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Arizona CPA Ethics Exam Requirements 2024

Arizona CPA Ethics Exam Requirements

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Arizona CPA Ethics Exam Requirements

To meet the Arizona CPA ethics exam requirements and become a CPA, candidates must take and pass with a score of 90% or better on an examination in professional ethics within two years immediately preceding submission of the application for certification. The Association of International Certified Professional Accountants (AICPA) offers the ethics exam which is the “Professional Ethics: The AICPA’s Comprehensive Course (For Licensure)” and is self-paced.

This article will help you to become a CPA in Arizona and is a requirement for you to take the Arizona CPA exam.

How to Save Yourself MONTHS of Time and Frustration
Keep in mind that the CPA exam is the one part of getting your CPA license that you can control how long it takes. The education and experience requirements take as long as they take, but the CPA exams can take you as little as 6 months, or as long as multiple years… depending on how effective your study process is from the beginning.
Learn how to study strategically so you can save yourself tons of time and retake fees with this free training…

Summary of Arizona CPA Requirements

Credit hours to sit for the CPA exam120
Bachelor’s required to sit for the CPA examYes
Credit hours in accounting subjects to sit for the CPA exam24
Credit hours in business subjects to sit for the CPA exam18
Total credit hours to receive a CPA license150
Work experience required to receive a CPA license2,000 Hours
Credit hours in accounting subjects for the CPA license36
Credit hours in business subjects for the CPA license30
Ethics exam required to get a CPA licenseYes

Arizona Education Requirements

To meet the Arizona CPA education requirements, all CPA applicants must have a bachelor’s degree or higher and 150 semester hours of college credit, according to the Arizona State Board of Accountancy (ASBA).

With a regular bachelor’s degree in accounting requiring 120 semester hours, pursuing a master’s degree in accounting or post-baccalaureate certificate is the most tried and true route to obtain the 30 more credits needed to become an Arizona CPA. Many of these programs are entirely online. There are also specialized five-year CPA track programs that offer a hybrid bachelor’s and master’s curriculum tailored exclusively to provide you with the 150 semester hours required to achieve Arizona CPA requirements.

Required Courses

According to Arizona Board standards, you will be able to take the CPA exam after completing your bachelor’s degree if it includes at least 24 semester hours of accounting courses, 12 semester hours of upper-level courses, and 18 semester hours of business courses, which can include:

  • Marketing
  • Ethics
  • Advanced oral communication
  • Advanced written communication
  • Advanced mathematics or college level algebra
  • Business law
  • Management
  • Finance
  • Economics
  • Computer science
  • Business Administration
  • Statistics

To meet the 150 semester hour requirement for CPA licensure through the Arizona State Board of Accountancy, you must earn 30 credits beyond the 120 included in your bachelor’s degree through a post-certificate bachelor’s or master’s in accounting. You take the exam and apply for your license.. To be eligible for licensing; you must finish the following courses and graduate work between undergraduate and graduate studies:

  • Accounting courses totaling 36 non-duplicative semester hours, with 30 hours in upper-level education.
  • 30 semester hours of business courses

Transfer Credits/Foreign Education

Suppose you are an Arizona candidate, but you studied outside the U.S. In that case, you need to have your foreign academic credits evaluated by the Association of International Credential Evaluators or the National Association of Credential Evaluation Services. It must be a course-by-course review submitted directly to the Arizona State Board of Accountancy (ASBA)

Accepted Educational Institutions

The Arizona Board of Regents recognizes degrees and credits earned at any college or university with essential institution-level accreditation from one of the six U.S. accrediting bodies. The Department of Education has acknowledged regional accreditation:

It is important to note that you must include transcripts from all schools you attended and deliver them in sealed envelopes. The originals must be submitted.

Pass the Uniform CPA Examination

The “Uniform CPA Examination”, which is a 4-part exam, is developed by the AICPA – the American Institute of Certified Public Accountants and administered by NASBA – the National Association of State Boards of Accountancy.

