100-300 for the basic service, and more if you have additional request e.g. extra official copies, express service, mailing by courier.

Note:

• Illinois and Texas state boards evaluate the transcript (domestic and foreign) themselves.
• Here is the approved evaluation agencies for each state for your information.

How Does A Credential Evaluation Report Look Like?

Here is a sample from a report by ECE.

Do You Have Any Recommendations?

I actually don’t have specific recommendations – as long as they are recognized by your state board, you can either pick the least expensive one or the fastest one. While I heard some agencies may be slightly lenient than the others, the difference is very small and it is hard to tell.

If you really want some suggestions…

1. NASBA International Evaluation Service

This credential evaluation service is run directly by NASBA (national body of the state boards). The service was launched in July 2012 and is now covering 23 states.

Pros

• Easy submission online — it should take around 5-10 minutes to complete. Please note that you still need to send in the original transcript.

Cons

• Relatively expensive: At $200 per evaluation, it is more expensive than FACS but I have to say it is reasonable given the fast turnaround time. Additional evaluation will cost $100 and a change in jurisdiction will cost $50.
• Accept only original transcripts. Unlike many agencies that accept notarized copies, NASBA evaluation service is pretty strict on the documentation. You can request that your original documents to be returned.
• This service does not serve all jurisdiction — I am sure NASBA looks to expand its service but it will be up to the state boards to decide.

Please check out NASBA International Evaluation Service for details.

2. Foreign Academic Credential Services (FACS)

FACS is the one I used previously for my own evaluation of extra accounting courses I took outside the US.

The company was formed to replace the AICPA Foreign Academic Credential Services in 1982 (i.e. I see the company as “semi-official”, before the NASBA service at least). It is one of the more (if not the most) established foreign credential evaluation agencies and the founding member of NACES, its industry association.

What you need to gather before the application

• Information of all your educational background, starting from the elementary school. You can also include any professional qualification e.g. chartered accountant that you may have.
• Decision on which state you are registering for the CPA exam. You can ask FACS to evaluate several states for you but each evaluation costs $100-200 (depending on the state)

Pros

• It is the most affordable — the charge depends on the state you are applying to, but it ranges from $100-200.
• Accepts notarized copy of your transcripts*

* Note on notarization:

Copies of original records will be accepted if they are officially notarized and certified as true copies by the issuing school, a U.S. educational foundation, a U.S. Consul, AMIDEAST or a similar agency.

Cons

• It takes the longest to process — 4-6 weeks, and for me it took 8 weeks.
• For international candidates you want to send in the transcripts at least 4-6 MONTHS before the desired testing windows because you’ll need the time to apply for visa and making hotel and traveling arrangements.

Please go to our FACS page for further information.

3. World Education Services (WES)

WES is one of the largest credential evaluation agencies with over thirty years of experience. I’ve never used their service but I heard they are quite popular.

Pros

• There is an express service available: $100 extra for three-day service; $195 extra for same-day service
• For Indian candidates, they have a page specifically on their Indian policy: certain 3-year degrees can be considered a full US bachelor degrees
  Note: I heard of instances that their report which evaluated a 3-year degree as a 4-year degree has been rejected by state board. As a result I am no longer recommending readers to go through this route. It may still work, but it could be risky.
  

Cons

• WES accepts transcript sent directly from the institutions only
• More expensive: basic service costs $160

Please go to WES website for further information.

4. Educational Credential Evaluator (ECE)

I have seen quite a lot of candidates using ECE because of their speedy service. ECE is a private, non-profit organization.

When compared to FACS…

Pros

• ECE has a more informative website
• Express service available: $45 extra for 12-business day service, $75 for 5-business day service, and $27o for 1-business day service
• Please double check, but I heard they accept notarized transcripts
• ECE returns your original transcripts without specific request as in the case of FACS

Cons

• Delaware, Georgia, Montana and Texas state boards do not recognize ECE.
• The course-to-course service (applicable to CPA exam) costs $135 — which could be more expensive than FACS depending on the state your are apply to.

Please go to ECE website for further information.

Any Info On Other Credential Evaluation Agencies?

I am working to write a page for each of them. In the meantime, you can refer to this list of approved evaluation agencies for each state.

For more information on how to become a CPA as an international candidate, check out our master’s page on the process, and sign up to our free e-course specifically for aspiring CPAs outside of the US.

Read Credential Evaluation Agencies for the CPA Exam on I Pass the CPA Exam!!

IQEX Exam, which stands for stands for the International Qualification Examination, is a professional exam designed for CAs and CPAs in reciprocating countries with the United States.

Who Takes the IQEX Exam?

Chartered and Certified Public Accountants from Canada (CA only), Australia (CA only), Ireland, Mexico, New Zealand and Hong Kong who would like to become qualified as CPA in the US.

Important note: only an accountant who was educated in the country where he/she becomes a CA can qualify for this CPA reciprocity exam. Otherwise, the person can still qualify but has to sit for the entire Uniform CPA Exam.

Why Take the IQEX Exam

It’s worth the effort if you see yourself working for a US company or a US subsidiary using US GAAP. CPA in the US is also the most globally recognized accounting qualification in the world.

Why Take this Instead of the Uniform CPA Exam?

The advantage of IQEX over the standard Uniform CPA Exam is that it covers much less topic — IQEX takes 3 hours to complete while the Uniform CPA exam takes 14 hours. After passing IQEX you can apply for the same CPA license in participating states.

But I have Never Heard of IQEX…

It is true that the number of IQEX candidates has declined considerably as more countries and companies are switching to adopt IFRS (International Financial Reporting Standard).

In light of this, IQEX has undergone a major change in content and delivery format: IQEX is now the same as the REG part of the Uniform CPA exam.

The Current Format

Same as REG, the exam will be 3 hours long and contain four testlets:  3 test-lets (i.e. groups of questions) each with 24 multiple choice questions, and the 4^th testlet with 6 task-based simulation.

Please find the content breakdown:

• Ethics, Professional, and Legal Responsibilities 17%
• Business Law 19%
• Federal Tax Process, Procedures, Accounting, and Planning 13%
• Federal Taxation of Property Transactions 14%
• Federal Taxation of Individuals 16%
• Federal Taxation of Entities 21%

Candidates are expected to learn Internal Revenue Code and Federal Tax Regulations to confidently pass the Taxation Area. Furthermore, candidates are also expected to learn Federal Law and Uniform Acts for the Business Law Area.

IQEX Pass Rate

The pass rate has never been disclosed, but given the syllabus is only 1/4 of the full uniform CPA exam I am willing to bet that the pass rate is way above 50%, the one for the uniform CPA exam.

Where Can I Take the IQEX Exam?

The exam is and continues to be offered at Prometric centers in the U.S and Canada.

The new format will be offered during the second month of every testing window (e.i., February, May, August, November)

How Do I Start?

You can download the application form from NASBA at the beginning of July every year (things will change in Nov 2012). Once your application is processed, you will receive a NTS (Notice to Schedule) and schedule a time at the / of your choice. Please note the application deadline is September 1.

For more information specific to your country, go to NASBA’s official IQEX page for details.

Note: in order to obtain the CPA license from one of the states, you will need to fulfill the working experience requirement as well. For Canadians this is typically not an issue but candidates from other countries please take the time to check the requirements.

IQEX Exam Preparation and Study Materials

CPAexcel has a IQEX review course, and Roger CPA Review has a promo code specifically for your IQEX exam.

Not Sure If You are Qualified for the IQEX Exam?

Feel free to drop a question on my Facebook page.

If you are not qualified to take the IQEX exam, you may want to check out how you can handle the CPA exam application as an international candidate.

You might also want to check out this book on 12 FAQs From International CPA Candidates which I am giving away for free.

All you need is to sign up for this (also free) newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Read IQEX Exam Preparation, Study Materials and Pass Rate on I Pass the CPA Exam!!

I did not get my degree in the US. How do I know if my coursework fit the educational requirements?”

For the CPA exam, a bachelor degree in a 4-year university is the minimum requirement to sit for the exam.

For international students, this can be tricky as they aren’t sure whether the degree from their local countries are qualified. Solution: foreign credential evaluation agencies that specialize in evaluating your transcripts on behalf of the state boards.

Please note: Illinois and Texas state boards evaluate the transcript themselves (both domestic and foreign). Candidates from these two states do not need to go through these third-party evaluation agencies.

How to Select Foreign Credential Evaluation Agencies

Before you contact an evaluation agency, you need to select the state in which to register for your exam. There are two reasons:

• Each state has its own list of approved evaluation agencies — you don’t want to pay for a report that is not recognized by the board.

• Each state board has slightly different qualifying rules. Therefore, the agency needs to know which rules to apply to when reviewing your transcripts.

Once you settle on a state and get the list of approved agencies, you can pick one based on:

1. Evaluation fee
2. Turnaround time
3. Reputation

1. Evaluation Fee

The fee ranges from $100 to $300 — price difference is generally correlated to turnaround time. For example, FACS is one of the most affordable agency charging $100 for most states, but it takes 4-8 weeks with no rush service.

State boards generally require a “course-by-course” evaluation. This is different from the “general evaluation” that some agencies are offering. You need to read the fee schedule carefully when comparing the fees.

They may also have rush services available but expect to add at least $100 to the price tag. With proper planning, you can usually avoid to pay this extra cost.

2. Turnaround Time

The number of days required to produce a report also varies considerably. Most agencies have a 2 week turnaround time, but can vary from 5 business days to 8+ weeks.

3. Reputation

The evaluation process is both an art and a science. Some evaluators can possibly give you more credit hours than the others.

Having said that, the evaluation result should not be substantially different as evaluators run the risk of getting disqualified by the state boards. Because of this, I personally do not recommend an agency based on how “lenient” it interprets your transcripts.

I do recommend agencies that have better customer service, because a friendly evaluator makes your life much easier during the exam application process. I ran a little experience and you can take a look at my findings at the end of this post.

Tips on Foreign Credential Evaluation Process

1. Submitting The Documents

Most evaluation agencies require the candidates to send in the original or official transcript . By original, it refers to the copy issued by your school that is sent to you in a sealed envelope; by official, it means a copy (either the original or certified copy) sent directly from your school to the agency.

In most cases, this requirement is set by the state board. For example, California state board asks the evaluators to issue report only if the candidate supplies the original copy.

I understand that in some countries it is impossible to have the school sent an extra copy for this purpose. In this case, customer service is very important because a good evaluator can suggest a way to work around this issue instead of insisting on getting what is officially required.

Special note: if your current name is different from the name on the transcript (e.g. maiden name), then you need supporting document to show the reason of name change, e.g. a marriage certificate.

