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Colorado CPA Ethics Exam Requirements
To meet the Colorado CPA ethics exam requirements and become a CPA, candidates will need to pass with a score of 90% in the AICPA Ethics Examination within two years preceding the application date. The exam will be under the course name “Professional Ethics: The AICPA’s Comprehensive Course (For Licensure) and is self-paced.
This article will help you to become a CPA in Colorado and is a requirement for you to take the Colorado 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 Colorado CPA Requirements
Credit hours to sit for the CPA exam | 120 |
Bachelor’s required to sit for the CPA exam | Yes |
Credit hours in accounting subjects to sit for the CPA exam | 27 |
Credit hours in business subjects to sit for the CPA exam | 21 |
Credit hours in auditing course concentrating on U.S. GAAS | 3 |
Total credit hours to receive a CPA license | 150 |
Credit hours in accounting subjects for the CPA license | 33 |
Credit hours in business subjects for the CPA license | 27 |
Work experience required to receive a CPA license | 1 Year |
Ethics exam required to get a CPA license | Yes |
Colorado CPA Education Requirements
To meet the Colorado CPA education requirements, applicants must complete 150 semester hours where 33 semester hours must be non-duplicative coursework at the undergraduate or graduate level. Of the 33 semester hours, 27 semester hours must include accounting courses. Of the 27 semester hours required, a total of 6 semester hours must be in auditing, which must include a 3 semester hour, or more course concentrating on U.S GAAS.
U.S GAAS concentration means that any course content referencing non-U.S standards is incidental to the course. The remaining semester hours may be in advanced auditing or a subset of basic auditing such as fraud or information technology auditing
Colorado Uniform Exam Requirements
You must have completed 120 hours of the total, non-duplicative higher education courses with the following accounting-specific qualifications:
- At least 27 semester hours of non-duplicative accounting coursework with grades of C or higher.
- 21 of these hours (excluding introductory accounting courses) in areas such as:
- Accounting Ethics
- Accounting Information Systems
- Accounting Research and Analysis
- Accounting Theory
- Auditing and Attestation Services
- Financial Accounting and Reporting of Business Organizations
- Financial Accounting and Reporting for Government and Not-for-Profit
- Financial Statement Analysis
- Fraud Examination
- Internal Controls and Risk Assessment
- Managerial or Cost Accounting
- Taxation
- Tax Research and Analysis
- 21 of these hours (excluding introductory accounting courses) in areas such as:
- A 3-semester hour, or more, auditing course concentrating on U.S. GAAS
- At least 21 semester hours of non-duplicative coursework in business administration in areas such as:
- The behavior of Organizations, Groups, and Persons
- Business Communications
- Business Ethics
- Business Law
- Computer Information Systems
- Economics
- Finance
- Legal and Social Environment of Business
- Management
- Marketing
- Quantitative Applications in Business
- Statistics no more than 6 of these semester hours can be in any single subject area.
Foreign Education
If you are with international education and applying, you must show confirmation that the audit course you took outside of the United States had a concentration in U.S. GAAS. You must additionally submit the following in addition to the evaluation of international education:
- A letter from the school confirming the audit course has a concentration in US GAAS
- The course’s syllabus
- The primary textbook used to include the name of the publisher and the authors.
- Failure to provide this information will result in an incomplete application.
At the time of application, all educational documents must be submitted, including official school transcripts, SSN affidavits, course syllabuses, textbooks used for audit courses, or a letter from the school confirming US GAAS concentration and/or international evaluations with international transcripts. The academic institution or evaluation service must send these documents directly to CPAES.
Transcripts must be mailed directly from the institution to the NASBA CPA Examination Services (CPAES) office in Nashville – not the Colorado State Board of Accountancy in Colorado. Transcripts can also be emailed directly from the university to etranscript@nasba.org.
