Delaware CPA Requirements

Delaware Certified Public Accountant (CPA) license authorizes professionals to practice public accounting in the state of Delaware. Like other jurisdictions, Delaware also has its own CPA exam and license requirements.

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It follows a two-tier licensing system under which you apply for a CPA certificate and a permit or license. You receive the certificate on passing the CPA ExamCPA ExamA Certified Public Accountant (CPA) is a US state board-issued license to practice the accounting professionread more and the permit on qualifying the ethics exam and gaining the required experience.

Remember that the license or permit allows you to practice as a CPA in the state while the certificate does not. The Delaware Board of Accountancy issues the CPA permit or license only to qualified candidates.

Let’s discuss the Delaware CPA exam and licensing requirements in detail.

Table of Contents

Delaware CPA Exam requirements

  • Exam Eligibility RequirementsRequired DocumentsCourse RequirementsFeesCPA Exam ProcessExam Credit

Delaware CPA Licensing requirements

  • EducationCPA ExamExperienceEthics Exam

Who can apply for the license?

What are the documents required?

  • Exam applicantsReciprocity applicants

How to apply for the license?

How to sustain the license?

  • Continuing Professional Education (CPE)Credit Calculation

Delaware CPA Exam Requirements

The Uniform CPA Exam is an online set of tests developed to assess your expertise and knowledge as a newly licensed CPA. The American Institute of Certified Public Accountants (AICPA) collaborates with NASBA and the 55 U.S. jurisdictions to conduct the exam. 

Please note that it is a pre-requisite for both CPA Certificate and a CPA License. The CPA exam is common to all states. Candidates must pass all four CPA Exam sections (each being 4-hour long) within the 18-month testing period:

  • Auditing & Attestation (AUD ExamAUD ExamThe Auditing and Attestation (AUD) CPA exam section tests your expertise in performing auditing, attestation, and other service engagements.read more)Business Environment & Concepts (BEC ExamBEC ExamThe BEC CPA Exam (Business Environment and Concepts) exam section evaluates your understanding of the general business environment and your duties and responsibilities as a CPA towards it. It assesses your ability to recognize and scrutinize situations related to Financial reporting, Financial statement audit and attestation and Tax preparation
  • read more)Financial Accounting & Reporting (FAR ExamFAR ExamThe Financial Accounting and Reporting (FAR) CPA Exam section tests a candidate’s competency in understanding and applying financial accounting and reporting standards.read more)Regulation (REG ExamREG ExamREG CPA Exam (Regulation) exam section tests a candidate’s competency in applying the concepts of federal taxation, business law, and ethics. It is a four-hour exam with 15 minutes break.
  • read more)

Each section has five testlets of multiple-choice questions (MCQs) and task-based simulations (TBSs). BEC also has an additional written communication tasks (WCTs) segment. Candidates must score at least 75 on a scale of 0-99 in each section.

Exam Eligibility Requirements

You must earn at least 120 semester hours of college-level education to sit for the CPA Exam. This includes 24 credit hours in financial accountingFinancial AccountingFinancial accounting refers to bookkeeping, i.e., identifying, classifying, summarizing and recording all the financial transactions in the Income Statement, Balance Sheet and Cash Flow Statement. It even includes the analysis of these financial statements.read more, auditing, and taxation subjects.  

Required Documents

You must submit the following documents to the CPA Examination Services (CPAES):

  • All official transcripts from every school attendedInternational evaluation reports from evaluation serviceTesting Accommodations Request Form, if applicable

The first-time applicants must submit all educational transcripts directly from their academic institute to the CPAES. All transcripts must be original. Photocopies of transcripts are unofficial and hence, unacceptable.

Also, candidates studying at an international campus of a U.S.-based school must submit the transcript issued by the U.S. Campus Registrar.

Moreover, candidates who have completed educational requirements at a non-U.S. based institute must get their credentials evaluated through NASBA International Evaluation Services (NIES) or Foreign Academic Credentials Service (FACS). However, remember that the International Evaluation report must not be over three years old. 

Course Requirements

Here are the acceptable and unacceptable courses as per the Delaware State Board of Accountancy.

Fees

For first-time Applicants

For re-examination candidates

Please note that both application and exam fees are non-refundable. Also, you can’t withdraw from the exam or request an NTS extension. 

However, you may request a partial refund of the exam fees or an NTS extension under extreme conditions. For this, you must submit the Exception to Policy form. 

