CPA Examination Information for Prospective Applicants - Louisiana  (revised Oct, 03)

CPA Examination Information for Prospective Applicants - Louisiana

Examination Application Requirements Residency Requirement Character Requirement Educational Requirements Schools, Colleges, and Courses Recognized CPA Examination Information Attorneys Transfer of Credits From Another State Requirements for Issuance of a CPA Certificate Board Rules related to the CPA Examination - Title 46 Professional and Occupational Standards Part XIX

Addendum: Acceptable Commercial Law Course Required to Sit for the CPA Exam in Louisiana

Attachment 1 Example

Notice to Candidates Applying for the Certified Public Accountants Examination

I. Examination Application Requirements

What are the requirements to take the Uniform CPA examination as a Louisiana candidate? You must:

Be of good moral character; confirmed by personal references Meet the college educational requirements at the time of filing an application Meet the residency requirement File the current application form by the due date Pay an examination fee

Applications to take the Uniform CPA examination are available from: CPA Examination Services at 1-800-CPA-EXAM (or 615-880-4250). Website: www.nasba.org. Contact the Louisiana Coordinator.

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II. Residency Requirement

Is there a residency requirement to take the examination?

Yes. Applicants must have maintained continuous residence (physical presence) in Louisiana for a period of not less than 120 days within the one year period preceding the date of the initial examination. Students are exempted provided they return home when not taking classes, e.g., summer, holidays, etc.

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III. Character Requirement

How is a determination of a candidate's good moral character made?

By evaluation of the applicant's character references and the candidate's response to the question concerning conviction of a misdemeanor or felony.

Who can attest to an applicant's character?

References should be from CPAs or substantial and representative business or professional individuals. They should NOT be submitted by the following individuals:

More than one member of a household Relative of the applicant Roommate Students University or college instructor unless they have had significant contact with the applicant outside the classroom Person having a financial or business connection with the applicant Present or former employers

Also, the Notary who signs the affidavit of the applicant may not be a character reference.

Must the character references be Louisiana residents?

Yes. The reference must be a Louisiana resident who has known the applicant for a period of 12 or more months. A minimum of 3 references is required.

Will the Board verify the character references and responses to the conviction question?

Yes. The Board, at its discretion, may contact the character reference for additional information.

May a person who has been convicted of a felony or misdemeanor take the CPA exam?

Convictions do not automatically disqualify an applicant unless the offense relates directly to the professional responsibilities of a CPA. However, the Board makes the final decision.

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IV. Educational Requirements  (also see item V. for additional details)

What are the MINIMUM educational requirements to take the CPA examination?

After December 31, 1996:

Have a baccalaureate degree. Have 150 semester hours of college credit earned as prescribed by Board Rules. Have successfully completed 24 hours of specific accounting and 24 hours of business courses (including an acceptable business law course). First-time candidates with a baccalaureate degree, including a concentration of accounting, obtained prior to January 1, 1992, and conferred by a Louisiana college or university, may contact the Board to determine if they might qualify without the attainment of 150 hours of college credit.

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V. Schools, Colleges, and Courses Recognized

What schools are recognized by this Board?

Most "accredited" institutions whose courses are accepted as transfers by Louisiana universities are recognized. For additional information, contact the board's office.

What constitutes the rating of "accredited"?

Those universities or colleges accredited by the Southern Association of Colleges and Schools, Commission on Colleges, or by any one of the six other regional accreditation associations.

Will the Board recognize colleges and universities that are outside of the United States?

Arrangements have been made with Foreign Academic Credentials Service, Inc. (FACS), to review foreign educational documents. This firm will provide the Board with an evaluation as to the degree and accounting courses. This evaluation must be made well in advance of the time for filing an application to take the CPA examination. There is a fee charged for this service.

