Becoming a certified public accountant (CPA) has long been a dependable career choice. And with the country currently facing a , now is a particularly good time to launch a career as a CPA.
Individuals who live in Rhode Island are in a good location to become a CPA. As of May 2023, Rhode Island had the third highest concentration of (a measure of the number of jobs for accountants and auditors per every 1,000 jobs) among all U.S. states, according to the U.S. Bureau of Labor Statistics.
To become a CPA in Rhode Island, candidates should learn about the requirements to become a CPA in the state and key resources associated with working in this rewarding profession.
Requirements to Become a CPA in Rhode Island
Rhode Island General Law outlines the overall requirements to become a CPA in Rhode Island. Specifically, an individual must:
- Be of good moral character
- Reside in Rhode Island or have a primary place of employment in Rhode Island
- Meet certain educational requirements (discussed in more detail below)
- Pass the (discussed in more detail below)
- Gain at least one year (1,820 hours) of experience in the practice of accountancy under the supervision of a licensed CPA
The Rhode Island Board of Accountancy issues CPA licenses in the state. In addition to the requirements specified in law, that board requires an aspiring Rhode Island CPA to:
- Receive a grade of at least 90 on the American Institute of Certified Public Accountants’ (AICPA)
- Submit a to the Rhode Island Board of Accountancy with all the questions answered, and ensure all the additional required documents are also submitted
Educational Component of Rhode Island CPA Requirements
The Rhode Island CPA requirements for education are based on the Rhode Island Board of Accountancy’s . Those rules and regulations specify that individuals need to complete 150 hours of higher education coursework by doing one of the following:
- Earn a graduate degree with a concentration in accounting. The degree program must be accredited in accounting by an accrediting agency that the Rhode Island Board of Accountancy recognizes.
- Earn a graduate degree from a program that is accredited in business and complete a specified number of semester hours in accounting. The degree program must be accredited in business by an accrediting agency that the Rhode Island Board of Accountancy recognizes. In addition, the individual must complete at least 24 semester hours in accounting at the undergraduate level or 15 semester hours in accounting at the graduate level or an equivalent combination.
- Earn a bachelor’s or higher degree and complete a specified number of semester hours in accounting and business. The degree program must be from an institution that is accredited by an accrediting agency that the Rhode Island Board of Accountancy recognizes. In addition, the individual must complete at least 24 semester hours of undergraduate or graduate accounting courses and at least 24 semester hours of undergraduate or graduate business courses in subjects other than accounting.
For the latter two educational options specified above:
- The semester hours in accounting must include at least six hours in both fundamental accounting and intermediate financial accounting and reporting as well as at least three semester hours each in tax accounting, auditing, and advanced financial accounting and reporting.
- The semester hours in business must include at least three hours in both business law and economics.
Key Details on Complying With Uniform CPA Exam Requirements
Once they meet the educational requirements, individuals who want to become CPAs in Rhode Island need to apply to take the Uniform CPA Exam through the National Association of State Boards of Accountancy (NASBA). The AICPA develops the content for the Uniform CPA Exam, with input from NASBA and the individual state accounting boards.
Applying for the Uniform CPA Exam
±·´¡³§µþ´¡â€™s provides detailed information on the process for taking the Uniform CPA Exam and CPA exam requirements. In addition to applying online to take the exam, an individual needs to:
- Arrange for each school specified on the individual’s application to send transcripts directly to ±·´¡³§µþ´¡â€™s CPA Examination Services division
- Provide a copy of their valid Rhode Island driver’s license
- Pay all applicable application fees
- For individuals who completed their educational requirements at an institution outside of the United States: provide international evaluation materials, which the will review
- For individuals who have a disability and need reasonable test-taking accommodations: provide a
Taking the Uniform CPA Exam
After NASBA approves an individual’s application, the individual will receive a . The individual then uses the NTS to to take the Uniform CPA Exam.
The exam contains :
- Three core sections:
- Auditing and Attestation
- Financial Accounting and Reporting
- Taxation and Regulation
- One of the following specialized discipline sections (which an individual chooses):
- Business Analysis and Reporting
- Information Systems and Control
- Tax Compliance and Planning
Aspiring CPAs can take the four sections individually and in any order; they need to receive a score of at least 75 on each section. The Rhode Island Board of Accountancy requires that an individual needs to pass all exam sections within a rolling 30-month period that begins on the date when the individual takes the first section that they pass. Rhode Island changed its review period from 18 to 30 months after the change in 2023.
