Frequently Asked Questions about Board of Public Accountancy
By the Division of Professional Licensure
All questions related to the new education rule 252 CMR 2.07(2) (a) are here including the new 120 semester hour rule, and how the education was reduced to allow more candidates to sit as soon as they graduate with their bachelor's degree. There are many issues listed in this section regarding all the circumstances for completing the exam including the new ratio as calculated per graduate course value vs. undergraduate course value.
How is the new education rules related to the experience requirements to become licensed? Included are explanations of full and non reporting license issues, as well as the details on the new Short Form (SE) Reciprocity Form for practicing CPAs from other states. Read all these new rule explanations completely before calling the Board administrative office!
Exam Issue Questions
- Based on the new rule, can I sit for the CPA exam before I meet the 150-hour requirement?
- What are the new educational requirements one must meet if one chooses to sit for the exam with the bachelor's degree and 120 credits?
- Does my college-level education need to include any other specific coursework?
- Can I sit for the exam during my final semester before graduation?
- Is there a time limit to meet the 150-hour certification/licensure requirement if I sit for the exam with 120 credits?
- Can I sit for the exam before I receive my official transcript certifying the completion of my bachelor's degree and required accounting and business courses?
- How the ratio is calculated of graduate course value vs. undergraduate course value under the new education rule 252 CMR 2.07(2) (a)?
- Does this mean that I will need a graduate degree to become a CPA?
- How does the Board qualify candidates with foreign college degrees or qualifying foreign accounting or business courses under these new rules?
- If a candidate sat for the examination prior to November 2002, what is the education and experience requirement when the candidate finally passes the CPA examination?
- When is the CPA Exam given, and what are the application deadlines?
- Where do I obtain a CPA exam application?
- Will on-line university courses be accepted in the new educational requirements?
Certification Issue Questions
- What is the education requirement for becoming a CPA?
- What is the experience requirement for CPA certification/licensure?
- What if my public accounting experience does not include 1000 hours in the attest function?
- How can I receive full license privileges to allow me to sign off on financial statements once issued the non reporting license?
- How the old experience requirement is affected by this new rule change with regard to the 252 CMR 2.07(2) (b)?
- What is the new Reciprocity rule as of January 1, 2007?
- What if I move to another state? Will my license transfer with me?
Renewal and Other Issue Questions
- How do I renew an expired license?
- What are the Continuing Professional Education Requirements?
- How can I verify if my Continuing Professional Education is accepted by the Board?
Firm Licensure Questions
- Where do I obtain applications to register a firm?
- Can CPA firms admit Non-CPA owners as of September 24, 2001?
- Can out-of-state CPA practice in MA?
Miscellaneous Questions
- How do I change my name and/or mailing address?
- How do I request a license verification /certificate of good standing?
- How do I request that my CPA exam grades be reported to another state?
CPA EXAMINATION REQUIRMENTS AS OF JANUARY 1, 2007
The Massachusetts Board of Public Accountancy (BoPA), at the request of many interested parties held discussions regarding amending its education rules to sit for the CPA exam. After much input from the CPA industry, the Board came to the conclusion that allowing candidates to sit for the exam at the point they earn a bachelor's degree and 120 semester hours, rather than the current 150 semester hours, is one step towards alleviating the shortage of CPAs in the Commonwealth.
BoPA members voted on September 28, 2006, to adopt amendments to 252 CMR, allowing candidates to sit for the CPA exam at 120 hours but to retain the current license requirement of 150 semester hours. On November 3, 2006, the rule was accepted by the Secretary of the Commonwealth and the rule changes become effective on January 1, 2007. If you have questions, e-mail the Secretary of the Board, Leo H, Bonarrigo, CPA, through this web site. Unfortunately, he is in only one or two days a week, so be patient for responses.
The following are frequently asked questions on these various subjects:
Based on the new rule, can I sit for the CPA exam before I meet the 150- hour requirement?
Yes. After January 1, 2007, candidates may qualify to sit for the exam when they have completed 120 of the required 150 semester hours (or 180 of the 225 quarter hours) of college education at a nationally or regionally accredited institution, where the successful completion of 120 semester hours (180 quarter hours) results in obtaining a bachelor's degree.
