Becoming a CPA is challenging and it has some genuine reasons. From creating a study plan to picking up a good review course and material as a part of your CPA exam preparation and passing the exam, there are several milestones you have to reach to obtain your CPA license. One such milestone you have to achieve is taking the ethics exams.

Most state boards ask CPA candidates to take ethics examinations as the next step to passing the CPA test. The candidate must pass the ethics examination in order to be certified and qualify for a CPA license. To pass the exam, CPA candidates get study materials from the state board, prepare for the exam then take the online exam. 

While some states allow handwritten exams, most of them are moving to an online-only test format.

What is Ethics Exam?

The ethics exam consists of a series of multiple-choice questions based on the AICPA Code of Professional Conduct. Your exam will, however, include examination topics specific to your state board of accountancy.

Time Limit for CPA Ethics Exam

You are not required to take the ethics exam right after passing the CPA exam. Most states generally require you to pass ethical examinations within a year or two of completing the CPA exam. Some states will count passing the CPA examination to your CPE requirement. 

Signing Up For the Exam

To register for the ethics exam, go to the website of your state’s CPA association. To understand, there are some details from the California CPA Society’s page dedicated to the California CPA ethics exam.

The California CPA Society takes an exam that covers the AICPA Code of Professional Conduct as well as the California Accountancy Act and Accounting Rules and Regulations. The format has been kept common as you must answer questions on both AIPCA (national) and state ethical themes.

In this state, CPA candidates must review a 300-page study book. It is also advised that candidates commit 16 hours to study for the Cal CPA ethics test.

The exam covers both national (AICPA) and state professional conduct regulations. In addition, CPA candidates are advised to arrange and read study material in order to prepare. This is the same format that other states use.

Exam Details

You will get more details on the examination on the state board’s website. For example, the ethics test in California asks each CPA candidate to answer 50 multiple-choice questions with no time restriction. To pass the exam, the applicant must answer properly at least 90% of the questions. You also have six attempts to pass the exam. The test must be passed within one year of purchasing the study materials. Furthermore, your state’s website will explain all related costs.

 CPA Ethics Exam Tips

The CPA exam demands 300-400 hours of study time to pass. Given the significant time investment required to pass the CPA test, you may be tempted to disregard the suggested study time for the ethics exam.

Take the process seriously and devote the necessary time to passing the ethics exam. Keep in mind that to obtain your CPA license, you must pass the ethics exam; make the time investment.

How Can Andrew Katz Tutoring Help?

Signing up for Andrew Katz tutoring will not help you stay on the right track to prepare for the CPA exam but will also assist you in understanding the different regulations and requirements by state boards. You can join private and group classes and get access to CPA study material, practice exams, and personalized assistance for passing the exam and obtaining the license.