North Carolina CPA Exam Requirements 2024: 3 Important Factors

North Carolina CPA Exam Requirements

Getting licensed to be a Certified Public Accountant (CPA) can seem so complicated that people often find it hard to see the first step in getting their CPA. This article will outline the requirements for CPA licensure in North Carolina. It is a complete overview of everything you need to know about the North Carolina CPA exam requirements, education, and experience needed to take the North Carolina CPA Examination. By the end, you’ll have a thorough understanding of how to become a licensed CPA in North Carolina.

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 North Carolina 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	30
Total credit hours to receive a CPA license	150
Work experience required to receive a CPA license	1 – 4 Years
Ethics exam required to get a CPA license	Yes

North Carolina CPA Education Requirements

In order for an applicant to get a North Carolina CPA license, he or she had to undergo a series of training programs. NCCPA requires all candidates who are planning to get a CPA license would need the following North Carolina CPA education requirements:

For CPA Exam. Must have 120 semester hours including a concentration in accounting that has:

• 30 semester hours of undergraduate-level courses with 6 semester hours in accounting principles and 3 semester hours in business law, or
• 20 semester hours of graduate-level accounting courses open exclusively to graduate students, or
• a combination of undergraduate and graduate courses equivalent to the requirements mentioned above.

For Licensure. Must hold a bachelor’s degree with a concentration in accounting and 150 semester hours that include:

• 24 semester hours of coursework with one 3-hour course in at least 8 of the following fields of study:
  1. Computer Technology
  2. Communications
  3. Ethics
  4. Economics
  5. Humanities/Social Science
  6. Finance
  7. Law
  8. International Environment
  9. Management
  10. Law
  11. Statistics

The only accountancy law course that the state board accepts is the NC Accountancy Law: Ethics, Principles, & Professional Responsibilities.

Accepted Educational Institutions

The North Carolina State Board of CPA Examiners (NCCPA) accepts degrees from the following Council for Higher Education Accreditation (CHEA)-recognized accrediting associations:

• Middle States Commission on Higher Education (MSCHE)
• New England Commission of Higher Education (NECHE)
•  Southern Association of Colleges and Schools Commission on Colleges (SACSCOC)
• Higher Learning Commission (HLC) (formerly New England Association of Schools and Colleges)
• WASC Senior College and University Commission (WSCUC)
• Accrediting Commission for Community and Junior Colleges (ACCJC) Western Association of Schools and Colleges

The NC State Board also accepts degrees from the following US Department of Education (USDE)-recognized accrediting associations:

• Northwest Commission on Colleges and Universities (NWCCU)
• Middle States Commission on Secondary Schools (MSA-CESS)

North Carolina Uniform CPA Examination

The North Carolina Uniform CPA Examination is a series of examinations with the ultimate goal to become a licensed CPA as an accountant in the state of North Carolina. There are a lot of things you should know about the Uniform CPA Examination, and we’ll go over them all so that we know what the North Carolina CPA Exam Requirements are.

To be eligible to take the Uniform CPA Exam, applicants must meet the following educational prerequisites.

• A citizen of the United States or is a resident alien
• 18 years of age or older
• Good moral character
• Meets the necessary education requirements
• Must have a bachelor’s degree
• 120 semester hours from a college or university accredited by one of the regionally accredited associations in any subject that includes, or is supplemented by, a concentration in accounting
  • Concentration in Accounting is as follows:
    • With at least 30 semester hours of undergraduate accountancy courses and should include the following:
      • Six or more semester hours of accounting principles
      • Three or more semester hours of business law
    • With at least 20 semester hours of graduate accounting courses that are open exclusively to graduate students or a combination of undergraduate and graduate courses

If the concentration in accounting is already complete or is reasonably expected to be completed by the end of the school term in which the Examination falls, and the applicant reasonably expects to receive the bachelor’s degree within 120 days after the application is received by the Board, the Board may approve an application to take the Examination before receiving a bachelor’s degree.

• The Examination grades will not be released if the candidate does not acquire the degree within the required time frame.

Applicants who are applying for the first time must fill out an Initial Examination Application, while those who are applying to retake a part of the exam must fill out a Re-Examination Application. Send the application in with the applicable exam fees and wait for approval.

The forms can be found on the forms and applications section of the North Caroline State Board Of Certified Public Accountants’ websites.

The application for testing will take around 10 business days to be approved for Initial Examination applicants and 5 business days for Re-Examination applicants. Once approved, you’ll receive a Notice To Schedule email from the National Association of State Boards of Accountancy (NASBA) which is valid for six months only.

North Carolina CPA Exam Coverage

The CPA exam consists of the three core sections and candidates would need to select one of the three discipline to demonstrate deeper skills and knowledge, allowing candidates to choose a specialization. There is no set order in which the exam portions must be completed. The components of the CPA test are as follows:

• Auditing and Attestation. This exam section covers the basics of financial and attest services, such as audits, reviews, compilations, and preparing agreements.
• Financial Accounting and Reporting. This exam section covers financial accounting topics for all business entities, including the government and nonprofits.
• Regulation. This exam section covers federal taxation, tax services, professional ethics, and business law for individuals and business entities.
• Disciplines
  • Business Analysis and Reporting (BAR): Focused on financial reporting, data analytics, and performance management. This area is suitable for those who are interested in financial analysis and reporting. An extension of FAR core.
  • Information Systems and Controls (ISC): Concentrates on IT governance, data security, and system controls. Ideal for individuals who wish to specialize in IT audits and information security. An extension of AUD core.
  • Tax Compliance and Planning (TCP): Centers on personal financial planning and tax compliance for individuals, businesses, and other entities. Suitable for those with a strong interest in taxation and financial planning. An extension of REG core.

