Becoming a Certified Public Accountant (CPA) in North Carolina is a prestigious career goal, demanding rigorous education and examination. Understanding the educational prerequisites set by the North Carolina State Board of CPA Examiners is the first crucial step in your journey. This article breaks down the essential educational requirements for the CPA exam in North Carolina, ensuring you are well-informed and prepared.
Educational Requirements for the CPA Exam in NC
To be eligible to sit for the Uniform CPA Exam in North Carolina, candidates must meet specific educational criteria. These are designed to ensure that all CPAs possess a strong foundation in accounting principles and business law. The core requirement is a bachelor’s degree, but with a focused concentration in accounting.
Bachelor’s Degree and Accounting Concentration
The North Carolina State Board of CPA Examiners mandates that every CPA Exam applicant must hold at least a bachelor’s degree from an accredited college or university. This degree should comprise a minimum of 120 semester hours and can be in any subject. However, crucially, this degree must include or be supplemented by a concentration in accounting.
What exactly constitutes a “concentration in accounting”? The Board defines it in three ways:
- Option 1: Undergraduate Accountancy Courses: Completion of at least 30 semester hours (or equivalent quarter hours) of undergraduate accountancy courses. Within these 30 hours, no more than six semester hours can be in accounting principles, and no more than three semester hours in business law. This ensures a focus on core accounting subjects beyond introductory levels.
- Option 2: Graduate Accounting Courses: Alternatively, applicants can fulfill the concentration requirement with at least 20 semester hours (or equivalent quarter hours) of graduate-level accounting courses. These courses must be exclusively for graduate students, indicating a higher level of study.
- Option 3: Combined Undergraduate and Graduate Courses: A combination of undergraduate and graduate courses that is equivalent to either of the above options is also acceptable. This provides flexibility for candidates with both undergraduate and graduate level accounting coursework.
It’s important to note the equivalency between graduate and undergraduate study. The Board specifies that one semester (or quarter) hour of graduate study in accounting is equal to 1.5 semester (or quarter) hours of undergraduate study. Furthermore, up to four semester hours of graduate income tax courses from law schools can be counted towards the semester hour requirement.
What Counts as Accounting Courses?
The Board clarifies which courses qualify as “accounting courses.” These include a broad spectrum of subjects, such as:
- Elementary, Intermediate, and Advanced Level Principles Courses
- Managerial Accounting
- Business Law (with limitations as mentioned above)
- Cost Accounting
- Fund Accounting
- Auditing
- Taxation
While courses like business finance, business management, computer science, economics, writing skills, accounting internships, and CPA Exam review courses are valuable for accountancy practice, they do not count towards the concentration in accounting requirement. The Board also emphasizes that if a course is deemed to duplicate previously taken coursework, only one instance will be credited towards the accounting concentration.
Applying for the Exam Before Degree Completion
Recognizing the academic schedules and exam windows, the North Carolina State Board of CPA Examiners allows candidates to apply for the Uniform CPA Exam before completing their bachelor’s degree under specific conditions.
According to 21 NCAC 08F.0302(b), the Board may approve exam applications pre-graduation if:
- Accounting Concentration Completion: The applicant has already completed their accounting concentration or is reasonably expected to complete it by the end of the school term in which the exam falls.
- Degree Completion Timeline: The applicant reasonably expects to complete their bachelor’s degree within 120 days after the Board receives their application.
However, it’s crucial to understand that failure to obtain the degree within the stipulated timeframe will result in the exam grades being withheld. Therefore, while this provision offers flexibility, timely degree completion is paramount.
Accreditation and International Education
The North Carolina State Board of CPA Examiners accepts degrees from institutions accredited by recognized bodies. These include accrediting associations recognized by the Council for Higher Education Accreditation (CHEA) and the US Department of Education (USDE). This ensures the quality and legitimacy of the educational qualifications.
For individuals who have pursued education outside the United States, there is a pathway to apply for the CPA Exam in North Carolina. Eligibility is extended to those who reside in North Carolina or attended a college or university in the state. Such candidates must first receive authorization from the Board. Subsequently, they are responsible for having their international educational credentials evaluated by NASBA’s International Evaluation Services (NIES) before formally submitting their exam application. All costs associated with this evaluation process are borne by the applicant.
Conclusion
Meeting the educational requirements is a fundamental step towards becoming a CPA in North Carolina. By ensuring a strong academic foundation in accounting, the North Carolina State Board of CPA Examiners maintains the high standards and integrity of the CPA profession. Prospective candidates should carefully review these requirements and plan their academic path accordingly to successfully embark on their journey to CPA licensure.
