References are to North Carolina Administrative Code, Title 21 - Occupational Licensing Boards, Chapter 08 - Board of Certified Public Accountant Examiners, as amended through January 1, 2007.
subchapter 08F - REQUIREMENTS FOR CERTIFIED PUBLIC
ACCOUNTANT EXAMINATION AND CERTIFICATE APPLICANTS
section .0100 - GENERAL PROVISIONS
21 ncac 08f .0101 TIME AND PLACE OF CPA EXAMINATIONS
(a) The Board shall hold the CPA examination
twice a year.
(b) The dates of the CPA Examination are
determined by the examination vendor(s).
(c) The Board shall announce the time and place
for holding each CPA examination at least 60 days prior to the date thereof.
21 NCAC 08F .0102 TYPE OF CPA EXAMINATION
The Uniform
CPA Examination prepared by the AICPA shall be the CPA examination used by the
Board.
21 NCAC 08F .0103 FILING OF EXAMINATION APPLICATIONS AND
FEES
(a) All applications for CPA examinations shall
be filed with the Board, accompanied by the examination fee. The Board sets the
fee for each examination at the amount that enables the Board to recover its
actual costs of examination services. If a check or credit card authorization
fails to clear the bank, the application shall be deemed incomplete and returned.
(b) The initial application filed to take the
examination shall include supporting documentation demonstrating that all legal
requirements have been met, such as:
(1) minimum legal age;
(2) education;
(3) experience, if required in order to
qualify for the examination; and
(4) good moral character.
(5) Any person born outside the
(A) other bona fide evidence that the applicant is legally allowed
to remain in the
(B) a notarized affidavit of intention to become a
(C) evidence that the applicant is a citizen of a foreign
jurisdiction which extends to citizens of this state like or similar privileges
to be examined.
(c) Official transcripts (originals – not
photocopies) signed by the college registrar and bearing the college seal are
required to prove education and degree requirements. A letter from the college
registrar of the school may be filed as documentation that the applicant has
met the graduation requirements if the degree has not been awarded and posted
to the transcript. However, no examination grades shall be released until an
official transcript is filed confirming the information supplied in the college
registrar's letter. All applicants submitting transcripts from foreign schools
for consideration of degree and of meeting accountancy course requirements
shall have had the transcript(s) evaluated by Foreign Academic Credential
Service, Inc. (FACS) or a comparable educational evaluation service. Applicants
shall determine that their transcripts contain all information required by
these Rules.
(d) If experience is required to qualify for
examination, affidavits shall be prepared and signed by employers on forms
supplied by the Board.
(e) In order to document good moral character as
required by G.S. 93-12(5) of this Rule, three certificates of good moral
character signed by persons not related by blood or marriage to the applicant
shall accompany the application.
(f) No additional statements and affidavits
regarding experience and education shall be required for applications for
re-examination.
(g) An applicant shall include as part of any
application for the CPA examination a statement of explanation and a certified
copy of the final disposition if the applicant has been arrested, charged,
convicted or found guilty of, received a prayer for judgment continued or
pleaded nolo contendere to any
criminal offense.
(h) If an applicant has been denied any license
by any state or federal agency, the applicant shall include as part of the
application for the CPA examination a statement explaining such denial. An
applicant shall include a statement of explanation and a certified copy of
applicable license records if the applicant has been registered with or
licensed by a state or federal agency and has been disciplined by that agency.
(i) Two recent identical photographs shall
accompany the application for the CPA examination. These photographs shall have
been taken within the last six months. The photographs shall be of the
applicant alone, 2x2 inches in size, with an image size from the bottom of the
chin to the top of the head, including hair, of between 1 and 1‑3/8
inches. Photographs shall be clear, front view, full face, taken in normal
street attire without a hat or dark glasses, and printed on thin paper with a
plain light background. They shall be capable of withstanding a mounting
temperature of 225 degrees Fahrenheit (107 degrees Celsius). They may be in
black and white or in color. Snapshots, most vending‑machine prints, and
magazine or full‑length photographs are unacceptable. Photographs
retouched so that the applicant's appearance is changed are unacceptable.
Applicants shall write their names on the back of their photos.
(j) If an applicant's name has legally changed
and is different from the name on any transcript or other document supplied to
the Board, the applicant shall furnish copies of the documents legally
authorizing the name change.
(k) Candidates shall file initial and re-exam
applications to sit for the CPA Examination on forms provided by the Board.