2. Translation of Documents

If your transcript is issued in a language other than English, a word-for-word translation is required.

You can explore whether there is an in-house translation service at the evaluation agency. If not, you can either get it translated by an official/governmental agency (as in China), or you can contact a translation service that is a member of American Translators Association (ATA).

3. Turnaround Time

I list out the estimated turnaround time for each foreign credential evaluation agency below (click on the links for details). Please note that the time counts only when you have submitted all the required documents.

For rush service, it is counted in business days. For example, a 2-day rush service is 2 business days.

4. Tracking The Progress

Some evaluation agencies have a convenient online tracking system, while others may have an email notification service whenever your application is moved to the next stage. A few have no updates and you have to call them to check. You may take this into consideration if it is important for you keep track of the progress.

List of Evaluation Agencies

I mentioned about a little experiment I ran on these agencies. This is what I did: I sent out the same email message to all evaluators and asked them 2 questions on behalf of the candidates. I recorded the time as well as the detailness/ usefulness of the reply.

Prompt and Personal Reply

Evaluators accepting attested / certified photocopies of transcripts:

• Academic Credentials Evaluation Institute (ACEI)
• Education Evaluators International (EEI)
• Educational Perspectives
• Education Records Evaluation Service (ERES)
• Foundation for International Services (FIS)
• EDUCES (Global Education Credential Evaluation Service)
• SpanTran Evaluation Services

Evaluators accepting original and/or official transcripts only:

• A2Z Evaluations
• Academic & Credential Records Evaluation & Verification Service (ACREVS)
• American Education Research Corporation (AERC)
• Academic Records Evaluation Center (AREC)
• Center for Educational Documentation (CED)
• Global Education Group (GEG)
• International Education Research Foundation (IERF)
• Center for Applied Research, Evaluation and Education (IESCAREE)
• Josef Silny & Associates (JS&A)
• NASBA International Evaluation Services (NIES)

Prompt but Generic Reply

• Academic Evaluation Services (AES)
• Academic and Professional International Evaluation (APIE)
• Foreign Academic Credential Service (FACS)
• Foreign Credentials Service of America (FCSA)
• World Education Services (WES)

Slow Reply / Hard To Reach

Either no reply after follow-up email, or email address not available

• Foreign Credential Evaluator
• Foreign Educational Document Service
• Foreign Transcript Evaluation Service

No Longer Offer Service For CPA Exam / Licensing Application

• Education International
• eValReports
• Evaluation Service Inc (ESI)
• International Academic Credentials Evaluation (IACEI)

Please note that this list is based on my own experiment only, and I am always collecting more data points from readers to improve my analysis.

Any Other Questions?

Feel free to drop a question on my Facebook page.

You might also want to check out this book on 12 FAQs From International CPA Candidates which I am giving away for free.

All you need is to sign up for this (also free) newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Read Foreign Credential Evaluation for CPA: My Recommendations on I Pass the CPA Exam!!

How to become a CPA for international candidates and students?

Since most international candidates do not have a “preferred” state to practice their profession (they either need the qualification for credentials only, or that they work outside of the US), they are free to pick a state with the most favorable CPA exam requirements.

However, this flexibility could be overwhelming when there are 55 states and jurisdictions to choose from. How should you start? Which are the most popular states for international candidates?

Updated:  February 2014

CPA for International Candidates: States that (in My Opinion) No Longer Works in Your Favor

Here are a few popular states that worked for many non-US candidates for many years, but they may no longer work due to change of rules.

1. Colorado — Getting A Lot More Restricted

Colorado used to be one of the most attractive states for international candidates. Not only that the full 150 credit hour is not necessary, members of ICAI and ACCA are automatically qualified for the CPA exam.

Unfortunately, on 9th December 2009, the State Board has restricted this rule. Specifically:

• The State Board is no longer accepting Association of Chartered Certified Accountants (ACCA) certificates as evidence of having met educational requirement.
• Chartered Accountant (CA) qualifications from Australia, Canada, Ireland, Mexico and New Zealand (part of the U.S. International Qualifications Appraisal Board (IQAB) MRA agreement) is accepted; but those from other jurisdiction (e.g. India) is no longer accepted.

Sometime in early 2012 there were further restrictions applied to candidates with 3-year degrees:

• CA certificate is NO LONGER evaluated as equivalent to a 4-year accounting degree in the US. In other words, it will no longer work for BCOM + CA holders. Candidates with MCOM should be fine.

Working Experience

• Colorado has a rather strict working experience requirement: it has to be supervised by an active CPA in the US or the CA in the “qualified” jurisdiction as stated above.
• But you can go through the “education in lieu of experience” rule which allows you to use 150 credit hours to “exchange” for the working experience requirement.
• This rule is scheduled to be removed in 2015.

Details on Colorado CPA Exam Requirement

2. Illinois — Loved By Those Who Just Want A CPA Certificate (Until July 2012)

Illinois was a 2-tier state until July 1, 2012. Nowadays you need to fulfill one year of working experience to get the license.

There is still some advantage to go through Illinois — it is one of the few states that do not require social security number.

Details on Illinois CPA exam requirements

3. Delaware: Little Reason To Pick This State Now

Delaware used to be the only state that allow Associate degree holder (equivalent to a 3-year Bachelor degree) to sit for the exam. Rule has been changed in August 2012.

Details on Delaware CPA requirement

4. Michigan — All Waivers Removed

Michigan used to be a state that automatically gives out NTS (your CPA exam admission ticket) if you have a Chartered Accountant membership certificate.

They have since restricted the rules and are no longer consider CA as an educational requirement.

Details on Michigan CPA requirement

States that I Think Should Work in Some Degree

It depends on your educational background, but the following could be a good starting point for you.

1. California: 150 Credit Hours Now Required

Since January 2014, California requires 150 semester hours, 48 accounting credit hours (vs the previous 24) and 10 credit hours on ethics  to obtain the license.

Note that while California does not require a social security number (SSN) to sit for the exam, the state board requires a SSN to grant you the license.

Working Experience

One advantage of registering in California is that the state board may recognize working experience verified by a non-US CPA, but it’s quite a hassle if your experience is gained outside of California.

Details here on California CPA requirement page.

2. New Hampshire: New Rules Effective July 1, 2014

New Hampshire used to recognize Indian CA certificates but have stopped doing that since 2012. There are new rules effective July 1, 2014 that further restricts the eligibility.

Education

NH currently requires only 12 credit hours in accounting, which suits non-accounting majors. Starting from July 1, 2014, 30 accounting credit hours, 24 business credit hours and 150 overall credit hours is required.

If you haven’t started your application process, you will most likely NOT able to meet this deadline.

Working Experience

New Hampshire has a strict working requirement: that you have to work under a direct supervision of an active CPA, but the rule has been relaxed such that non-public accounting experience is allowed and “CPA equivalent” are qualified to supervise and verify the experience.

Conclusion

After the July 2014 rule, you essentially need to be an accounting major to get qualified. There isn’t much reason for international candidates to pick this state going forward.

Details on New Hampshire CPA requirement

States that Provides the Flexibility

1. Virginia: May Accept BCOM + CA; Your Supervisor/Verifier doesn’t Need to be a CPA

You can sit for the exam in Virginia as long as you have 120 credit hours, 24 accounting credit hours and 24 business credit hours. Also, I heard that BCOM + CA could be deemed an equivalent US bachelor degree as long as the evaluation report says so. Given rules change all the time, BCOM + CA holders who want to take this route must first double check with Virginia state board.

Another great advantage of Virginia is the flexibility of working experience requirement. You need to work 1 year in a relevant field, but, unlike most other state boards, Virginia doesn’t require your supervisor (i.e. your verifier of experience) to be a CPA. This means that as long as you work in accounting, you can qualify to get the license.

Restrictions/disadvantages of Virginia:

• Strict requirement of social security number, which makes most international candidates and all H4 visa holders ineligible.
• You need to be concentrated in accounting, i.e. this state is not for non-accounting majors.
• At the end of the day you do need 150 credit hours to get the license.

Details on Virginia CPA requirements

2. North Dakota: Supervisor/Verifier Doesn’t Need to be a CPA

North Dakota is a typical state that requires 150 credit hours. However, if your bottle neck is on the experience requirement (i.e. cannot find a CPA to work under or verify experience for you), then North Dakota should work. Similar to Virginia, it does not require your supervisor to be a CPA and this supervisor can sign the verification form for you. What’s better than Virginia is that social security number is not required.

More Info on North Dakota CPA requirements

3. Guam: 120 Credit Hour + No Experience Needed if You don’t Mind the Inactive License

To me Guam is a hidden gem — as long as you are an accounting major with a 4-year bachelor degree, and do NOT practice within Guam territory, you can get an “inactive” license without SSN, working experience and fulfilling the 150 credit hours.

If you are not an accounting major you do need to fulfill the 150 credit hours.

Details on Guam CPA exam requirements

4. Montana: Can Sit Before Getting 120 Credit Hours

Montana is one of two states that doesn’t require a full 4-year bachelor degree to sit for the exam. All you need to do is to get 24 credit hours of upper-level accounting courses and another 24 credit hours of business courses. Note that you still need to fulfill the 150 credit hours to ultimately get the certificate or license.

Two great things about Montana:

• SSN is not required
• You can get your experience verified by a US CPA without the need to work under him/her.

Montana Working Experience Requirements

You may be glad to know that Montana remains a two-tier state which means that you can get a CPA certificate after passing the CPA exam and fulfilling the educational requirements. In other words, no working experience required.

Even if you want to get the full license, you can get your experience verified by a US CPA but that CPA doesn’t need to be your boss, which makes life much easier. This means that you should be able to verify your experience outside of US.

More info on Montana CPA requirements

5. Alaska: Somewhat Similar to Montana — Can Sit Before Getting 120 Credit Hours

There are quite a lot of international candidates going through Alaska so it’s worth mentioning here. Since Alaska allows candidates to sit for the exam before the graduation, 3-year BCOM degree holders can technically sit for the exam as long as they fulfill enough accounting credit hours (the requirement depends on whether you are an accounting or non-accounting major).

The working experience requirement is also quite vague: 2 years of relevant experience deemed appropriate by the Board. I suggest that you find out whether your work is acceptable (by double checking with the state board) before applying for the exam.

Similar to Montana, you need 150 credit hours to get the license. If you are a 3-year BCOM graduate, it means that you will most likely need a 2-year master’s degree to complete the licensing requirement.

Details on Alaska CPA requirements

6. Washington: Experience can be Verified by Someone other than Your Boss

Washington requires candidates to have the full 150 credit hours to sit for the exam, but the state board allows you to have your experience verified by a CPA who is not your supervisor. In other words, it is similar to Montana in that you can verify your non-US experience by someone you know who happens to be a US CPA — could be  friend, a mentor, a business partner… which makes things much easier.

