What is IQEX?
The International Qualification Examination (IQEX) is an exam designed by the Association of International Certified Professional Accountants (AICPA) and executed by the National Association of State Boards of Accountancy (NASBA) for accounting professionals who are already qualified in certain countries outside the United States.
The exam awards the U.S. CPA license to internationally trained accountants from countries whose professional bodies have entered into a mutual recognition agreement (MRA) with the US Boards of Accountancy. The IQEX allows these professionals to become certified public accountants (CPAs) in the United States without taking the entire CPA exam.
This exam assesses knowledge and skills equivalent to the US CPA Exam, ensuring that international candidates meet the rigorous standards required for CPA licensure in the US. Today, the IQEX is the Regulation (REG) section of the Uniform CPA Examination.
IQEX vs CPA exam
The CPA exam and the IQEX exam serve similar purposes but are tailored for different audiences. If you want accounting certification in the United States, you need to understand both exams.
The CPA Exam is designed to assess the comprehensive knowledge and skills of candidates across three core sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG), plus one Discipline section of the candidate's choice (Business Analysis and Reporting (BAR), Information Systems and Controls (ISC) or Tax Compliance and Planning (TCP)).
Each section is extensive and requires in-depth study and preparation. The exam is rigorous and reflects the high standards expected of CPAs in the United States.
In contrast, the IQEX is specifically tailored for qualified accountants from certain international jurisdictions who wish to obtain CPA licensure in the US. It streamlines the certification process by focusing only on areas not typically covered by eligible candidates' international qualifications. This means that while the CPA Exam tests a broad spectrum of accounting knowledge, the IQEX focuses on specific US regulations and practices that international accountants may not know.
One primary difference is content coverage. The CPA Exam's four sections encompass a wide range of topics, requiring extensive preparation across diverse subjects. The IQEX, however, consolidates the content into a single examination, the Regulation (REG) section. This approach ensures that candidates are well-versed in US-specific accounting laws and business practices, which are crucial for professional practice in the United States.
Additionally, the exams differ in format and structure. The CPA Exam consists of multiple-choice questions and task-based simulations across its four sections. Candidates take each section separately and must pass all four to obtain CPA licensure. The IQEX, being a single examination, comprises multiple-choice questions and task-based simulations. This format simplifies the process, allowing eligible international candidates to focus their efforts on a single, comprehensive test.
Another significant distinction is the eligibility criteria. The CPA Exam is open to a broader range of candidates, including those who have completed their accounting education in the United States.
The IQEX, however, is exclusively available to members of designated international accounting bodies, such as Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia, CPA Canada (CPAC), Chartered Accountants Ireland (CAI), CPA Ireland, Instituto Mexicano de Contadores Publicos (IMCP), Institute of Chartered Accountants of Scotland, and South African Institute of Chartered Accountants (SAICA). This exclusivity ensures that only those with equivalent international qualifications can take advantage of the organised IQEX process.
Why should you take the IQEX exam?
Streamlined pathway: The IQEX provides a compact pathway for international accountants to become licensed CPAs in the United States. Instead of taking all four parts of the US CPA exam, you only need to pass the IQEX, which focuses on areas not typically covered by your existing qualifications. This saves you significant time and effort, helping you become certified faster.
Career advancement: Obtaining a US CPA licence can significantly enhance your career prospects. As a CPA, you’ll qualify to work with US-based clients, which can open doors to higher-paying jobs and more prestigious positions. Additionally, many multinational companies prefer or require CPAs for certain roles, making the IQEX an excellent investment in your professional future.
International recognition: The US CPA credential is highly regarded worldwide. By passing the IQEX, you gain an internationally recognised qualification, increasing your professional credibility and marketability. This can be particularly beneficial if you plan to work with international clients or in different countries throughout your career.
Ease of access: The IQEX exam is offered at authorised Prometric testing centres worldwide. This flexibility makes it easier for you to schedule and take the exam at a time and location that suits you best.
Support and resources: There are numerous resources on the AICPA website’s ‘Resource section’ available to help you prepare for the IQEX. These include study guides, practice exams, and review courses specifically tailored to the IQEX format. By utilising these resources, you can increase your chances of passing the exam on your first attempt.
Simplified application process: The IQEX application process is straightforward. Once you confirm your eligibility, you can submit your application to NASBA, schedule your exam, and take the test at a convenient location.