The Three Core Exam Sections

Auditing and Attestation (AUD)

The Auditing and Attestation (AUD) section of the Uniform CPA Examination (the Exam) tests the essential knowledge and skills a newly licensed CPA must demonstrate when performing audit engagements, attestation engagements or accounting and review service engagements.

Newly licensed CPAs are required to:

  • Demonstrate knowledge and skills related to professional responsibilities, including ethics, independence, and professional skepticism. Professional skepticism reflects an iterative process that includes a questioning mind and a critical assessment of audit evidence.
  • Understand the entity including its operations, information systems (including the use of third-party systems), and its underlying business processes, risks, and related internal controls.
  • Understand the flow of transactions and underlying data through a business process and its related information systems.

Financial Accounting and Reporting (FAR)

The Financial Accounting and Reporting (FAR) section of the Uniform CPA Examination (the Exam) assesses the knowledge and skills that a newly licensed CPA must demonstrate in the financial accounting and reporting frameworks used by business entities (public and nonpublic), not-for-profit entities and state and local government entities.

The financial accounting and reporting frameworks that are eligible for assessment within the FAR section of the Exam include the standards and regulations issued by the:

  • Financial Accounting Standards Board (FASB)
  • U.S. Securities and Exchange Commission (U.S. SEC)
  • American Institute of Certified Public Accountants (AICPA)
  • Governmental Accounting Standards Board (GASB)

Regulation (REG)

The Regulation (REG) section of the Uniform CPA Examination (the Exam) tests the knowledge and skills that a newly licensed CPA must demonstrate with respect to:

  • U.S. federal taxation
  • U.S. ethics and professional responsibilities related to tax practice
  • U.S. business law

The Three Disciplines

The three new disciplines in the 2024 CPA Exam, part of the CPA Evolution initiative, are designed to allow candidates to specialize in areas that align with their career interests and the demands of the modern business environment. Here’s a more detailed look at each discipline:

Business Analysis and Reporting (BAR)

Objective: This discipline focuses on higher-order skills needed in financial statement analysis, business reporting, and the strategic role of the CPA in business decision-making.

Key Topics:

  • Financial Statement Analysis: Understanding and interpreting financial statements to assess an entity’s financial health and performance.
  • Performance Management: Developing and using key performance indicators (KPIs) to measure, manage, and improve business performance.
  • Data Analytics and Visualization: Utilizing data analytics tools to analyze business data, and effectively presenting data to support business decisions.
  • Strategic Planning and Risk Management: Involvement in the strategic planning process and identifying, assessing, and managing business risks.
  • Business Processes and Controls: Understanding and evaluating business processes and internal controls to improve efficiency and effectiveness.

Information Systems and Controls (ISC)

Objective: This discipline is tailored for those interested in information technology, data security, and controls. It addresses the increasing role of technology in accounting and auditing.

Key Topics:

  • IT Governance and Risk: Understanding the frameworks for managing and governing enterprise IT; identifying and managing IT-related risks.
  • Information Security and Cybersecurity: Knowledge of cybersecurity principles, data protection laws, and the steps necessary to protect information assets.
  • System and Organization Controls (SOC) Reporting: Understanding the requirements for SOC reports and the role of CPAs in assessing controls at a service organization.
  • Data Management and Privacy: Managing data effectively and understanding privacy regulations.
  • Business Continuity and Disaster Recovery: Planning and strategies to ensure business operations can continue and recover from disruptive events.

Tax Compliance and Planning (TCP)

Objective: This discipline focuses on tax compliance, tax planning, and tax strategy, suitable for those who aim to specialize in taxation.

Key Topics:

  • Individual Tax Planning and Compliance: Understanding tax laws affecting individual taxpayers, including income, deductions, credits, and tax planning strategies.
  • Business Tax Planning and Compliance: Knowledge of tax considerations for different business entities, including corporations, partnerships, and S-corporations.
  • Estate, Gift, and Trust Taxation: Understanding the tax implications and planning strategies for estates, gifts, and trusts.
  • International Taxation: Knowledge of taxation issues related to cross-border transactions and multinational enterprises.
  • State and Local Taxation (SALT): Understanding the complexities of state and local tax laws and their impact on business and individual tax planning.

