Frequently Asked Questions

Where can I get more information on the CPA exam?
www.cpa-exam.org

Where can I apply to take the CPA exam?
www.nasba.org/nasbaweb.nsf/exam and choose Uniform CPA Examination at the top of the page.

I'm a student. Can I join the Delaware Society of CPAs?
The Delaware Society of CPAs has a student membership category for all students who

• Are enrolled in a Delaware college or university and are majoring or have a concentration in accounting or are enrolled in a graduate program in accounting
• Live in Delaware but go to a college or university outside of Delaware and are majoring or have a concentration in accounting or are enrolled in a graduate program in accounting.

Are CPAs and accountants the same thing?
Yes and no. All CPAs are accountants, but not all accountants are certified public accountants. In Delaware, there are two types of accountants, certified public accountants and public accountants. Public accountants have different experience and exam requirements. NOTE - Public accountants should not be confused with CPAs who work in public accounting. In Delaware, the State Board of Accountancy can give either a CPA permit to practice or a PA (public accountant) permit to practice. A PA permit to practice does not allow you to do as much as the CPA permit to practice, and holders of a PA permit to practice are "PAs", not "CPAs".

What is accounting and why is it important?
Accounting is often called the "language of business" because it deals with interpreting and communicating information about a company's operations and finances.

Accounting is extremely important to any company because the financial information, as interpreted by CPAs, allows executives to make informed business decisions - decisions that help those companies become more successful.

Economic events are measured and described by accounting. Everyone works with and uses accounting ideas, whether they're managing a business, investing money, or just deciding how to spend their paycheck.

In business, accounting links the past with the future. It provides decision makers information about recent financial activity, as well as information and recommendations useful for forecasting future events.

What is the difference between a CPA Certificate and a CPA Permit to Practice?
Before January 2006, Delaware had what is known as a "two-tier licensing structure" which means that there are two levels of "CPAs". The first level are "certificate holders". The second level is those who hold a "certificate" and a "permit to practice." You would obtain a certificate before you could get a permit to practice. Under this prior law, once you have passed the CPA Exam and the AICPA ethics exam, you could apply to the Delaware State Board of Accountancy for a CPA certificate. Certificate holders could work in industry, government or education. They could also work for a public accounting firm while they are getting their experience to qualify for a "permit to practice." If you wanted to work in public accounting, Delaware required that you have a "certificate" and a "permit to practice."

After January 2006, Delaware requires that anyone who applies to sit for the CPA exam after January 2006 must complete all requirements for both a certificate and permit to practice. You can no longer obtain a certificate only. Therefore, once you have graduated with either an associates degree, bachelors degree or masters degree, you apply to sit for the CPA exam. Once you have passed the CPA exam and the AICPA ethics exam, you must complete your experience requirement before you can apply for your certificate and permit to practice. The amount of experience you need is based on the type of degree you have. For example, someone who graduates with a bachelors degree with a concentration in accounting must have 2 years of experience to qualify for a permit to practice. Note that the type of experience required varies with the type of degree that you have.

The CPA certificate does not expire. The CPA permit to practice expires on June 30 every odd-numbered year (e.g., June 30, 2007). The permit to practice is renewed upon a showing of satisfactory completion of the continuing education requirement.

Do I need to take specific courses in college to qualify to sit for the CPA Exam?
Yes. Delaware requires that you take 21 hours of accounting courses which must include courses in accounting (including introductory, intermediate, advanced, and cost accounting), auditing, and federal taxation as components of the 21 hour concentration in accounting. Courses must have been completed in all three areas (i.e. accounting, auditing, and federal taxation). Courses in other business subjects, such as banking, business law, computer science, economics, finance, insurance, management and marketing will not be accepted as accounting courses.

Once I have a CPA certificate from Delaware, do I have to do anything to maintain the certificate?
No. There is no renewal on a CPA certificate and no expiration date. Delaware has strict rules about the kind of work that you can do with just a "certificate" as well as how you can use the CPA designation with just a certificate, so be sure to investigate the law and the Rules and Regulations that are found on the Delaware State Board of Accountancy's web site. However, if you have a permit to practice, you are required to take continuing education courses to maintain your permit. See below.

Once I have a CPA permit to practice in Delaware, do I have to do anything to maintain the permit?
Yes. A Delaware permit to practice is only valid for two years. Delaware law requires that you complete 80 hours of continuing professional education (CPE) every two years and report your courses to the Delaware State Board of Accountancy in order to renew your permit. The 80 hours must include 16 hours of accounting and auditing, 16 hours of tax and 4 hours of Delaware-specific ethics. No more than 24 hours of CPE can be self-study (e.g., online courses). The two-year reporting period runs from July 1 of an odd-numbered year to June 30 of the next odd-numbered year. For example, July 1, 2005 to June 30, 2007. The Delaware Society of CPAs offers courses that CPAs can take to meet this CPE requirement. For a current list of our courses, go to www.dscpa.org/continuing_ed

If I have a certificate or permit to practice from Delaware, can I work in another state?
Rules differ from state to state so it is important that you check with the state board of accountancy in the state where you want to work to find out their rules. Generally, you must get a reciprocal license from the other state to work in that state. Likewise, if you have a license in another state, you will probably have to get a reciprocal license to work in Delaware.

What is the difference between a "license" and a "permit to practice"?
There is no difference. Both terms are used to designate a document that authorizes someone to practice certified public accountancy. Some states refer to the document as a "license", while others, such as Delaware, call it a "permit to practice".