Specific Accounting Course Requirements
33 semester hours of non-duplicative accounting coursework at the undergraduate or graduate level as follows:
- All courses must be designated by an accounting program code or the Applicant must otherwise demonstrate that the coursework was in accounting
- The 33 semester hours must include 27 semester hours of accounting courses, excluding introductory accounting courses, covering the subject areas below
- Accounting Ethics
- Accounting Information Systems
- Accounting Research and Analysis
- Accounting Theory
- Auditing and Attestation Services
- Financial Accounting and Reporting of Business Organizations
- Financial Accounting and Reporting for Government and Not-for-Profit Entities
- Financial Statement Analysis
- Fraud Examination
- Internal Controls and Risk Assessment
- Managerial or Cost Accounting
- Taxation
- Tax Research and Analysis
- Other areas as approved by the Colorado State Board
Of the 27 semester hours required above, a total of 6 semester hours must be in auditing, which must include a 3 semester hour, or more, course concentrating on U.S. GAAS.
Introductory accounting courses mean courses such as principles of accounting, accounting, and tax software courses, payroll accounting, and other basic accounting courses as determined by the Colorado State Board. Such courses will not count towards the 27 hour requirement.
The 27 hours required above must also include a 3 semester hour, or more, course concentrating on accounting or business ethics. The course content should include the following: the ethical responsibilities of accountants, both personal and professional; ethical dilemmas facing accountants; ethical theory; the various accounting codes of conduct and ethical guidance for accountants; and the application of ethical theory, codes of conduct, and professional standards.
Specific Business Course Requirements
27 semester hours of non-duplicative coursework in business administration at the undergraduate or graduate level, such as:
- Behavior of Organizations, Groups, and Persons
- Business Communications
- Business Ethics
- Business Law
- Computer Information Systems
- Economics
- Finance
- Legal and Social Environment of Business
- Management
- Marketing
- Quantitative Applications in Business
- Statistics
- Other areas as approved by the Board
Of the 27 semester hours, no more than 9 semester hours can be in any single subject area. But semester hours in excess of the 9-hour maximum may count toward the total 150 semester hour requirement.
All coursework must address subject areas as provided above, but the coursework need not be taken within the business or accounting department.
How to Meet the 150-Hour Requirement
Many colleges and universities offer bachelor’s degree and master’s degree programs in accounting. To obtain 150 semester hours of education, students do not necessarily have to get a master’s degree. They can meet the requirement at the undergraduate level or get a bachelor’s degree and take some courses at the graduate level. Students can also choose any of the following:
- Combine an undergraduate accounting degree with a master’s degree at the same school or a different one;
- Combine an undergraduate degree in some other discipline with a master’s in accounting or an MBA with a concentration in accounting;
- Enroll in an integrated five-year professional accounting school or program leading to a master’s degree in accounting.
In most cases, the additional academic work needed to acquire the technical competence and develop the skills required by today’s CPA is best obtained at the graduate level. Graduate-level programs are an excellent way to more fully develop skills such as communication, presentation, and interpersonal relations and to integrate them with the technical knowledge being acquired.
For these reasons, leading professional organizations such as the AICPA, the National Association of State Boards of Accountancy, and the Federation of Schools of Accountancy have consistently supported the 150-hour education requirement for entry into the accounting profession.
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…
Colorado CPA Exam Cost Breakdown
The Colorado CPA exam cost consists of four main fees: an education evaluation application fee of $75, the $339.80 per CPA exam section totaling $1,359.20 for all four sections, the application fee of $85, and then the initial license fee of $150.
Education Evaluation Application Fee | $75.00 |
Auditing and Attestation (AUD) | $339.80 |
Financial Accounting and Reporting (FAR) | $339.80 |
Regulation (REG) | $339.80 |
Disciplines (ISC, TCP, or BAR) | $339.80 |
Total for all 4 CPA Exam Sections | $1,359.20 |
Registration Fee | $85.00 |
Initial CPA License Registration Fee | $150.00 |
Colorado CPA Experience Requirements
To meet the Colorado CPA experience requirements, candidates require 12 months of experience in ONE area (Public Accounting, Industry, Government, or Academia). It must include a minimum of 1,800 “qualifying hours” which must be obtained over a period of not less than one year and not more than three years. “Qualifying work hour(s)” means hours spent primarily applying the standards described in Rule 4.1.B. Holidays, vacations, and family/employee sick leave shall not be included as qualifying work hours. Clerical experience does not count toward qualifying work hours.
Getting your Colorado CPA License
After accomplishing the requirements, the final step is to apply for the CPA License. You will have to use NASBA’s licensing service to apply for the CPA License. Upon application, make sure all documents and payments are prepared to avoid delays in your application.
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…