What Is a State Board of Accountancy & What Does It Do? [2025 Guide]

Complete Guide to Understanding Your Accounting State Board

what-is-a-state-board-of-accountancyThe State Board of Accountancy plays a crucial role in the regulation and oversight of Certified Public Accountants (CPAs) in the United States. While the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) contribute to CPA exam development and administration, state boards are the official licensing authorities that grant CPA certification and regulate the practice of public accounting.

Every U.S. state, along with the District of Columbia, Puerto Rico, Guam, and other U.S. territories, has its own State Board of Accountancy, each with its own specific regulations and requirements for CPA licensure.

These boards ensure that CPAs meet the necessary education, examination, and experience requirements before being granted a license. In addition, they oversee continuing professional education (CPE) requirements, ethical conduct, and disciplinary actions against CPAs who violate professional standards.

For aspiring CPAs and current professionals, understanding the role of state boards is essential for navigating the CPA licensure process, maintaining compliance, and ensuring career growth.


The Role of a State Board of Accountancy

Each State Board of Accountancy functions as the official regulatory body responsible for licensing, monitoring, and enforcing accounting standards within its jurisdiction. Its primary responsibilities include:

Issuing CPA Licenses

While passing the CPA Exam is a major milestone, it does not automatically grant candidates a CPA license. The State Board of Accountancy in each state is responsible for reviewing applications and issuing CPA licenses to qualified candidates.

To qualify for licensure, candidates must meet the Three E’s:

  • Education – Completion of a bachelor’s degree with a minimum of 150 semester hours of coursework in accounting and business-related subjects.
  • Examination – Passing all four sections of the Uniform CPA Examination, which is developed by the AICPA and administered by NASBA.
  • Experience – Gaining the required work experience under the supervision of a licensed CPA, typically ranging from one to two years depending on the state.

Enforcing Ethical and Professional Standards

State boards ensure that CPAs adhere to the highest professional and ethical standards by enforcing regulations set by the AICPA Code of Professional Conduct and state-specific laws. They oversee compliance with:

  • Ethical guidelines related to honesty, integrity, and professional independence.
  • Accounting and auditing standards, including Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS).
  • Regulations regarding fraud, financial misconduct, and conflicts of interest.

CPAs who fail to meet these ethical and professional standards may face disciplinary actions from their state board, including license suspension, revocation, or financial penalties.

Administering Continuing Professional Education (CPE) Requirements

To maintain an active CPA license, professionals must complete Continuing Professional Education (CPE) credits as required by their state board. Most states require CPAs to earn 40 hours of CPE annually, ensuring they stay current with tax laws, auditing standards, and regulatory updates.

State boards also regulate:

  • The types of CPE courses accepted (e.g., ethics, technical accounting, business management).
  • CPE provider accreditation to ensure quality education.
  • Renewal deadlines and reporting procedures for CPE compliance.

Failure to meet CPE requirements can result in a CPA’s license being placed on inactive status or even revoked.

Conducting Investigations and Disciplinary Actions

State boards have the authority to investigate complaints and disciplinary matters related to CPAs and public accounting firms. If a CPA is suspected of fraud, negligence, or unethical conduct, the state board will conduct a formal investigation, which may result in:

  • Warnings or fines for minor violations.
  • Suspension or revocation of a CPA license for serious offenses.
  • Public disclosure of disciplinary actions, which can impact a CPA’s career and reputation.

The goal of these enforcement actions is to protect the public and maintain trust in the accounting profession.

Approving CPA Mobility and Reciprocity

Since CPA licenses are issued at the state level, CPAs who move to another state or wish to practice across state lines must comply with licensure mobility and reciprocity agreements. Many states participate in CPA mobility laws, which allow CPAs to practice in other states without obtaining an additional license, as long as their original license is in good standing.

For CPAs seeking to transfer their license to a new state, the state board may require:

  • Verification of an active CPA license in another jurisdiction.
  • Compliance with that state’s CPE and experience requirements.
  • Passing an additional ethics exam or state-specific law requirements.

By managing CPA mobility, state boards ensure that qualified professionals can work across state lines while maintaining professional integrity and compliance.


How to Apply for a CPA License Through a State Board of Accountancy

The CPA licensure process varies by state, but the general steps include:

Step 1: Verify State-Specific Requirements

Each state board has unique licensing requirements. Candidates should check their state board’s website to confirm:

  • The education requirements (most require 150 credit hours).
  • Experience requirements, including whether internships or part-time work qualify.
  • Additional requirements such as state ethics exams.

Step 2: Apply for Licensure

After passing all four sections of the CPA Exam and meeting education and experience criteria, candidates must submit a CPA license application through their state board. This application typically includes:

  • Official college transcripts.
  • Documentation of work experience verified by a licensed CPA.
  • CPA Exam scores (provided by NASBA).
  • Application fees.

Step 3: Complete Ethics and CPE Requirements (if applicable)

Some states require candidates to pass an ethics exam, such as the AICPA Professional Ethics Exam, before obtaining licensure. Candidates must also ensure they meet any state-specific CPE requirements before applying.

Step 4: Receive CPA License and Maintain Compliance

Once the application is approved, the state board issues a CPA license, granting the individual the authority to practice public accounting. CPAs must then comply with renewal deadlines, CPE requirements, and ethical standards to maintain their active status.

Differences Between State Boards of Accountancy

Although state boards operate under general guidelines set by NASBA and the AICPA, each has its own:

  • CPA Exam eligibility requirements, such as variations in credit hour and coursework requirements.
  • Experience requirements, which can differ in terms of duration and type of qualifying work.
  • Ethics exam policies, with some states requiring additional ethics coursework or exams.
  • CPE policies, including different renewal periods and subject-area requirements.

Due to these differences, CPA candidates and licensed professionals must consult their specific state board of accountancy to ensure compliance with regulations.


Frequently Asked Questions

What is the role of a State Board of Accountancy?

A State Board of Accountancy is the official regulatory body responsible for licensing CPAs, enforcing ethical and professional standards, and ensuring compliance with continuing education requirements. Each state has its own board that sets specific licensure and renewal requirements for accounting professionals.

How do I apply for a CPA license through my State Board of Accountancy?

To apply for a CPA license, you must meet your state’s education, examination, and experience requirements, then submit an application with supporting documents such as CPA Exam scores, transcripts, and work experience verification. Some states also require an ethics exam before licensure is granted.

What happens if I don’t meet my state’s Continuing Professional Education (CPE) requirements?

If you fail to meet your state’s CPE requirements, your CPA license may be placed on inactive status or suspended, preventing you from legally practicing as a CPA. To reinstate your license, you will likely need to complete additional CPE hours and pay any applicable fees or penalties.

Can I transfer my CPA license to another state?

Yes, most states offer CPA mobility and reciprocity options, allowing licensed CPAs to transfer their credentials if they meet the receiving state’s education and experience requirements. Some states may require additional paperwork, an ethics exam, or proof of work history before granting full licensure.


Bottom Line

The State Board of Accountancy is the official authority responsible for licensing CPAs, enforcing ethical standards, overseeing CPE compliance, and regulating the accounting profession within each state. For CPA candidates, working closely with their state board is essential for understanding exam eligibility, licensure requirements, and continuing education obligations.

By ensuring high professional and ethical standards, state boards play a key role in maintaining public trust in the accounting profession. Whether you are applying for a CPA license, transferring to another state, or maintaining your credentials, staying informed about your state board’s regulations is essential for long-term success as a CPA.

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