Michigan CPA Education Requirements 2024

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Michigan CPA Education Requirements

To meet the Michigan CPA education requirements and become a CPA, applicants should hold a bachelor’s degree with an accounting major completing 150 semester hours that include 3 semester hours in auditing, 21 semester hours in accounting, and 24 semester hours in general business subjects.

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

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Summary of Michigan CPA Requirements

Credit Hours to sit for CPA Exams (Accounting concentration)	120
Credit Hours in Auditing to sit for CPA Exams	3
Credit Hours in Accounting to sit for CPA Exams	21
Credit Hours in General Business Subjects to sit for CPA Exams	24
Bachelor’s Required to Sit for CPA Exams?	No
Credit Hours for CPA License	150
Work Experience Required	1 – 5 Years
Required CPE Hours Biennially	40

General Requirements

CPAs in Michigan have no minimum age requirement or state residency or citizenship required in the United States. A Social Security number is required.

Education Requirements

To meet the Michigan CPA education requirements, you will require 150 semester hours for your full license, but you only need 120 semester hours to appear for the exam, with a specified percentage of study in accounting. Michigan will allow you to take the first CPA exam sections of the CPA exam 30 days before your college graduation.

Michigan used to require a year of auditing experience to obtain a license requirement. Today, however, you need one compilation, review, or audit engagement to experience gained. These standards are substantially more lenient for those who want to avoid public accounting systems.app

Accepted Educational Institutions

Check if your college Michigan Board of Accountancy will accept your college credits. The six acceptable regional accreditation authorities listed below must accredit your school:

Required Courses

Complete the CPA degree and program requirements in Michigan. A CPA granted certificate requires 150 total semester hours of college credit and a bachelor’s degree with a specialty in accounting. The educational requirement has two options:

With 12 semester hours of graduate-level accounting courses, you can get a master’s degree in accounting or business administration (not to include additional information systems or tax courses)
Complete a bachelor’s degree in accounting to earn 120-semester credits, plus 30 total semester hours of supplemental courses, including 30 semester hours of accounting courses, six semester hours of taxation, and 39 additional semester hours, with at least three semester hours but no more than 12 semester hours in no fewer than 5 of the following subject areas:
- Economics
- Business law
- Finance
- Ethics
- Marketing
- Management
- Statistics
- Taxation
- Business policy

Working straight through to your master’s degree is another option for meeting the state’s criteria. Ensure that your undergraduate work meets the board’s requirements. Then, pursue a master’s degree in accounting or a Master of Business Administration with a minimum of 12 graduate hours in accounting, excluding information systems and taxation. You must complete a 150 Hour Educational Analysis form if you do not have a master’s degree.

Transfer Credits/Foreign Education

Suppose you attended or graduated from a school outside the United States. In that case, your academic credentials must be reviewed by NASBA International Evaluation Services or a National Association of Credential Evaluation Services, Inc. member agency. Select a company from their website and request an evaluation.

An overseas candidate or student with foreign education can become a CPA provided they meet the educational requirements. Apply to one of the 55 US jurisdiction Boards of Accountancy, sit for the exam, and pass the four-part CPA Exam.

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.

Michigan CPA Exam Cost Breakdown

The Michigan CPA exam cost consists of four main fees: an education evaluation application fee of $90, the examination application fee of $344.80 per CPA exam section totaling $1,379.20 for all four sections, the CPA application fee of $300 and then the license renewal fee is $200.

Education Evaluation Application Fee	$90.00
Examination Fees
Auditing and Attestation (AUD)	$344.80
Financial Accounting and Reporting (FAR)	$344.80
Regulation (REG)	$344.80
Disciplines (ISC, TCP, or BAR)	$344.80
Total for all 4 CPA Exam Sections	$1,379.20
Licensing & Registration Fees
CPA New Application Fee	$300.00
License Renewal Fee	$200.00

Michigan CPA Ethics Exam Requirements

While most states require ethics before licensing, Michigan candidates can become a CPA without it as there are no Michigan CPA ethics exam requirements. However, part of the Continuing Professional Education (CPE) requirement is to attend 2 hours of professional ethics annually after getting the CPA license.

Michigan CPA Experience Requirements

To meet the Michigan CPA experience requirements, you will need 2,000 hours of experience that a registered CPA has confirmed to complete your licensing exam application. This experience must have been gained in a public accounting firm, a private enterprise, academia, or the government. To qualify under Michigan Boards of Accountancy guidelines, your experience must involve at least one of the following competency/skill areas:

Auditing financial statements
Reviewing financial statements
Compiling financial statements
Attestation
Other auditing leads to an opinion expressed in writing, including:
- Operational audits
- Reviews of internal controls
- Compliance audits
- Giving opinions on likely financial outcomes
Performing internal audits independently.
Performing compliance audits of government contracts and issuing a findings report
Government agency audits and issues findings reports.
Preparing income tax and nonprofit tax returns
Tax matter research
Representing a client before the IRS in an audit
Financial forecasts and analyses
Management advisory services that include:
- Forensic accounting
- Business valuation
- Fraud examination

The experience must be gained over a one- to five-year period and can be achieved in government, industry, university, or public practice. Candidates who get academic instruction experience will meet the work experience requirement after teaching four semesters of at least six credit hours per semester.

Apply for Your Michigan CPA License

You are now ready to apply for your Michigan CPA Certificate. Make sure that you have completed each of the following steps up to this point:

1. Checklist

Complete 150 semester hours of college education with an accounting concentration
Pass the Uniform CPA Exam.
Satisfy the Board’s experience requirement of one year (2000 hours). Have your supervision of CPA verify this employment on the Verification of Qualifying Experience form.

2. Apply for your Michigan CPA Certificate in the following manner:

Complete the Michigan CPA Certificate application through the online License Application Portal (you must select register if you are a first-time user of the system)
Suppose you do not have a master’s degree in accounting or business administration with a 12-semester-hour concentration in accounting. In that case, you must complete the 150 Hour Educational Analysis form found in the online License Application Portal.
If you took the Uniform CPA Exam in a state other than Michigan statutes, upload certified copies of your exam scores

Additionally, you will be expected to submit the following by mail to the Department of Licensing and Regulatory Affairs, P.O. Box 30670, Lansing, MI 48909:

A copy of your official college transcript
Payment via check order made out to the State of Michigan

3. Await notification from the Board that they have to receive, review, and approve your application

Receiving Your Michigan CPA Certificate

Application processing times might range from two to six weeks. Applicants who filed their applications online can track the status of their applications as each condition is confirmed using their account on the LARA website.

A confirmation letter and an official license and wallet card will be mailed. Suppose there are any issues with the application. In that case, applicants will be alerted through email, and will It will take a year from the submission date to fix the error before the application is rejected restarting the CPA exam application process.