Note that for Washington, this verifier must be an active CPA for 5 years or more.

More info on Washington CPA requirements

For Your Further Reading

• Application process of non-US CPA candidates
• CPA exam requirements by state
• Is there any chance still for B.COM or other 3-year degree holder?

CPA For International Candidates Still A Reality. Questions Are Welcome!

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Read CPA for International Candidates and Students: Best States to Apply on I Pass the CPA Exam!!

If you are an international student preparing for your CPA application, or someone who live outside the USA looking to get the CPA title, you are at the right place.

(Click here for general information on how to become a CPA)

Let me tell you that I am an international student myself who got my CPA while working in Hong Kong (within 9 months of preparation) — I have been there, and I’d love to share my first-hand experience with you.

The CPA Application Procedure

The good news: the application procedure is the same regardless of where you are from.  To get qualified for the CPA license, candidates generally need to fulfill the “3E” requirements:

• Education
• Examination
• Experience

For the standard 3E, it would be:

• Education – a minimum of 4-year bachelor degree from a regionally accredited institution and 150 credit hours of coursework, with a minimum number of courses in accounting and business
• Examination – the 4-part Uniform CPA Exam
• Experience – 1 year of relevant accounting experience verified by a US CPA

Please note that in the US, the CPA license is granted by each of the 55 US states/qualified jurisdictions and each of these states have slightly different rules. This causes a lot of confusion, but at the same time creates opportunities for whose can’t exactly fulfill the 3E.

Challenges for International Candidates

If you fulfill the eligibility requirements above, the application process is fairly straightforward. However, if you are like most international candidates, you face an uphill battle because your profile does not exactly fit a typical accounting student in the US and you will have to find ways to work around it.

For example, if you are educated outside the US, chances are the your school is not regionally accredited or that it is not a 4-year degree; if you live outside the US, you may not have the social security number (SSN) which is essentially the ID card for US residents.

Let Me Help You Figure This Out

Now, please click on the situation most appropriate to your case: (A) I live in the US and…

1. I am an international student in accounting or finance / I have a working visa in the US
2. I am a H4 visa holder living in the US
3. I am a non-accounting major

(B) I do not currently live in the US and…

1. I obtained a master’s degree in accounting/taxation/finance/MBA outside the US
2. I obtained a bachelor degree in accounting from a 4-year university outside the US
3. I obtained a bachelor degree in accounting from a 2 or 3-year university
4. I am a Chartered Accountant (CA), ACCA holder or other professional qualifications in another country

A1. International Student / Holder of Working Visa in the US

Good news! There is little to worry about if you get your education in the US.

General Note

If you complete 100% of your coursework in the US, you are essentially the same as the other domestic US applicants; if you did part of your coursework outside the US, you will have to send your transcripts to the credential evaluation agencies so they can “translate” the transcript, with a fee.

Accounting Majors

If you are an accounting major studying in a US college, then you should be able to fulfill all the education requirements, and your school should be able to provide everything you need to apply for the CPA exam. If you study in North Carolina and Alabama in which the state boards only grants license to US citizens, you will need to register in another state.

Relevant but Not Accounting Majors (e.g. Business, Finance)

If you are a graduate with some coursework in accounting, then you will likely get only 120 credit hours instead of the required 150 hours, because in most other countries accountancy is a 4-year degree (see below for 3 year degree) There are two ways to solve this issue:

(i) Go Through Colorado or Guam

Colorado is the only state that gives out CPA qualifications to 120 credit hours holders (until 2015).  Guam also issues “inactive license” for those with only 120 credit hours, but the candidate must be an accounting major.

Note: California requires 150 credit hours for license effective January 1, 2014. Same case for New Hampshire effective July 1, 2014.

(ii) Take Courses To Get That Extra 30 Credit Hours

What you can do is to make up for some courses based on what you are lacking (check with your preferred state for details) and in most cases you can do this through community colleges or online courses.

Learn how to make up for accounting courses here

A2. H4 Visa Holders with Accounting Background

You might be  a BCOM, BCOM + CA or even a BCOM + MCOM and you are now in the States with your spouse.

General Note

First of all, if you obtained your degree from an university outside the US, then you need to go through a credential evaluation agency to get your transcripts/marksheets “translate” into something that the US people can understand. It will cost you $150-250 and some time but generally shouldn’t be a complicated process.

Two Common Challenges

The biggest challenge for you to that you don’t have SSN; and you cannot work in the US.

(i) SSN – Social Security Number

On surface, almost all state boards will tell you the SSN is required. You have to understand that for regulated professions like CPA, SSN is an important tool to track down those who do not comply with the rules.

However, for those who do not have or are unable to get the SSN, many states have a SSN Affidavit form that you can fill in, or you can simply write a letter to the State Board and they will grant you the exemptions.

(ii) Not Allowed to Work

Obviously you don’t want to jeopardize your visa status so you will have to be extra careful on this. There are two ways to work around this issue:

You can pick a state that does not require working experience (e.g. Colorado, Montana, Guam). There might be some compromises e.g. you may only get a CPA certificate or an inactive license which restricts the use of the term CPA on your business card, but you can always apply for the full license status once your visa status is changed, e.g. when you get the green card.

You can also find a state that allow non-CPA to supervise and verify your experience. This way you will most likely able to make use of the work previously done in your home country

Another way is for you to volunteer for an organization that allows you to work under a US CPA. You will need to be careful with this: if you volunteer for a job for free, which is otherwise a paid opportunity, it will amount to an illegal activity.

Many H4 visa holders volunteer at religious or social organizations which typically will be considered okay. You may also want to consult with the expert in this area For more discussion continue to read this post written for H4 visa holders.

More suggestions on state boards with flexible experience requirements

A3. Non-Accounting Majors with No Coursework in Accounting

It is getting incredibly tough to get the CPA qualification without a lot of accounting coursework on your belt. Technically it is possible for you to become a CPA but expect to spend a fair amount of time, energy and money to just get qualified.

More information for non-accounting majors.

B1. Master’s Degree in Relevant Subjects Obtained from Non-US University

First of all, if you have a master’s degree in accounting, taxation, finance or business administration (i.e. MBA), you will most likely able to fulfill the 150 credit-hour educational requirements, because 150 credit hour is equivalent to 5 years of tertiary education.

Notable exceptions include:

(i) Correspondence Courses

Unfortunately correspondence courses taken from non-regionally accredited universities CANNOT be counted by most state boards. There might be a few states that allow it (Delaware is one according to two readers). If you know of this please email me.

(ii) You have a 2-year bachelor degree

If you have a 2-year bachelor and a 2-year masters, it will add up to 4-years of coursework which will be short of the required 150 credit hour requirements. You may still be able to qualified but it would be prudent to ask the NASBA coordinator of your state or the state board representative before applying.

Extra Steps That You Need To Take

The only extra step you need to do is to send over your transcripts to a foreign credential evaluation agency where they will translate into something equivalent to the US educational system. It takes some time and a bit of a hassle, but it shouldn’t be complicated.

B2. 4-Year Degree in Accounting Obtain Outside the US

General Note First of all, you will need to get your transcripts evaluated by a foreign credential evaluation agency. It takes any time from a few days to 8 weeks, depending on the agency you are getting.

Possible Issue

You will likely get only 120 credit hours instead of the required 150 hours. There are two ways to solve this issue:

(i) Go through Colorado or Guam

Colorado is the only state that gives out CPA qualifications to 120 credit hours holders (until 2015).  Guam also issues “inactive license” for those with only 120 credit hours, but the candidate must be an accounting major.

Note: California requires 150 credit hours for license effective January 1, 2014. Same case for New Hampshire effective July 1, 2014.

(ii) Take Courses To Get That Extra 30 Credit Hours

What you can do is to make up for some courses based on what you are lacking (check with your preferred state for details) and in most cases you can do this through community colleges or online courses.

Learn how to make up for accounting courses here

B3. 2/3-Year Degree In Accounting Obtained Outside The US

It used to be fine if you are a 3-year degree holder in accounting to get qualified for the CPA exam. However, it no longer works.

If you are very, very serious about getting the US CPA, I would strongly suggest that you take a 2-year master’s degree (non-corresponding if outside the US) to fulfill the requirements.

Otherwise, it might be easier if you consider something such as the CMA with a much simpler application process. If you have other professional qualifications e.g. CA, ACCA, please read B4 below.

B4. Holder of Other Accounting Related Professional Qualifications

Similar to the case in B3, some states used to waive all the educational requirements if you have other professional qualifications in other countries.

However, things have changed a lot since a couple of years ago and unless you are a CA from countries with reciprocal agreements and take the IQEX, chances are that these professional qualifications do not help at all.

I’ve seen trends especially since 2012 that State Boards consider these as professional credentials instead of educational credentials, so they cannot be used to count towards the educational requirements.

I have a post dedicated to Indian BCOM candidates but is also relevant to other 3-year degree holders.

Need Help to Figure All This Out?

Drop me a note on Facebook! You might also want to check out this book on 12 FAQs From International CPA Candidates which I am giving away for free.

All you need is to sign up for this (also free) newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Read CPA Application Process for International Candidates: Step-by-Step Guide on I Pass the CPA Exam!!

People often talk about the “150-hour rule” when it comes to the US CPA exam qualification.

What is it, does it apply to you, and what you can do if you don’t have enough credits?

An Overview

Let’s start with a bit of background. Unlike most other accounting professional qualifications around the world, the US CPA title is granted by the 55 US jurisdictions instead of a centralized agency at the federal level.

Each state has its own state board of accounting responsible for the rules and regulation of the accounting industry within its territory. As you can imagine, the exam requirements can be quite different and this has caused confusion among candidates and regulators.

In the last 10 years or so, two accounting associations, the AICPA and NASBA worked hard to standardize the requirements across the states. They came up with a general rule known as the  “3E”s: Education, Exam and Experience.

Within the educational requirement, it is recommended that CPA exam candidates have a 4-year bachelor degree (the standard degree in the US) and 150 credit hour worth of courses from regional accredited educational institutions.

By Jan 1, 2014, all states except Colorado, New Hampshire and Vermont have adopted the 150-hour rule. These remaining states have scheduled to do the same: NH and VT by July 2014, and CO by July 2015.

CPA Exam 150 Credit Hours: What Exactly is the Requirement?

150 credit hours is equivalent to 5 years of higher education. It can be accumulated in different ways:

• 4 years of bachelor + 1 year of master’s degree , typically in accounting.
• 4 years of bachelor with accelerated program covering 150 credit hours.
• 4 years  of bachelor + 30 credit hours of non-degree courses.