(l) Examination fees will be valid for a
six-month period from the date of the Notice to Schedule (NTS).
21 NCAC 08F .0105 CONDITIONING REQUIREMENTS
(a) Passing Grades. A candidate shall be required
to pass all sections of the examination with a grade of 75 or higher on each
section.
(b) Military Service. A candidate who is on
active military service shall not have the time on active military service
counted against Subparagraph (d)(1) of this Rule unless the candidate applies
to take the examination during the active military service in which case each
month a candidate sits shall be counted toward Subparagraph (d)(1) of this
Rule.
(c) A candidate who has conditional credit prior
to January 1, 1997, may continue to apply to sit for the examination as long as
the conditional credit is valid. A candidate who no longer has valid conditional
credit after January 1, 1997, shall be required to meet all education
requirements in effect at the time of their subsequent application.
(d) A candidate is subject to the following
conditioning requirements:
(1) A candidate shall be required to obtain
a passing grade on all sections of the examination within an 18-month period;
(2) A candidate may sit for any section of
the examination individually;
(3) A candidate may sit for each section of
the examination up to four times during a one-year period but not more than one
time in a three-month testing window as defined by the examination vendors(s);
(4) A candidate shall receive credit on the
passage of his or her section(s) of the examination; such credit(s) shall be
valid for an 18-month period which begins on the date the section(s) passed is
(are) taken; and
(5) A candidate having earned conditional
credits on the paper-and-pencil CPA Examination has until October 31, 2005, or
18 months after administration of the last paper-and-pencil examination to pass
the remaining sections(s) before the credits earned under the paper-and-pencil
examination expire.
21 NCAC 08F .0106 GRANTING EXAMINATION CREDIT FROM OTHER
JURISDICTIONS
(a) The Board may grant candidates credit for
passing parts of the AICPA Uniform CPA Examination in another jurisdiction or
territory of the
(b) To be considered for credit, the passing
grades must meet the requirements of 21 NCAC 08F .0105. To transfer credit, the
candidate must file an application with the Board on a form provided by the
Board. Such application may be made simultaneously with the application to take
the CPA examination.
21 NCAC 08F .0107 COMMUNICATION OF RESULTS OF CPA
EXAMINATIONS
(a) The Board shall communicate to candidates in
writing the result achieved in each of their examinations. Grades awarded to
candidates shall not be released to third parties except by written consent of
the candidate.
(b) In no event shall any information concerning
answers of candidates be given to anyone other than the candidate.
(c) Examination grades shall be mailed to the
candidates upon receipt by the Board.
21 ncac 08f .0111 INELIGIBILITY
DUE TO VIOLATION OF ACCOUNTANCY ACT
(a) A person may not be eligible to take the CPA
examination or receive the
(b) Any individual found to have engaged in conduct
which subverts, or attempts to subvert the CPA Examination process may have his
or her scores on the examination withheld and declared invalid, be disqualified
from holding the CPA certification and may be subject to the imposition of
other appropriate sanctions.
(c) Conduct which subverts or attempts to subvert
the examination process includes but is not limited to:
(1) conduct which violates the standard of
the test administration such as communicating with any other examinee during
the administration of the examination;
(2) having in one's possession during the
administration of the examination any books, notes, written or printed
material, or data of any other kind, other than the distributed examination
materials;
(3) failure to cooperate with testing
officials;
(4) conduct which violates the credentialing
process, such as falsifying or misrepresenting educational credentials or other
information required for admission to the examination, impersonating an
examinee, or having an impersonator take the examination on another's behalf;
(5) conduct which violates the nondisclosure
prohibitions of the examination or aiding or abetting another in doing so; and
(6) retaking or attempting to retake an
examination section by an individual holding a valid CPA certificate in this
State or a candidate who has unexpired credit for having already passed the
same examination section unless directed to do so by the Board.
21 ncac 08f .0113 CANDIDATE'S REQUEST TO REVIEW CPA
EXAMINATION
The Board may allow a
SECTION .0300 ‑ EDUCATIONAL REQUIREMENTS FOR EXAMINATION
21 NCAC 08F .0302 EDUCATION AND WORK EXPERIENCE REQUIRED
PRIOR TO CPA EXAM
(a) Under G.S. 93‑12(5) there are two ways
an applicant for the CPA examination can demonstrate the possession of
sufficient education to become a CPA:
(1) the possession of a bachelor's degree in
any subject, from a regionally accredited college or university, that either
includes or is supplemented by a concentration in accounting as defined in 21
NCAC 08A .0309; and
(2) compliance with the requirements set
forth in 21 NCAC 08F .0304, which provides for special examinations in lieu of
formal education.
