1. J. Michael Barham, CPA, Deputy DirectorNorth Carolina State Board of CPA Examiners

2. About the Board Established in 1913 byNCGS Chapter 93 to license andregulate CPAs Grants certificates to individualsthat meet the legal requirements Adopts Rules of ProfessionalConduct to be observed by CPAs inthis State Registration of CPA firms Administration of the UniformCPA Examination 3. About the Board continued Administration of the continuing professionaleducation (CPE) compliance program Conducts administrative hearings with respect tostate statutes and rules (process 150 to 200 casesper year) 7 Board members (5 CPAs and 2 public members;serve 3 year terms ) Monthly newsletter (Activity Review) 4. The Three Es of LicensureThree Es are required for CPA licensure Education (to sit for the Exam, to become licensed) Exam Experience 5. Education to Sit for the Exam Bachelors degree with a concentration in accounting A concentration in accounting is At least 30 semester hours, or the equivalent in quarter hours, of undergraduate accountancy courses including no more than 6 semester hours of accounting principles and no more than 3 semester hours of business law; or At least 20 semester hours or the equivalent in quarter hours, of graduate accounting courses that are open exclusively to graduate students; or A combination of undergraduate and graduate level courses equivalent to either option above. 6. Education for Licensure 150 semester hours (including a concentration in accounting and 24 semester hours ofcoursework including at least one 3-semester hour course from at least 8 of the following fieldsof study: Communications; Computer technology; Economics; Ethics; Finance; Humanities/social science; International environment; Law; Management; or Statistics Masters or more advanced degree in accounting, tax law, economics, finance, businessadministration, or a law degree from an accredited college or university is in compliance with150-semester hour requirement. 7. Uniform CPA Exam According to the CPA Exam Mission Statement, the purpose of the Exam is "To admit individuals into the accounting profession only after they have demonstrated the entry-level knowledge and skills necessary to protect the public interest in a rapidly changing business and financial environment. The Uniform CPA Exam is the exam that an individual must pass in order to qualify for licensure as a CPA in any of the 55 US jurisdictions (the 50 states, the District of Columbia, Puerto Rico, US Virgin Islands, Guam, and the Commonwealth of Northern Mariana Islands). 8. Uniform CPA Exam continued The CPA Exam is presented by three organizationsthe AICPA,NASBA, and Prometric AICPA writes (question development) and scores the exam NASBA issues Notices to Schedule (NTS) to candidates basedon Board-approved applications, releases scores to stateboards of accountancy, and maintains a central database ofcandidate records Prometric offers the Exam Monday Friday at 300+ testingcenters in the US (NC has sites in Asheville, Charlotte,Greensboro, Raleigh, Greenville, and Wilmington) 9. Uniform CPA Exam continued Computer-based format since April 5, 2004 Prior to this date the exam was pencil and paper andgiven twice per year (May and November) On January 1, 2011, CBT-e (Computer-Based Testingevolution) was launched Largest revision since 2004 10. Uniform CPA Exam continued 4 sections Auditing and Attestation (AUD)- SAB & SARS Business Environment and Concepts (BEC) Corp.governance, economic concepts, financialmanagement, IT, operations management Financial Accounting and Reporting (FAR) financialstatement presentation, govt., not-for-profit Regulation (REG) ethics, business law, taxation 11. Uniform CPA Exam continued Same test no matter where it is taken(Portland, Oregon is same as Portland, Maine) Passing score is 75 on a 0-99 scale Question types include multiplechoice, simulation, and written communication 12. Uniform CPA Exam CBT-e CBT-e changes are available on AICPA exam website (www.aicpa.org/becomeacpa/cpaexam/examcontent ) include: FASB Accounting Standards Codification made available New on-line calculator Improved candidate performance report New spreadsheet software Exam content change International Standards (refer to article in the Spring 2010issue of the Uniform CPA Examination Alert, available onAICPA exam website) 13. Uniform CPA Exam CBT-e continued Scoring weights AUD, FAR and REG 60% MC, 40% task-based-simulations BEC 85% MC, written communications 15% Section structure AUD, FAR, and REG 3 MC testlets and 1 testlet containing 6 to 7 task- based simulations BEC 3 MC testlets and 3 written communication task on BEC topics Section time allocations AUD shortened by hour to 4 hours BEC increased by hour to 3 hours Short task -based simulation questions versus the long format 14. Applying to Take the Exam Exam cost is $973.20, including $230 initial application fee (effective10/20/12 = $953.20) Dont procrastinate Sign up for all four parts while it is fresh in your mind. It is a better approach and it saves you money (Board charges initial application fee of $230 plus re-exam fee of $75) Your best chance of passing is within the first 6 months of graduation You never know about the future (job demands, marriage, family) National and State Pass Rates (2012 Q-3) FAR (53.90/57.00) REG (51.30/62.80) AUDI (50.10/57.10) BEC (57.60/73.20) 15. Applying to Take the Exam continued If you have a questions about the pertinent data section of theapplication, contact the Board for clarification (arrested,charged, convicted, found guilty of, received a Prayer forJudgment, or pleaded nolo contendere to any criminal offense?) Be up front and honest about your court record and any currentor previous charges (we need to know about probation, too) Read the application carefully and submit all necessarydocumentation Passport-type photo Method of contact Official college transcripts (no copies), 3 moral character references (no family members) 16. Applying to Take the Exam continued Takes 10 to 15 business days to process your examapplication Notice to Schedule (NTS) from NASBA (valid for 6 monthsand never extended) How to schedule to sit for the exam (visit Prometricwebsite, www.prometric.com, or call Prometric) Four (4) testing windows available(Jan./Feb., Apr./May, July/Aug., & Oct./Nov.) 17. Applying to Take the Exam continued Read the application instructions carefully and collect allthe required information & documents Picture Check or credit card info Transcripts, and