CPA Exam Process

Once the candidates fulfill the education requirements of Delaware, they must follow these steps to apply and take the CPA Exam:

  • Apply for the Exam through NASBA’s CPAES.Submit the documents to CPAES along with the applicationPay the fees (via credit card for online registration)Receive the Notice-to-Schedule (NTS)Schedule the exam through PrometricTake the exam at the Prometric test center

Note that first-time applicants must create a user account on CPA Central before applying for the exam. It helps you maintain your current information, view scores, check your application status, and reprint the NTS. 

The previous offline users must enter their Jurisdiction ID number online and import their application details. Candidates can apply for multiple exam sections at a time, provided they can pass it within the next six months. 

Exam Credit

You may take up the CPA Exam sectionsCPA Exam SectionsThe Uniform Certified Public Accountant (CPA) Exam comprises four sections, namely, Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). The unique content, structure, format, and scoring of the CPA exam earn it the title of one of the most challenging professional exams. read more in any order. However, ensure to pass all four sections within the 18-month period, which starts on the date you took up the first passed exam section. 

Credits for the passed section(s) hold validity for 18 months from their actual examination date. Know that exam credit expires by section. Hence, you will lose credit for and have to retake the section(s) passed outside the 18 months. 

The Delaware Board of Accountancy (BOA) will approve credit extension requests on the CPA section that fall outside the 18 months window until September 30, 2021. This is applicable for both international and U.S.-based candidates.

Delaware CPA Licensing Requirements

To earn the Delaware CPA license or permit to practice, candidates must fulfil the four E’s:  

  • Education – Bachelor’s Degree with 150 credit hoursExam – Pass all exam sections with at least 75 points in eachExperience – 1 year in a public or non-public accounting firmEthics Exam – Score at least 90%

Besides, candidates must also have a valid Social Security Number. Note that Delaware does not have any minimum age, citizenship, or residency requirement to be fulfilled. Also, it does not participate in the International Examination Program. 

Let’s discuss the licensing requirements in detail.

  1. Education Requirements

Candidates must complete at least 150 semester hours of education at an accredited college or university for Delaware CPA licensure. It includes 24 semester hours of courses in financial accounting, auditing, and taxation. 

Precisely put, you require an initial 120 credit hours to sit for the CPA Exam. Furthermore, the additional 30 credit hours are required for successful licensure. 

Delaware also offers an optional NASBA Advisory Evaluation service. It helps identify any academic deficiency before you submit your first-time exam application. 

You must have a CPA Central user account to start the Advisory Evaluation process. For more information on submitting an advisory evaluation, visit the National Association of State Boards of Accountancy (NASBA) website. 

  1. CPA Exam Requirement

As mentioned above, you must pass all four CPA Exam sections with a minimum of 75 points in each section. In addition, all sections should be cleared with the 18-month window. This 18-month window starts from the date of taking the first passed exam section.

  1. Experience Requirements

You must gain at least one year of work experience after receiving the accountancy degree. It includes full or part-time employment extending over 1-3 years with at least 2000 service hours.  

Moreover, a verified CPA with an active license (from Delaware or any other U.S. jurisdiction) must supervise your work. Experience includes any service in the following areas:

  • AccountingAttestationCompilationManagement advisoryFinancial advisoryTaxationConsulting

You must submit an affidavit of supervised work experience from each employer you claim to have worked. Include the employment dates, nature of the applicant’s duties by area, and the confirmation of your competence and professionalism.

The supervising CPA must sign and notarize the affidavit with a statement specifying their licensing jurisdiction. 

  1. Ethics Exam

Once you pass the Uniform CPA Exam, ensure to take the Ethics Examination before submitting your licensure application.

You must complete the AICPA’s Professional Ethics self-study program and pass the exam with at least 90% to qualify for licensure in Delaware. 

Here are the details of the course.

Besides the above requirements, applicants should not have been convicted of any crime related to the accountancy practiceAccountancy PracticeAccounting practice is a set of procedures and controls used by an entity’s accounting department to keep track of accounting records and entries. Other reports are generated based on accounting records, such as financial statements, cash flow statements, fund flow statements, payroll, tax workings, payment and receipts statements, and so on, and they form the basis of the auditor’s reliance while auditing the financial statements.read more.

Who can apply for the license?

