To receive your CPA license and begin working as a Certified Public Accountant, you must pass the CPA exam. If you are unable to pass this exam or run into irregularity or misconduct accusations surrounding the exam, you will not be able to work as a CPA in the United States or any of its territories.
For the most part, individuals hoping to become accountants are so focused on learning tax codes and preparing for the inevitable income boost during tax season that they never consider the issues that might plague their CPA exam. And unfortunately, when misfortune in the way of irregularities or misconduct accusations does hit, it can have a disastrous effect on their future.
If you or someone you love has been accused of misconduct before, during, or after taking the CPA exam, call Attorney-advisor Joseph D. Lento's Student Defense Team today for help.
What is the CPA Exam?
The Uniform Certified Public Accounting Exam (CPA Exam) is a 16-hour exam that is designed to test the minimum knowledge and skills required of a CPA. The CPA Exam is owned by the AICPA and administered by NASBA in Prometric centers all over the United States and in some international locations. Unlike other exams, individuals hoping to qualify for the exam, depending on their jurisdiction, will usually only need about 120 college credits to qualify.
For international test-takers, however, there will be specific requirements you will have to meet before taking the exam. These requirements are also dependent on jurisdiction. For instance, test-takers from the United Kingdom must have completed their GCE A Levels, have transcripts ready, hold a bachelor's degree, and potentially also hold a master's degree. But if they live in Paraguay, they will need their transcripts, a degree, and a master's degree.
Structure of the CPA Exam
The CPA exam is divided into four four-hour sections, titled Auditing and Attestation, Business Environment and Conceptions, Financial Accounting and Reporting, and Regulation. The sections are then further divided into specific topics, such as:
- Ethics, professional responsibilities, and general principles
- Assessing risk and development in planned response
- Performing further procedures and obtaining evidence
- Forming conclusions and reporting
- Enterprise risk management, internal controls, and business processes
- Financial management
- Information technology
- Economics
- Operations Management
- Conceptual framework, standard-setting, and financial reporting
- Select financial statement accounting
- Select transactions
- State and local governments
- Ethics, professional responsibilities, and federal tax policies
- Business law
- Federal taxation and property transactions
- Federal taxation of entities
- Federal taxation of individuals
On the exam, each of the four sections is then further divided into five smaller sections called “testlets.” The Auditing and Attestation section is comprised of 72 multiple-choice questions and eight task-based questions. The Business Environment and Conceptions, however, includes 62 multiple-choice questions, four task-based questions, and three written communications. Additionally, the Financial Accounting and Reporting section and the Regulation section have 66 and 67 multiple-choice questions, respectively, while each has eight task questions and no written communication questions.
The exam tests several skill levels, including remembering and understanding, application, analysis, and evaluation. The AICPA breaks down the sections of the exam even further and ascribes how much of each skill should be used per section.
For instance, the Auditing and Attestation section should only require the test-taker to perform a 5-15% evaluation. Evaluation is defined as the test-taker's ability to assess a problem and use their judgment to draw conclusions. Similarly, the Business Environment and Conceptions section requires no evaluation, but a substantial amount of application. Application is defined as an examinee's ability to use or demonstrate knowledge, concepts, or techniques.
To pass the exam and qualify for a CPA license, test-takers must pass all four sections within 18 months and with a score of at least 75%.
Misconduct on CPA Exam Applications
As you might expect, any type of misconduct during the CPA exam, whether on your application, during the test, or after, will directly affect your ability to work as a licensed CPA. The CPA exam does not only test the minimum standards required to be a CPA but also your morals and ethics. If you are accused of violating the rules around the CPA exam, you will be doing exactly what the exam was created to inhibit.
NASBA has specifically outlined what behavior is acceptable when it comes to the CPA exam, including that application irregularities will be fully investigated. Generally, these irregularities are meant to stop test-takers from trying to hire someone else to take the exam for them, taking the exam for someone else, or failing to provide accurate information on their application.
Whether these irregularities were made by mistake or on purpose, NASBA will review the issue and notify the test-taker. Unfortunately, any type of application irregularity could hold up your ability to take the exam on your designated date. Having your test date canceled or permanently placed on hold will have a serious effect on your ability to start working.
Most exam takers have taken out loans to pursue their undergraduate degree, or even to fund taking this exam. If they are barred from taking the test, or their date is moved to the future, it will inhibit them from getting a job and, potentially, their ability to pay back these loans.
If you are being accused of an application irregularity prior to your CPA exam, it is incredibly important you reach out to an academic attorney-advisor. Academic attorney-advisors have unmatched experience helping test-takers navigate misconduct proceedings. Additionally, they will be able to review the matter with NASBA on your behalf, ensuring you are not being overly, or unnecessarily, disciplined.
Misconduct During the CPA Exam
Typically, misconduct issues occur during the CPA exam itself. According to NASBA and the Prometric testing center, exam-takers are prohibited from:
- Using their own written notes, published materials, or other testing aids while at the testing center or during their test appointment.
