CPA exam and licensure glossary

The terms that appear throughout the CPA qualification process. This page defines what each term means; current fees, windows and score releases live on the CPA course page, where they are kept up to date.

30 terms defined

AICPA

The American Institute of Certified Public Accountants. The professional body that develops and scores the Uniform CPA Examination.

NASBA

The National Association of State Boards of Accountancy. Coordinates between the individual state boards, operates CPA Central and issues the Notice to Schedule.

State board of accountancy

The government body in each US jurisdiction that grants CPA licences. Eligibility rules, experience requirements and licensure are set at state level, not nationally.

Uniform CPA Examination

The single national examination all CPA candidates must pass, administered at Prometric test centres. Uniform across jurisdictions even though licensure requirements are not.

Core sections

The three sections every CPA candidate must pass: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG).

Discipline section

The fourth CPA exam section, chosen by the candidate from Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).

AUD

Auditing and Attestation. The CPA exam section covering audit engagements, ethics, internal control, evidence and reporting.

FAR

Financial Accounting and Reporting. The CPA exam section covering the financial reporting framework, financial statement accounts and transactions.

REG

Taxation and Regulation. The CPA exam section covering federal taxation, business law, and ethics and professional responsibilities.

BAR

Business Analysis and Reporting. A CPA discipline section covering financial statement analysis, technical accounting and government accounting.

ISC

Information Systems and Controls. A CPA discipline section covering IT audit, data management, security and system controls.

TCP

Tax Compliance and Planning. A CPA discipline section covering advanced individual and entity taxation and personal financial planning.

Notice to Schedule

The NTS. The document issued after an application is approved that authorises a candidate to book a specific exam section at Prometric. It carries an expiry date.

Authorization to Test

The ATT. Confirmation from a state board that a candidate is approved to sit specified exam sections, issued before the Notice to Schedule.

Prometric

The testing provider that operates the centres where the CPA exam is delivered, including international locations.

150-hour rule

The requirement in most US jurisdictions that a candidate complete 150 semester hours of education to be licensed as a CPA — more than a standard four-year bachelor's degree.

Credit evaluation

Assessment of a candidate's academic transcripts against a state board's education requirements. Internationally educated candidates typically need an evaluation from an approved agency.

Testlet

A block of questions within a CPA exam section. Each section is delivered as a series of testlets containing multiple-choice questions or task-based simulations.

Task-based simulation

A TBS. A condensed case-study question requiring the candidate to complete forms, perform calculations or research authoritative literature, rather than select an answer.

Multistage adaptive testing

The design under which the difficulty of a later multiple-choice testlet depends on performance in an earlier one. Applies to the multiple-choice portion of the exam.

Scaled score

A CPA exam score reported on a standardised scale rather than as a raw percentage of questions answered correctly, so scores are comparable across exam versions.

Credit window

The period during which a candidate must pass the remaining sections after passing their first, before the earliest passed section expires. The length is set by the jurisdiction.

Ethics exam

A separate ethics examination required by many state boards in addition to the Uniform CPA Examination, usually taken after passing all four sections.

Experience requirement

The period of supervised, verified professional accounting experience a candidate must complete before a state board will issue a licence.

Licensure

The grant of the CPA licence by a state board, permitting use of the CPA designation. Distinct from passing the exam, which alone does not confer the title.

Reciprocity

The process by which a CPA licensed in one US jurisdiction obtains a licence in another, typically on the basis of substantially equivalent requirements.

Mobility

The ability of a CPA licensed in one jurisdiction to practise in another without obtaining an additional licence, where the jurisdictions recognise substantial equivalency.

Active vs inactive licence

An active licence permits practice and requires ongoing continuing education; an inactive licence restricts practice and typically carries reduced CPE obligations.

CPE

Continuing Professional Education. The ongoing training licensed CPAs must complete to maintain an active licence, with requirements set by each state board.

International testing

Delivery of the Uniform CPA Examination at Prometric centres outside the United States, available to candidates who meet a participating jurisdiction's eligibility rules.