All candidates who have fulfilled the above-mentioned licensing requirements of Delaware can apply for the CPA certificate or permit to practice. Besides, candidates who fall in the following categories can also apply for the same:

  • Candidates with an active CPA licenseCPA LicenseA Certified Public Accountant (CPA) is a US State Board-issued license that assures exceptional service standards in the accounting profession. The license can be awarded by any of the 55 US jurisdictions on passing the Uniform CPA Exam and fulfilling the state-specific education and experience requirements.read more of a state with substantially equivalent licensing requirementsCandidates without an active CPA license of any other state, butpossess one year of experience and have passed both the Ethics and CPA Exam, or,National Qualification Appraisal Service (NQAS) has certified them of substantial equivalencyCandidates without an active CPA license in a substantially equivalent state, buthave passed the examgained a minimum of four years of experience (within the ten years preceding the date of license application)met the continuing education requirement

Remember that you must have a CPA license if you are

  • possess one year of experience and have passed both the Ethics and CPA Exam, or,National Qualification Appraisal Service (NQAS) has certified them of substantial equivalency

  • have passed the examgained a minimum of four years of experience (within the ten years preceding the date of license application)met the continuing education requirement

  • working at a Delaware firm as a CPAoffering CPA services in Delaware with the primary place of business outside of Delaware but don’t qualify for a practice privilege

However, you can offer accounting services in Delaware without a CPA license if you have the following practice privilege:  

  • Your place of business is out of Delaware and will remain so in futureYou do not offer the services through a Delaware-based firmYou hold an active CPA license from a substantially equivalent stateYou are NQAS-certified

Though you are not required to have a CPA license in the above cases, you can always apply for one.

What are the documents required?

The documents required depends on whether you are applying for your first CPA license or you are already a CPA permit holder in another jurisdiction.

Exam applicants

Exam applicants mean candidates applying for a CPA permit by virtue of passing the CPA and ethics exam. They must submit the following documents:

  • Education proofCPA Exam scoresCPA Exam ScoresCertified Public Accountant (CPA) Exam scores refer to the non-curved weighted sum of scaled scores from each segment of an exam section. An exam section consists of three segments, namely, multiple-choice questions (MCQ), task-based simulations (TBS), and written communication tasks (WCT). CPA exam scores are released on specific target dates that are informed well in advance.
  • read moreEthics exam score (sent directly from AICPA)Affidavit of supervised work experience

Reciprocity applicants

Reciprocity applicants mean candidates who hold an active CPA permit in any other jurisdiction that is not substantially equivalent.

Reciprocity candidates with individual substantial equivalency (NQAS certified) must submit:

  • NQAS’ Substantial Equivalency Evaluation report

Reciprocity candidates without individual substantial equivalency must submit:

  • Education proofCPA Exam scoresAffidavit of supervised work experience

All candidates must submit a State/Jurisdiction Licensure Verification of each jurisdiction they hold or have held a license.

How to apply for the license?

To apply for a license, do the following:

  • Create a Delaware Professional Regulation Online Services (DELPROS) user account. Understand the requirementsRequest and collect all required documentsAttach or upload the documents directly to your applicationMail forms requiring attestation directly to the Board Office unless instructed otherwiseSubmit the licensing fees

Ensure to submit the online application within six months of starting it. Or else, you will have to restart the entire process. Moreover, use the “View Application Status” feature on the DELPROS e-License Dashboard to track your application status. 

How to sustain the license? 

Continuing Professional Education (CPE) 

Delaware-licensed CPAs must fulfil the CPE requirement to sustain their license. CPE helps them to maintain their professional competence and offer quality services. Therefore, they should gain at least 80 CPE credit hours biennially. 

The following table outlines details related to CPE requirements for Delaware-licensed CPAs.

Credit Calculation

Note that the required CPE credit hours may vary as per your license issuance date during the entire licensure period. For newly licensed CPAs seeking first-time renewal, if the license is issued

  • less than one year ago – CPE Credit hours are not requiredmore than one year but less than two years ago – 40 hours of approved CPE credit hours

The state board performs random audits to ensure compliance with the licensing requirements.

Once you fulfil all the requirements mentioned above, you earn the CPA title in Delaware. This allows you to practice public accounting in the state without any hassle. Moreover, you can always contact the Delaware State Board of Accountancy and seek proper assistance. 

At times, the entire procedure may seem a bit overwhelming. However, know that the rewards are worth the effort and hard work. Just keep fulfilling the requirements as specified, and you are on your way to licensure!

A Guide to Delaware CPA Exam and License Requirements. Here we discuss all the important aspects of including who can apply for the license, the documents required, and how to apply and sustain the license. You may also have a look at the below CPA articles to learn more about the exam –

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