What are the new educational requirements one must meet if one chooses to sit for the exam with the bachelor's degree and 120 credits?
One must have completed 21 semester hours of accounting courses that include coverage in financial accounting, audit, taxation, and management accounting and 9 semester hours of business courses, including coverage in the areas of business law, finance and information systems.
Does my college-level education need to include any other specific coursework?
The requirements to sit for the exam do not, but to become licensed, the requirements to become certified vary based on the highest degree you obtain, and you should read the new rule 252 CMR 2.07(2) carefully. In either case, all coursework must be completed at a nationally or regionally accredited college or university and Associate degree/community college courses will be accepted only if transferred into a four-year bachelor's degree program. Elementary or introductory accounting courses will now qualify to fulfill your accounting course requirements for exam and licensure.
Can I sit for the exam during my final semester before graduation?
NO. You must have completed all of the requirements for your bachelor's degree before you sit. You may, however, apply for the exam during your final semester. Please note that the application review process for a first-time exam candidate will take 6-8 weeks and that testing is only available in the first two months of each calendar quarter. Once your exam application is approved, you will receive a Notice to Schedule (NTS) that gives you six months to schedule and complete all exam sections for which you applied. If you have not taken all exam sections and your NTS expires, your fees will be forfeited.
Is there a time limit to meet the 150-hour certification/licensure requirement if I sit for the exam with 120 credits?
Yes. You have three years from the time you receive notice of passing all four parts of the exam to meet the educational requirements for CPA certification/licensure. If you don't, you will need to retake all parts of the exam. This requirement is inflexible and candidates should plan accordingly and continue their education even when sitting for remaining parts of the exam. When every candidate applies after January 1, 2007, the testing administrator will complete an Academic Evaluation for Certification form. For candidates who satisfy the licensing requirement (252 CMR 2.07(2) (a)) when applying to sit for the first time, no further correspondence on the education issue will be necessary throughout the exam process. For all others, an academic report will be issued detailing the semester hour and course deficiencies to become certified once the entire exam is completed. This report will be updated through the entire exam experience.
When the final part is successfully completed, the passing grade notice will be sent our registered mail, and the date of delivery will begin the three year period to complete the 150 semester hour requirement for certification. The Academic Evaluation for Certification form will be required in the licensure application process, and a fee of $100 will be charged by the testing service for monitoring education during the exam process (and beyond) and verifying 252 CMR 2.07(2) (a) compliance prior to the candidate applying for a MA license.
All candidates who sit for the exam in any other state without completing the requirements of 252 CMR 2.07(2) (a) must complete the full education requirement within three years from the date they receive their final passing grade. If they do not, they must comply with the new reciprocity requirement of 252 CMR 2.08 in order to become licensed in Massachusetts.
Can I sit for the exam before I receive my official college transcript certifying the completion of my bachelor's degree and required accounting and business courses?
Yes. Beginning January 1, 2007, you will be able to sit for the exam before you actually receive your official transcript as long as you are able to provide the certified transcript within 90 days of your exam date. Failure to provide a transcript(s) that certifies the award of the bachelor's degree and completion of all required accounting and business courses will result in the loss of any exam credit in the exam window completed. Also, you will not be allowed to sit as a MA exam candidate in future CPA exams until such official transcript is received by the testing administrator.
How the ratio is calculated of graduate course value vs. undergraduate course value under the new education rule 252 CMR 2.07(2) (a)?
Since a candidate now needs 30 semester hours of undergraduate accounting courses or 18 semester hours of graduate courses for licensure, each undergraduate hour now equals 3/5 of a graduate hour (or conversely, each graduate hour equals 5/3 of an undergraduate hour).
An example: A candidate with 15 undergraduate hours and 9 graduate hours would have an equivalent of 30 undergraduate hours. (15 undergraduate hours + (5/3 x 12 = 15). If a candidate sits for the exam with the required 21 undergraduate accounting semester hours, he/she would only need complete 2 graduate accounting courses rather than 3 undergraduate accounting courses to comply with 252 CMR 2.07(2)(a) for licensure.