If you enroll in an accounting program in a US university, the school makes sure you get enough credit hours and meet the requirement of the state. However, if you graduated a long time ago (when the 150 hour rule was not in place), you are a non-accounting major or that you were educated outside of the US, you might need to do something extra to get qualified for the exam.

How to Make Sure I Fulfill the Educational Requirements?

Here is a check list:

1. Do You Have Enough Accounting and/or Business Credit Hours?

All state boards ask for a minimum number of accounting and business courses. Some states have general requirements, while others request specific courses e.g. US GAAS course in the case of Colorado.

If you need to make up for courses anyway, make sure the new courses cover whatever is required here.

2. Is the CPA exam 150 credit hours an exam or licensing requirement in your state?

Roughly half of the state boards allow candidates to sit for the exam with 120 credit hours only. They can fulfill the rest of the requirements (30 credit hours) after passing the exam.

In this case, you can choose to take the CPA exam first, but bear in mind the extra courses required to get the license.

3. Are Online Courses Accepted?

Most states are fine with online courses as long as the school is regionally accredited. In other words, if your school is not regionally accredited, e.g. it operates outside of the US, there is a high chance that the course work cannot be accepted.

I heard from readers that there are exceptions and correspondence courses outside of the US are counted. I can’t give you a general answer as everyone’s case is different, but you can check with your state board directly by emailing them your own personal situation and see if they can give you a specific answer.

4. Can Diploma Courses be Part of the CPA exam 150 Credit Hours?

Diplomas are defined differently in different countries. The rule of thumb is that courses shown in an official transcript by regionally accredited educational institutions are accepted.

You can only know for sure if you request a report from the foreign credential evaluation agencies.

5. I Have a 3-Year Degree but I Have More than 150 Credit Hours. Do I Qualify?

This is a common misconception among international candidates. The degree requirement (4-year bachelor degree or above) is separate from the 150-hour rule.

Even if you have 200+ hours, if you don’t have a 4 years or more of higher education, I am afraid you cannot get qualified.

6. Is There a State that Allows 120 Credit Hour Holders? I Just Want a Certificate for Credentials Only.

The vast majority of state boards have stopped issuing CPA certificates. Montana still issues certificates but 150 credit hour is required.

If you don’t want to fulfill the 150 credit hours and experience requirement, Guam has an inactive license that should work.

Technically speaking, Colorado also allows that until July 2015, but given that the licensing requires 1 year of working experience supervised by the US CPA, it’s likely too late to start.

Conclusion

Getting the full 150 credit hours for the CPA exam is the big trend — there might be ways to get around it, but I no longer recommend readers doing that going forward.

If you have a 4-year degree, getting the extra 30 credit hours is a hassle, but definitely doable. Here are some suggestions to get it done:

1. Take courses in local community colleges. This is the most affordable way.

2. Take accounting, auditing and taxation courses designed to fulfill the CPA exam requirements e.g. UNA program in collaboration with CPAexcel.

3. Take the CPA review courses in an accredited university, e.g. the online Roger CPA program in CSU Chico. This is more expensive, but saves time and effort.

Check out how you can take these course here in this post.

Any Questions?

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If you find this article helpful, consider signing up to my e-course to learn about the CPA exam application process, and tips on how to get qualified and pass the exam:

Read CPA Exam 150 Credit Hours: Requirement, Rules and Updates on I Pass the CPA Exam!!

This page is dedicated to Filipino accountants who want to obtain a CPA license in the US. Please go to the respective page if you are looking for the following:

• I am an American CPA looking for job opportunities in the Philippines
• I am a Filipino looking for help in passing the CPA Board Exam in the Philippines

Introduction

Are you one of the Philippine-licensed CPAs who aspires to work abroad as a CPA but can’t use your well-earned license in other countries?

While it is frustrating that Filipinos do not enjoy reciprocal recognition from the US, getting the US CPA license is still a rewarding and achievable goal.

First of All… I Know You Are Smart!

I would like to congratulate you on passing the CPA Board Exam in the Philippines. I heard it is one of the most difficult professional exams in your country.

I am especially intrigued by the fact that only 4,066 out of 8,525 passed the Certified Public Accountant licensure examinations given by the Board of Accountancy in the cities of Manila, Baguio, Cagayan De Oro, Cebu, Davao, Iloilo and Legazpi inOctober 2011. Passing rate is typically less than 50%.

Wow, that’s tough.

Why Would You Want To Get the US CPA License As Well?

My CPA exam site gets a lot of traffic from the Philippines so I bet many of you are seriously thinking about the US CPA. If you…

• work in Big 4 with the aspiration to transfer to different countries;
• work in multi-national companies especially the ones headquartered in the US; and
• work abroad someday…

… then the US CPA qualification is useful.

The Basic Requirements

To get the CPA license, all candidates need to fulfill the “3E”, that is, Education, Exam and Experience. Generally speaking, you need to:

• Obtain a 4-year bachelor degree AND accumulate 150 credit hours (but at least 120 credit hours for a few states)
• Pass the 4 parts of the CPA exam within 18 months
• Get your relevant experience properly verified

Detailed Steps

1. Determine Your Eligibility

In the US, a typical accounting student goes through 4 year of university (or what is commonly known as “college”) plus one year of Master’s degree in accounting. 1 year of studying generally means 30 credit hours, so a 4-year and 5-year degree roughly translates to 120 and 150 credit hours respectively.

It is fortunate that the Philippines has the same 4-year bachelor program as the US. Since you have to go through an additional 4 years for Masters’ Degree, fulfilling the150 hours credit should not be an issue for you.

2. Pick a State and Register for the CPA Exam

Since the US CPA license is granted by individual state instead of by a centralized / federal agency, you will have to choose a state to register for the exam.

Each state has slightly different rules but you can find a summary of the exam requirements by state here. I have also written an article on the popular states favored by international candidate for your reference.

3. Send Transcripts to Evaluation Agencies

Once you have chosen a State Board, then the next step is to send your transcripts to a “foreign credential evaluation agency”.

Note: If you get part or all the educational credits from a US school, then for this part of the education you don’t need to go through the evaluators but you’ll need to ask this US school to send the transcript to the State Board directly. Please read the instruction in the CPA exam application form for details.

4. Get Approved for the Exam

Once you are approved to sit for the exam, you will receive a Notice To Schedule (NTS) which will allow you to schedule your exam in sites called the prometric center.

You will have to fly to a US jurisdiction for the exam, but since Guam is so close to I don’t think this is an issue. There are a few international CPA exam sites, but if you live in the Philippines you are most likely not qualified.

Having said that, if you are a long-term resident in Japan, Brazil and in Middle Eastern countries you may be qualified. Note: You don’t need to physically take the exam at the state you register at, e.g. you can register at Colorado and go to Guam for the test.

5. Study for the Exam

In terms of the CPA exam, it is likely the easiest step for international candidates. At least it is something within your control. If you need help I’d suggest that you take a review course from one of these Top 10 CPA review courses.

Once you complete the 4 parts of the exam, most states require that you take the ethics exam but this is much easier in comparison.

6. Fulfill the Experience Requirements

Most states require 1 to 2 years of experience. The challenge is that the State Boards only recognize “relevant” experience that is “properly verified”:

(a) Note on relevance

Some states only recognize public accounting i.e. auditing or related work in a CPA firm. If you work in the corporate, non-profit organization and non-US government agencies your experience cannot be counted.

IMPORTANT: when you pick a state to get qualified for the exam, this is an important consideration.

(b) Note on proper verification

All experience will have to be verified by a US CPA who keep his/her license active during the time you work(ed) for him/her.

Most states require that this person to be your direct supervisor. Some states allow CPA “or equivalent”, which usually means a Canadian CA or Australian CA, but for the exact definition of this equivalency you will have to check with your State Board.

If you have previous working experience in the Philippines, unless you worked under a US CPA (or for some states, CAs from the “reciprocal countries” e.g. Canada and Australia) your experience cannot be counted. I know it is frustrating but an important note to remember.

FAQ

1. I’m a Filipino, how do I become a U.S. CPA Licensee even if I am not a US Citizen?

Most states allow non-US resident/citizen to apply for the CPA exam and license. Please go to this page for more info on the application procedure.

2. Which credential evaluator should I use?

The State Board of your chosen state should indicate which evaluators you can pick from. Some allow you to choose anyone that is a member of the evaluators’ association (i.e. NACES), while others only recognizes one, e.g. FACS for Delaware. Please double check the list in the application form for details.

3. How many credit hours do you think I can get?

It will depend on the subjects you have taken at the university. At this stage you will have to make some commitment i.e. to pay the evaluators for a professional evaluation. It costs anywhere from ~ $150-200.

Express service is available but will cost multiples of that. Some states offer pre-evaluation service which will indicate which courses you lack. I think it is a good idea if you aren’t sure whether you can get qualified for that state.

4. Which State Should I Apply?

You can apply to any state that you are qualified in terms of the educational requirements. It is also wise to pick a state that requires more flexible or even no working experience requirements.

I am All Confused… Can You Help Me?

Feel free to learn more about this CPA exam mini-course here before signing up.

Read US CPA Exam For Filipinos: Application & Steps To Get You License on I Pass the CPA Exam!!

Good news to CPA candidates in the Middle East – you can soon take the exam in your region instead of taking all the trouble to fly to the US and take the exam within the US jurisdiction.

AICPA/NASBA has announced that as early as August 2011, 4 countries in the Middle East will operate CPA exam sites and allow their citizens as well as those in adjacent countries to take the exam without incurring additional time, stress and cost.

Who is Eligible to Take the CPA Exam in Middle East?

The citizens, permanent residents and long-term residents of  Bahrain, Kuwait, Lebanon, and the UAE (as well as in Japan and Brazil) will be qualified to this new scheme. The good news is that people from Egypt, Qatar, Oman, Saudi Arabia and Jordan can travel to any of these 4 Middle Eastern countries to take the exam.

Are There Any Restrictions?

Yes. Not all states choose to participate in allowing their candidates to sit for the exam in these international occasions. Also, candidates have to obtain a full CPA license (i.e. need to fulfill the working experience) within 3 years or else their exam results will be nullified.

For Your Further Reading

• Source document from NASBA specifying the international administration of the CPA exam. You can find the 3-year restriction in Section IIa.

• My page on CPA exam international sites for a more comprehensive discussion.

Need Help To Figure All This Out?

Feel free to ask me a question on Facebook.

You may also want to sign up for this FREE newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Feel free to learn more about this CPA exam mini-course here before signing up.