- Communicating, publishing, reproducing, or transmitting any part of the exam in any way.
- Talking to other candidates about the exam, testing materials, or written notes while in the test room.
- Bringing personal or unauthorized items into the test room, including outerwear, hats, food, drinks, purses, notebooks, pages, watches, or cellphones.
- Bringing a weapon into a Prometric testing center.
- Refusing to be scanned with a metal detector wand every time you enter the testing room.
- Using cell phones or other electronic devices during breaks.
- Accessing other areas in the testing center beside the bathroom and testing room.
- Refusing to have eyeglasses inspected.
- Wearing large jewelry.
Additionally, exam takers will be required to:
- Always conduct themselves in a civil manner while on the premises.
- Return all testing materials once the exam ends.
- Presenting a valid form of ID to take the test.
All these forbidden actions are meant to protect the integrity of the exam. If one examinee receives an unfair advantage over other exam-takers, it diminishes the value of their license and honor in the accounting profession. The belief is that subjecting students to these requirements and prohibitions will ensure that only students who have fully prepared for the exam – and understand accounting – will be able to pass and receive their licenses.
Sometimes, though, test administrators are too strict and end up accusing test-takers of transgressions they did not commit – or blowing up seemingly innocuous conduct they might have exhibited on test day. For instance, some examinees will have requested accommodations for exam day. If the test administrator has a personal bias against individuals in such a population, they may try to forgo the accommodation or hassle the examinee for taking advantage of it. When this happens, working with an academic attorney-advisor is the best way to ensure that your reputation and career remain intact.
What Happens After CPA Exam-Related Misconduct?
Getting accused of misconduct during the application process or during the CPA exam itself can feel extremely overwhelming. First, NASBA will notify you of the accusation and begin a preliminary investigation into the matter. During that time, your score could be placed on hold until they decide whether you are responsible or not for the misconduct.
When the informal investigation ends, if NASBA has determined there is enough preliminary evidence to support the claim that you committed misconduct at some point during the CPA exam process, they will usually notify you of a hearing date. The exact process will, of course, depend on the jurisdiction you took the exam in (or applied to take the exam in).
The disciplinary hearing generally involves a NASBA representative, and Yourself, being given the opportunity to present evidence and witness testimony to support your arguments. Once you have both presented your arguments, witnesses, and evidence, you will typically be allowed to cross-examine the other side's witnesses and evidence.
After both sides have presented – and defended – their arguments, the disciplinary committee will review the information privately and decide if there is enough evidence to support the argument that the exam taker did perform some misconduct on the CPA exam. At this time, the disciplinary committee will decide what type of sanction to apply if they find you responsible for misconduct. Sanctions generally include:
- Putting a hold on your ability to schedule an appointment to take the CPA Exam again or at a later time.
- Prohibiting you from applying for the CPA exam.
- Surrendering your testing fees and canceling test scores.
- Withholding or invalidating your results.
- Notifying the boards of accountancy of state or federal criminal violations.
- Starting or contributing to civil, criminal, or other administrative proceedings that could result in some sort of punitive action.
Attorney-advisor Lento's understands how important your CPA exam scores are to your future and will work tirelessly to mitigate any unreasonably punitive penalties the disciplinary committee might try to impose. Call today.
Other Issues that Might Affect Your CPA Exam
Most issues that affect your CPA exam tend to happen during the application process or during your examination. But, there are several other things that could affect your chances of receiving your accounting license, including:
- Failing to apply for the CPA exam on time.
- Failing to complete the CPA exam parts in an 18-month time frame.
- Failing to pass a section of the CPA exam repeatedly.
- Failing to apply for fee waivers for the exam and being forced to incur the totality of the charges.
- Not fulfilling the prerequisites required to take the CPA exam – especially if you are an international test-taker.
- Forgetting to file for an accommodation by the deadline.
How An Academic Attorney-Advisor Can Help
CPA exams, like other graduate exams, are typically the last step students need to take to receive their license and move forward in their careers. Without a passing score, a student will not be able to work as an accountant. Additionally, with the added pressure of having to pass each section of the exam within an 18-month window, many students might behave in ways they normally would not on exam day. Many things can ruin your exam score, but irregularities in your application and alleged misconduct on test day can seriously derail your plans.
Attorney-advisor Joseph D. Lento has spent a large portion of his career helping test-takers navigate disciplinary proceedings no matter the state they live in or the profession they are pursuing. His team understands how hard the path to being a licensed accountant can be and how the last thing most exam takers need is to be accused of misconduct and have their scores held pending an investigation and potential hearing. As such, they will work diligently to ensure NASBA and its affiliates understand what really happened, gathering evidence and witnesses to support your argument.
Call 888-535-3686 today or schedule a consultation online to learn what Attorney-advisor Lento and the Lento Law Firm Student Defense Team can do for you.
