CPA Basics
Passing the CPA Exam vs Getting a CPA Licence: What's the Difference?
By SimplyCPA · 11 October 2026
Text size
On this page (6)
- The exam is one of three Es: You also need Education (often 150 hours, or 120 plus two years' experience under the new pathway) and Experience verified by a licensed CPA.
- Ethics: Most boards also require an ethics exam after you pass.
- The title: Only licensed individuals may call themselves CPAs; the title is legally protected by every state.
- Before licensure: You can accurately say you have passed all four sections of the Uniform CPA Examination — but not use 'CPA' after your name.
- Time limits: Some boards require you to complete licensure within a set time after passing the exam.
What the licence requires
| Requirement | For the exam | For the licence |
|---|---|---|
| Education | Often 120 hours or a bachelor's, with set accounting and business credits | Traditionally 150 hours; or 120 hours plus two years' experience where the new pathway is in force |
| Exam | Pass all four sections within the credit window | Completed |
| Experience | Not required | Usually one year (two under the 120-hour pathway), verified by a licensed CPA |
| Ethics | Not required | Most boards require an ethics exam |
| Other | Age or character requirements in some boards | Good moral character; some boards require an SSN or other identifiers |
What you can say on your CV
- Before passing: "Pursuing the US CPA" or "Passed FAR and AUD of the Uniform CPA Examination".
- After passing all four: "Passed all four sections of the Uniform CPA Examination".
- After licensure: "CPA (licensed in [state])". Only licensed individuals may use "CPA" or "certified public accountant".
Boards enforce title rules; misusing the title can lead to disciplinary action and affect a future application.
Experience: the part to plan early
- Boards set what counts — public accounting, industry, government or academia — and how it must be verified.
- The verifying CPA usually must hold an active licence; some boards require it to be from a US jurisdiction or the same state.
- Some boards accept experience gained before, during or after the exam (New Hampshire's page notes this explicitly); others count it only after a point.
- For Indian candidates, working at a firm or global capability centre with US-licensed CPAs can make verification much easier.
Why licensure matters
- The licence is what US clients, regulators and many employers ultimately require for senior roles.
- Only licensed CPAs at registered firms sign audit and attest reports.
- Under the new individual-based practice privilege, mobility between states depends on your own credentials — another reason to complete them.
Keeping the licence
Once licensed, CPAs must complete continuing professional education (CPE) — commonly around 40 hours a year or 120 hours over three years, including ethics — and renew with their board.
See 120 vs 150 credits.