Read CPA Exam In Middle East: How Can You Apply? on I Pass the CPA Exam!!

International candidates could be asked to take a US Federal Taxation course for CPA if they apply for the exam in certain states such as Delaware.

Which is the Best Federal Taxation Course for CPA?

Delaware State Board follows the NASBA guidelines when it comes to this criteria. NASBA requires US federal taxation courses must be taken through a “regional accredited educational institution”. In other words, you can freely pick a course (online or offline) based on pricing and availability for your specific testing window.

How to Check on Regional Accreditation

There isn’t a central database in which you can check the regional accredition for each educational institutions. Instead, they are accredited by these six regional accreditors depending on the state they are operating. Another easy way is simply to google the school name togher with the word “accredited” and you’ll likely get some useful findings.

Federal Taxation Course for CPA: The Offering

A few choice suggested by past candidates:

1. University of North Alabama (UNA) through partnership with CPAexcel

This is my #1 recommendation because I received the most positive feed back from my readers. The course is among the most affordable and is designed specifically for candidates to fulfill the CPA educational requirement.

• UNA is accredited by the Commission on Colleges of Southern Association of Schools and Colleges
• Course Name: AC 462P: Federal Income Taxation I
• Course length: about 3 months
• Number of semester credits: 3
• Availability: not always available. Please check website for details
• Cost: $400 which include textbook costs

2. The Friday Center at UNC-Chapel Hill

• Accredited by: Southern Association of Schools and Colleges
• Offered via University of North Carolina (UNC) Chapel Hill Online
• Course name: ACCT 335 Federal Income Taxation (click on the link to the taxation course)
• Course length: Self paced
• Number of semester credits: 3
• Availability: Can enrol anytime
• Cost: $798 + textbook ($221 from Amazon)

3. Raritan Valley Community College (RVCC)

• Accredited by: Middle States Association of Colleges and Schools
• Course name: ACCT-221-99V: Tax Accounting I
• Course length: about 3.5 months
• Availbility: not always available. Please check website for details
• Cost: $400 + textbook ($208 from Amazon)

4. UCLA

• Accredited by: Western Association of Schools and Colleges
• Course name: MGMNT X127: Federal Income Taxation
• Course length: about 2.5 months
• Number of semester credits: 4
• Availbility: not always available. Please check website for details
• Cost: $550 + textbook ($173 from Amazon)

5. LSU Independent and Distance Learning

A number of international candidates took the LSU course so it could be another choice for you. Please note the following:

• Cost is supposedly around $250, but I am not able to verify this as course is not available at the time of my writing.
• LSU requires proctoring in the exam and the proctor has to be ALA certified i.e. a libarian in the US won’t work. It may be a hassle to arrange proctoring in places other than the US.

6. Indiana University

Update: Note that The School of Continuing Studies closed on June 30, 2012 and is no longer taking registration.

• Accredited by: Higher Learning Commission and North Central Association
• Course name: A328 Introduction to Taxation
• Course length: Self paced
• Number of semester credits: 3
• Availability: Can enrol anytime
• Cost: $579 (Indiana residents) or $638 (non-Indiana residents) + textbook ($76 from Amazon)

For Your Further Reading

Now that you are almost done with the CPA application process, it is time to plan ahead studying guides. Please check out our most popular page in this website: CPA Exam review course comparison, and pass the CPA Exam on your first attempt!

Got A Question?

First of all, feel free to drop a question on my Facebook page.

You might also want to check out this book on 12 FAQs From International CPA Candidates which I am giving away for free.

All you need is to sign up for this (also free) newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Feel free to learn more about this CPA exam mini-course here before signing up.

Read Federal Taxation Course for CPA: Recommendations from my Readers on I Pass the CPA Exam!!

International CPA candidates, including US citizens who resides in foreign countries, have longed for an opportunity to take the CPA exam closer to home.

CPA Exam International Administration: 3 Options

For candidates with non-US background, there are 3 possible ways for you to become a CPA in the US:

• Take a “mini” CPA exam, known as the IQEX
• Take the CPA exam in your home or residence country
• Take the CPA exam in the US

1. IQEX

AICPA, the national association of the CPAs, have signed up reciprocal agreements with certain countries such that it becomes much easier for the certified or chartered accountants in these countries to get an additional title in the United States.

IQEX is a 4 hour exam (vs the regular 14-hour CPA exam). You will have to be a member of the following associations to enjoy the benefits:

• CICA (Canada)
• IMCP (Mexico)
• ICAI (Ireland)
• ICAA (Australia)
• HKICPA (Hong Kong)
• NZICA (New Zealand)

Note that you still need to pick a state and go through the regular requirement notably related to working experience to get the full license. Please go to this page on IQEX for further information.

2. Taking the US CPA Exam in Your Home or Residence Country

AICPA has been working on various parties on this international testing “project” for two years now and they are happy to roll this out in August 2011.

CPA Exam International Testing Sites have Rolled Out in These Countries

• Bahrain
• Brazil
• Kuwait
• Japan
• Lebanon
• The UAE

These countries are selected based on the following 4 criteria:

1. Volume demand as demonstrated by candidates from those countries taking the exam in the United States
2. Ability to deliver the exam without legal obstacles
3. Security threat to the CPA exam (in terms of physical security and intellectual property)
4. Existence of established prometric centers

What’s The Same as the Domestic Testing Sites

• The CPA exam itself will be exactly the same as those offered within US jurisdictions.
• The exam sites will be similarly administered by prometric centers.
• The education and working experience requirements are the same.

What’s Different

• The exam is offered in the first 2 months in each calendar quarter, i.e. the same as the US test centers.
• Please note that not all states allow candidates to sit for the exam in international locations. You can check out the list here.
• Extra fee required:
  • AUD: $307.97
  • BEC: $327.49
  • FAR: $307.97
  • REG: $327.49

FAQs

1. I am not a citizen/resident of these countries but I live pretty close by. Am I eligible?

Unfortunately no.  You have to be a citizen, permanent resident or long-term resident of these countries in order to get qualified and you are required to provide proof of your status.

The exception is for the middle east countries, notably Egypt, Qatar, Oman, Saudi Arabia and Jordan. The citizen, permanent resident and long-term resident may sit for the exam in Bahrain, Kuwait, Lebanon, and the UAE.

Sep 29, 2014 update: Citizens and permanent residents of India are now allowed to sit for the exam in the Middle East. Here is the announcement from AICPA for your reference.

2. I am applying for Delaware and I live in Egypt. Can I take the exam in one of the international locations?

No, not for Delaware. The list is subject to change, but for now these states allow candidates to sit for the exam in non-US jurisdictions.

For international candidates, the notable exception is California and Delaware.

Any Other Points That I Should be Aware Of?

• *Important* the candidate has to be licensed within 3 years
• You cannot get a refund or apply for an extension of the NTS should you fail to appear for the exam in the international location.

Looks Like I am Qualified. What’s the Next Step?

First, go to the NASBA page for the desired state and there should be a button called “Test internationally” (for example, for Colorado it is in the bottom right hand corner of the page). Just click away and pay the fee!

3. Taking the CPA Exam in the US

This is the default route — taking a plane to any of the 54 jurisdiction and take the test. If you aren’t qualified for the #1 and #2 route above this is your way.

I understand that it seems to be unfair when citizens of the countries above enjoy the benefits of taking the exam in their home country… but this has been the only way for every international candidates before 2011. If this makes you feel better

Another Option…

If you happen to live closer to Guam, Puerto Rico or the Virgin Islands, you can sit for the exam there too! I took the exam in Guam and spent a couple of days vacationing afterwards. Please note that there is an extra $200 fee if you choose to take the exam in Guam.

Any Other Questions?

If you have specific questions, NASBA has recently created a hotline for international candidates:

1.CPA Exam Services (newly extended hours)

• 800-CPA-EXAM or 615-880-4250
• Days and hours of operation: Monday – Thursday, 8 a.m. to 2 a.m. and Friday, 8 a.m. to 6 p.m. Eastern Standard Time (UTC – 5)

2. Guam Call Center

• 1-855-CPA-GUAM or 671-300-7441
• Days and hours of operation: Monday – Friday, 7 a.m. to 4 p.m. Guam uses Japan Standard Time (UTC + 9)

For Further Information

• Official AICPA international testing FAQ
• International candidate consent agreement (wordings on the 3 year restriction can be found on p.2)

Got A Question?

You are most welcome to drop me a note via Facebook!

You may also want to sign up for this (also free) newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Read CPA Exam International Sites: Apply Now! on I Pass the CPA Exam!!

The AICPA, NASBA and Prometric have jointly announced an arrangement to allow Indian CPA exam candidates to take the exam in the Middle East. I would like to give you the background, and factors to consider whether to take this new option.

Here is the transcript for those with slower internet connection, or those who prefer the text format.

Overview of International Testing Center

The CPA exam testing centers have become available outside of the US since August 2011, in response to demand from US citizens living abroad, as well as from international candidates.

Bahrain, Kuwait, Lebanon and the UAE are the four countries in the Middle East where you can sit for the US CPA exam.

Only citizens and long-term residents in the Middle Eastern countries can take advantage of these international testing centers. Since October 1, 2014, Indian citizens and permanent residents have been granted this privilege as well.

Is It the Same Exam?

One of the most frequently asked questions is whether the exam is the same as the one offered in the United States.

The answer is yes in many aspects. Specifically, the exam offered in the US and in international locations is the same in terms of:

• Exam content, format and duration
• Delivery: both exams are 100% computerized and taken at prometric centers
• Testing windows: you can sit for the exam in the first two months of each quarter
• Language: the exam is administered in English regardless of location
• Registration process: both US and international candidates should send in applications to their chosen state boards

The CPA exam and licensing requirements are generally the same but I will highlight the few differences below.

What are the Differences?

1. State Board Restrictions

First of all, there are a few state boards that do not participate in the international administration of the CPA exam. In other words, you cannot take the exam outside of the US if you register in the following states. California, Delaware and New Jersey are some of the more popular states for international candidates.

2. Licensing Requirements

Candidates taking the exam in non-US locations must complete the licensing requirements within 3 years. This includes completing the experience requirements of your state board. Please note that this requirement is not necessary if you take the exam in US jurisdictions.

3. Exam Fees

Additional fees apply in non-US exam locations. As of 2014, FAR and AUD cost $307.97 per section, versus $192.03 if you take the parts in the US. BEC and REG cost $327.49 per section, versus $172.51 in US locations.
The exam fees are substantially more expensive, but it will likely be offset by the lower travelling and accommodation cost for international candidates.