IQEX exam preparation
IQEX exam sections and format
The IQEX exam follows the Regulation (REG) format. This section covers US federal taxation, ethics, professional responsibilities, and business law. It covers various types of taxation, including individual, corporate, and partnership taxation, and examines ethical and legal responsibilities that CPAs must uphold.
Exam format
The IQEX is a computer-based test, administered at authorised Prometric testing centres worldwide. The exam consists of multiple-choice questions and task-based simulations:
Multiple-Choice Questions (MCQs): These questions assess your theoretical knowledge and understanding of the subject matter. You will be presented with a question and several answer choices, from which you must select the correct one.
Task-Based Simulations (TBSs): These simulations are practical scenarios where you must apply your knowledge to solve problems or complete tasks that a CPA might encounter in real-life situations. They test your ability to apply concepts and perform necessary calculations or analyses.
Time allocation
You will have a total of four hours to complete the IQEX exam,which is a single REG section.
Scoring
You must achieve a passing score on the REG section to pass the exam. The passing score is determined by the American Institute of CPAs (AICPA) and reflects the level of knowledge and skills required for CPA licensure. Scores are represented on a numeric scale ranging from 0-99, with 75 being the passing score. This scale does not mean the percentage of correct answers but signifies that you have demonstrated the knowledge and skills seen to be necessary for competent practice in the United States.
What is the IQEX exam pass rate?
Year | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Cumulative |
2023 | 58.63% | 59.71% | 59.13% | N/A | 59.19% |
2022 | 60.03% | 61.25% | 44.30% | 56.41% | 59.85% |
2021 | 58.00% | 58.00% | 58.00% | 58.00% | 59.88% |
2020 | 55.42% | 74.97% | 66.12% | 58.00% | 62.29% |
2019 | 50.22% | 58.66% | 58.41% | 55.89% | 56.34% |
2018 | 49.99% | 55.75% | 56.55% | 50.22% | 53.09% |
2017 | 46.10% | 48.32% | 49.31% | 45.89% | 47.24% |
Where and when can you take the IQEX exam?
The IQEX exam is available to candidates at authorised Prometric testing centres across the globe. These centres offer a convenient and flexible option for scheduling your exam.
Once you have your Notice to Schedule (NTS), which is valid for six months and cannot be extended, you book an appointment with Prometric at least five days before your preferred date.
Booking 45 days or more in advance gives you a better chance of getting your preferred date and centre.
You can find a nearby Prometric centre by visiting the Prometric website and using their test centre locator tool. This ensures you can take the exam in a location that is convenient for you, minimising travel time and expenses.
On the day of your exam, ensure you arrive at the testing centre with all necessary identification and documentation as outlined in your NTS. Familiarising yourself with the testing centre rules and procedures ahead of time will help reduce any exam day stress.
Steps to apply for the IQEX
Ensure you are a member of one of the approved international boards.
Visit the NASBA website and create an account.
Complete the IQEX application form available on the NASBA website. Ensure all sections are filled accurately and thoroughly.
Submit all necessary documentation, including proof of membership with an eligible international board, academic certificates, and any additional forms required by NASBA. If your documents are not in English, consider using a translation company to provide accurate academic certificate translations.
Pay the non-refundable $255 eligibility application fee and the $630 IQEX exam fee. The fee can be paid online through the NASBA account portal. Keep a copy of your payment receipt for your records.
Once your application is approved and the exam fee is paid, NASBA will issue a Notice to Schedule (NTS). The NTS is a critical document that you will need to book your exam. It is valid for six months.
Use the NTS to schedule your IQEX exam with Prometric.
Begin your exam preparation using the IQEX study materials and resources.
How do you get licensed after taking the IQEX?
After successfully passing the IQEX, submit your IQEX exam results to the state board where you plan to get licensed. The United States has 55 jurisdictions, and each state board has specific requirements and procedures for this submission, so it’s important to know the details.
In addition to passing the IQEX, each state may have other requirements you must meet. These requirements can include completing a specified amount of work experience, passing an ethics exam, or meeting particular education standards. It’s crucial to understand and meet the specific requirements of the state board where you are applying.
Once you meet all requirements, you can apply for licensure with the state board. This usually involves filling out an application form and paying a licensure fee. Depending on the state, you might also need to provide additional documentation, such as proof of work experience or academic transcripts.
After your application is reviewed and approved by the state board, you will receive your CPA licence.