Which courses are required as accounting and business courses?  (see also Rule §503)

After December 31, 1996:

Accounting Courses: (may be at the undergraduate or the graduate level): Undergraduate Semester Hours Intermediate - 6 hours Cost - 3 hours Income Tax - 3 hours Auditing - 3 hours Total Accounting Courses (Undergraduate) - 24 hours Graduate Semester Hours Intermediate - 3 hours Cost - 3 hours Income Tax - 3 hours Auditing - 3 hours Total Accounting Courses (Graduate) - 21 hours Accounting Electives Hours   3 semester hours from one of the following: Advanced Financial Accounting Not-for-Profit (or Government) Accounting Theory Not-for-Profit (or Government) Auditing Theory 6 semester hours in accounting above the basic and beyond the elementary/principles level

Business courses (other than Accounting courses): Including at least 3 semester hours in Commercial Law, as it affects accountancy for CPA examination candidates* Total Business Courses Undergraduate - 24 hours Graduate - 24 hours

* See addendum regarding the law requirement. [The first law course offered by most universities does not satisfy this requirement. Usually the first law course is a requirement of the university; the second course at most universities is the acceptable course to take the CPA examination. However, please review the course syllabus to determine if you must take both courses.]

The specified 24 hours of accounting courses and at least 24 hours of qualifying business courses must be earned by either personal class attendance or in Board approved correspondence/distance course credits.

Elective introductory "management" accounting courses (which typically emphasize decision making for internal managers) at the undergraduate or graduate level that are not required courses for an accounting major, will not qualify toward satisfying the nine (9) semester hours of accounting electives within the 24 hours of required accounting hours. And, such courses will not count toward the 24 hours of required business courses.

Furthermore, a student who has credit in both undergraduate and graduate level for the introductory "managemet" accounting course will only receive credit for one of the courses in satisfying the 150 hour requirement. In addition, such courses do not substitute for the required financial reporting related "Cost" or "Managerial Cost" accounting course which is required for accounting majors and which emphasizes cost accounting and financial reporting of inventories for manufacturers and processors and related topics.

Graduate level "introductory" accounting, such as a course designed for MBA students who have not taken undergraduate level introductory accounting principles, will count toward the 150 hour requirement, but does not qualify toward satisfying the nine (9) semester hours of accounting electives that are within the 24 hours of required accounting hours. And, such courses will not count toward the 24 hours of required business courses.

For course work other than the required 24 hours of accounting and 24 hours of business:

Advanced placement credit, ACT, CLEP, and college or departmental examination credit for courses required by the student's degree program, or for courses that are necessary in order to graduate, will qualify as credit toward the 150 hour educational requirement, if such credit appears as credit earned on the official transcript. For example, these types of credit earned for "core" curriculum courses (such as, courses required of all freshmen, such as, English or mathematics) will count.

"Remedial" or "developmental" course work required of students by the College or University as a prerequisite to the required curriculum which appears as credit earned on the official transcript will qualify as credit toward the 150 hour educational requirement.

Credit obtained from accredited "junior", "community", or "two-year" colleges prior to, or concurrently with, the enrollment at a four-year institution, will be recognized to the extent it is recognized by the four-year institution and transferred to its official transcript as credit earned. Credit obtained at junior, community, or two-year colleges after the completion of course work at a four-year institution will not be accepted.

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VI. CPA EXAMINATION INFORMATION  (revised March 2007)

1. When was computer-based testing (CBT) of the CPA examination introduced?

CBT was introduced in April 2004. (The last administration of the paper-based test (PBT) version of the CPA examination was in November 2003.)

2. How many parts or sections are there to the CPA examination?

The CPA Examination consists of four sections.

3. How long is the CPA examination?

The four sections of the computer based test (CBT) total 14 hours. (The PBT had been 15.5 hours.)

4. Did the content of the CPA exam change under computer based testing (CBT)?

Yes, the content changed. The exam is structured as follows: CBT Sections Auditing & Attestation Audit Financial Accounting & Reporting Regulation Business Environment & Concepts Former Sections under PBT Auditing Financial Accounting & Reporting Accounting & Reporting Law & Professional Responsibilities Information on content is available in the AICPA Board of Examiners (BOE) - Structure & Content Specifications for the Uniform CPA Examination. This file may be downloaded from the web site, www.cpa-exam.org.

5. Is there a deadline for filing an application for the Uniform CPA Examination?

Applications for the computer based test (CBT) are taken year round.

