Requirements to Become a CPA
CPA stands for Certified Public Accountant. A CPA must pass the Uniform CPA Examination to qualify for a CPA license. The individual then must meet additional requirements for Michigan.
Representing Taxpayers before the IRS
To have unlimited rights to represent taxpayers before the IRS the individual must be one of the following:
- an Enrolled Agent (EA)
- a Certified Public Accountant (CPA)
- an attorney
CPA Education Requirements
Must complete 150 semester hours of college education, including a bachelors or higher degree. The must be a concentration in accounting. This includes:
- No less than 12 hours of graduate level accounting or
- 30 semester hours of accounting with 39 additional semester hours in business policy, business law, statistics, economics, taxation, ethics, marketing, finance, and management.
The CPA exam is a 4 part test. Normally an individual takes all 4 parts over a 6 to 12 month period. All four parts must be taken within a 18 month window. Most individuals fail at least one part. If you fail a part, you must retake it. The passing rate for each part is less than 50%. The percentage of people passing all 4 parts without failing any one part is less than 15%.
- Auditing and Attestation, 4 hours
- Financial Accounting & Reporting, 4 hours
- Regulation, 3 hours
- Business Environment and Concepts, 3 hours
Michigan CPA Licensing Requirements
Each state has different licensing requirements. If a CPA holds a license in one state, he or she may not be able to practice in an other state.
The following are the requirements for the State of Michigan
- Individual is of good moral character
- Bachelors degree with concentration in accounting and at least 150 college credit hours
- Pass the CPA exam
- 2000 hours of experience requirements
Michigan CPA Continuous Education Requirements
A CPA must complete 80 hours of professional continuous education on accounting and ethical topics every two years.
Regulations for Practicing before the IRS
All individuals practicing before the IRS must comply with IRS Circular 230, Regulations Governing Practice before the IRS.