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California CPE Requirements

California CPE Requirements


BOARD INFORMATION FOR REFERRALS:

California State Board of Accountancy
2450 Venture Oaks Way, Suite 300
Sacramento, CA 95833
Phone: (916) 263-3680
Fax: (916) 263-3674
Website: www.dca.ca.gov/cba/

DO PES COURSES QUALIFY FOR CPE IN THE STATE OF CALIFORNIA? YES!

California does not pre-approve continuing education programs (except for the Regulatory Review course) and they do not have sponsorship agreements. They will recognize courses from NASBA sponsors. PES is a registered sponsor with NASBA and has issued credits in the state of California without any problems since 1992.

LICENSE RENEWAL INFORMATION:

  • 80 hours within the 2 year period preceding license expiration date.
  • Minimum of 20 hours of continuing education in each year of their renewal/CPE reporting period - with at least 12 hours completed in technical subject matter.
  • New licensees: 20 hours for each full 6 month period following license. (see NEW LICENSEE REQUIREMENTS listed under SPECIAL CPE REQUIREMENTS section below)
  • A MINIMUM of 40 hours (50%) must be claimed in the following TECHNICAL subject areas: Accounting, auditing, fraud, taxation, consulting, financial planning, business law, economics, management services, statistics, ethics, regulatory review, computer and information technology (except word processing), and specialized industry or government practices that focus primarily upon the maintenance and/or enhancement of the public accounting skills and knowledge needed to competently practice public accounting. This is Code T on the licensee's renewal reporting form. (see ACCEPTABLE AREAS OF STUDY details below)
  • A MAXIMUM of 40 hours (50%) may be claimed in NON-TECHNICAL subject areas: behavioral ethics, business management and organization, communications and marketing, computer software and applications, personal development, personnel / human resources, production. This is Code N on the licensee's renewal reporting form. (see ACCEPTABLE AREAS OF STUDY details below)
  • GENERAL ETHICS REQUIREMENT: Licensees are required to complete four hours of ethics education every two years for license renewal. To qualify courses must be a minimum of one hour in length. The following PES CA specific courses qualify to meet this requirement:
    #4020: Ethics for California CPAs,
    #4030: Tax Ethics for California CPAs, and
    #4055: Industry Ethics for California CPAs
    as do any of our GENERAL ETHICS courses. Also, per the BOA - if dual licensed, another state ethics course can be used to fulfill this requirement as long as it is 4 hours; if it is not, then a supplemental general ethics course would be needed to equal 4 hours total. This is Code E on the licensee's renewal reporting form. PLEASE NOTE: this is a separate requirement from the 2 hour Regulatory Review requirement outlined below.
  • CA SPECIFIC REGULATORY ETHICS: In addition to the ethics requirement outlined above, licensees will be required to complete a two-hour regulatory review course once every six years (on your renewal form it will say Regulatory Review due by _________). This course requires formal Board review and approval and a 90% passing grade. PES course #4015: California Ethics - Regulatory Review Course can be used to fulfill this requirement and has been reviewed and approved by the California Board of Accountancy. Course approval number is RRS-004-0910 and is on the completion certificates. This is Code R on the licensee's renewal reporting form.

LICENSE EXPIRATION INFORMATION:

  • 2 year renewal - based on birth month/year
  • Even year birth - even year renewal / Odd year birth - odd year renewal

SPECIAL CPE REQUIREMENTS:

  • General A&A requirement: A licensee who engages in planning, directing, performing substantial portions of the work, or reporting on an audit, review, compilation or attestation service, shall complete 24 hours of the 80 hours in qualifying continuing education in the course subject matter pertaining to financial statement preparation and/or reporting (whether such statements are prepared on the basis of generally accepted accounting principles or other comprehensive bases of accounting), auditing, reviews, compilations, industry accounting, attestation services, or assurance services. This is Code A on the licensee's renewal reporting form.
  • A&A requirement for licensees performing preparation engagements as their highest level of service: A licensee who provided preparation engagements as their highest level of service shall complete 8 hours of preparation engagement or accounting and auditing (A&A) continuing education and 4 hours of Fraud CPE. SPECIAL NOTE: if a licensee performs general A&A services in addition to preparation engagements they are subject to the higher 24 hour A&A requirement noted above.
  • Governmental A&A requirement: A licensee who engages in planning, directing, conducting substantial portions of field work, or reporting on financial or compliance audits of a governmental agency shall complete 24 hours of the 80 hours in the areas of governmental accounting, auditing or related subjects. This continuing education shall be completed in the same 2 year license renewal period as the report is issued. A governmental agency is defined as any department, office, commission, authority, board, government-owned corporation, or other independent establishment of any branch of federal, state or local government. Related subjects are those which maintain or enhance the licensee's knowledge of governmental operations, laws, regulations or reports; any special requirements of governmental agencies; subjects related to the specific or unique environment in which the audited entity operates; and other auditing subjects which may be appropriate to government auditing engagements. This is Code A on the licensee's renewal reporting form. **SPECIAL NOTE: meeting this governmental CE requirement is deemed to have met the following A&A CE requirement but not vice versa.
  • Fraud CE Requirement: For licensees who are subject to the A&A or Government CE requirements listed above - the licensee must also complete an additional four hours of fraud CE specifically related to the detection and/or reporting of fraud in financial statements. The four hours is part of the 80 hours of overall total CE required for license renewal, however, it is not part of the specific 24-hour A&A or Government CE requirement defined above. Fraud CE is not required for licensees who are not subject to the A&A and/or Government A&A CE requirement. This is Code F on the licensee's renewal reporting form.
  • NEW LICENSEE REQUIREMENTS: (PLEASE NOTE: information taken from the CBA document "An Overview of the Renewal Process".) Licensees renewing their license for the FIRST time will most likely have a pro-rated CE requirement. Licensees are required to complete 20 hours of CE for each full six-month period from the date the license was issued through the first license expiration date.

