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New Mexico CPA Ethics Exam Requirements 2024

New Mexico CPA Ethics Exam Requirements

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New Mexico CPA Ethics Exam Requirements

To meet the New Mexico CPA ethics exam requirements and become a CPA, candidates will have to complete the American Institute of Certified Public Accountants (AICPA) course titled Professional Ethics: The AICPA’s Comprehensive Course (For Licensure). The course is on the AIPCA website and an exam will be given after where the passing score is 90% or higher.

This article will help you to become a CPA in New Mexico and is a requirement for you to take the New Mexico 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 New Mexico 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 exam30
Semester hours needed in business law3
Total credit hours to receive a CPA license150
Work experience required to receive a CPA license1 Year
Ethics exam required to get a CPA licenseYes

New Mexico Education Requirements

New Mexico’s academic criteria are essential. To meet the New Mexico CPA education requirements for the CPA exam, you must have a bachelor’s degree with at least 120 semester hours. The state demands 150 hours for your full licensure, which may include master’s-level education. You must ensure that an entity recognized by the board completely accredits your program.

There are also specialized five-year CPA track programs that offer a hybrid bachelor’s and master’s curriculum tailored to provide you with the 150 semester hours required to achieve New Mexico CPA standards.

Inquire with New Mexico schools and institutions that offer accounting programs for further information. According to the New Mexico Public Accountancy Board, all certified public accountants operating in the state must have a bachelor’s degree.

Accepted Educational Institutions

The New Mexico Public Accountancy Board of Directors recognizes three levels of accreditation agencies:

Level 1 – Graduate from a four-year college or university that is accredited by one of the following agencies:

  • Middle States Association of Colleges and Schools
  • North Central Association of Colleges and Schools–Higher Learning Commission
  • New England Association of Schools and Colleges–Commission on Institutions of Higher Education
  • Northwest Commission on Colleges and Universities
  • Western Association of Schools and Colleges–Commission for Senior Colleges
  • Southern Association of Colleges and Schools–Commission on Colleges
  • Accrediting Council for Independent Colleges and Schools

Level 2 – Graduate from a four-year college or university whose business school or college of business is accredited by one of the following:

  • Association to Advance Collegiate Schools of Business
  • Association of Collegiate Business Schools and Programs

Level 3 – Graduate from a four-year college or university whose accounting program or accounting department is accredited by one of the following:

  • Association to Advance Collegiate Schools of Business
  • Accreditation Council for Business Schools and Programs

Make sure you have 30 hours of accounting coursework before choosing your courses. Discuss this with your advisor to ensure that you stay on track to meet your goal. While business-related courses can help fill out your education, they are not required by the New Mexico Board of Education.

Required Courses

Meet the New Mexico Public Accountancy Board’s CPA degree and curriculum requirements. A bachelor’s degree or higher is required, and 150 semester hour credits, 30 of which must be in accounting or auditing courses. Other items to consider:

  • Both graduate and undergraduate courses can contribute to meeting the 150 semester hour requirement.
  • No more than three semester hours may be taken in business law.
  • Finance courses may not be taken instead of accounting courses.
  • At least 15 semester hours must be taken by attending class in person on campus.
  • Transcripts that are stamped “issued to student” will not be accepted.
  • Correspondence, pass/fail grade courses, and CLEP will be accepted if you receive credit for them when transferring them into the college that grants your bachelor’s
  • Community college courses from accredited community colleges are acceptable.
  • Commercial CPA review courses will not be accepted

Foreign Education

If you attended a foreign institution or university, your academic credentials must be reviewed by a National Association of Credential Evaluation Service member organization (NACES). Evaluations and foreign school transcripts must be sent directly from the evaluation agency to CPA Examination Services.

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…

New Mexico CPA Exam Cost Breakdown

The New Mexico 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, an initial license fee that costs $175 and the annual renewal fee of $130.

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 License Fee$175.00
Annual Renewal Fee$130.00
Penalty for Late Renewal$100.00

New Mexico CPA Experience Requirements

To meet the New Mexico CPA experience requirements, candidates require 12 months or 2,000 hours of paid or volunteer public accounting experience which includes attest, accounting, management advisory, financial advisory, preparing financial reports and statements, consulting, preparing tax returns and consulting, designing, and implementing computer software programs that involve auditing and accounting.

Experience should be obtained in the seven years leading up to taking and passing the Uniform CPA Exam or within seven years of passing the CPA exam and be documented on the Work Experience Verification Form by a registered CPA.

If your supervisor is not licensed in New Mexico, they must remit the Interstate Notification of Verifying CPA’s License form.

Apply for Your New Mexico CPA License

Submit Your Application for Issuance

The final step is to submit the Application for a Certified Public Accountant Certificate and pay the cost once all licensing requirements have been satisfied. The application contains a form for verifying employment and a checklist for requesting and submitting supporting paperwork for required tests and education.

Receiving Your New Mexico CPA Certificate

After the Board has approved the application packet, the Uniform CPA Exam scores have been received, and the fingerprint background check has been completed, candidates will be awarded a certificate and license. They will be able to begin practicing as CPAs. All new licensees must attend a swearing-in ceremony held twice a year after receiving a new license.

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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