Figures: tax year 2026
The authority of state boards of accountancy comes from each jurisdiction's accountancy statute. These governmental bodies protect the public through licensing, practice regulation, investigation, and discipline within their statutory reach.
A certified public accountant (CPA) holds a credential governed by the issuing jurisdiction. State boards implement accountancy laws through rules addressing qualifications, competence, ethics, professional services, and use of the CPA title.
Passing the licensing examination satisfies one qualification category; the jurisdiction must also determine whether the applicant meets its remaining requirements. A passing score alone does not establish an active license or unrestricted practice rights.
Licensing review addresses these categories:
- Education includes the required degree and accounting or business coursework, evaluated under the jurisdiction's available licensing pathways.
- Examination requires successful completion of the prescribed examination requirements, including jurisdiction-specific eligibility and credit rules.
- Experience requires acceptable professional work and the verification required by the jurisdiction; qualifying work can extend beyond public accounting.
- Ethics and character requirements address professional fitness, required disclosures, and any applicable ethics examination or educational requirement.
Common mistakes
- Passing means licensed. Examination completion leaves the jurisdiction's other initial licensing conditions to be satisfied.
- Suspension identifies its own scope. The issuing body and affected right determine whether the restriction concerns membership, a state credential, or federal practice.
- Every conviction means revocation. The applicable statutory ground, required disciplinary connection, and resulting order control.
Bottom line
- State boards license, renew, regulate practice, investigate, and discipline under their jurisdictions' accountancy laws.
- Licensing and renewal requirements include education, examination, experience, ethics, and continuing competence, with jurisdiction-specific details.
- AICPA and NASBA are not governmental licensing authorities, and model legislation requires state adoption to become binding.
- State license rights, host-state practice privileges, professional membership, and federal practice rights have distinct legal bases.
Exam shortcut
First identify the issuing authority, then underline the exact credential or privilege named. Do not let the shared word “suspension” decide the answer. For “licensed elsewhere,” separate the home license from the host privilege. Check continued eligibility, host oversight, and any separately held licenses. For “may resume,” locate the effective date, remaining conditions, required restoration action, and any stay.
The full lesson (about 3,432 words, 23 min read) adds 2 worked examples, all 6 common mistakes, a self-check, free in the app.
Learning objectives
- I.B1
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