CPA Eligibility Requirements for International Candidates

What is a CPA?

A Certified Public Accountant (CPA) is a professional designation given to qualified accountants who have passed the CPA exam and met other state requirements in the United States. CPA exams are developed according to the guidelines set by The American Institute of Certified Public Accountants (AICPA). To take the Uniform CPA Exam, you must already have a bachelor's degree and professional experience in the accounting field. But what exactly does being a CPA mean, and why is it so important?

The CPA designation has its roots in the early 20th century. The need for standardised accounting practices became apparent as businesses grew and the economy expanded. In 1896, New York became the first state to legislate the certification of public accountants, setting the stage for what will become the CPA designation. Over the years, the CPA has evolved to meet the changing demands of the business world, maintaining its status as a symbol of professional excellence.

So, why pursue a CPA certification? At its core, the CPA designation is all about trust. CPAs are trusted professionals who have demonstrated their knowledge and skills through rigorous education, examinations, and experience. Unlike accountants, CPAs

• Audit and certify financial documents
• Represent clients before the IRS.
• Play a critical role in financial reporting, tax preparation, and consulting
• Help businesses and individuals make informed financial decisions.

CPAs adhere to a strict code of ethics and professional conduct, ensuring they provide high-quality services with integrity. This trustworthiness makes them indispensable in a variety of sectors, from public accounting firms to corporate finance departments and government agencies.

How can an international candidate become a Certified Public Accountant?

NASBA, in collaboration with the AICPA and Prometric, provides international administration of the Uniform CPA Examination. International candidates must undergo a thorough application process that includes academic credential evaluation, translation of certificates if necessary, and meeting the state's educational and experience requirements. Many candidates benefit from bridge courses to ensure they are eligible to sit for the CPA exam.

The following group of people, along with meeting the requirements of one of the 55 United States jurisdictions can apply for and take the CPA exam:

• Americans living overseas.
• Permanent residents or a citizens of Japan, Bahrain, Kuwait, Lebanon, or the United Arab Emirates.
• Permanent residents or citizens of Jordan, Oman, Saudi Arabia, Egypt, and Qatar may test in any of the four Middle Eastern nations listed previously, or
• Citizens and long-term residents of Brazil, Argentina, Venezuela and Columbia may sit for the Exam in Brazil.
• Each of these individuals can also sit for the exam in the U.S.

If you belong to any of the above categories, you can proceed to follow this application process to become a CPA:

1. Evaluate Your Eligibility: Most states require a bachelor's degree with specific coursework in accounting and business. We share more on the eligibility requirements below. 
 

2. Get Your Academic Credentials Evaluated: Since you’re an international candidate, an approved agency must evaluate your academic qualifications. This evaluation ensures that your education meets the standards required by the state board of Accountancy in the U.S. Organisations like NASBA or World Education Services (WES) are used for this purpose. 

Note: Most states now prefer credential evaluations through NASBA's NIES service for international candidates.
 

3. Translate Your Academic Certificates: If your academic documents are not in English, you need to translate them. This is where a certified translation company like Translayte comes in handy. They can provide accurate and certified translations of your non-English academic certificates, ensuring they are accepted by the state board.
 

4. Choose a U.S. Jurisdiction: Next, decide which U.S. state you want to be licensed in. Each state has specific requirements, so choose one that aligns with your educational and professional background. Here are some of the states that are more flexible for international CPA candidates:

• Colorado
• Delaware
• Michigan
• New Hampshire
• Montana
• California
• Illinois
• Virginia
• Guam
• Alaska
• Washington

Note: States require CPA candidates to meet varied eligibility requirements, including education, work experience, and sometimes residency or citizenship.
 

1. Apply for the CPA Exam: Once you’ve chosen a state, you’ll need to submit your application to the state board of Accountancy or NASBA (you can apply through either of them). This involves filling out an application form and submitting your academic credentials and translated documents.
 

2. Receive Your Notice to Schedule (NTS): Afterwards, you’ll receive a Notice to Schedule (NTS) letter. This document allows you to schedule your exam dates. It’s important to note that the NTS is usually valid for six months, so plan accordingly.
 

3. Obtain a U.S. Visa: If you would like to take the exam in the United States, you’ll need to obtain a U.S. visa. The type of visa required will depend on your specific situation. Generally, a B-1/B-2 visitor visa is suitable for those who need to travel to the U.S. to take the exam. 
 

4. Prepare for the CPA Exam: The CPA exam is rigorous, and enough preparation is key to passing. Invest in quality study materials and enrol in a review course. There are numerous resources available, including textbooks, online courses, and practice exams.
 

5. Take the CPA Exam: The CPA exam consists of three core sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG). You also have to choose one discipline section from:

• Business Analysis and Reporting (BAR)
• Information Systems and Controls (ISC)
• Tax Compliance and Planning (TCP)

However, you don’t have to take all sections at once, and you can schedule them at different times within the validity period of your NTS. You can take the CPA in any of these countries; England, Scotland, Ireland, Germany, Japan, Brazil, Bahrain, Kuwait, Lebanon, United Arab Emirates. 

Note: International testing locations are subject to change; you should check the NASBA’s website for the latest approved locations for the CPA exam.
 

6. Apply for Your CPA License: After passing all four sections of the CPA exam and fulfilling the work experience requirements, you can apply for your CPA license. This involves applying to the state board, along with any additional required documents, such as proof of work experience and passing an ethics exam if required.
 