For business courses, since a candidate remains to need 24 semester hours of undergraduate accounting courses or 18 semester hours of graduate courses for licensure, each undergraduate hour equals 3/4 of a graduate hour (or conversely, each graduate hour equals 4/3 of an undergraduate hour).
An example: A candidate with 9 undergraduate business hours and 12 graduate business hours would have an equivalent of 24 undergraduate hours. (9 undergraduate hours + 4/3 x 12 graduate = 15, and the total is now 24). If a candidate sits for the exam with the required 9 undergraduate business semester hours, he/she would only need complete 4 graduate accounting courses rather than 5 undergraduate accounting courses to comply with 252 CMR 2.07(2)(a) for licensure. All should be advised that if one were earn a graduate degree in business (MBA, MST, MSAIS, or MSF), no specific business course coverage is necessary and only 18 graduate semester hours in business are required.
Does this mean that I will need a graduate degree to become a CPA?
No. The only degree required for certification is a bachelor's degree, with 150 semester hours of education contained in this degree or supplemented after earning the bachelor's degree. However, the skills and knowledge usually developed in a graduate program (e.g., Masters in Tax, MBA, or Law degree) may be useful in helping CPAs meet client demands. For this reason, the BoPA strongly encourages a graduate education. In addition, the experience requirement is relaxed when one earns the graduate degree (explained in 252 CMR 2.07(2) (b) as follows:
- If you obtain a graduate degree in accounting from an AACSB accredited accounting program, or one that has been approved by the Massachusetts Board of Public Accountancy as substantially equivalent to an AACSB program, you will not need to meet any specific course requirements of 252 CMR 2.07(2) (a), either accounting or business course subjects.
- If you earn a graduate degree in accounting from a school that does not fall within the above AACSB category, or if you earn a graduate degree in business administration or law, you will need 18 semester hours (27 quarter hours) of accounting at the graduate level or 30 semester hours (45 quarter hours) at the undergraduate level, or an equivalent combination thereof (undergraduate courses are weighed as 3/5 of graduate courses per this new rule as mentioned above). These courses must include coverage in financial accounting, audit, taxation, and management accounting. In addition, the degree must include or be supplemented by 24 semester hours (36 quarter hours) of business courses (other than accounting courses) at the undergraduate level or 18 semester hours at the graduate level, or an equivalent combination thereof (undergraduate business courses are weighed as 3/4 of graduate courses per this new rule as mentioned).
- If your highest degree is a bachelor's degree in business, your degree must include or be supplemented by 30 semester hours in accounting with coverage in financial accounting, audit, taxation, and management accounting. In addition, the degree must include, or be supplemented by, 24 semester hours in business courses other than accounting courses. These business courses shall include coverage in business law, information systems, finance, and coverage in at least one of the areas of economics, business organizations, professional ethics, and/or business communication.
- If your degree is not in business, your 30 semester hours in accounting must include at least three semester hours in each of the subject areas of financial accounting, audit, taxation, and management accounting; and your 24 semester hours in business must include at least three semester hours in each of the areas of business law, business information systems, professional ethics and finance. Business courses, other than accounting, in business management of organizations, economics, and/or business communications may be included for the business course requirements.
In all 4 cases herein, the 30 semester hours of undergraduate or 18 semester hours of graduate accounting or business courses do not have to be included in the undergraduate or graduate degrees.
How does the Board qualify candidates with foreign college degrees or qualifying foreign accounting or business courses under these new rules?
As in the past, all candidates with education outside of the U.S. must have their degree and course requirements evaluated by our only sanctioned evaluation service, the Center for Educational Documentation (CED). You can visit their web site at www.cedevaluations.com for their instructions. In the past, CED would evaluate the degrees and transcripts of all non-U.S. colleges and universities to determine their equivalency to a four-year bachelor's in the U.S. Since the exam evaluations now are that a candidate has a 4 year bachelor's degree and 120 semester hours to include the specific accounting and business course coverage, and since many candidates have both foreign and U.S. degrees and courses, CED will now evaluate all requirements and generally verify only exam qualifications for all candidates, who use either their foreign degree or any of the 21 required accounting or 9 business courses within this foreign degree.