6. Where is the examination given in Louisiana?

The examination is administered at Prometric Test Centers in Baton Rouge, in Bossier City, in Metairie, and in Alexandria. Louisiana residents, depending on their locale, also may wish to consider the proximity of test centers in Jackson, MS and in the Beaumont and Houston TX areas, and test there if more convenient.

7. Are special accommodations offered to candidates with disabilities?

Yes. Obtain a "Request for Modification in the Administration of the Uniform CPA Examination" from CPA Examination Services.

8. What is considered a passing grade on the examination?

A grade of 75 or better on each section is considered passing, conditioned upon time requirements for passing the other sections.

9. Are candidates required to take all unpassed CBT sections over a two-day period, as was the case with PBT?

No. Under CBT, a candidate may take each CBT section separately in the same or different testing window. Candidates are able to take the examination in four testing windows annually A testing window is a three-month period comprised of two months in which the examination can be taken, and one month in which the examination will not be offered while routine maintenance is performed and the item bank is refreshed. For example, if an examination window begins in April, the following testing opportunities will be available. Testing Window Available April - May July - August October - November January - February Testing Not Available June September December March

10. Are candidates required to take CBT sections any particular order?

No.

11. Are candidates required to pass one CBT section of the CPA exam prior to applying to take another?

No. However, candidates will not be permitted to retake a failed CBT section(s) within the same testing window.

12. If a candidate conditionally passes one or more sections of the CBT examination, how long does he or she have to pass the remaining sections of the CBT?

All four sections of the exam must be passed within a "rolling" 18 month qualifying period that begins on the date a passed section was taken. That is, once a candidate has passed any section of the CBT examination, the remaining sections must be passed within 18 months in order to retain credit on the section first passed. In the event the remaining sections are not all passed within a single qualifying period, credit for the section passed first will expire. The term "rolling" qualifying period is used because it can be measured from the date any section of the exam is passed, and if all four sections are passed in such time, the examination is successfully completed.

13. What is a "testing window" for the CPA examination?

The computer-based test is available for two months out of each calendar quarter. This two month period is called a "testing window."

14. How often will I be able to take the computer based CPA examination?

Candidates may take each CBT section of the examination up to four times a year. Candidates may take any or all of the four CBT sections of the examination during any testing window. Candidates will not be allowed to take the same section more than once during any given testing window.

15. May unsuccessful candidates apply to take the CPA examination again?

Yes.

16. Once I apply to take the computer based CPA examination, how long before I can actually take the examination?

First-time applicants must have educational eligibility determined, so the process will take a several weeks. Re-examination applicants are able to register on line or by phone, and will be sent a "Notice to Schedule" (NTS) the examination within a few days or a couple of weeks.

17. How will I schedule an examination appointment at a test center?

After you have been determined eligible to sit for the examination, you will be sent a "Notice to Schedule" (NTS). You will then contact Prometric to schedule appointments. The NTS may remain valid for a period of time. That means you will have a set period of time from the date the NTS is issued to schedule, make appointment(s), and take the examination section(s) for which you have applied.

18. What if a conflict arises after I have made an appointment at a Test Center?

You may reschedule at no charge if you reschedule at least 30 days in advance. If you reschedule between 5 and 30 days in advance, a fee is payable to Prometric. If you reschedule within 5 days, the fee will be higher as it will be equal to the portion of the exam fee that the Prometric test center charges for that exam section.

19. May I still request a grade review and an appeal under CBT?

Yes, however the process will be somewhat different because of CBT. Candidates should be aware that there are extensive controls and checks of grades before initial release. The likelihood of a grade being changed based on a review or appeal is negligible.

20. Will I see how I scored immediately after completing the computer based examination?

No.

21. When can I expect to receive my scores/grades under CBT?

The examination contains structured response questions that require transmission of your answers to the AICPA for scoring. Depending on the section taken and when the exam is taken within the window, scores are estimated to be processed in a minimum of 2 weeks up to approximately 6-7 weeks.