    The CBA will specify how much CE will be needed for the first renewal on the license approval letter.

    All licensees with a CPA license issued on or after July 1, 2024, must complete a Board-approved Regulatory Review course for their first renewal. Licensees must complete the Regulatory Review course even if their first expiration date is LESS than six months from their license issuance date.

    PES course #4015: California Ethics - Regulatory Review Course can be used to fulfill this requirement. Per the CBA regulations, this specific exam REQUIRES a 90% passing rate.

    SPECIAL NOTE: a licensee that took and passed the California Society of CPA's Professional Ethics Exam (PETH Exam), and received their license after July 01, 2024, may use the PETH Exam to satisfy the Regulatory Review requirement.

    For more information visit: https://www.dca.ca.gov/cba/licensees/peth-requirement-change.shtml

CPE COMPLETION DUE BY:

  • CPE must be completed by the license expiration date (last day of the birth month for the year of expiration).

SELF STUDY CREDIT HOURS:

Credits granted for PES courses are based on the AICPA and NASBA (National Association of State Boards of Accountancy) statement of standards which grant 1 CPE credit for every 50-minutes of study time. California recognizes the same credit measurement.

MAXIMUM ALLOWABLE SELF STUDY CREDITS: 100%
ACCEPTABLE AREAS OF STUDY:

ACCEPTABLE AREAS INCLUDE

TECHNICAL: Accounting, auditing, fraud, taxation, consulting, financial planning, business law, economics, management services, statistics, ethics, regulatory review, computer and information technology (except word processing), and specialized industry or government practices that focus primarily upon the maintenance and/or enhancement of the public accounting skills and knowledge needed to competently practice public accounting.

NON-TECHNICAL: Behavioral ethics, business management and organization, communications and marketing, computer software and applications, personal development, personnel / human resources, production.

UNACCEPTABLE AREAS OF STUDY: Personal growth, self-realization, spirituality, personal health and/or fitness, sports and recreation, foreign languages and cultures, and other subjects that do not contribute directly to the professional competence of the licensee.

NASBA FIELD OF STUDY SYNOPSIS:

NOTE: the California reporting form has specific subject codes for reporting - all NASBA fields of study are acceptable but should be reported on the CA form as designated:

NASBA FIELD OF STUDY ——————————————> CA CPE Form

A: Taxes(T) ----------------> Code T: Technical on CA CPE Form (Technical)
B: Accounting (T) ----------------> Code A: Accounting & Auditing on CA CPE Form (Technical)
C: Accounting: Governmental (T) ----------------> Code A: Accounting & Auditing on CA CPE Form (Technical)
D: Auditing (T) ----------------> Code A: Accounting & Auditing on CA CPE Form (Technical)
E: Auditing – Governmental (T) ----------------> Code A: Accounting & Auditing on CA CPE Form (Technical)
F: Regulatory Ethics (T) ----------------> Code R: on CA Form (Technical): General ethics is E on form
G: Management Services (T) ----------------> Code T: Technical on CA CPE Form (Technical)
I: Business Law (T) ----------------> Code T: Technical on CA CPE Form (Technical)
J: Computer Software & Applications (T) ----------------> Code N: Non-Technical on CA CPE Form (Non-Technical)*
K: Business Mngmnt & Organization (NT) ----------------> Code N: Non-Technical on CA CPE Form (Non-Technical)
L: Finance (T) ----------------> Code T: Technical on CA CPE Form (Technical)
N: Behavioral Ethics (NT) ----------------> Code E: Ethics on CA CPE Form (Technical)
P: Personnel / Human Resources (NT) ----------------> Code N: Non-Technical on CA CPE Form (Non-Technical)
R: Economics (T) ----------------> Code T: Technical on CA CPE Form (Technical)
T: Production (NT) ----------------> Code N: Non-Technical on CA CPE Form (Non-Technical)
U: Specialized Knowledge (T) ----------------> Code T: Technical on CA CPE Form (Technical)
V: Statistics (T) ----------------> Code N: Non-Technical on CA CPE Form (Non-Technical)
W: Personal Development (NT) ----------------> Code N: Non-Technical on CA CPE Form (Non-Technical)
X: Communications & Marketing (NT) ----------------> Code N: Non-Technical on CA CPE Form (Non-Technical)
Y: Information Technology (T) ----------------> Code T: Technical on CA CPE Form (Technical)

*The CA Board of accountancy indicates that Computer and Information Technology is Technical - PES computer courses are more oriented towards "computer software and applications" (e.g. Quickbooks, Excel, etc) and therefore for CA we believe should be considered Non-Technical. However, the Board of Accountancy has the final say regarding this distinction and therefore we recommend you clarify / confirm with the Board directly should you have any questions or concerns regarding a specific computer course.

CA BOA INFORMATION FOR LICENSEES: For more information visit: https://www.dca.ca.gov/cba/licensees/

If you have any questions regarding your CPE requirements, please call PES at 1-800-990-2731 or your State board. PLEASE NOTE: Since state board regulations are constantly changing, the information contained here is deemed reliable however it is not guaranteed. We encourage you to contact your state board to answer any questions and confirm or clarify any requirements listed here. Information updated 10.22.2024