The candidate with initial foreign education, along with additional U.S. education (taken here to comply with the 150 semester hour rule), who wishes to qualify for the certificate, would then contact the CPA exam service to obtain the Academic Evaluation for Certification form, as mentioned in the What's New Section above.
If a candidate sat for the examination prior to November 2002, what is the education and experience requirement when the candidate finally passes the CPA examination?
Any candidate who sat for the CPA exam prior to November 2002 as a Massachusetts candidate will be grandfathered with respect to education in their qualifications to become certified at the completion of the examination. Without the new education provisions of 252 CMR 2.07(3)(a), the candidate with only a bachelor's degree will need to have satisfied the experience requirements of three years in public accounting with 1000 hours in report experience or the government experience provisions of the old rule 252 CMR 2.07(6). If you fall in these categories, call the Board for a copy of these old rules.
If the candidate has a master's degree but not the specific course requirements of 2.07(3) (a), he/she will still need two years experience and the 1000 report hours as previously mentioned. Per the prior experience requirements under section 2.07(3) (a), the only equivalent to CPA experience is government audit experience as set forth in section 2.07(6) (a). However, any candidate can obtain the additional education per the new rule, 252 CMR 2.07(2) (a), and qualify to reduce or eliminate the experience requirement and be granted the new non-reporting license. The is an additional option for private accounting experience per section 2.07(5) (a) if one meets the 150 semester hour education rule, but has no graduate degree but three years experience under the supervision of a CPA in a comptroller assistant, internal auditor position or some other similar position.
When is the CPA Exam given, and what are the application deadlines?
The CPA Exam, which is now a Computer Based Examination (CBT) is administered during four examination windows a year, and is available through our testing administrator. To receive an application and/or any other exam related information, please call the exam service at 1-800-272-3926 or 1-615-880-4200, or visit their website at www.nasba.org.
Where do I obtain a CPA exam application?
Exam applications are obtainable by contacting the CPA Exam Service at 1-800-CPA-EXAM, ext. 4257 - or 1-615-880-4200, or by visiting their website at www.nasba.org.
- Will on-line university courses be accepted in the new educational requirement?
The on-line courses must be accepted through a degree-granting program at an accredited college or university. Generally, as is the case for any course to be accepted in meeting the educational requirement, this means that the candidate should be able to present a transcript from an accredited college or university showing that the course was accepted within a degree-granting program.
Do not call the Board administrative office for any exam related operational information (i.e. grade release information, change of address, etc.).
THE NEW EDUCATION RULE, 252 CMR 2.07(2) (a), AND RELATED NEW EXPERIENCE REQUIREMENTS, 252 CMR 2.07(2) (b) TO BECOME LICENSED
What is the education requirement for becoming a CPA?
As of 11/03/06, candidates pursuing CPA certification in Massachusetts are required to have 150 credit hours of college level education (252 CMR 2.07(2) if they sat for the Computer Based Test on their first exam attempt. The 150-hour requirement was a result of the growing demand for CPAs to provide clients with a wide range of professional services. CPAs are required to make increasingly complex and technical judgments, creating the need for professionals with diverse skills and a broad educational background. The additional education requirement is designed to meet this need. The education requirement remains basically unchanged from the old rule 252 CMR 2.01(4) and the Board has copies of this old education rule as well as the old experience rule 252 CMR 2.07(3).
What is the experience requirement for CPA certification/licensure?
The experience rule has not changed based upon the changes of this new education rule. Experience is set forth in 252 CMR 2.07(2) (b) and is essentially the same as it was detailed under the old rule 252 CMR 2.07(3). Both the new and old rules will be maintained on our web site for the immediate future. The new rules are those shown effective as of November 3, 2006. Both experience rules depend on your level of education. With 150 credits, you need one year of public accounting experience for a full reporting license and the CPA experience must include 1000 hours of report (attest) experience as defined in these sections. With a graduate degree in accounting, business, or law, no experience is required for certification/licensure, but the candidate can only apply for the non reporting license.
What if my public accounting experience does not include 1000 hours in the attest function?