Tips for Passing the CPA Exam

The CPA exam covers so many topics that you will need to study specifically for each section, usually for 6-8 weeks per section. Even a master’s degree in accounting doesn’t adequately prepare you to just walk in and pass the 4 CPA exams.

You will need a full review course such as Becker, Wiley CPA, Gleim, Roger, etc, and you will need to dedicate several hours a day over the course of months to even have a chance at getting passing scores.

How to Save Yourself MONTHS of Time and Frustration
Keep in mind that the CPA exam is the one part of getting your CPA license that you can control how long it takes. The education and experience requirements take as long as they take, but the CPA exams can take you as little as 6 months, or as long as multiple years… depending on how effective your study process is from the beginning.
Learn how to study strategically so you can save yourself tons of time and retake fees with this free training…

Arizona CPA Exam Cost Breakdown

The Arizona CPA exam cost consists of five main fees: an initial application fee of $100, a re-exam application fee of $50, the $238.15 per CPA exam section totaling $952.60 for all four sections, an initial licensing fee that costs $100 and then finally the biennial license registration fee of $300.

If a registrant’s biennial registration and fee are not received on time, the certificate is automatically suspended, and to re-activate the registrant would need to submit the completed renewal form, pay the $50 late fee, and the past due registration fee.

Initial Application$100.00
Re-examination Application Fee$50.00
Auditing and Attestation (AUD)$238.15
Business Environment and Concepts (BEC)$238.15
Regulation (REG)$238.15
Disciplines (ISC, TCP, or BAR)$238.15
Total for all 4 CPA Exam Sections$952.60
Initial CPA License Registration Fee$100.00
Biennial License Registration Fee$300.00
Late Renewal Fee$50.00

Arizona CPA Experience Requirements

To meet the Arizona CPA experience requirements, candidates require at least 2000 hours of paid or volunteer experience gained before or after passing the Uniform CPA Exam. The experience must involve recording and summarizing financial transactions, analyzing and verifying financial information, examining, reviewing, and reporting on financial statements, reporting financial results to an employer, clients, or other parties, and providing attestation, tax, and management advisory services to an employer, clients, or other parties

Receiving Your Arizona CPA Certificate

You are now eligible can now apply for your Arizona State CPA certificate and practicing license (Arizona is not a two-tier state, so certification automatically grants a practice license). This is a rundown of everything you’ve done thus far:

1. Checklist

  • A bachelor’s or higher-level degree with 150 semester/225 quarter hours of education, 36 semester/54 quarter hours of accounting courses, including 30 semester/45 quarter hours at the upper-division or graduate level, and 30 semester/45 quarter hours of accounting-related courses.
  • Passed the Uniform CPA Exam with a score of 75 in all categories over a rolling 18-month period.Obtained the required 2000 hours of experience as a supervisory CPA, as validated by a registered CPA or someone with equal qualifications and experience.
  • ASBA received your Certificate of Experience form and certification from your supervising CPA.
  • ASCPA-managed AICPA ethics course completed

2. Download the Arizona CPA Certificate Application. Submit the application and the non-refundable $100 fee to ASBA. A form certifying your legitimate status in the United States must also be completed and sent with the application. This form can be found here.

3. The Arizona State Board of Accountancy will contact you after receiving your request. They will alert you if any documents are missing from your application. ASBA will issue your CPA license if your application is complete.

How to Save Yourself MONTHS of Time and Frustration
Keep in mind that the CPA exam is the one part of getting your CPA license that you can control how long it takes. The education and experience requirements take as long as they take, but the CPA exams can take you as little as 6 months, or as long as multiple years… depending on how effective your study process is from the beginning.
Learn how to study strategically so you can save yourself tons of time and retake fees with this free training…

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