4. Identification Proof on the Day of the Exam

All candidates sitting for exam in non-US testing locations must present a valid passport. The rule is different in US centers where other IDs, such as driver’s license, are acceptable.

Summary

Taking the exam in the Middle East is the same as that in the US in most aspects, but the important difference include the few states that don’t take part in this international administration program, and that you need to complete all educational and experience requirements within 3 years.

For Your Further Reading

• AICPA press release on this new arrangement
• Restrictions on candidates who choose to take exam in non-US locations (Please refer to p.2 on the 3-year deadline to complete all requirements)
• NASBA’s page on international exam administration
• More information on the Middle Eastern testing locations

Questions Are Welcome!

Drop me a note on Facebook!

You may also sign up for this free newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Feel free to learn more about this CPA exam mini-course here before signing up.

Read Indians Taking AICPA Exam in Middle East on I Pass the CPA Exam!!

Good news! The AICPA/NASBA has finally answered the call from international candidates with the opening of 6 international sites since August 2011.

Qualified candidates can stay in their home country or long-term country of residence and take the exam without the hassle and extra cost on travel and accommodation.

CPA Exam Outside US is now a Possibility

Here are the current international exam sites:

• Japan
• Bahrain
• Kuwait
• Lebanon
• The United Arab Emirates
• Brazil

But Here is the Catch…

In general, only US citizens, as well as citizens and long-term residents of those countries are allowed to take the exam in the non-US test centers.

Citizens and long-term residents in most South American countries can take the exam in Brazil; those in most Middle Eastern countries, as well as those from India, can take exams in any of the 4 Middle Eastern countries.

There are other specific rules including requirement to get the verified experience within 3 years. You can get more details on the development from these pages:

• CPA exam international sites – Overview
• CPA exam in Japan
• CPA exam in Middle East
• CPA exam in Brazil

If You don’t get Qualified, But Happen To live in East Asia…

I would highly recommend taking the exam in Guam because the similar time zone reduces traveling time and cost, and you don’t need to suffer jet lag. There is a surcharge of taking the exam in Guam but it’s worth it.

Similarly, if Hawaii is closer to where you live, you can consider taking the exam there (and pamper yourself afterwards!)

Please note that by taking the exam in Guam / Hawaii you do NOT need to register in these states. Please see the next FAQ for details.

For Your Further Reading

• How do I start my CPA application as an international CPA candidate?
• Which state is best for international candidates?
• I’ve picked a state, but can I take the exam in another state?
• I have a 3-year bachelor degree. Do I qualify?

Got A Question?

First of all, feel free to ask a question on Facebook!

You might also want to check out this book on 12 FAQs From International CPA Candidates which I am giving away for free.

All you need is to sign up for this (also free) newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Read CPA Exam Outside US: A Look at the International Locations on I Pass the CPA Exam!!

IQEX Exam, which stands for stands for the International Qualification Examination, is a professional exam designed for CAs and CPAs in reciprocating countries with the United States.

Who Takes the IQEX Exam?

Chartered and Certified Public Accountants from Canada (CA only), Australia (CA only), Ireland, Mexico, New Zealand and Hong Kong who would like to become qualified as CPA in the US.

Important note: only an accountant who was educated in the country where he/she becomes a CA can qualify for this CPA reciprocity exam. Otherwise, the person can still qualify but has to sit for the entire Uniform CPA Exam.

Why Take the IQEX Exam

It’s worth the effort if you see yourself working for a US company or a US subsidiary using US GAAP. CPA in the US is also the most globally recognized accounting qualification in the world.

Why Take this Instead of the Uniform CPA Exam?

The advantage of IQEX over the standard Uniform CPA Exam is that it covers much less topic — IQEX takes 3 hours to complete while the Uniform CPA exam takes 14 hours. After passing IQEX you can apply for the same CPA license in participating states.

But I have Never Heard of IQEX…

It is true that the number of IQEX candidates has declined considerably as more countries and companies are switching to adopt IFRS (International Financial Reporting Standard).

In light of this, IQEX has undergone a major change in content and delivery format: IQEX is now the same as the REG part of the Uniform CPA exam.

The Current Format

Same as REG, the exam will be 3 hours long and contain four testlets:  3 test-lets (i.e. groups of questions) each with 24 multiple choice questions, and the 4^th testlet with 6 task-based simulation.

Please find the content breakdown:

• Ethics, Professional, and Legal Responsibilities 17%
• Business Law 19%
• Federal Tax Process, Procedures, Accounting, and Planning 13%
• Federal Taxation of Property Transactions 14%
• Federal Taxation of Individuals 16%
• Federal Taxation of Entities 21%

Candidates are expected to learn Internal Revenue Code and Federal Tax Regulations to confidently pass the Taxation Area. Furthermore, candidates are also expected to learn Federal Law and Uniform Acts for the Business Law Area.

IQEX Pass Rate

The pass rate has never been disclosed, but given the syllabus is only 1/4 of the full uniform CPA exam I am willing to bet that the pass rate is way above 50%, the one for the uniform CPA exam.

Where Can I Take the IQEX Exam?

The exam is and continues to be offered at Prometric centers in the U.S and Canada.

The new format will be offered during the second month of every testing window (e.i., February, May, August, November)

How Do I Start?

You can download the application form from NASBA at the beginning of July every year (things will change in Nov 2012). Once your application is processed, you will receive a NTS (Notice to Schedule) and schedule a time at the / of your choice. Please note the application deadline is September 1.

For more information specific to your country, go to NASBA’s official IQEX page for details.

Note: in order to obtain the CPA license from one of the states, you will need to fulfill the working experience requirement as well. For Canadians this is typically not an issue but candidates from other countries please take the time to check the requirements.

IQEX Exam Preparation and Study Materials

CPAexcel has a IQEX review course, and Roger CPA Review has a promo code specifically for your IQEX exam.

Not Sure If You are Qualified for the IQEX Exam?

Feel free to drop a question on my Facebook page.

If you are not qualified to take the IQEX exam, you may want to check out how you can handle the CPA exam application as an international candidate.

You might also want to check out this book on 12 FAQs From International CPA Candidates which I am giving away for free.

All you need is to sign up for this (also free) newsletter specifically written for you as an international candidate so you can learn about how to proceed efficiently towards your goal — getting the most recognized and prestigious CPA qualification in the world.

Read IQEX Exam Preparation, Study Materials and Pass Rate on I Pass the CPA Exam!!

The following CPA eligibility guide is written by one of my favorite readers, Moid Raza. He offers great insight to international candidates, especially those from Pakistan.

Certified Public Accountant (CPA) is one of the most prestigious and acclaimed professional certifications.

CPA is considered out of reach from Pakistani Bachelors due to lower credit hours as per the eligibility requirements in the United States.

As per my experience, becoming eligible for CPA is more difficult than CPA exam itself. However, after a lot of efforts, discussions, time and money (of course), I found certain ways that may help you to be eligible for CPA. BUT please note that this is a bumpy road as you may need to go for different courses which need efforts and time, in order to get this right in the first place. It needs determination and efforts!!! So if you are not committed, turn back now.

So let’s get started!!!!

State Requirements for CPA

There are 55 US States (including Guam and Porto Rico) where CPA exam is available. Each state has different Academic and Experience requirements for eligibility. National Association of State Boards of Accountancy (NASBA) is the official body for the state boards and you need to visit this site for more details on CPA Exams.

Since 2012, NASBA allowed certain international centers where the CPA exams are conducting. If you are a [citizen or long-term] resident in the appointed country, no need to visit your
US state for CPA exam any more. The countries include GCC (Saudi Arabia, Kuwait, Qatar, UAE, Bahrain etc) and Japan. You need to check out this site for more details.

As international students, the Bachelor Degree is required to be evaluated by an approved evaluator.

Some states have specific evaluators and some have a list on their respective state websites. You need to be careful in selecting the evaluator as some evaluators have so many requirements that you need a lot of efforts to complete those. I will not go into detail of it as we should concentrate on the ones which we shall need. If you want to know the list of evaluators and further, Google is your best friend. Information is also available on NASBA website.

Additional Requirements for Licensing

We also need to understand one requirement which many people ignore and have problems later on. As a Pakistani Bachelor degree holder, we do not have adequate credit hours for CPA License.

Now, NASBA has made it mandatory for you to have a license if you have passed the exam. Once you pass your CPA exam, you need to complete the requirement of credit hours for license or else your grades shall expire after 3 years [if you are to sit for the exam in non-US locations].

However, there are certain states classified as Tier 1 and Tier 2. Tier 1 States require you to have license in order to be considered as CPA, however, for Tier 2 States, a certificate is initially provided which does not allow the individual full privileges as a CPA. After additional requirements are met, the certificate holder may receive a license or permit. You can find details on Licensing on this NASBA page.

Prior to 2012, NASBA considered Pakistani CA and ACCA as eligible academic education. However, since 2012, they considered it as a professional education, thus do not consider for credit hours requirements, except for a very few states. See I surprise you here too!!!

After a lot of efforts and discussion, as per my knowledge and experience, there are 2 states where you have a good chance of CPA eligibility.

• If you are not a qualified Accountant from ICAP or ACCA, Montana is the best available state for you.
• If you are a qualified CA or ACCA, Alaska is the best state for you, as they still consider CA and ACCA for eligibility, but till when, God knows

Why Montana?

Montana is a good choice for the following reasons:

• It has low credit hours requirement till now (24 semester hours)
• It allows International Testing
• It is a Tier 2 state which means if you pass your exam, you score will never expire, however, you cannot have a license, as explained earlier.
• You can get details of eligibility and other requirements here

Montana CPA Eligibility Step-by-step Guide

Please note that all the below steps are based on the following assumptions (based on my experience):

1. Bachelor of Commerce from an HEC recognized University from Pakistan
2. Unqualified Chartered Accountant (CA finalist, but it does not matter)
3. Working in GCC (Kuwait specifically)

Here we need to understand the deficiencies for Eligibility first:

1. Lacking 6 semester hours in Upper [Division] Accounting
2. Lacking 3 semester hours in Taxation
3. Time limits and durations

Please note, I will provide the guidance first and then the time line will be defined later i.e. what to do when.

Step 1 : Complete Education Requirements

To overcome this education deficiency, you may need to do certain courses from an accredited college or university. For the details you may visit this link.

