We are often asked why Texas McCombs MPA students perform so well on the CPA exam. In the discussion that follows, we attempt to answer this and other frequently asked CPA exam and licensure questions. We hope this Q&A helps current and future MPA students better understand this challenging but rewarding pursuit!

Q: Why should I consider earning a CPA license?

• Legal authority: Tasks such as auditing public companies and filing reports with the Securities and Exchange Commission (SEC) can only be performed by individuals who are also CPAs. This ability can be a significant advantage in a professional services environment.
• Professional credibility: The CPA designation is a mark of excellence and professionalism. It demonstrates a high level of competence and knowledge, often leading to increased trust from clients and employers.
• Career advancement: CPAs often have access to more senior roles and higher salary potential when compared to non-CPA accountants. The license can open doors to leadership positions in accounting firms, corporate finance departments, and government agencies.
• Job security: The demand for qualified CPAs has remained strong over time. Many industries, especially those dealing with finances, taxes, and regulation, rely heavily on the expertise of CPAs in their business dealings.

Q: What are the current requirements to earn a CPA license?

The answer to this depends on the state in which you plan to work. All states currently require the following:

• Passing the CPA exam
• Satisfaction of educational requirements: In most states, current eligibility requirements include an accredited bachelor’s degree, 150 college credit hours, and a minimum number of upper-level accounting and business hours. Most states require applicants to complete a partial set of educational requirements before taking a section of the CPA exam (e.g., 120 hours) and then meet their full requirements (e.g., 150 hours) when applying for the license. The National Association of State Boards of Accountancy (NASBA) is a great place to investigate your state’s requirements. Because the majority of our MPA students are Texans, we’ll discuss Texas’ requirements next.
• Work experience: Most states require one year of accounting work experience before applying for a CPA license. Some states define “accounting work experience” more narrowly than others, so it is critical to investigate your state’s requirements.

Q; I plan to work in Texas after graduation. Will the MPA program satisfy Texas’ educational requirements for the CPA exam and license?

For the majority of MPAs, the answer is “yes.” Students without an accounting or business background might need one or two classes beyond their MPA degree to satisfy all educational requirements for the CPA in Texas.

The Texas State Board of Public Accountancy (TSBPA) currently requires completion of the following before sitting for any part of the CPA exam:

• Bachelor’s or higher degree from a board-recognized U.S. college or university or an equivalent degree from another country as determined by the board.
• 120 semester hours of college credit from a board-recognized college or university.
• 21 semester hours of upper-level accounting courses from a board-recognized college or university. These 21 hours must include 3 hours each of financial accounting, auditing, taxation, and accounting information systems or data analytics.
• 24 semester hours of upper-level related business courses with no more than 6 hours from the same discipline. These 24 hours must include 2 semester hours of accounting or business communication.

The TSBPA’s additional educational requirements for licensure include:

• 150 semester hours of college credit from a board-recognized college or university.
• 27 semester hours of upper-level accounting courses (i.e., 6 hours beyond the 21 hours required for the exam) to include 2 semester hours of accounting/tax research and analysis.
• A board-approved 3-hour ethics course.

Traditional and Bridge MPAs without an accounting or business background typically complete 43 hours of MPA coursework, including at least 27 hours of upper-level accounting. Any non-accounting MPA core or business electives are used to satisfy required business hours. Students are encouraged to follow their academic advisor’s guidance closely to efficiently satisfy all educational requirements for the CPA exam. For example, not all of the accounting courses available to MPAs are accepted as upper-level accounting by the TSBPA. In rare cases, an MPA student can fall short of CPA eligibility requirements despite successfully graduating from the program. Academic advisors will work with students to rectify these deficiencies, but it is best to plan out an exam-ready program of coursework in advance of graduation.

To learn more about the Master in Professional Accounting program at Texas McCombs, click here