Iowa CPA Ethics Exam Requirements 2024

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Iowa CPA Ethics Exam Requirements

To meet the Iowa CPA ethics exam requirements and become a CPA, candidates have to complete the AICPA ethics exam and pass with a score of 90% or higher. The course is Professional Ethics: The American Institute of Certified Public Accountants’ Comprehensive Course (For Licensure) and is found on AICPA’s website.

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

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Summary of Iowa 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	24
Credit hours in business subjects to sit for the CPA exam	24
Total credit hours to receive a CPA license	150
Work experience required to receive a CPA license	1 Year
Ethics exam required to get a CPA license	Yes

Iowa Education Requirements

To become a licensed CPA in Iowa, there are certain credentials and educational requirements to meet the CPA exam requirements. All potential candidates are required to meet the Iowa CPA educational requirement of a bachelor’s degree with 150 semester hours in accounting from a regionally accredited college or an accredited institution recognized by the Iowa board.

Comply with Iowa’s CPA degree and coursework requirements and complete the state’s educational requirements for a bachelor’s or higher degree, which will actually give you a total of 150 semester hours of credit in the following areas:

A graduate degree with a concentration in accounting from a program approved by a board-recognized accrediting agency.
A graduate degree in business from a program approved by a board-recognized accrediting agency with 24 semester hours in accounting that includes:
- Auditing
- Financial Accounting
- Management Accounting
- Taxation
A bachelor’s degree in business or accounting from a program approved by a board-recognized accrediting agency with:
- 24 semester hours of accounting that includes:
  - Auditing
  - Financial Accounting
  - Management Accounting
  - Taxation
- 24 semester hours in business-related courses that includes:
  - Business Law
  - Finance
  - Marketing
  - Management
  - Economics

If you earned your degree in another country, your academic qualifications must be examined by Foreign Academic Credential Services, Inc. (FACS) or NASBA International Evaluation Services to determine your eligibility to take the Uniform CPA exam.

Please be reminded of the following:

Correspondence, online, CLEP, and CPA review courses count for credit with the Board if you get credit for them at an accredited college or university.
Commercial CPA review courses do not contribute toward Board credit.
Courses taken at a community college or a two-year institution count for credit with the Board.
Developmental and/or remedial courses do not count for credit with the Board.
Internships and life experience may be included toward the total requirement of 150 hours.

Submission of Transcript

You must present an original college transcript from your previous school or institution attended.

Credit for courses completed at institutions outside the United States must be transferred to an eligible bachelor’s degree-granting institution within the United States.

On the official transcript, the degree must be noted, and make sure that the transcript is official and sealed before you submit it. The transcript can be submitted directly to the institution or via electronic to etranscript@nasba.org.

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.

Iowa CPA Exam Cost Breakdown

The Iowa CPA exam cost consists of four main fees: an education evaluation application fee of $90, the $354.80 per CPA exam section totaling $1,419.20 for all four sections, a $100 fee on the initial CPA registration and the annual registration and renewal fee of $100.

Education Evaluation Application Fee	$90.00
Auditing and Attestation (AUD)	$354.80
Financial Accounting and Reporting (FAR)	$354.80
Regulation (REG)	$354.80
Disciplines (ISC, TCP, or BAR)	$354.80
Total for all 4 CPA Exam Sections	$1,419.20
Initial CPA Registration Fee	$100.00
Annual Registration and Renewal of Active CPA License Fee	$100.00

Iowa CPA Experience Requirements

To meet the Iowa CPA experience requirements, candidates are required 2,000 hours or 12 months of experience in practical accounting, attestation, management, advisory, financial, tax, or consulting services of any kind. If you have academic experience, you must have taught a minimum of 24 semester hours of accounting courses in higher education.

Iowa CPA License Requirements

You are now eligible to apply for an Iowa CPA license. The following is a list of the essential procedures you should have taken in order to receive a license:

Steps to Pre-Licensure

All four units of the Uniform CPA Examination were passed.
The American Institute of Certified Public Accountants’ Professional Conduct and Ethics course was satisfactorily completed.
Completed 150 semester (or 225 undergraduate quarter) hours of coursework with an accounting and business focus, and a bachelor’s degree or higher
12 months of competent accounting experience (or 2,000 hours)
Have your confirming CPA sign your completed Verification of Experience and Attest Qualification paperwork (if applicable).

Apply for a CPA license in Iowa.

Visit Iowa PLB and create an account to get started. All application materials must be submitted electronically.
Include necessary documents such as transcripts, your verifying CPA’s signed Verification of Experience and Attest Qualification forms (if required), etc.
Prepare your application fee payable to the Iowa Accountancy Examining Board ($100 for the initial registration fee, plus an additional $100 if applying for attest privileges).
Applications are reviewed by the board and will be approved if there are no questions or concerns. It will typically require 2-3 weeks to process the application.