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Understanding CPA Exam Requirements: The Four E’s and What They Mean

If you’re planning to become a Certified Public Accountant (CPA), it’s important to understand the core CPA Exam requirements that apply across most U.S. jurisdictions. While each state has its own rules, nearly every board of accountancy bases its eligibility criteria on the Four E’s — Education, Exam, Experience, and Ethics.

Let’s take a closer look at these pillars of CPA licensure and how they typically work, plus the difference between 120- and 150-hour states and what you’ll need to qualify.

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1. Education Requirements

The education requirement is the foundation of CPA eligibility. Every state board requires a minimum number of college credit hours in accounting and business courses, though the total varies by state.

• 120-hour states: You can usually sit for the CPA Exam after completing 120 semester hours (roughly a bachelor’s degree). However, you’ll still need 150 total hours to earn your CPA license later.
• 150-hour states: These require candidates to complete 150 semester hours before they can even sit for the exam.

Most candidates meet this requirement by earning a bachelor’s degree in accounting and then completing additional coursework — often through a master’s in accounting or a graduate certificate.

Tip: Even in 120-hour states, planning ahead for the 150-hour licensing rule can save time and money later.

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2. The CPA Exam Requirement

The CPA Exam itself is the second “E.” It’s a rigorous, four-part test designed and administered by the AICPA (American Institute of Certified Public Accountants).

As of the 2024 CPA Evolution model, the exam includes:

• AUD – Auditing and Attestation
• FAR – Financial Accounting and Reporting
• REG – Regulation
• One Discipline Section (choose from: Business Analysis and Reporting, Information Systems and Controls, or Tax Compliance and Planning)

Each section is scored on a scale of 0 to 99, and a 75 is the passing score. Candidates must pass all four sections within an 18-month rolling window to qualify for licensure.

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3. Experience Requirements

After passing the exam, CPA candidates must complete a period of professional experience.

Most states require 1 to 2 years of relevant accounting experience verified by a licensed CPA. This experience can often be earned in public accounting, private industry, academia, or government, depending on your state’s board rules.

The goal is to ensure that candidates not only understand accounting theory but can also apply it responsibly in real-world scenarios.

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4. Ethics Requirements

The final “E” — Ethics — emphasizes professionalism and integrity, two key principles of the CPA profession.

Many states require candidates to pass an ethics exam, often the AICPA’s Professional Ethics Exam. Some states have their own ethics courses or require continuing education credits focused on ethics before a CPA license can be issued.

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General CPA Eligibility Criteria

While each state’s board sets its own rules, most share these general eligibility standards:

• A bachelor’s degree (or higher) with a concentration in accounting or business
• U.S. citizenship or residency, depending on the state
• A valid Social Security number or taxpayer ID
• Completion of the required education hours (120 or 150)
• Agreement to adhere to the AICPA Code of Professional Conduct

Candidates should always confirm details with their specific State Board of Accountancy, as variations exist in acceptable coursework, testing windows, and experience verification.

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120 Hours vs. 150 Hours: What’s the Difference?

One of the biggest sources of confusion among CPA candidates is the difference between 120-hour and 150-hour states.

• 120-hour states: You can sit for the CPA Exam after earning 120 credit hours (typically a bachelor’s degree). However, to get licensed, you must still complete 150 total hours before applying for certification.
• 150-hour states: You must complete 150 credit hours before sitting for any CPA Exam section.

While this difference affects when you can sit for the exam, it doesn’t change the ultimate licensure requirement — all states require 150 total hours for CPA certification.

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Key Takeaways: What Every CPA Candidate Should Know

• The Four E’s (Education, Exam, Experience, Ethics) form the core of CPA exam requirements in every state.
• 150 semester hours of college credit are required for full CPA licensure nationwide.
• A 75 scaled score is the minimum passing score for each exam section.
• Each state’s board of accountancy enforces slightly different rules, so always check your state’s official website before applying.

Understanding these general CPA Exam requirements will help you navigate the process with confidence — no matter which state you plan to get licensed in.