If the candidate has no CPA experience or no report (attest) experience in his/her public accounting experience, the privileges of their license will be restricted to all accounting services, except issuing reports on financial statements. This restriction is designated as a non reporting license, but only the Board and the non reporting licensee will be aware of this restriction unless a member of the public were to inquire. The actual license itself has no restriction on it and we rely on the licensee to provide this information to clients or other members of the public if they are presented in their practice of public accounting with a potential report engagement. Ata that point, the non reporting licensee should review 252 CMR 3.01(5) and make a decision to upgrade the license to be able to perform report services.
How can I receive full license privileges to allow me to sign off on financial statements once issued the non reporting license?
You will qualify for to upgrade to a full license privileges after you comply with the provisions of 252 CMR 3.02(5), which remains unchanged in the new rules as of November 3, 2006. Non reporting candidates should review this rule carefully, and it would only be relevant if the non reporting licensee wished to accept a report engagement after becoming licensed. Many licensees practice public accountancy and do not issue reports on financial statements.
If you wish to upgrade to a full license, the purpose of the rule is to have you take the 80 hours of report CPE within six months of accepting the report engagement to gain the knowledge of reporting soon before taking a report engagement. Then, you can sign up for the peer review of this report with a report acceptance body (such as the MA Society of CPAs) and they will give you a list of peer reviewers to comply with the provisions of the rule within nine months of issuing the report. They will also schedule subsequent peer reviews as required by 252 CMR 2.15.
How the old experience requirement is affected by this new rule change with regard to the 252 CMR 2.07(2) (b)?
Every individual who sat for the paper CPA Exam prior to November 2002 and completed the exam without qualifying under the 150 semester hour education rule under the old rule 252 CMR 2.01(4) must qualify for the full reporting license experience requirements at that time.
The first opportunity at that time was that each candidate had to have had three full years of public accounting experience with 1000 hours in the report function and at least 700 in audit or review experience and 300 of the remaining amount (if not all 1000 in audit or review experience) in full disclosure compilations. The only other opportunity was that the candidate had at least six years of government audit experience and any candidate who wishes to qualify for either provision of the old rule should contact the Board for a copy of the old rule experience provisions. This grandfather provision is contained in the new rule 252 CMR 2.07(3).
What is the new Reciprocity rule as of January 1, 2007?
In addition to the education requirement rule changes, the Board also amended its reciprocity requirements for full time practicing CPAs, who wish to enter Massachusetts either incidental or to open an office and practice here. The change is intended to recognize the uniformity in licensing requirements of substantially equivalent state Boards and lessen the administrative burden and timing delays for practicing CPAs. These new rules are set forth in 252 CMR 2.08 and a new Short Form (SE) Reciprocal Application is now available at our web site page where all applications are found. The Short Form is available only for CPAs in the full time practice of public accountancy for five total years out of the last ten years prior to applying for the reciprocal license in Massachusetts.
These CPAs must provide verification of this full time practice either on the Short Form (SE) Employment Verification, also available in our forms web page, signed by a partner of the CPA firm employer, or by enclosing five years of personal tax return information verifying full time self-employment. All candidates who do not qualify for the Short Form, since they do not work full time in public accounting, will be required to fill out the long form Reciprocity Application.
All enclosures required with this application (educational transcripts, experience letters, character letters, etc.) must be included with that application. The new rule has not changed the application process of Foreign Licensed Chartered or Certified Accountants, and all must file the long form Reciprocal Application regardless of full time practice as licensed accountants.
What if I move to another state? Will my license transfer with me?
Reciprocity, or the recognition of your MA license in another state, is ultimately the decision of the licensing board in your new state. However, since almost all states have adopted the 150-hour education requirement, it is likely that if you meet the certification requirements for MA you will be able to obtain a license in another state. For more information, visit: www.nasba.org and the requirements of each individual state.
Renewal and Continuing Education Questions
How do I renew an expired license?
In order to renew an expired license, a written request to the Board Office is required. Included in this written request, expired licensees must ask the Board Staff to prepare a re-instatement package. Please also include a current address and license number for verification.
What are the Continuing Professional Education Requirements?
