Auditors

Certification or Licensing

Many auditors are certified as public accountants. Certified public accountants (CPAs) must pass a qualifying examination and hold a certificate issued by the state in which they wish to practice. The Uniform CPA Examination, which is administered by the American Institute of Certified Public Accountants (AICPA), is used by all states. Many states also require licensure candidates to have completed 2,000 working hours that have been verified by a licensed CPA.

In most states, a college degree is required for admission to the CPA examinations; a few states allow candidates to substitute years of public accounting experience for the college degree requirement. Currently, nearly all states and the District of Columbia require CPA candidates to have 150 hours of education, which represents an additional 30 hours beyond the standard bachelor’s degree requirement. (Check with the AICPA or your state accounting association for information on requirements in your state.) These criteria can be met by combining an undergraduate accounting program with graduate study or by participating in an integrated five-year professional accounting program. You can obtain information from your state board of accountancy or check out the AICPA Web site to read about new regulations and review last year’s exam.

In 2024, the AICPA launched a revised CPA examination. Candidates must complete three core sections: Auditing and Attestation, Financial Accounting and Reporting, and Taxation and Regulation. Then they select one discipline from the following categories: Business Analysis and Reporting, Information Systems and Controls, and Tax Compliance and Planning. Visit https://www.aicpa-cima.com/resources/download/learn-what-it-takes-to-become-a-cpa to learn more about the examination.

The AICPA offers other credentialing programs (involving a test and additional requirements) for members with valid CPA certificates. These designations include accredited in business valuation, certified in financial forensics, certified in the valuation of financial instruments, certified information technology professional, and personal financial specialist. These credentials indicate that a CPA has developed skills in nontraditional areas in which accountants are starting to play larger roles.

To become a certified internal auditor, applicants must satisfy experience/education requirements and take and pass a three-part exam that is given by the Institute of Internal Auditors (IIA). The IIA also offers the following specialty certifications: internal audit practitioner and certification in risk management assurance, Visit the IIA Web site for more information.

Additional certifications are provided by associations such as Bank Administration Institute (e.g., certified bank auditor) and ISACA (e.g., certified information systems auditor, certified in risk and information systems control). Contact these organizations for more information about certification requirements.

Auditors who prepare tax returns must be licensed. Licensing requirements for tax preparers vary by state, and you should be sure to find out what requirements there are in the state where you wish to practice.

The Internal Revenue Service (IRS) offers an examination for tax preparers. Those who complete the test successfully are called enrolled agents and are entitled to legally represent any taxpayer in any type of audit before the IRS or any state tax board. There are no education or experience requirements for taking the examination, but the questions are roughly equivalent to those asked in a college course. The IRS does not oversee seasonal tax preparers, but local IRS offices may monitor some commercial tax offices.