NASBA notifies individuals regarding their exam results in accordance with its . NASBA also sends information regarding exam results to the Rhode Island Board of Accountancy, which then contacts individuals to complete the final application process and obtain a CPA license.
How to Renew a CPA License in Rhode Island
Rhode Island CPA licenses have a term of three years. CPAs need to renew their license before it expires to keep it active.
The Rhode Island Board of Accountancy sends renewal notices to individuals. CPA license holders in Rhode Island need to by June 30 of the third year of their license.
To renew a Rhode Island CPA license, an individual needs to certify that they have completed at least 120 hours of continuing professional education (CPE) that meets the Rhode Island Board of Accountancy requirements, or 80 hours for applicants in their first three years of licensure. The CPE hours must include some ethics components and may only include a limited number of personal development and marketing courses; the detailed requirements are specified in Section 1.8 of the board’s rules and regulations.
NASBA has issued information on that CPE courses can cover. For example, CPE can include:
- Technical CPE courses that directly relate to the profession of accounting, such as CPE courses focused on accounting, auditing, or taxes
- Nontechnical CPE courses that indirectly relate to a CPA’s business, such as CPE courses focused on behavioral ethics, communications and marketing, or human resources
Licensees must maintain evidence of the CPE hours they have completed. The Rhode Island Board of Accountancy has the option to request that documentation as part of an audit, compliance investigation, or other matter.
Accounting and Auditing Standards That All Rhode Island CPAs Need to Know
Whether an individual enters the CPA profession in Rhode Island or any other state, they need to remain up to date on accounting and auditing standards. For example, CPAs need to keep abreast of standards set forth by the:
- . The are the financial accounting and reporting standards for public companies, private companies, and nonprofit organizations.
- The are the accounting and financial reporting standards for U.S. state and local governments.
- The are the accounting and financial reporting standards for the U.S. federal government.
In addition, new and veteran CPAs benefit from remaining knowledgeable regarding:
- The
- The (also known as the Yellow Book)
- The
Additional Information That Can Be Useful to Current and Aspiring CPAs in Rhode Island
Thorough preparation for the CPA exam is critical, and a number of free resources can help in that effort. For example:
- The AICPA offers that offer extensive information on exam content.
- The AICPA also offers advice about joining or creating a .
- Some state CPA societies offer mock CPA exams and to help aspiring CPAs test their knowledge.
People who want to become Rhode Island CPAs and those who already have their CPA license can remain up to date on the accounting profession by reviewing publications such as:
- . Published by the AICPA, this publication offers relevant news and information related to accounting.
- . This publication offers articles on a wide range of topics to keep public accountants informed about the profession.
- . This publication provides accounting professionals with articles on topics such as the technology that accountants use and practice management.
- . These newsletters cover events and news items that are relevant specifically to CPAs in Rhode Island.
For information on trends in the accounting profession, current and future Rhode Island CPAs can consult:
- This article discusses how factors such as artificial intelligence and issues in talent retention are influencing the accounting profession.
- This article highlights trends in areas such as automation, specialization, and cybersecurity that are affecting the accounting profession.
- This article focuses on how data analytics could alter the future of the accounting profession.
- With a focus on international accounting, this article discusses the influence of technology on accounting firms.
- This report is intended for internal auditors and describes expectations for worldwide business risks in the coming years.
If an individual is interested in exploring the variety of career paths they can pursue after becoming a CPA in Rhode Island, these resources offer information on that topic:
- This resource offers insight into the wide variety of industries and specializations that CPAs can choose from.
- This resource highlights specific management accounting roles that accountants can pursue.
- This article describes how CPAs can follow a career path that leads to chief financial officer positions.
- This article provides insight into selecting the career path in accounting that aligns with an individual’s personal preferences.
For individuals who are interested in launching their own CPA firms, the following articles offer some tips on things to consider:
- This article provides a list of factors to address when starting an accounting firm.
- . This resource offers advice on creating a business plan and the elements a business plan should include.
- This article provides information on topics such as growth strategies for CPA firms, promoting a CPA firm, and bringing in new clients.
- People who want to launch their own tax practice can find advice in this article on creating a new firm.
Becoming a CPA in Rhode Island Is a Great Way to Launch a Meaningful Career
CPAs in Rhode Island prepare reliable information that is a key component of an organization’s decision-making. Upholding critical standards of their profession, CPAs play a vital role in the success of for-profit, nonprofit, and governmental organizations. By becoming a CPA in Rhode Island, an individual has the opportunity to launch a fulfilling career path.