I personally prefer University of North Alabama (UNA). The details are in this link. As discussed with evaluator and personally I went with UNA for the following reasons:

• 3 courses for US$ 1,425 (US$ 475 each for 3 credit hours). Other colleges were relatively high
• Accepted by NASBA
• The course outline is the same as CPAexcel, which I feel is one of the best Review course of CPA, thus while studying these courses, you are studying for your CPA. Two birds with one stone

In order to complete the credit hours, you would need to complete the below 3 courses:

• AC 361P. (3 credit hours) Financial Reporting I.
• AC 462P. (3 credit hours) Federal Income Taxation I.
• AC 463P. (3 credit hours) Financial Statement Auditing

You would be wondering why auditing, because it was recommended to me by NASBA evaluator, as in Bachelors, Audit we studied was based on International Standards on Auditing (ISA) however, they consider US Generally Accepted Auditing Standards (GAAS) for eligibility.

By completing these 3 courses, you would be good to go for education side. As per my experience, it would take 6 to 9 weeks to complete these courses (based on work and other commitments). You would need to go and check for the date of entrance, course completion dates, syllabus of these courses, passing scores, forms submission etc through their website.

Step 2: Education Evaluation

The Bachelor of Commerce degree has to be evaluated by the authorized evaluator only. In case of Montana, Foreign Academic Credentials Service, Inc. (FASC) is the only evaluator they accept.

Please note that you need to send your original documents to FACS and they take 6 to 8 weeks (and 99% more than 8 weeks) to send the evaluation to Montana Board. Good thing is they take care of the originals well, so do not worry. The documents required are mentioned on their website along with the fee structure.

Stephanie’s update: Montana has now switched to NIES (NASBA International Evaluation Services) NIES is much faster but more expensive.

Step 3: Forms from Montana Board

You need to register on NASBA website for the application. While you are going to apply on Montana Board, you would need to fill in some forms / affidavits and send these to them after applying.

The issue is that 2 out of 4 forms needed to be notarized. Now, in Kuwait, there are no public notarization rules thus it was an issue for me to get these notarize from here.

Good thing is you may get it notarized from Pakistan itself, which will save your time, efforts and lots of money. So make sure that these forms are notarized prior to sending it to Montana Board. You can get these forms from the Login and from the link here.

Time Management

Phew!!! That’s a lot of work. However, that’s not all. You need to make sure all these documents are with the Board within 30 days of application. To get this right, you need to work backwards. 30 days is the rule for application and your documents will be in your file for 1 year, so do not worry. However, if they do not receive these documents within 30 days of application, then your application fees shall be forfeited and you would be considered ineligible.

To understand the time management, let’s consider an example. Assume you applied on Montana Board on 20 December 2014 and all the requirements need to be with the Board prior to 20 January 2015. (30 days of application).

As FACS takes at least 8 weeks for the evaluation, you should consider sending them the documents by 31 October 2014. I would recommend sending it by 15 – 20 October 2014. As soon as they receive your documents, they will confirm to you for the receipt email. As soon as they dispatch the evaluation and your documents, they will inform the same to you too.

[Stephanie’s note: thankfully NIES is much faster, typically 1-2 weeks but please double check with them before hand]

UNA Fall 2014 Semester is open till 31 October 2014, means you need to submit your respective forms with UNA by 31 October 2014. I would recommend sending these forms to them on the same date i.e. 15 – 20 October 2014. The course should be completed by 5 December 2014 and they announce the results after 10 working days, i.e. by 19 December 2014. They would send your transcript to Montana Board by the same date or day after.

Both FASC evaluation and UNA transcripts are received by Montana Board within 1 – 2 working days. In the end, you may arrange to send the Montana Board forms to them by 12 December 2014, so they shall receive the details within 3-4 working days.

VOLLA!!! Insha Allah you shall receive your trophy (Notice to Schedule) within a week or so. Only after NTS, you shall apply for International testing.

Please note that the above example is just for the understanding purpose and there may be a few days up and down, but make sure you do not miss 30-day window.

Why Alaska?

For qualified CAs and ACCAs, Alaska still accept CA and ACCA as academic qualification. Thus you may need to visit Alaska page on NASBA for details. With respect to the evaluator, Educational Records Evaluation Services (ERES) accepts scanned copies of transcripts. You need to visit their website and get more information from there itself.

I cannot help much on this as I am not very sure of the proceedings on this. However, it was told to me that this is the best available option if you are a qualified CA. But please mind you, Alaska is Tier 1 state, which means; your passing grades will expire if you do not complete the credit hours for licensing.

End Words

I have jotted down what I can think of for the CPA eligibility requirements. I may have missed any step or requirement. If you come across any info or addition, please feel free to add. Moreover, if you still have any confusion, query or further guidance required, please contact me in the comment section below.

I would like to thank the following ladies (weird, no guys) without whom I would not be eligible. You would definitely come across with them if you follow my path

1. Stephanie Ng for her immense guidance and website ipassthecpaexam.com, a must to visit for CPA related stuff. I would highly, highly recommend to get her book How to pass the CPA exam (just US$ 27). This book is like the flashlight for all CPA related information and how to proceed with it. It will help you till you pass your exam.

2. Rhonda Willard, NASBA Evaluator, who very patiently replied all my queries and guided me on all steps.

3. Sharon Campbell, Program Director, UNA, who guided me well for all my UNA exam related queries and ensure my transcript is out to NASBA asap

I would also recommend to go through CPA Candidate Bulletin
for an understanding of CPA exam. It is the official guidance from NASBA.

I would also recommend to visit the following websites for more information and guidance:

• This Way to CPA
• AICPA official website
• Wiley CPAexcel

BEST OF LUCK WITH YOUR QUEST!

Read CPA Eligibility Guide from a Pakistani Candidate on I Pass the CPA Exam!!

Is it possible to become a CPA for H4 visa holders? 

I have lots of readers in this situation, and I know many of you are highly educated professionals who follow their spouse to the United States for a better future for your family. Since you aren’t allowed to work (for now, at least), wouldn’t it be nice to study for the CPA exam?

CPA for H4 Visa Holders: Common Obstacles

In order to do that, you need to get qualified for the exam, but it isn’t easy. Here are two common difficulties:

• No social security number
• Not able to fulfill the experience requirement, since work supervised by US CPA is required.

Let’s see how we can overcome these issues.

1. Social Security Number (SSN)

The CPA is a regulated industry, and SSN is the best way for the state board to track and regulate its licensees. Therefore, most states require their CPA exam candidates to submit their SSNs in the application form.

What is less known is that in some cases, the state board allows exemption to this rule if there is a valid reason. Some states request that you write a letter to explain the situation, while others may have an existing waiver form or an affidavit to fill in. They don’t usually specify this in their rules (because not many candidates fall into this category). You need to take the initiative to ask, and double check the procedure by email.

Because of this, the issue of SSN is likely less of a concern.

2. Work Experience

As part of the “3E”, candidates need to fulfill the experience requirement in order to get the license. 1-2 years are required, and this experience must be supervised and verified by an active US CPA.

This makes things exceedingly inconvenient for H4 visa holders because the previous experience (in your home country) is not likely to have been supervised by a US CPA, and then now that you are in the US, you are not allowed to work.

One of the solutions is to select a state that allows verification instead of strictly supervision of experience. Montana and Washington are two examples. There are other states, but they may not offer SSN waivers.

For example, if you used to work as a public accountant in India and you have someone whom you know who are a US CPA, then you can ask him/her to verify your previous experience for you. The same works for Washington but this verifier must be a US CPA licensee in good standing for at least 5 years.

One Possible State: North Dakota

If you fulfill the degree and 150 credit hour requirement, and that the only issue is the SSN and experience requirement, then North Dakota should work.

You don’t need SSN to apply to this state, and once you pass the CPA exam, you can get your experience verified by a supervisor (or former one in your home country). This person does not need to be a US CPA.

If You Don’t Have Enough Credit Hours…

Other obstacles for CPA for H4 visa holders include lacking the credit hours to fulfill the 150 credit hour rule, or that there are not enough accounting courses, especially for states that only count upper-division (intermediate/advanced) courses.

If you are determined to get the CPA qualification, you can first work on fulfilling the 150 credit and/or the accounting credit hours first. The articles below may help you get started:

• How to efficiently make up for credit hours
• Which states to consider for non-accounting majors (or those who lack accounting courses)
• General note to Indian or 3-year bachelor degree CPA exam candidates

If you have other questions, or you have stories to share, drop me a note on my Facebook page. Thank you and good luck!

Read CPA for H4 Visa Holders: Can You Get Qualified? on I Pass the CPA Exam!!

Are you an Indian BCOM CPA candidate who wishes to get take the CPA exam United States? Is your BCOM and CA degree not enough to get you qualified to take the exam? Have you tried several State Boards and credential evaluators but still can’t get a favorable response?

Let’s discuss the challenges and possible solutions on how to get you qualify to sit for the US CPA Exam.

(If you have a MCOM or relevant master’s degree that is NOT corresponding then you are most likely eligible for the CPA exam. You can proceed to read this post on how to start the application process)

A Post Dedicated to Indian BCOM CPA Candidates

Being an Indian Chartered Accountant is a great accomplishment and I like to commend you on that, but getting pass the US-centric CPA exam requirements can be frustrating and let me help you  go over the steps one by one.

Basic Requirement

All CPA candidates are expected to fulfill the “3E” requirements: Education, Exam and Experience.

Each state board has slightly different rules, but in general, the steps are:

• Obtain a “standard” bachelor degree (in the US, this means 4 years or more), together with 150 credit hour of general higher education. Students typically get 30 credit hours in each academic year. This means state boards are looking for 5 years, but some of these can be from non-degree courses from US regionally accredited universities.
• Pass the CPA exam. There are 4 parts to be completed within 18 months
• Fulfill your experience requirement and get properly verified

1A. The 4-Year Bachelor Degree Rule

Challenges

First of all, the tertiary degree system in India is different from that of the US – the bachelor program is in India 3 years while in the US it is 4 years.

Because of this, Indian CPA candidates cannot fulfill the first requirement of obtaining a 4-year bachelor degree.

In the past, there have been 3 solutions:

(a) Apply through Delaware

For the last few years Delaware is the only state that recognizes “associate degree” including 3-year non-US bachelor degree. However, Delaware is going to change its rule effective August 2012 so it will no longer work for you.

(b) Apply through Colorado or Michigan

Colorado and Michigan used to recognize CA certificate as a prerequisite to sit for the exam, and many Indian candidates applied through them. However, they have since changed the interpretation of the rules in 2009 and 2011/2 respectively and it no longer works.

(c) Apply through a few states that recognize Indian Chartered Accountancy

The CA certificate is recognized as a 4-year bachelor equivalent in the US by some states (e.g. New Hampshire, Montana, Colorado). However, since 2012 they have also changed the interpretation of their rules.

The Solution

It is a big challenge for B.COM with or without CA to pass this rule.

