California CPA continuing education (CE) is a requirement for license renewal every two years. The renewal process consists of submitting proof that the California CPA education requirements have been met, along with a renewal application as fee. California CPA CE is also referred to as California CPA continuing professional education (CPE). It is important to know that CE credits and standard college credits are not the same. Each semester long course taken at a college counts for 15 hours of CE credit. After all CE requirements are met and the renewal fee and application are submitted, a new license is issued. All continuing education certificates of completion must be kept for four years after the license renewal they were used towards.
California CPA CPE Renewal Options
California CPA licensees have a number of options when it comes to renewal of their license:
- Renew as “active” by completing the required CE courses before the license expiration date.
- Renew as “inactive” by simply submitting the renewal fee without CE. Inactive California CPA licensees cannot legally practice until they complete the required CE and become active.
- Either request an extension for completion of CE courses, or request an exemption from CE if qualifying criteria are met (see the CPA candidate handbook link in the “Resources” section for details on CE exemptions).
- Do nothing, and the license will expire. However, it can be renewed within five years of expiration by completing the CE courses.
California CPA New Licensee CE
The amount of continuing education requirements required for renewal is calculated at 20 hours for every six months from the date the CPA license was issued. This means that a total 80 hours of continuing education is required for active renewal of a CPA license every two years.
This calculation may be necessary for first-time licensees because the license expires on the candidate’s second birthdates from the license issuance date. As such, a candidate’s first license will probably need to be renewed before two years has passed.
Self-study (Online) California CPA CPE Courses
It is possible to get credit from a self-study course. For a self-study course to qualify, it must be an interactive course. Interactive courses must provide questions that test for understanding of material and provide feedback on incorrectly answered questions. Feedback must be specific for each incorrect answer for the course to be considered interactive.
A number of online CPA CPE courses are offered to meet the license renewal requirements. For a complete list of state-approved schools and courses, visit the California Board of Accountancy website.
Qualifying CE and 50/50 Requirement for California CPA License Renewal
For a course to qualify for CE credit toward renewal of a California CPA license, the course material must be an accounting or business related subject. Courses for self-improvement, foreign languages, and personal health are not accepted.
In order to renew the California CPA license in active status, the continuing education requirement has a 50/50 rule. This means that 50 percent of the total required continuing education courses must come from the following subjects:
- Accounting and auditing
- Computer and information technology (do not include word processing)
- Consulting
- Detecting and reporting of fraud financial statements
- Financial planning
- Professional conduct and ethics
- Taxation
Live Presentations for California CPA Continuing Education
Live presentations are count as 50-minute class hours. If the live presentation is less than 50 minutes, then the individual segments can be added together count as a full hour. Segments must be at least 25 minutes long to count towards continuing education credit.
In order to ensure that all California CPA continuing education requirements are met before the license expires, it is advisable to spread the courses out over the 2-year license period, rather than wait until the last minute. Under certain circumstances, the California Board of Accountancy will grant a time extension for completion of the California CPA educational requirements. Finally, ensure that guidelines and deadlines discussed above are followed exactly. Failure to do so can result in delay or denial of the license.
Source:
California Board of Accountancy (accessed 3/5/2010)
Cheri Pearson - Cheri Pearson is a seasoned freelance journalist who holds a Bachelor's degree in Business Administration from the University of ...