22. May I as a Louisiana candidate take the examination outside of Louisiana?

Yes. You will be able to schedule your examination at Prometric Test Centers in other states (unless the particular site has been disapproved by the Louisiana Board. (The examination is not administered outside of the United States and its territories.)

23. May a person residing in a state other than Louisiana apply as a Louisiana candidate to the Louisiana Board to take the examination?

Yes, if the person satisfies the Louisiana requirement of 120 days of continuous residency in Louisiana in the year preceding the initial examination.

24. What is the fee for taking the CBT examination outside of Louisiana?

Additional charges for taking the examination in another state as a Louisiana candidateare not anticipated.

25. Are there any other restrictions on Louisiana candidates taking the CBT examination outside the state?

No. One of the benefits of the computer-based examination is that a testing center outside of the state may be much closer to a candidate who lives near a state border than a test center within the state. However, a person may not be a candidate from more than one state at the same time and will not be able to circumvent Louisiana's educational or licensing requirements by taking the examination outside of the state.

26. I live in Louisiana and have the educational requirements except for having 150 semester hours of college credit, but my education would be accepted by another state as qualifying me to take the CPA examination. May I take the examination as a candidate of another state and, subsequently, after obtaining the additional hours to attain 150 hours, transfer my grades to Louisiana or obtain a reciprocal CPA certificate in Louisiana?

Candidates who desire to become Louisiana CPAs may not circumvent Louisiana rules. Only residents of those few states which do not have the 150 hour requirement who took the CPA examination in such state may take additional college hours after taking the CPA examination. This is only allowed so that those individuals who may transfer here may ultimately become certified here. Board Rule 505(E)(6)(a) states that applicants must have met the Louisiana educational requirements prior to taking the exam and that an exception is provided for a "bona fide resident of another state who took the exam in his state of residency which did not have the 150 hour requirement."

27. Where can I find more information regarding the computer based CPA examination?

Information about CBT and the computerization project is at www.cpa-exam.org. Candidates may also visit the NASBA web site, www.nasba.org. It contains links to all 54 jurisdictions' web sites as well as a link to other websites. If the information on these web sites does not answer your questions, you may call CPA Examination Services at 1-800-CPA-EXAM, or the Louisiana Board's office to obtain additional information.

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VII. Attorneys

Must an attorney take the commercial law courses required to sit for the examination?

No. Credit for the Commercial Law courses will be given provided the applicant has a J. D. degree. Credit will also be allowed for the Income Tax course taken.

Must an attorney take each section of the examination?

Yes.

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VIII. Transfer of Credits From Another State

May a person from another state transfer CPA examination credits to Louisiana?

Yes, provided that the applicant is not a CPA and meets all of the educational, residency and passing requirements of a Louisiana candidate other than he/she sat for the examination in another state.

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IX. Requirements for Issuance of a CPA Certificate

What is the next step after passing the examination?

Exam candidates will receive applications for the CPA certificate when they have passed all sections of the examination. A successful exam candidate may not use the certified public accountant or CPA title until the certificate application has been approved by the Board.

What are the requirements to obtain a certificate (i.e., become a "CPA") in Louisiana?

Successfully complete the Uniform CPA examination Good moral character Satisfy the one year experience requirements under the supervision of a licensed CPA Submit the application form required by the Board Pay the certificate application fee of $100 Execute an oath prescribed by the Board

Contact the Board's office for additional information on the experience required.

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X. Board Rules

Click here to access the Board's Rules related to the CPA examination.

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Addendum

Acceptable Commercial Law course required to sit for the CPA Examination in Louisiana

Excerpt from September 18, 1992 letter to All Louisiana Colleges and Universities:

We have recently encountered a problem with Louisiana applicants who had enrolled at universities as non-degree students and took only one Commercial law course, specifically Commercial law I. Before stating the Board's current position, it is prudent to review the background affecting the law course requirement.

Initially the Board required 6 semester hours of Commercial law to sit for the CPA examination. Universities titled these courses Commercial law, Business law or Legal Environment of Business. In early 1985 the Board was advised the American Assembly of Collegiate Standards Board (AACSB) issued requirements that, for accreditation, the first law course offered by universities must emphasize the regulatory environment and stress consumer protection, and that material related to the CPA examination be reduced or omitted. By letter of September 4, 1985, the Board advised all universities of its position.