7. Maintain Your CPA License: Once you get your CPA license, it’s important to maintain it by fulfilling continuing professional education (CPE) requirements. Each state has its own CPE requirements, which typically need to be completed on an annual or biennial basis.

What are the eligibility requirements for international CPA candidates?

University Education requirements for CPA eligibility

Most states require CPA candidates to have a bachelor's degree with specific coursework plus a number of credit hours in upper level accounting courses and business-related courses. This often translates to around 150 semester hours. However, the catch for international candidates is that your academic credentials will need to be evaluated to ensure they meet U.S. standards. To meet the often stringent educational requirements, many candidates choose to pursue a master's degree or enrol in a bridge course to cover any gaps in their university education.

Work experience

Many states also have experience requirements, which usually means you need to have worked under a licensed CPA for a certain period, often one to two years. This experience is vital as it ensures that you have practical, on-the-job training to complement your academic knowledge.

Documentation

If your academic certificates, transcripts, or other essential documents are in a language other than English, they must be translated. And not just any translation will do; you need certified translations to ensure they are accurate and accepted by the state board.

Citizenship and Social Security Number

Some states in the U.S. typically require applicants to have a Social Security Number or be U.S. citizens. However, international candidates are exempt from this requirement in several states, including:

• Wisconsin
• New York
• Montana
• Illinois
• South Dakota

Residency requirements

While many states permit international candidates to obtain a license without residing in the state, some states do have specific residency requirements. These states may require you to live within their jurisdiction or conduct significant business there for a minimum of six months.

How to choose the best United States Jurisdiction for CPA certification?

The first step in choosing the right jurisdiction is to thoroughly understand the requirements set by the state boards of accountancy. Each state has its own educational prerequisites, experience requirements, and specific rules about who can sit for the CPA exam. For example, some states require candidates to have completed 150 semester hours of college education, including specific coursework in accounting and business. Other states might have different rules about acceptable degrees and the types of experience that qualify.

It's important to do your homework here. Start by visiting the websites of the state boards you are interested in. You can find their list on the NASBA website. Some states, like New York or California, might have more stringent requirements, while others might be more flexible, especially for international candidates. Make a checklist of the states that align best with your current qualifications.

What is the CPA exam pass rate?

The CPA exam pass rate is an important metric that gives insight into the difficulty of the exam and the preparedness of candidates. The pass rate can vary each year and across different sections of the exam. 

The pass rates for each section can vary due to a number of factors. Here are some insights:

• Auditing and Attestation (AUD): This section has one of the lower pass rates, hovering around 48-49%. It tests your knowledge of the audit process, ethics, and professional responsibilities.
• Business Environment and Concepts (BEC): BEC generally has the highest pass rate, which has recently been above 60%. This section covers a broad range of topics, including corporate governance, economic concepts, and IT.
• Financial Accounting and Reporting (FAR): With a pass rate typically around 50%, FAR is considered one of the more challenging sections. It tests your understanding of financial statements, transactions, and reporting.
• Taxation and Regulation (REG): The pass rate for REG is usually in the mid-50s. This section focuses on federal taxation, business law, and ethics. 
• Business Analysis and Reporting (BAR): Focuses on financial analysis, reporting, and data analytics. Ideal for candidates interested in roles related to financial planning, performance management, and advisory services. Includes topics like financial statement analysis, forecasting, and business intelligence tools.
• Information Systems and Controls (ISC): Covers IT governance, system security, and internal controls. Perfect for candidates pursuing IT audit, cybersecurity, or system risk management careers. Topics include data management, system design, and evaluating IT environments.
• Tax Compliance and Planning (TCP): Centres on individual and business tax compliance, planning strategies, and ethics. Best suited for candidates aiming to specialise in tax advisory roles. Covers federal tax law, multi-jurisdictional issues, and tax research.

2023 source, 2024 pass rates source

IQEX vs CPA exam compare the exam in detail

The International Qualification Examination (IQEX) is an alternative to the CPA exam for candidates from certain countries with mutual recognition agreements with the U.S. The IQEX is a single exam that covers topics from the CPA exam but is designed for accountants already qualified in their home country. 

These agreements recognise that these countries' accounting standards and practices are substantially equivalent to those in the U.S. Currently, IQAB has established MRAs with the following professional bodies: 

• South African Institute of Chartered Accountants
• CPA Australia
• Chartered Accountants Australia and New Zealand (CAANZ)
• CPA Canada (CPAC)
• Chartered Accountants Ireland (CAI)
• Institute of Certified Public Accountants in Ireland (CPA Ireland)
• Instituto Mexicano de Contadores Publicos (IMCP)

IQEX is designed to streamline the certification process for these professionals by focusing solely on the differences between U.S. accounting principles and those of their home countries. It’s a single exam that covers:

• U.S. tax law and regulation
• Business law relevant to the practice of public accounting in the U.S.
• Ethics and professional responsibilities specific to the U.S. context

Career opportunities and salary expectations for CPAs

Becoming a licensed CPA opens up numerous career options in public accounting, corporate finance, tax advisory, and consulting. CPAs earn competitive salaries, with the average salary reflecting their advanced skills and professional certification. CPAs earn significantly more than non-certified accountants, making the investment in education and examination worthwhile.

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