(b) Applicants who intend to demonstrate their
possession of sufficient education to become a CPA by showing that they possess
a bachelor's degree shall submit official transcripts with their application to
take the CPA examination. Official transcripts shall show the grades the
applicant received on courses completed and shall also show degrees awarded. An
official transcript bears the seal of the school and the signature of the
registrar or assistant registrar.
(c) With regard to Paragraph (a)(1) of this Rule,
the Board may approve an application to take the CPA examination prior to the
receipt of a bachelor's degree, if:
(1) the concentration in accounting which
shall be included in or supplement the bachelor's degree is already complete or
is reasonably expected to be completed by the end of the school term within
which the examination falls; and
(2) an applicant reasonably expects to
receive the bachelor's degree within 120 days after the last day of the
examination. However, if the applicant fails to receive the degree within the
specified time, the CPA examination grades shall not be released and if the
applicant wishes to retake the examination, the applicant shall reapply.
(d) With regard to Paragraph (a)(2) of this Rule,
the applicant shall complete the work experience that is required by all
candidates for certification, and set forth in 21 NCAC 08F .0401, prior to the
date the applicant applies for the CPA examination.
21 NCAC 08F .0303 SEMESTER HOUR EQUIVALENT
One quarter hour
of undergraduate study shall equal two‑thirds of a semester hour.
21 NCAC 08F .0304 WAIVER OF EDUCATION REQUIRED PRIOR TO
EXAMINATION
The Board shall waive the
education requirements specified in 21 NCAC 08F .0302(a)(1) upon receipt of
proof acceptable to the Board that the applicant has scored:
(1) in the 50th percentile rank or higher on each part of either
the Graduate Record Examination or the Graduate Management Admission Test; and
(2) the applicant has enrolled for an advanced degree at a regionally
accredited school and, prior to filing an application with the Board, has
satisfactorily completed ten semester hours, or the equivalent, of graduate
courses, including six semester hours in graduate accounting courses.
21 NCAC 08F .0401 WORK EXPERIENCE REQUIRED OF CANDIDATES
FOR CPA CERTIFICATION
(a) G.S. 93-12(5)c sets forth work experience
alternatives, one of which is required of candidates applying for CPA
certification. In connection with those requirements, the following provisions
apply:
(1) The work experience shall be acquired
prior to the date a candidate applies for certification.
(2) All experience which is required to be
under the direct supervision of a CPA shall be under the direct supervision of
a CPA on active status.
(3) A candidate who applied for the CPA
examination under the special examination exception set out in G.S. 93‑12(5),
and further described in 21 NCAC 08F .0302(a)(2) and (d) shall meet the work
experience requirement prior to applying to take the CPA examination.
(b) The following provisions apply to all
candidates seeking to meet the work experience requirement of G.S. 93‑12(5)c.3
by working in the field of accounting.
(1) One year of work experience is 52 weeks
of full‑time employment. The candidate is employed full‑time when
the candidate is expected by the employer to work for the employer at least 30
hours each week for an indefinite period or for a set period of at least one
year. Any other work is working part‑time.
(2) All weeks of actual full‑time
employment are added to all full‑time equivalent weeks in order to
calculate how much work experience a candidate has acquired. Dividing that
number by 52 results in the years of work experience the candidate has
acquired.
(3) Full‑time‑equivalent weeks
are determined by the number of actual part‑time hours the candidate has
worked. Actual part‑time hours do not include hours paid for sick leave,
vacation leave, attending continuing education courses or other time not spent
directly performing accounting services. For each calendar week during which
the candidate worked actual part‑time hours of 30 hours or more, the
candidate receives one full‑time‑equivalent week. The actual part‑time
hours worked in the remaining calendar weeks are added together and divided by
30. The resulting number is the additional number of full‑time‑equivalent
weeks to which the candidate is entitled.
(4) The candidate shall submit experience
affidavits on a form provided by the Board from all of the relevant employers;
provided that when such experience was not acquired while employed with a CPA
firm, the candidate shall also submit details of the work experience and
supervision on a form provided by the Board. Experience affidavits for part‑time
work shall contain a record of the actual part‑time hours the candidate
has worked for each week of part‑time employment. Both the experience
affidavit and the form for additional detail shall be certified by the
employer's office supervisor or an owner of the firm who is a certificate
holder.
