Passing the Uniform CPA Exam is a monumental achievement, proving your dedication, college education, and expertise in the accounting profession. However, before you officially earn the title of Certified Public Accountant, there’s one final step: the AICPA Ethics Exam. Often overlooked during the CPA journey, this exam is a final step and a critical ethics requirement for a CPA license in most states. By successfully completing the ethics exam, you demonstrate your commitment to upholding professional conduct and maintaining financial integrity (vital topics in today’s professional world), bringing you one step closer to officially becoming a licensed Certified Public Accountant.
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Introduction to the CPA Ethics Exam
Passing the Uniform CPA Examination means that you have conquered one of the toughest professional licensing tests around. You studied long hours to join the ranks of the CPA elite. You worked hard to earn the certification, and you deserve a lot of praise.
But wait before you hang up that shingle! There’s one more hurdle to clear before you can tell family, friends, and most importantly, clients that you are licensed to practice as a Certified Public Accountant. While it is certainly not the highest hurdle you face on the road to CPA, this particular requirement takes a lot of candidates by surprise because it does not get a lot of attention during the arduous journey.
You are now ready for the CPA Ethics Exam, an important step toward obtaining your CPA license if you live in the United States.
Here are 7 Things to Know about the CPA Ethics Exam:
1. What is the AICPA Ethics Exam?
The AICPA Ethics Exam is designed to assess your understanding of the accounting profession’s ethics interpretations and the standards required of CPAs in public and private practice. It presents professional conduct questions based on real-world situations involving business or corporate relationships, financial accounting, auditing, and tax compliance.
This test is one of the four components—commonly known as the four E’s—of CPA licensure: Exam, Education, Experience, and Ethics. Among these, only the CPA Exam itself is uniform and administered nationally.
While the CPA Exam sections include Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), Business Analysis and Reporting (BAR), and more topics, the ethics exam strictly focuses on ethical standards outlined in the AICPA Code of Professional Conduct.
Most states and other regulators require 150 semester hours of college education, often including a bachelor’s degree, and at least 1–2 years of verified accounting experience under a licensed CPA before full licensure.
You can find out more about state CPA Exam requirements.
2. States Vary in Their CPA Ethics Test Requirements
Requirements for the CPA exam ethics requirement and experience vary widely by state. About 30 state boards mandate that CPA candidates take a course and pass the ethics exam. Some states like California, Texas, and New Jersey use their own version of the test, often covering their state’s specific legal and regulatory issues.
Others, such as New York and Georgia, don’t require an ethics course at all. Instead, they rely on the four sections of the CPA exam and verified work experience.
If your jurisdiction adopts the AICPA’s comprehensive Professional Ethics Course, you’ll be taking a multiple-choice, open-book test that covers the AICPA Code of Professional Conduct, independence rules, and regulatory issues.
It’s also worth noting that many states may allow you to count the CPA Ethics Exam toward your Continuing Education Ethics (CPE) requirements.
3. When You Should Take the CPA Ethics Exam
While you can technically take the exam anytime during the licensure process, most CPA candidates choose to take it after finishing all CPA Exam sections. This is because the Uniform CPA Exam demands intense preparation across areas like financial accounting and reporting, auditing, and tax practice.
You are allowed to take the CPA Ethics Exam before or after passing the main CPA exam—it’s not tied to the 18-month window.
If you’re applying for a CPA certificate in a two-tier state (like Alabama or Kansas), you can often meet the ethics requirement for a CPA license and experience requirements after passing the CPA exam. Make sure to verify your state society and board of accountancy’s specific rules.
4. How the AICPA Ethics Test is Structured
The AICPA provides an 11-hour self-study ethics course available online or via CD-ROM. It’s interactive and includes slide shows and case studies.
The exam format includes:
- 40 multiple-choice questions
- Open-book format
- A passing score of 90%, meaning you can only miss four questions
- Three online attempts allowed before you must switch to the paper version
Essential Ethics Topics Covered
- Maintaining independence in professional practice
- Immediate family independence rules and personal financial interests
- Employment and business relationships
- Entertainment ethics rules related to client activities
- Non-audit services and tax services
- Independence requirements for financial institutions, employee benefit plans, and government auditors
- PCAOB independence rules and recognizing SEC oversight
- Ethical rule setters such as the AICPA, PCAOB, and the Treasury Department’s Circular No. 230
This open-book test may seem easier than the CPA Exam’s testing center experience, but don’t underestimate the importance of carefully reviewing accounting professional ethics standards and being able to identify ethical regulatory requirements.
5. How to Submit Your Answers
Once completed, you can submit your answers online (for immediate results) or via traditional mail. The online version includes a serial number beginning with “CPE” for access.
If mailing your test:
- Fill out the bubble sheet included
- Make a copy before sending
- Mail using certified services
- Results typically arrive within 6 weeks
Make sure AICPA sends a copy of your results to your state board so your CPA license application can move forward.
6. Where to Go For Help
Need assistance? Contact:
National Association of State Boards of Accountancy (NASBA): Offers tools like the Accountancy Licensing Library for researching CPA licensing requirements, especially helpful for CPAs considering public accounting or government activities.
AICPA Service Center: [email protected] or (888) 777-7077
7. Hints on Taking the Ethics Exam
Use the same study habits that helped you pass your CPA exam sections. Take notes, review realistic examples carefully, and pace yourself.
Even though the ethics exam is open book, you must still study. You only get three attempts, and a 90% passing score doesn’t leave much room for error.
What Comes After the Ethics Exam? Preparing for Your CPE Requirements
Passing the CPA Ethics Exam is one of the final milestones on your path to becoming a licensed CPA — but your journey doesn’t end there.
To maintain your CPA license, you’ll need to meet Continuing Education Ethics requirements. CPE ensures you stay up to date with changing regulations, ethical principles, professional ethics standards, and evolving industry practices.
Most state boards require 40 hours of CPE annually. Many providers now offer courses on analyzing ethical matters adhering to recognized standards, applying ethical principles, and other ethics considerations for CPAs working with federally funded charitable organizations, financial institutions, and private businesses.
Not sure where to start? Use our CPE Course Comparison Guide to explore top-rated providers and find the best fit for your learning style, budget, and specialty.
Q & A You Need to Know
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Is the CPA exam open book?
No, but the CPA Ethics Exam is. The Uniform CPA Exam is a proctored test at a testing center, while the state CPA ethics exam is typically a take-home, open-book assessment.
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What makes the AICPA Ethics Exam different from the CPA Exam?
It focuses solely on professional ethics, using an open book format, and requires a high level of precision to pass.
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How hard is the ethics exam?
While not as intense as the Uniform CPA Exam, it requires close attention to detail. The high passing score and limited attempts mean you need to prepare thoroughly.
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What’s the best way to prepare?
Take detailed notes, review key areas like independence rules apply to business relationships, insurance rule interpretations related to certain industries, and conceptual framework ethics. Use the AICPA Ethics Course as your main study tool.
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Why is the ethics exam important?
It ensures you understand the ethical matters and the finance professional’s responsibility as a licensed CPA. From professional conduct applying to tax practice to safeguarding a firm’s independence, these skills are essential for maintaining public trust in an ethical accounting profession.
Next Step: Read The 28 Things You Need To Know About The CPA Ethics Exam
What’s Inside?
- Overview of the AICPA Ethics Exam
- The process for taking the exam
- Who has to take the CPA Ethics Exam and how to find which exam is required by each state
- Tips on when to take the ethics exam and how to prepare for it
- CPA Ethics Exams by State
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CPA Ethics Exams by State
To access the detailed CPA Ethics Exam requirements for your state, click the appropriate link below:
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