Universities addressed the problem in several ways:

A third Commercial law course was required to satisfy the AACSB Universities that were not AACSB accredited did not change their course content Some tentatively ignored the directive from AACSB.

This confusion required the Board to request, from applicants for the CPA examination, a syllabus of the Commercial law courses claimed. This was not a satisfactory solution. Accordingly, after meeting with Louisiana university representatives, the Board amended its Rules to reduce the required hours of Commercial law to 3 semester hours, but the acceptable course must be one that is specifically for accounting majors. It was understood that the first law course could contain the AACSB requirements and that course would be a requirement of the University (as English, Math, etc.). The second law course would satisfy the Board's requirement.

With the exception of one Louisiana university, we have not encountered problems with students enrolled in the degree programs, they take the two Commercial law courses. The same is not true with the non-degree students. These students are providing transcripts with only the first law course. This brings the Board back to the evaluation problem. To accept the first law course requires the Board to reevaluate the law syllabus of Commercial law I each semester to reconfirm that unacceptable topics were not included; e.g., the legal system, tort liability, products liability, unfair competition, consumer protection, debtor/creditor law (collections and billing practices), employment related problems, criminal law (theft, fraud, anti-trust, securities, organizational responsibilities, administrative sanctions (deceptive advertising, zoning)). This listing is certainly not all-inclusive. An example as to why the first law course will not qualify is enclosed for your review (Attachment 1). We believe you will agree that this is not an acceptable solution, it is unfair to the applicant and excessively burdensome to the board's limited staff.

In summary, the Board does not wish to disqualify applicants when they apply to sit for the CPA examination; nor, however, was it the intent of the Board in modifying its rules, to reduce materially the law subject matter required to be studied. It believed a compromise was reached with the Louisiana universities that would require the candidate to take 6 semester hours of law, 3 semester hours required by the university, the content of which could include the AACSB requirements or any other requirement, and 3 semester hours required by the Board, the contents of which would include only the CPA examination requirements; i.e. the first course would be the requirement of the school, the second course would satisfy this Board's requirement. Therefore, if a student elects to take only one law course, it must be the second law course to satisfy the Board's educational requirement.

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ATTACHMENT 1

Example

Section A is 27% of the course 3 semester hours x 27% = .81 3.00 - .81 equates to 2.19 qualifying semester hours This course will not meet the 3 semester requirement for Business Law

CONTENT OUTLINE - Business Law

The Law and its Relationship to Society Law and Law Enforcement Agencies Law as an Expression of Social Force Business Crimes and Business Torts Government Regulation Administrative Agencies Environmental Law and Community Planning Consumer Protection Contracts Nature and Classes of Contracts The Agreement Contractual Capacity Genuineness of Assent Consideration Legality and Public Policy Form of Contract Interpretation of Contracts Third Persons and Contracts Discharge of Contracts Breach of Contracts and Remedies Personal Property and Bailments Personal Property Bailments Special Bailments and Documents of Title Sales Nature and Form of Sales Risk and Property Rights Obligations and Performances Warranties and Other Product Liabilities Remedies for Breach of Sales Contract

INSTRUCTIONAL METHODS Lecture Discussion Case Studies

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NOTICE TO CANDIDATES APPLYING FOR THE CERTIFIED PUBLIC ACCOUNTANT EXAMINATION

The State Board of Certified Public Accountants of Louisiana, (the Board), has contracted with CPA Examination Services to administer the CPA Examination.

Louisiana Candidates are to contact CPA Examination Services directly with questions, for obtaining applications, and for requests for special accommodations for candidates with disabilities. The address, telephone numbers, and website are:

Address: CPA Examination Services Louisiana Coordinator Post Office Box 198469 Nashville, TN 37219-8469

Telephone nos.: 800-CPA-EXAM (800-272-3926) or 615-880-4250

Website: www.nasba.org

Candidates remain subject to the Louisiana educational, filing, grading, and residency requirements as recorded in the Rules and Statutes of the Board.

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