Texas CPA Requirements – CA CPA License & Exams
Updated January 29, 2024
What Is the CPA Exam?
If you are looking to become a Certified Public Accountant in Texas, you will need to take the CPA exam, which if passed, will give you the license to practice as an accountant in the US state.
The Texas CPA requirements require all applicants of the exam to have successfully taken all of the undergraduate and graduate-level courses in accounting, business law and general studies.
This includes completing work experience and having a master’s degree or higher.
Once these are complete, they can take the CPA exam to become a CPA in Texas.
Completing the CPA exam is no mean feat, consisting of four sections, with four hours allowed to complete each one.
The four sections are:
- Financial Accounting and Reporting (FAR)
- Auditing and Attestation (AUD)
- Regulation (REG)
- Business Environment and Concepts (BEC)
One good thing to note is that the candidate will have up to 18 months to complete all four sections, which can each be taken individually and in any order.
Each section of the test is graded on a scale of zero to 99 and the overall passing score for the test is 75.2.
It’s recommended to study extensively before taking part in each section, as on average 50% of candidates have to retake one or more of the sections in the exam.
This article will look at what is required in each of the four sections, what Texas specifically requires for candidates taking the CPA exam, as well as the Texas CPA exam cost.
Sections in the Texas Certified Public Accountant Exam
Let’s look at each of the four sections in the Texas Certified Public Accountant exam to see what is required.
Financial Accounting and Reporting (FAR)
This section tests knowledge and understanding of the international financial reporting framework used by entities, government bodies, non-profit organizations (charities) and other similar companies.
It’s often referred to as the hardest section of the CPA exam, due to the amount of math questions included and complex questions. Candidates must show they understand all accounting standards and the roles of the different groups in the above entities.
There are 66 multiple-choice questions in addition to eight task-based, situational-based questions. Test-takers need to answer questions based on financial statements, reports and accounts, preparing financial statements and more.
The task-based questions are based around real-life work scenarios, where the applicant will give solutions and answers on how they would deal with the situations.
Auditing and Attestation (AUD)
Although there are more questions in this section (72 multiple-choice and eight task-based simulations), the AUD exam is said to be easier than the FAR test as it isn’t as complex.
Test-takers need to demonstrate their knowledge of accounting standards through answering questions on documentation, planning and reviewing and internal controls.
In particular, candidates will need to show they know the difference between international auditing standards and the standards for auditing in the US.
Regulation (REG)
This test consists of 76 multiple-choice questions and eight situational task-based questions focused on ethics and professional responsibilities.
This means candidates will be answering questions on business law, different tax regulations, entities and property transactions.
Business Environment and Concepts (BEC)
This section is considered to have the easiest questions, with people commonly passing this test first and on the first attempt.
The questions (62 multiple-choice, four task-based situational questions and three written tasks) cover information technology, the economy, business structures and company roles and financial management.
The written task includes candidates demonstrating their skills through replying to memos and letters to colleagues and customers.
Candidates need to show they can write well with correct grammar and spelling, in addition to being able to write in a certain language reflective of the topic.
Texas CPA License Requirements
In the US, the CPA exam requirements do differ slightly, as touched on earlier in the article.
This section looks a bit deeper into the specific requirements for the CPA in Texas.
Most states have strict requirements but in Texas, these requirements are more stringent than other states.
The Texas CPA requirements are:
- A clean criminal background check
- To be a recipient of a master’s degree or higher
- 150 credit hours
- 30 credit hours completed in upper-level accounting courses
- Two hours accounting or tax research and analysis completed
- Two hours completed in accounting or business communications
- 24 credit hours completed in upper-level business courses
- Three hours board-approved Texas CPA ethics course completed in the form of a semester
- A pass rate in the Texas Rules of Professional Conduct exam
- Completion of the four-credit Texas CPA ethics course for the CPA license
- One to two years’ work experience completed
Texas CPA Exam Cost
To get to the stage of taking the CPA exam in Texas, candidates need to be committed as not only are the Texas CPA license requirements extensive, but it can be considered costly too.
However, the Texas CPA exam fees and costs are slightly cheaper than in other states.
To apply to take the test costs $20.00, and then the online submission of the eligibility application is $25.00 for each of the four sections.
Each section then costs $238.15 to take.
Once all sections are passed, the certificate to prove this costs the candidate $50.00 with an annual renewal fee of $75.00.
Frequently Asked Questions
A CPA (Certified Public Accountant) needs to be licensed in Texas to practice. The way to get the license is to complete the CPA exam, which consists of four sections that can be completed over 18 months.
The work experience requirement to get the CPA license is a minimum of one year and a maximum of two years. Work experience needs to be relevant to accounting and the other state of Texas CPA requirements need to be completed. Then you can take the CPA exam and gain your license.
To become a Texas Certified Public Accountant (CPA) you need to successfully pass the CPA exam. To apply for the exam though, candidates need to complete a certain number of undergraduate courses, in addition to Texas CPA work experience requirements and also have a master’s degree.
Final Thoughts
The CPA exam in Texas has stringent rules and regulations, and Texas seems to have some of the most requirements in the US.
It costs a significant amount to take the CPA exam and to renew the license each year.
With these facts in mind, candidates need to be very committed to a future in public accounting and to taking this exam to become a CPA in Texas. It is therefore vital for applicants to study hard to meet the 2024 Texas CPA requirements and to be successful.