• If you have B.COM only and are serious about getting your CPA qualification, I suggest that you take a 2-year master’s degree (see below on restrictions). At this stage I can’t see an easy way out.
• If  you have B.COM + CA, then there may still be one solution for you and we will talk about it at the end of this post.

1B. The 150 Credit Hour Rule

Challenges

Typically one year of university equals to 90 credit hours. For a 3-year B.COM degree you will get 90 credit hours.

In the past, a CA certificate gave you an additional of around 40 credit hours. With  90+40=130 credit hours you can get qualified for a few states. However, since 2012 chartered accountancy has been considered a “experience qualification” rather than an “academic qualification” and most state boards* no longer grant credits towards the educational requirements.

*As far as I know, Alaska, Guam, Colorado, Maine and Ohio still accept partial or full ICAI credits. Please double check with the state board before applying.

The Solution

Fortunately there are solutions to this rule. Typically if you pass the above rule concerning the 4-year bachelor degree with an additional masters’ degree, you won’t have this issue.

If you are short of certain accounting or federal taxation courses, you can always take them at the “accredited educational institutions”, which includes community colleges in the US or online courses.

I haven’t personally vetted the following courses but they are recommended by my readers:

• Taxation courses
• Other accounting/auditing courses*

* I have gathered enough readers’ feedbacks that the UNA course is good and should work in terms of fulfilling the necessary requirements.

Some institutions outside of the US can be qualified too but you have to check carefully.

There will be extra time, money and effort involved but it is doable.

1C. Applying For The CPA Exam

Challenges

If you are fine with 1A and 1B above, you should be able to find a state that you can qualify. There is extensive information on CPA exam requirements by state here.

Once a State Board is chosen, the next step is to send your Indian transcripts and marksheets to the foreign credential evaluation agency.

Whether the evaluation is required depends on where you get the education, and not your nationality. For example, if you are an Indian international student graduated from a US university, no evaluation is needed. On the other hand, if you are a US citizen studying abroad for a year, then you need to submit an evaluation report for that year.

The evaluators will normally send the report directly to state board (please double check with them). For the portion of education you may have obtained in the US, please arrange the transcript to be sent directly from your school to the state board.

Tips: make sure your name is consistent in different reports. I believe they file the application documents by name.

Common Questions

1. Which evaluator should I use?

The State Board of your chosen state should indicate which evaluators you can pick from. Some allow you to choose anyone that is a member of the evaluators’ association (i.e. NACES), while others only recognizes one, e.g. FACS for Delaware.

While some evaluators do seem to be slightly lenient in terms of giving you more credit hours, I don’t have a personal recommendation. Depending on your needs you can either pick the cheapest or the fastest.

I went through FACS myself. They are cheaper and reliable but they take the longest time spanning from 4-8 weeks.

You can get more information on these evaluation agencies here.

2. How many credit hours do you think I can get?

Even the professional evaluators need time to review your school and specific subjects before making a decision. It is therefore understandable that I can’t give you a quick answer. I don’t have the expertise to evaluate transcripts so even if you send me one I won’t be able to help. Sorry about that.

Solution

You will have to make some commitment i.e. to pay the evaluators for a professional evaluation. It costs anywhere from ~ $100-300. Express service is available but will incur extra cost.

Some states offer pre-evaluation service which will show you which courses you lack. I think it is a good idea if you aren’t sure whether you can get qualified for that state.

2. Taking The CPA Exam

(a) Getting the NTS

Once your application is approved, the state board will email/send out a Notice To Schedule (NTS) that allows you to schedule your exam at a chosen prometric center.

(b) Selecting a Testing Center

You can register in one state and physically take the exam in another. For example, the North Dakorta requirements is favorable for you and you register there, but you want to stay at relative’s house in San Francisco. You can certainly take the exam in California.

Since September 2014, Indian citizens and permanent residents can sit for the exam in the Middle East. Please be aware of the certain restriction of taking exams outside of US jurisdiction. Here is the one for Middle East region.

(c) Preparing for the Exam

This is in fact an “easier” step for most international candidates, because, things are finally somewhat under your control

I have a  page on the top 10 CPA review courses for your reference.

After passing all parts of the exam, most (but not all) states require an ethics exam which is in open-book and self-study format.

3. Experience Requirement

This is an important consideration for picking the right state BEFORE you apply for the exam.

Challenges

This is often another bottle neck for Indian and other international candidates. Most state boards only recognize “relevant” experience that is “properly verified”.

(a) Relevance

Most states are fine with general accounting experience, but a few states only recognize public accounting i.e. auditing or related work in a CPA firm. This means that corporate, non-profit organization and non-US government agencies your experience cannot be counted, or are discounted.

(b) Proper verification

For most states,  experience must be verified by an actively licensed US CPA during the time you work(ed) for him/her. Most states require that this person to be your direct supervisor. Some states allow “CPA equivalent”, which usually means a Canadian CA or Australian CA, but for the exact definition you will have to check with your State Board.

For work experience in India, unless you worked under a US CPA, your experience may not be counted. I know it is frustrating but we have to play by the rules.

Read this post to find out which states have flexible experience requirements

Questions

1. I have a H4 visa and I can’t work.

Yes, this could be an issue, but there are a few states that allow your supervisor to be a non-CPA. There are also states that recognize volunteer work.

The following link has lots of ideas, but focus on those that don’t require social security number.

Read this post to find out which states have flexible experience requirements

2. I live in India and I can’t find a CPA to work for.

This is also tough, but you may call up the Society of CPA of your registered state or explore the possibility of working in your local Big 4 which should have some US CPAs working in the firms.

Alternatively, go for CPA certificate / inactive license / non-reporting license, or pick a state that requires verification vs supervision of experience.

Washington state, Montana or Indiana where you are allowed to have a US CPA verify your experience without actually working under him/her. If you have social security number, Virginia and North Dakota have relatively flexible experience requirements as well and you can go explore.

A Note On CPA Exam International Sites

Question: I work in UAE and am considered a long-term resident. Should I take the CPA exam there?

At least in terms of the residency requirements you are qualified as a long-term resident to take the CPA exam in UAE. Please beware of the following:

Not all states allow candidates to take the exam in international sites. California is one example. You can go to this page for the list.

There is a stricter requirement to fulfill the working experience requirement: you have to get the working experience fulfilled within 3 years or they will void your CPA exam results, if you take the exam outside of US jurisdiction. However, if you take it within the US, many states have no restrictions while some give you 10 years.

To learn more about taking the CPA exam outside the US please click here.

This Is All Too Confusing. Can I Get Help?

The State Boards are actively closing what they see as “loopholes” which makes getting qualified exceedingly difficult for Indian candidates.

I personally have run out of ideas for B.COM + CA holders, but my friend Leslie-Ann at CPAexcel said she still has one “combination” (a specific state + a specific evaluator) that works.

It is understandable that she provides service only to CPAexcel students and you may find out the exact state that works after you purchase the CPAexcel course. Rest assured that they have a good product with a 87% passing rate among their students. There is a 95% refund if Leslie-Anne can’t get you qualified at the end.

• Check out Leslie-Anne’s page here
• Or read about my evaluation on CPAexcel here

Do You Still Have A Question On Your Unique Situation?

Read How Indian BCOM CPA Candidate or Chartered Accountant Gets Qualified for the US CPA Exam on I Pass the CPA Exam!!

I’ve got quite a few questions on how to join the “US CPA Program” from international readers. The truth is that there isn’t such a program, but there is a way to become a US CPA as a non-US candidate.

How Can One Become a CPA without a US CPA Program?

In other accounting and finance qualification (e.g. CMA, CFA, ACCA) the certification is often offered as a “program”. These programs have detailed curriculum, officially endorsed text books, and specific guidelines on how to pass the exams and complete the necessarily requirements.

Because applications are supposed to gain the knowledge through participation of the program, they only need a general education (e.g. bachelor degree in any field, or even a high school diploma) to get started.

On the other hand, the US CPA exam is a qualifying exam. The AICPA has a general guideline on what is tested in the exam, but they do not publish or endorse any text book and review courses for your preparation.

Also, you are on your own to fulfill the necessary educational requirements. The rule may slightly differ among the state boards, but in general you need a US bachelor degree or equivalent AND 150 credit hour (5 years worth of higher education). This typically means you either take a 4-year degree plus 1 year worth of extra courses, or a bachelor + master’s degrees. There is also a minimum number of accounting and business credit hours to fulfill to get qualified for the exam.

The Pros and Cons of this Arrangement

Pros

• More flexibility: candidates can select their own schools and accounting programs
• Much faster: because there isn’t a fixed program, one can pass the CPA exam within a few months

Cons

• Higher entry barrier: candidates must obtain 4-year bachelor + 150 general credit hours
• Little guidance: have to pick and choose their own review courses

How to Start Your US CPA Journey

There are plenty of information on this site as well as the Internet on how to become a CPA in the US. For non-US candidates, I have written several articles to get you started:

• How to become a CPA as a non-US candidate
• The CPA application process: step-by-step guide

Read Why Can’t I Find Info on US CPA Program? Read On… on I Pass the CPA Exam!!

Good news to CPA candidates in the Middle East — you can now take the exam in your region instead of taking all the trouble to fly to the US.

Since August 2011, 4 countries in the Middle East have been operating CPA exam sites, allowing their citizens as well as those in adjacent countries to take the exam without incurring additional time, stress and cost.

Who is Eligible for the CPA Exam in Middle East?

The citizens, permanent residents and long-term residents of Bahrain, Kuwait, Lebanon, and the UAE are qualified to this new scheme.

At the same time, candidates from Egypt, Qatar, Oman, Saudi Arabia and Jordan can travel to any of these 4 Middle Eastern countries to take the exam.

Since September 2014, permanent residents and citizens of India can also sit for the exam in the Middle East. Here is the announcement from AICPA for your reference.

Taking the CPA in Middle East vs US Jurisdictions

Note on the Differences

The differences are mostly restrictions. Not all states choose to participate in allowing their candidates to sit for the exam in these international occasions. This includes California, Delaware and New Jersey. You can check out the list here.

Also, candidates have to obtain a full CPA license within 3 years of passing the exam, or else their exam results will be nullified. In other words, the experience verification has to be completed within this period. This are no exemptions and waivers.

For Your Further Reading

• CPA exam international sites: is it a good idea?
• Overview of the CPA exam application process
• Source document from NASBA specifying the international administration of the CPA exam. You can find the 3-year restriction in Section IIa.

Need Help in Your CPA Application Process?

You are welcome to check out the FAQ page for more info, or sign up for my free mini course to you. It will be in the form of emails and is specifically written for you as an international candidate:

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Read CPA Exam in Middle East: How to Apply? on I Pass the CPA Exam!!