If a license is renewed on time, the required number of hours of Continuing Professional Education (CPE) to renew that license to practice is 80 hours. This requirement is due in connection with the renewal of your license. Any person with a late renewal should refer to the rules and regulations (252 CMR) regarding CPE, as the requirements to renew are different based on the number of years expired.
How can I verify if my Continuing Professional Education is accepted by the Board?
All CPE sponsorship, and/or CPE qualification questions, should be answered in the rules and regulations (252 CMR). Please be aware that the Board of Public Accountancy does accept any CPE course or seminar approved by either the A.I.C.P.A., or N.A.S.B.A.. However, the Board Office itself, does not pre-approve, or verify, any course or seminar as qualifying for CPE. (See CPE rules in Rules and Regulations section.)
Firm Licensure Questions
Where can I obtain applications to register a firm?
Applications for firm registration are available at the Board's web site www.mass.gov/dpl/boards/pa under applications & forms.
Can CPA firms admit Non-CPA owners as of September 24, 2001?
Based on a recent change to M.G.L. c. 112, sections 87A to 87E, licensed CPA firms (partnerships, corporations, LLCs and LLPs) may organize or add partners, shareholders or members up to 49 percent ownership with individuals who do not possess a CPA license. This informational notice provides the guidance to all who wish to either form a new entity with non-CPA owners or add a non-CPA owner to a currently licensed CPA firm as above.
Can an out-of-state CPA practice in MA?
Anyone who physically enters the geographic boundaries of Massachusetts and hold themselves out to the public as a CPA or CPA firm must possess a MA CPA license. The Board's statute, M.G.L. Chapter 112, Section 87A-E and rules, 252 CMR are available at the Board's web site www.mass.gov/dpl/boards/pa.
Miscellaneous Questions
How do I change my name and/or mailing address?
Name changes can only be done by submitting the completed Name Change Form available at the Board's web site at www.mass.gov/dpl/boards/pa. Mailing address changes can be done online provided that you have in your possession your most current CPA wallet license card. If not, you must download and complete the address change form at this web site and either fax it to 617- 727-0139 or mail it to the address provided on the form.
How do I request a license verification /certificate of good standing?
To request a license verification/certificate of good standing, please submit a written request with the following; your full name, CPA license number (if known), address where the verification is to be mailed and a check, or money order, in the amount of $15.00 payable to Comm. Of Massachusetts. The address to mail your request to is, Board of Public Accountancy, 239 Causeway St., Suite 500, Boston, MA 02114. If the verification is for a state board and they have provided you with their own form, you may enclose it with your request. Please allow 1 to 2 weeks for your request to be processed. If you are submitting a combined request for license verification and grade transfer (only for Massachusetts exam candidates that sat prior to January 1982) the total fee is $15.00.
How do I request that my CPA exam grades be reported to another state?
Massachusetts exam candidates that sat the CPA exam from 1982 to the present: Massachusetts has authorized the CPA Examination Services (CPAES) to transfer grades. Anyone requesting this service will find an Authorization for Transfer of Uniform CPA Examination Grades located at the Board's web site www.mass.gov/dpl/boards/pa. Click Applications and Forms and then click CPA Exam Grade Transfer. Please follow the instructions provided on the form. Should you have any questions regarding the grade transfer, you must contact CPAES at 1-800-CPA-EXAM and ask for the Massachusetts Coordinator. Please allow 1 to 2 weeks for your request to be processed.Massachusetts exam candidates that sat the CPA exam prior to 1982 (paper & pencil): please submit a written request with the following; your full name, CPA license number (if applicable), address where the verification is to be mailed and a check, or money order, in the amount of $15.00 payable to Comm. of Massachusetts. The address to mail your request to is, Board of Public Accountancy, 239 Causeway St., Suite 500, Boston, MA 02114. If the other state board has provided you with their own form, you may enclose it with your request. Please allow 1 to 2 weeks for your request to be processed. If you are submitting a combined request for license verification and grade transfer, the total fee is $15.00.
Individuals that did not take the examination as a Massachusetts candidate, please contact the state board you sat in for the transferring or reporting of examination grades.