(c) 21 NCAC 08F .0409 applies to teaching
experience acquired pursuant to G.S. 93‑12(5)c.2 and 4.
21 NCAC 08F .0409 SATISFACTION OF EXPERIENCE REQUIREMENT BY
TEACHING
(a) Teaching Experience. The requirement of
"four years experience teaching accounting," G.S. 93-12(5), means
teaching accounting full-time for four years.
(1) Full-time teaching as described by the
rules of the educational institution where the applicant taught will be
accepted by the Board to be full-time teaching. However, in no case will less
than 12 semester hours, or the equivalent, be accepted by the Board as
full-time teaching.
(2) If the applicant has not taught
accounting full-time for four years, credit will be allowed by the Board for
teaching accounting less than full-time on a pro rata basis based upon the
number of semester hours required for full-time teaching at the educational
institution where the applicant taught. However, in no case can an applicant
receive credit for a full-time teaching year for teaching done in less than one
academic year or more credit than one full-time teaching year for teaching done
within one calendar year.
(3) Courses outside the field of accounting
will not be counted toward full-time teaching. Such courses include, but are
not limited to: business law, finance, computer applications, personnel
management, economics and statistics.
(4) Of the four years of full-time teaching
experience, teaching accounting principles (below intermediate accounting)
cannot be counted toward the educational requirement for more than the
equivalent of two full-time years. The remaining two full-time teaching years
must be taught in at least two different areas of advanced accounting such as
auditing, income tax, intermediate financial accounting or advanced managerial
accounting, and the applicant must have taught at least nine semester hours, or
the equivalent, in at least two of the different areas.
The purpose of this
Subparagraph is to render unacceptable as meaningful experience both the
continuous teaching of the elementary accounting course and the continuous
teaching of the advanced courses in only one area of accounting.
(b) Required Information. Applicants must submit
with their application a letter from each institution where they taught,
certified by the applicant's dean or department head at that institution. The
letter must state:
(1) the number of credit hours which the
applicant taught each year;
(2) the names and academic level of the
courses taught; and
(3) the number of hours set by the rules of
the institution as full-time teaching for each relevant year.
(c) Burden of Proof. An applicant having taught
in an accredited community college or technical institute has the burden of
proving that the credits earned by students taking those courses which the
applicant taught would transfer to a four-year accredited college or
university.
21 NCAC 08F .0410 EDUCATION REQUIRED OF CANDIDATES FOR CPA
CERTIFICATION
(a) G.S. 93‑12(5)a sets forth the education
required of candidates applying for CPA certification. The 150 semester hours
required shall include a concentration in accounting, as defined by 21 NCAC 08A
.0309, and other courses as required by the Board as follows: 24 semester hours of coursework which shall
include one three semester hour course from at least eight of the following 10
fields of study:
(1) communications;
(2) computer technology;
(3) economics;
(4) ethics;
(5) finance;
(6) humanities/social science;
(7) international environment;
(8) law;
(9) management; or
(10) statistics.
(b) Anyone applying for CPA certification who
holds a Master's or more advanced degree in accounting, tax law, economics,
finance, business administration, or a law degree with an emphasis in taxation
or accounting from an accredited college or university or the equivalent
thereof shall be in compliance with the above.
SECTION .0500 ‑ APPLICATIONS FOR CERTIFICATES
21 NCAC 08F .0502 APPLICATION FOR CPA CERTIFICATE
(a) A person applying for a certificate of
qualification must file with the Board an application and an experience
affidavit on forms provided by the Board and such other evidence as the Board
may require in order to determine that the applicant has met the statutory and
regulatory requirements.
(b) Three certificates of good moral character
signed by CPAs shall be submitted with the application for a CPA certificate.
21 ncac 08f .0504 CANDIDATES' ACCOUNTANCY LAW COURSE
REQUIREMENT
(a) Within one year prior to applying for
certification, all candidates for original or reciprocal certification must
pass an open book examination on the North Carolina Accountancy Statutes and
Rules, including the Rules of Professional Ethics and Conduct contained
therein.
(b) In lieu of taking the examination, a
candidate may complete an eight-hour CPE course on the subject of the
examination within one year prior to applying for the CPA certificate. Such
course or examination must meet the requirements of 21 NCAC 08G .0404(a). This
course may count toward the candidate's annual CPE requirement.
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