The Texas State Board of Public Accountancy (the Board) licenses and regulates certified public accountants (CPAs) for compliance with applicable rules and regulations. Most recently, the Texas legislature has proposed a two-track pathway to CPA licensing, which could alter the requirements previously required for a CPA license.
Having experienced legal counsel on your side when dealing with the Board can be significant in reaching a positive outcome in your case. Therefore, you should consult a CPA license defense attorney for help if you are facing a complaint before the Board.
Current Requirements for Becoming a CPA
Traditionally, the Board has maintained strict licensing requirements, including consistent testing, for individuals to become licensed as a CPA. These requirements include passing the CPA Exam and obtaining work experience under a licensed CPA.
Prerequisites to the CPA Exam
In 2023, the Board made some revisions to the requirements for taking the Uniform CPA Exam, including the following:
- An electronic fingerprinting and background check for criminal history;
- A baccalaureate or higher degree recognized by the Board;
and
- At least 120 semester hours of college credits, including 21 hours of upper-level accounting courses and 24 hours of upper-level business courses, plus at least two hours of accounting/business communications.
The CPA Exam
Individuals also must take the CPA Exam, which contains four sections. Three sections are the same for everyone taking the exam: Financial Accounting and Reporting (FAR), Regulation (REG), and Auditing & Attestation (AUD). Each individual chooses the fourth section for their exam; these options include Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP).
Once an individual has passed the first section of the exam, they must take and pass the remaining three sections within a 30-month window. Otherwise, the individuals must retake all four sections of the exam.
Additional Education Requirements for Licensure
Individuals must meet additional educational requirements to become licensed, which include:
- Additional upper-level academic courses to meet 150 semester hours, which include at least six hours of accounting courses;
- Two semester hours of accounting or tax research and analysis and three semester hours of approved ethics training must be completed within the overall 150-hour requirement.
Work Experience Requirements
To obtain a CPA license, an individual must also complete at least 2,000 hours of non-routine accounting work experience within two years under the supervision of a licensed CPA.
New Proposal for CPA Eligibility Requirements
However, with a steadily decreasing number of individuals entering the accounting profession, the Board is considering an alternate path to becoming a CPA. This path is designed to decrease the time, cost, and education necessary to become a CPA.
The Association of International Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) have issued a joint proposal that provides an alternate pathway to licensure. The existing combination of education, examination, and experience would remain. Still, individuals could substitute an additional year of work experience for the additional 30 hours of upper-level education that the Board now requires. In other words, individuals would have to complete a total of 2,000 hours within five years, all reviewed by a licensed CPA. These individuals would be able to include prior work experience but not an internship that fulfills the education requirements.
The Board would have to adopt this alternate pathway for it to become available in Texas. Although the proposal would not automatically decrease the time it takes to become a licensed CPA, it would decrease the costs for individuals and place them in the workforce more quickly, even if initially under the supervision of a licensed CPA.
Pending Legislation in Texas
In November 2024, Sen. Charles Perry–Lubbock, a CPA, filed SB 262, the necessary state legislation to create an alternate path to CPA licensure. The Texas Society of Certified Public Accountants (TXCPA) has designated SB 262 as priority legislation on its 2025 Legislative Agenda.
TXCPA has advocated for an alternate path to licensure for the last two years. The legislation would vest authority in the Board to establish more specific rules for the work experience requirements. TXCPA is calling for an effective date of January 2027, giving stakeholders time to implement the new pathway.
TXCPA also is pushing legislation that would create minimum standards to allow out-of-state CPAs to practice in Texas more easily and quickly.
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We Can Advocate on Your Behalf in Disciplinary Proceedings
The CPA license defense lawyers of Bertolino LLP are here to guide you throughout the disciplinary complaint process. No matter the allegations you may be facing, we can work to protect your interests and work to minimize the negative effects of a complaint on your license and career. Our goal is to help you resolve the allegations against you and maintain your professional license. Call us today at (512) 980-3751 to reach the offices of Bertolino LLP or contact us online.
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