Moral character information If you have questions, call or e-mail us No need to send your application by FEDEX, UPS, orcertified mail If your application is not right, we send it back 18. Common Issues for Exam Candidates Not receiving e-mail from NASBA or Prometric Fastest way to receive NTS, etc., is to elect to have sent to email, but make sure messages dont get stopped by spam filters, etc. Not getting the day/time you want at the center you want Schedule your section(s) the day you get your NTS schedule your section(s) in the first month of the testing window (January/April/July/October ) because seating is limited in the last weeks of second month of testing windows (February/May August/November) Schedule your exam on off peak days Tuesday, Wednesday, Thursday 19. Common Issues for Exam Candidates continued Being late to your testing appointment (if more than 30minutes late, you are considered a no show) Know where the Prometric center is located & leaveearly in case of traffic problems Not taking your NTS with you to the test center (without it,not able to test) When you receive your NTS, make a copy and place it in the glove compartment of your car 20. Common Issues for Exam Candidates continued Not taking your IDs (NTS plus primary and secondary IDs)to the testing center or not taking the proper IDs to thetesting center Before you leave for the testing center, check again to make sure you have your NTS and IDs Acceptable primary IDs are drivers license, passport, or US Military ID Acceptable secondary IDs are credit card, debit card, or ATM card Unacceptable forms of ID include green card, Social Security card, and college/university student ID 21. Common Issues for Exam Candidatescontinued Not being admitted to the testing center because the name on you NTSdoes not match your IDs When you receive your NTS, verify that the name matches the IDs you will use--if not right, get a new NTS Showing up at the testing center on the wrong day or at wrong time orfor the wrong section When you get your NTS, verify the section and then schedule yourappointment and write the appointment day/time down someplaceyou wont lose it or add it to your phones calendar 22. Common Issues for Exam Candidates continued Not being adequately informed about the Exam policies,procedures, etc. As part of your study plan, read the Exam information available on the Boards website, the NASBA website, and the AICPA website (candidate bulletin, content specifications, etc.) Not knowing how to use the Exam software Software is unique to the Examyou must complete the tutorial and sample tests available on the AICPA website You may have the knowledge to answer all the questions on the exam, but if you cannot enter those answers it does not matter 23. Common Issues for Exam Candidatescontinued Failure to start (launch) the exam section After being seated and entering your password, you have 10 minutes to getthrough the screens and begin the exam If you take longer than 10 minutes, the exam session is terminated and itcannot be restarted. You use lose your sessionit cannot be reinstated Writing down mnemonics and notes from a review course can cause this tohappen Taking too much stuff to the testing center Only NTS , IDs, & materials provided at testing center (pencil, scrap paper& earplugs), are allowed in testing center Storage is provided for personal itemsonly take what you must have 24. FAQs about the ExamQ. Do I have 120 days after my Exam application is approved by theBoard to meet the educational requirements?A. Yes, a candidate has 120 days after his/her Exam application isapproved by the Board to meet the educational requirements.Q. How much time do I have to pass all sections of the Exam?A. Once a candidate receives credit for a section of the Exam, he orshe will be allowed a maximum of 18 months to pass all remainingsections of the Exam in order to retain credit for the passedsection(s).Q. When does the 18-month period for my Exam credit begin?A. The 18-month period begins on the date the first passed sectionwas taken 25. Exam Score Notices NC Exam candidates can access their Exam scoresonline through the NASBA Gatewaywww.nasba.org/exams/cpaexam/northcarolina/ Scores are usually available 24-48 hours after theAICPA releases grades to NASBA Check the Boards Twitter feed and Facebook page fornotification 26. NC Page on NASBA Gateway 27. Online Score Retrieval 28. Applying for Licensure Pass the Uniform CPA Exam Complete the education requirement Complete the experience requirement 1 year in the field of accounting under the direct supervision of a licensed CPA, or 4 years in the field of accounting Complete the accountancy law course (within 12months of applying for licensure) 29. Applying for Licensure continued Application for original NC CPA license requires: Recent passport-type photo Three moral character affidavits from licensed CPAs, Experience affidavit(s) 150-semester hour worksheet Any official transcripts not submitted with your Exam application Licensing fee of $100 (check or credit card) Make sure you truthfully answer all questions 30. Applying for Licensure continued If did not sit for the Exam as an NC candidate, mustinclude Application for transfer of credit Interstate Exchange form All transcripts (official only) to show compliance with education requirement 31. Maintaining Your License Keep up with changes in rules and statutes Activity Review (monthly newsletter) Website (www.nccpaboard.gov) Twitter (@NCCPABoard) Facebook (www.facebook.com/NCCPABoard) Comply with the annual CPE requirements 40 hours annually Ethics course (2 hours group-study or self-study from a CPE sponsor registered with the Board or on the NASBA National CPE Sponsor Registry) 32. Maintaining Your License continued Renew license annually by June 30 No postcards to remind you Online Answer truthfully all questions about CPE, moral character, etc. Register a firm If you use CPA in or with the name, and If you perform attest work (audits, reviews, compilations, or agreed-upon procedures) CPAs may only perform attest work while working in a CPAfirm 33. Maintaining Your License continued File and pay all taxes on time (business, individual and 941) Only perform engagements that you are qualified toperform Do not take on attest engagements that you are not up to speed on without a pre-issuance reviewer Return client records upon request Keep client records confidential Respond to clients in a timely manner Respond to any Board inquiry promptly 34. Questions?