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Tennessee CPA Ethics Exam Requirements
To meet the Tennessee CPA ethics exam requirements and become a CPA, candidates must pass the American Institute of Certified Public Accountants’ ethics examination with at least a 90% score. The course and exam is titled Professional Ethics: The American Institute of Certified Public Accountants’ Comprehensive Course (For Licensure).
This article will help you to become a CPA in Tennessee and is a requirement for you to take the Tennessee 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 Tennessee CPA Requirements
Credit Hours to sit for the CPA Exam | 120 |
Credit Hours in Accounting at the Upper-division to sit for the CPA Exam | 18 |
Bachelor’s Required to sit for the CPA Exam | Yes |
Credit Hours to receive a CPA License | 150 |
*Credit Hours in Accounting to receive a CPA License | 30 |
*Credit Hours included in Accounting courses at the Upper-division Level to receive a CPA License | 24 |
Credit Hours in General Business to receive a CPA License | 24 |
Ethics Exam | Yes |
Work Experience | 1 – 3 Years |
Required CPE Hours Every Two Years | 80 |
Education Requirements
For applicants to sit for the CPA exam they must accomplish the Tennessee CPA education requirements. While 120 semester hours are accepted to sit for the exams, getting a CPA license requires 150 semester hours of credit. Applicants may opt to complete the remaining 30 semesters after the exam.
For CPA Exam Education Requirements
- Complete 120 semester hours within a four-year baccalaureate degree or higher.
- Complete at least 18 semester or 27 quarter hours of accounting at the upper division excluding credits from internship programs.
For CPA License Education Requirements
- Obtain a baccalaureate degree and at least 150 semester hours of education.
- Complete at least 30 semesters or 45 quarter hours of accounting which includes at least 24 semesters or 36 quarter hours at the upper-division. Internship programs may be included at a maximum of 6 semesters or 8 quarter hours.
- Complete at least 24 semesters or 36 quarter hours in general business such as:
- Algebra, Calculus, Statistics, Probability
- Business Communication
- Business Law
- Economics
- Ethics
- Finance
- Management
- Marketing
- Technology/Information Systems
Applicants can submit their CPA exam application while their education is in progress. However, they must complete their education before being able to sit for the exam.
For applicants with foreign education, credits earned are subject to evaluation by the following:
- NASBA International Evaluation Services
- Academic Credentials Evaluation Institute
- Center for Applied Research, Evaluation and Education/International Evaluation
- Foreign Academic Credentials Service, Inc.
- International Consultants of Delaware, Inc.
- International Education Research Foundation, Inc.
- Josef Silny & Associates, Inc.
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…
Tennessee CPA Exam Cost Breakdown
The Tennessee CPA exam cost consists of four main fees: the education evaluation application fee of $90, the $344.80 per CPA exam section totaling $1,379.20 for all four sections, a $100 fee on the CPA license application, and lastly a renewal fee of $110.
Education Evaluation Application Fee | $90.00 |
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 |
CPA License Application Fee | $100.00 |
License Renewal | $110.00 |
Late Renewal | $100.00 |
Tennessee CPA Experience Requirements
To meet the Tennessee CPA experience requirements, one year of experience is required and will have to consist of full or part-time employment that extends over a period of no less than one year and no more than three years and includes no fewer than 2,000 hours of performance of services which may include industry, government, academia or public practice. This experience should include providing any type of service or advice involving the use of accounting, attestation, management advisory, financial advisory, tax or consulting skills.
CPA Licensing
After passing the CPA exam, applicants may start fulfilling the requirements to obtain a CPA license. The instructions for Initial CPA licensure will be sent to the applicants when all relevant education and exam information has been received in the board office.
If the applicant has met the requirements for licensure, he or she may apply for a Tennessee CPA license online.
Applicants must attach the completed work experience form and ethics exam certificate during the online application process. The fee for an initial CPA license application is $100.
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…