Written by Joe Hoyle, based on 27 years of experience in preparing candidates for success on the CPA Exam.

Question from candidate: Why do accountants attempt to pass the CPA Exam? I understand that it is a difficult challenge. Why should I even consider taking the exam?

Joe: The Uniform CPA Examination is a state licensing exam. Any accountant who works for a CPA firm or who plans to practice publicly as a Certified Public Accountant must pass the exam. It is a requirement.

However, a large number of other accountants take the CPA Exam even though they never plan to work as a CPA. They usually want "Passed CPA Exam" on their resumes because that designation sets them apart and can help them when seeking jobs or promotions. Success on the CPA Exam is recognized around the world as a mark of excellence. Having passed this challenging test is a great accomplishment that makes every resume look stronger.

Finally, many accountants simply take the CPA Exam as a personal challenge. From early in their college days, accountants hear all about the CPA Exam and understand what an outstanding achievement it is to receive those passing scores. Many accountants relish pitting their knowledge and understanding against the exam. It may sound odd but many accountants tell me that they really enjoy preparing themselves mentally for such a demanding challenge.

Q: Until 2003, the CPA Exam was only given in May and November each year. Now, candidates are able to take the exam throughout the year. When is the CPA Exam actually available?

Joe: The CPA Exam is offered in four two-month windows throughout the year. A candidate can take each part of the exam up to one time in each of these testing windows: January-February, April-May, July-August, and October-November.

Q: Where is the CPA Exam physically given?

Joe: The CPA Exam is only given at specified Prometric testing centers across the United States and in five other locations (Guam, Puerto Rico, the District of Columbia, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands). Information about the location of available testing centers can be found at www.prometric.com.

Q: What is the first thing that I should do if I am considering applying to take the CPA Exam?

Joe: Candidates must be certain that they qualify under the rules of a particular state. If the person plans to practice publicly as a CPA, the state most likely needs to be the one in which he or she will work. If the person does not plan to practice publicly as a CPA but just wants to pass the exam, the state in which the person qualifies is not nearly as important. Many states do not have a residency requirement so that a person, for example, living in Maryland might choose to qualify in Colorado unless that person plans to practice as a CPA in Maryland.

Q: If I qualify to take the exam based on the laws of a state, do I have to take the exam in that state?

Joe: No, as long as you have received approval by a state to take the CPA Exam, you can take the test in any designated Prometric testing center. For example, you could qualify and be approved by South Carolina but then take the exam in Hawaii.

Q: How do I determine the requirements for a particular state?

Joe: Go to www.cpa-exam.org and click on the link "Apply Now." You will then see a link for the requirements of the individual states. Click there and you will be taken to the website for the National Association of State Boards of Accountancy (NASBA). Click on "Exams" and then "CPA Exam" and a map will appear. Click on any jurisdiction to find its rules and requirements. Be sure to read these very carefully. If you are currently a student in college, you may want to check these rules during your sophomore or junior year to make certain that you take both the quantity and specified courses that are necessary. There will also be information available on these sites as to how to go about filing an application.

Q: Do all states require candidates to have 150 hours of college credit to qualify to sit for the CPA Exam?

Joe: Many states do have 150-hour requirements. However, several states still have less stringent rules. Make sure to read the rules for your state to determine the hours and the courses that are required. You should also check them periodically because they can change rather significantly over time.

Q: After I have filed my application, how long does it take to receive approval?

Joe: The process for approval is rather quick; it should take only a few weeks to get the approval needed to qualify to sit for the CPA Exam. However, many candidates accidentally leave off some of the required information which obviously slows down the approval. Read the directions carefully.

Q: What happens when I get my approval to take the CPA Exam?

Joe: You will receive a Notice to Schedule (NTS) that allows you to contact the Prometric organization and schedule exam times for the parts that you wish to take. The AICPA has made a genuine effort to provide important information with the NTS. It is vital that you read this information completely and carefully. You certainly do not want to arrive at the testing center on the appointed day and time and be turned away because you have not followed the guidelines correctly.

Q: How many parts are there to the CPA Exam?

Joe: There are four parts to the CPA Exam: Auditing and Attestation is 4.5 hours, Financial Accounting and Reporting (FAR) is 4 hours, Regulation is 3 hours, and Business Environment and Concepts is 2.5 hours.

Q: Do I have to take all four parts in each two-month testing window?

Joe: No, you can make that choice. You can sit for 1, 2, 3, or 4 parts per window. Furthermore, you can choose to take the parts in any order that you wish. In the first two years that the computerized exam was given (2004 – 2006), 64 percent of candidates took one part per window, 28 percent took two parts, 5 percent took three parts, and 3 percent took all parts per window. Often candidates who take the exam right after graduation from college and before they go to work will take 3 or 4 parts per window. Other candidates who are already employed and have less time to study are more likely to sit for 1 or 2 parts per window.

Q: How long do I have to pass all four parts of the exam?

Joe: In most states, but not all, to receive credit for passing the CPA Exam, a candidate must pass all four parts within an 18 month period of time. Usually, once a candidate passes a part and learns how to be successful, passing all four parts within 18 months is a reasonable goal.

Q: If I want to obtain more information about the CPA Exam, what should I do?

Joe: The AICPA has a booklet titled "CPA Candidate Bulletin." It is not a bad idea for every candidate to read through that bulletin early in the preparation process. The more a candidate knows about the CPA Exam, the more likely it is that the person will pass. The CPA Candidate Bulletin is available for free by going to www.cpa-exam.org and then clicking on "Getting Started" and then "CPA Candidate Bulletin."

Q: I am seriously considering taking the CPA Exam. Do you have any other advice?

Joe: There is no reason to think about the CPA Exam unless you plan to be successful. Failure is no fun. You can pass but it takes a serious investment of time and energy. For that reason, it is very helpful if you take time before you begin to determine exactly why you want to pass. Over the years, I have worked with thousands of CPA candidates. I have found that most get to a point in their lives where they are really ready to pass. The challenge becomes interesting. They truly want to pass and are willing to do the work necessary to achieve that success.

Too many candidates start the process before they are really ready. A friend or a relative or a teacher tells them to take the CPA Exam and they do so without knowing exactly why they should want to do all that work. They do not yet have the burning ambition that is necessary. Fairly quickly, they lose interest, stop doing the work, and they never pass. If you are not very sure why you want to pass, if you do not have that burning desire for success on the CPA Exam, it is hard to force yourself to put in the necessary time. I always suggest that you wait until you really want to pass before you start this adventure.