Alabama CPA License

Please Note: Some historical data comes directly from artificial intelligence. There is no guarantee of accuracy. You should double check any information provided before relying on it.

History

The history of the Alabama CPA profession can be traced back to the early 1900s. The Alabama Society of Certified Public Accountants (ASCPA) was established in 1919. The Alabama State Board of Public Accountancy was established in 1923 by the Alabama Legislature to regulate the practice of public accountancy in the state. The first CPA exam was administered in Alabama in 1925, and the state's first CPAs were licensed shortly thereafter. Over the following decades, the profession grew and evolved, and the ASCPA played an important role in supporting the interests of CPAs in the state. In 1969, the Alabama Board of Public Accountancy was created by the Alabama Legislature, replacing the State Board of Examiners of Public Accountants. The new board was established to oversee the licensing and regulation of CPAs in the state, rather than just public accountants. Under the new board, the requirements for CPA licensure in Alabama became more stringent, with a focus on education and experience requirements. The board was given the authority to administer the CPA exam and to set and enforce ethical and professional standards for CPAs in the state.

Education Requirements

1923: The Alabama State Board of Public Accountancy is established to regulate the practice of public accountancy in the state. There were no formal education requirements for CPA licensure.
1949: The Board establishes a requirement that CPA candidates must have at least a bachelor's degree in accounting or a related field.
1950: The board began accepting non-accounting degrees to meet the education requirement. Previously, only accounting degrees were accepted. 1974: The board increased the number of total semester hours from 90 semester hours to 120 semester hours.
1984: The board began requiring a bachelor's degree in accounting specifically.
1987: In 1987, the Board further revised the education requirements by requiring candidates to have completed at least 24 semester hours in business-related courses in addition to the 24 semester hours in accounting courses.
1990's: The board reverted back again to a bachelor's degree in any field.
2000's: The Board increases the education requirement to 150 semester hours. The specific coursework requirements for the Alabama CPA license includes:

• At least 24 semester hours in accounting at the undergraduate or graduate level, including courses in financial accounting, managerial accounting, auditing, and taxation.
• At least 24 semester hours in business courses at the undergraduate or graduate level, including courses in business law, finance, economics, and management.
• A course in Alabama Board-approved ethics and regulations

The Board also allows candidates to substitute a graduate degree in accounting for some of the required coursework.

Experience Requirements

1970s: The Board requires CPA candidates to have at least two years of experience in accounting or auditing under the supervision of a licensed CPA.
2004: The Board revises the experience requirement to include a minimum of two years of experience in accounting, auditing, or related field under the supervision of a licensed CPA.
2011: The experience requirement was changed in 2011 to reduce the experience requirement to one year if it is in public accounting. This one year of experience must be obtained after completing the education requirement and within 10 years of the application.

The current requirements are:

• The candidate must have at least one year (or 2,000 hours) of experience in public accounting or a related field, such as government accounting, industry accounting, or academia.
• The experience must be verified by a licensed CPA who has direct knowledge of the candidate's work and can attest to their competence and skills.
• The experience must include the application of accounting and auditing principles, and may include tasks such as financial statement preparation and analysis, tax preparation and planning, internal controls assessment, and other related activities.

Ethics Exam Requirement

2003: Alabama legislature passes the Public Accountancy Act of 2003, which adds a requirement that all candidates must pass the AICPA ethics exam beginning around that time.

Exam Requirement

2006: The 18-month window requirement for the Uniform CPA Exam was introduced in 2006 by the American Institute of Certified Public Accountants (AICPA), which is responsible for developing and administering the exam. Prior to 2006, candidates for the CPA exam could take each section of the exam individually and had no time limit for completing all four sections.

Candidates must pass all four sections of the Uniform CPA Exam within 18 months of passing their first exam section.

Other Requirements

• Candidates must be at least 19 years old to apply for a CPA license in Alabama.
• Must be a resident of Alabama of have a place of business in the state.
• Undergo background check
• Provide two character references.