You may take the required test sections in any order, but you must pass all four sections of the Uniform CPA Examination within an 18-month period beginning on the date the first examination section completed was taken. All components must be passed within the 18-month term. Any exam taken outside of the 18-month timeframe will result in a loss of credit.

North Carolina Uniform CPA Examination Fees

One of the first things that a North Carolina resident would want to know is how much are the CPA exam fees for the state of North Carolina. A CPA candidate who plans on passing the examination may want to have a rough idea of how much it would cost to sit for the exam.

The North Carolina CPA exam cost consists of four main fees: the administrative fee for initial application of $230, the current per CPA exam section fee of $254.80 totaling $1,019.20 for all four sections, the certificate application fee that cost $100, and finally the renewal fee of $60.

Administrative Fee Initial Application	$230.00
Administrative Fee Re-Exam Application	$75.00
Auditing and Attestation (AUD)	$254.80
Business Environment and Concepts (BEC)	$254.80
Financial Accounting and Reporting (FAR)	$254.80
Regulation (REG)	$254.80
Total for all 4 CPA Exam Sections	$1,019.20
Application for Original NC CPA Certificate	$100.00
Certificate Renewal	$60.00

North Carolina CPA Ethics Exam Requirements

To meet the North Carolina CPA ethics exam requirements, candidates are expected to complete an eight-hour course on the North Carolina Accountancy Statutes and Rules, including the Rules of Professional Ethics and Conduct. The course should be taken within one year prior to applying for a license or, as the board suggests, meet the requirement within the last few months prior to applying for a license.

The North Carolina Association of CPAs (NCACPA) course, NC Accountancy Law:  Ethics, Principles, & Professional Responsibilities, is the only accountancy law course the Board accepts for CPA licensure.

North Carolina CPA Experience Requirements

When applying for a CPA license in North Carolina, the North Carolina State Board of CPA Examiners (NCCPA) will not issue a certificate unless the candidate has completed the required work experience. One of the following four North Carolina CPA experience requirements must be met by the applicant:

• One year’s experience in the field of accounting under the direct supervision of a certified public accountant who currently holds a valid license in any state or territory of the United States or the District of Columbia.
• Four years of experience teaching accounting in a four-year college or university accredited by one of the regional accrediting associations or in a college or university determined by the Board to have standards substantially equivalent to a regionally accredited institution.
• Four years of experience in the field of accounting.
• Four years of experience teaching college transfer accounting courses at a community college or technical institute accredited by one of the regional accrediting associations.
• Any combination of such experiences determined by the State Board to be substantially equivalent to the foregoing.

One year of work experience is 52 weeks of full-time employment. Full-time employment is defined as working at least 30 hours each week for at least one year. Experience affidavits for part-time work (less than 30 hours each week) must contain a record of the actual part-time hours the applicant performed accounting services only for each week of part-time employment. Actual part-time hours do not include hours paid for sick leave, vacation leave, attending CPE courses, or other time not spent directly performing accounting services.

Getting your North Carolina CPA License

Where do we go from here? As you have now passed the rigorous three-part exam of the Uniform CPA Examination, you are still not officially a CPA yet. One last form needs to be filed with the North Carolina State Board of CPA Examiners (NCCPA) to receive your CPA license. To do that the applicant must satisfy all the CPA license requirements below:

• 18 years of age or older
• Good moral character
• Meets the necessary education and experience requirements
• Passed all 4 sections of the Uniform CPA Examination with a minimum grade of 75

The CPA candidates must complete the Application Package for Original NC CPA Certificate that can be found on the forms and applications section of the NCCPA website along following documents:

• Three certificates of good moral character
• Experience affidavits
• Proof of completion of the accountancy law course
• A photo that meets US passport standards
• Payment by check or credit card.

If a CPA candidate did not take the Exam as a North Carolina candidate, the candidate must submit an Interstate Exchange Form (included in the Original NC CPA License Application package) and request a transfer of Exam credit from the jurisdiction that holds his or her Exam grades.

Reciprocal License

Out-of-state CPAs who want to practice in North Carolina can get a reciprocal license. A reciprocal license can be obtained if an applicant meets the following requirements:

1. The applicant has the legal authority to use the CPA title and to practice public accountancy in a jurisdiction.
2. The applicant has received a passing score on each part of the Uniform CPA Examination.

International Reciprocal License

The NC State Board of CPA Examiners considers Chartered Accountants from Manitoba, Ontario, New Brunswick, British Columbia, Saskatchewan, or Nova Scotia to be substantially equal to CPAs from North Carolina.

You must first pass the NASBA International Qualification Exam (IQEX) in order to be eligible for international reciprocity and become a CPA in North Carolina.

Renewal of CPA License

North Carolina CPAs expire annually and would need to renew before July 1. To renew their CPA license they must submit two things:

1. A documented CPE hours completed in the previous year with the completed certificate renewal application form.
2. Renewal Fee of $60

A letter of demand will be sent to the CPAs who fail to renew their CPA license and if there is no response within 30 days of receiving the letter of demand, it will automatically result in forfeiture of the CPA certificate.

Summary

You’ve decided to become a Certified Public Accountant (CPA) and look forward to the journey. It’s a long and arduous road, but the end goal is well worth it. I hope that this article provided you with help in getting actual information about the North Carolina CPA exam which will serve as a roadmap for your upcoming CPA licensure.

North Carolina CPA Exam F.A.Q.s

Here are some commonly asked questions regarding North Carolina’s CPA exam and CPA license requirements.