Maryland CPA Ethics Exam Requirements [2023]

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Maryland CPA Ethics Exam Requirements

To meet the Maryland CPA ethics exam requirements and become a CPA, candidates will need to complete the self-study course titled, “Professional Ethics: The American Institute of Certified Public Accountants’ Comprehensive Course (For Licensure)” which is administered by the American Institute of Certified Public Accountants (AICPA). It is required to pass the exam after the course with a score of 90% or better. The course in found on AICPA’s website.

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

Summary of Maryland CPA Requirements

Credit Hours to sit for CPA Exams	120
Bachelor’s degree and Accounting Major or equivalent required to sit for CPA Exams?	Yes
For CPA Exam
Credit Hours in Accounting-related Subjects (Including below)	30
*Credit Hours in Ethics	3
*Credit Hours each in Auditing, Cost Accounting/Managerial Accounting & US Federal Income Tax and Ethics	3
*Credit Hours each in Financial Accounting and Elective Accounting	9
For CPA License
Credit Hours in business-related courses for the CPA license	21
Credit Hours to receive a CPA License	150
Ethics Exam Required?	Yes
Work Experience Required	1 – 3 Years
Required CPE Hours Every Two Years	80

Education Requirements

Before qualifying to sit for the CPA exam, applicants must fulfill the specific Maryland CPA education requirements. The state board breaks these requirements into two groups.

For CPA Exam. Accounting and Ethics Education – Complete 30 hours including:

Three hours in Auditing, Three hours in Cost Accounting or Managerial Accounting, Three hours in U.S. Federal Income Tax and Three hours in Ethics.
Nine hours of Financial Accounting and Nine hours of Accounting electives.

An applicant must then receive a bachelor’s degree with a major in accounting or equivalent from an institution that is a member of:

Association to Advance Collegiate Schools of Business
Accreditation Council for Business Schools and Programs
Middle States Association of Colleges and Schools
Or is recognized and approved by the board

Second, in order to be eligible to apply for CPA licensure in the state of Maryland, an applicant must have completed a total of 150 semester credit hours and complete the requirements of business related education.

For CPA License. Business Related Education – Complete at least 21 hours in at least five of the nine subject areas.

Statistics
Economics
Corporation or Business Finance
Management
Marketing
U.S. Business Law
Business Communication
Quantitative Methods,
Computer Science or Information Systems

See Chart of Subject Matter for more information on each of the required courses or subjects.

Foreign Applicants

Candidates with accounting degrees from other countries can be accepted provided that they meet Maryland’s education requirements. They will be evaluated by NASBA International Evaluation Service (NIES) as they are the only acceptable evaluation service for foreign transcripts. An applicant must request a course title and the number of credits assigned to each course to be done for the purpose of taking the Uniform CPA Examination in Maryland.

Uniform CPA Exam Application

After completing all required education, Maryland candidates can then apply for the CPA exam online. This application allows candidates to claim all of the relevant courses that they have completed to date, both to qualify for the CPA examination and for a CPA license. Candidates can also access this application again at the time they want to get licensed to add any courses that they may be lacking.

Candidates will also be able to:

Complete the application at their own pace.
Check the status of their application after submitting it.
Make changes to their contact information at any time.
Make name changes.

Be sure to read instructions thoroughly and check on each course to determine whether the courses qualify. A core course inventory worksheet is provided. It is recommended to complete this form and use it as applicants fill out the online application.

Payments for all the exam fees will be paid directly to NASBA.

To prevent delays in the application, make certain all information is complete. It may take up to 45 days depending on the completeness of the application, the receipt by the board of all of the pertinent documents and the volume of applications that are received.

For more tips and processing details, visit the Candidate Bulletin.

For application status, check here.

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 Four CPA Exam Sections are:

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.

Business Environment and Concepts (BEC)

The Business Environment and Concepts (BEC) section of the Uniform CPA Examination (the Exam) tests knowledge and skills that a newly licensed CPA must demonstrate when performing:

Audit, attest, accounting and review services
Financial reporting
Tax preparation
Other professional services

The content areas tested under the BEC section of the Exam encompass five diverse subject areas. These content areas are enterprise risk management, internal controls and business processes, economics, financial management, information technology and operations management.

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

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…

Maryland CPA Exam Cost Breakdown

The Maryland CPA exam cost consists of four main fees: an examination application fee of $67, a $226.15 per CPA exam section totaling $905 for all four sections, the license fee that costs $22 and the renewal fee of $56.

Examination Application Fee	$67.00
Auditing and Attestation (AUD)	$226.15
Business Environment and Concepts (BEC)	$226.15
Financial Accounting and Reporting (FAR)	$226.15
Regulation (REG)	$226.15
Total for all 4 CPA Exam Sections	$905.00
CPA License Fee	$22.00
CPA License Renewal Fee	$56.00

Maryland CPA Experience Requirements

To meet the Maryland CPA experience requirements, all individuals applying for an initial license must have completed 1 year (2,000 hours) of practical work experience which includes providing any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills.

This practical work experience must have been completed within 3 years of the date of the individual’s initial license application. This experience may be obtained through employment in government, industry, academia, or public practice.

The work must be verified and endorsed by a licensed active certified public accountant. Applicants will file and submit a Report of Practical Work Experience (RPE) to the endorser. The applicant should supply the endorser with a pre-addressed stamped envelope so that when completed, the form can be mailed directly to the board, with the endorser’s original signature at:

Maryland Board of Public Accountancy
1100 North Eutaw Street, Room 121
Baltimore, Maryland 21201

Applicants are advised to retain a copy of the completed form/s or documents so that in the event that the board’s staff would contact an applicant regarding their submittal, they may refer to it and respond to any questions.

CPA License Issuance

When an applicant has accomplished all the requirements above, the submitted file will be reviewed and determined by the board if it is approved or denied. There will be a $22 license fee.

Upon approval, the board will mail the licensing information that will enable the applicant to apply online for their initial Maryland CPA license. It will be notified by email only of the board’s decision.