Renewal Overview_Revised July 2024 Final

Revised 7/2024

AN OVERVIEW OF THE RENEWAL PROCESS

Certified Public Accountants, Public Accountants,

Accountancy Partnerships, and

Accountancy Corporations

CALIFORNIA BOARD OF ACCOUNTANCY

LICENSE RENEWAL & CONTINUING COMPETENCY UNIT

2450 Venture Oaks Way, Suite 300

Sacramento, CA 95833

Telephone: (916) 561-1702

Facsimile: (916) 263-3672

Email: renewalinfo@cba.ca.gov

Web: www.cba.ca.gov

CPA/PA Renewals

Renewal Application and Fee

A Certified Public Accountant (CPA) license expires every other year, at midnight, on

the last day of a licensee’s birth month, with the year of expiration based upon the

licensee’s birth year. For example, a licensee born in March of an even year would have

a license that expires on March 31 of each even year, while a licensee born in March of

an odd year would have a license that expires on March 31 of each odd year.

To maintain a valid license, a CPA must complete the license renewal application and

submit it to the CBA along with the renewal fee. The renewal fee is the same whether

the license is renewed as active or inactive.

A renewal reminder letter will be mailed to the licensee approximately 90 days prior to

the license expiration date. Please note that it is the licensee’s responsibility to

know their license expiration date and to renew prior to expiration. Non-receipt of

the renewal reminder does not qualify for a waiver of the delinquency fee.

Online

Online renewals are completed in CBA Connect. Please visit https://connect.cba.ca.gov

to set up an account.

Please note that the email you sign up with will be your User ID. You will receive

important information regarding your renewal via the email address you provide in CBA

Connect. The CBA cautions against using a work email to create the CBA Connect

account as you may leave a job and lose access to email. You may change your User

ID by logging in to CBA Connect and clicking on the “profile” button. Once inside your

profile, you may make changes to your email address. You will receive an email asking

you to confirm the change before your new email/User ID is effective.

The social security number and date of birth entered must match the CBA records to

link a license. Licensees who cannot link their licensee will need to contact the

Renewals Unit for further assistance.

Licensees can sign up for CBA Connect at any time and begin entering CE information.

The CBA recommends adding CE to your CBA Connect dashboard as courses are

completed. Licensees may start the renewal application process in CBA Connect

approximately 90 days prior to the license expiration date. Any CE added to CBA

Connect prior to renewal will become part of the renewal application. After renewal, the

CE used in the renewal process will be removed from your CBA Connect dashboard

and you may begin adding new CE for your next renewal.

Wire Transfer

The renewal payment may be made via a wire transfer for licensees that are out of the

country and do not have access to a US Affiliated Bank. Instructions for completing a

wire transfer can be found on the CBA website at:

https://www.dca.ca.gov/cba/payment/options.shtml.

Please contact the Renewal Unit at renewalinfo@cba.ca.gov prior to initiating a wire

transfer to request a renewal application. Additional fees to perform this transaction may

be charged by the financial institution and are the responsibility of the licensee. Once

the wire transfer has been processed, the completed renewal application must be

mailed directly to the CBA or emailed to renewalapp@cba.ca.gov.

Continuing Education

A licensee selecting to renew in the active status must complete 80 hours of qualifying

CE in the appropriate subject matter.

A licensee renewing a license in the inactive

status is not required to complete CE.

A qualifying CE course or program must be a formal program of learning which

contributes directly to the professional competence of a licensee in public practice. This

allows a licensee to select from a wide range of providers, which may include:

• Private institutions

• National, state, and local accounting organizations

• Universities and colleges

• Professional development courses offered by a licensee’s accounting firm

• Live presentations

• Group-Based programs (Webcast)

• Individual study/Self-study/Adaptive learning self-study

• Individual study/National Examinations continuing education

• Nano learning programs

• Blended learning programs

• Instructor/Speaker continuing education

• Writing-Related and technical continuing education

As part of the 80-hour requirement, a licensee renewing as active must complete CE in

specified subject areas. As described below, the CBA currently maintains eight subject

area requirements:

1. 50/50 Requirement

2. Ethics Education

3. Governmental Auditing

The 80-hour requirement applies to all licensees with the exception of a new licensee and a licensee

that underwent a status conversion during the two-year period immediately preceding license expiration.

These groups are required to document 20 hours of qualifying CE in the appropriate subject matter for

each full six-month period of active licensure.

4. Accounting and Auditing

5. Preparation Engagement

6. Fraud

7. Regulatory Review

8. 20/12 Requirement

Governmental auditing, accounting and auditing, preparation engagement, and fraud

are not required of every licensee and are based on work performed during the two-year

period immediately preceding license expiration.

50/50 Requirement (Technical vs. Non-Technical)

The purpose of the 50/50 requirement is to maintain or enhance the technical skill and

knowledge of a licensee. A licensee renewing in an active status must complete a

minimum of 40 hours of CE (50%) in technical subject areas. Technical subjects

include:

• Accounting

• Auditing

• Fraud

• Taxation

• Consulting

• Financial planning

• Business law

• Economics

• Management services

• Statistics

• Ethics, as defined in California Code of Regulations (CCR), Title 16, section 87(b)

• Regulatory review, as defined in CCR section 87.8

• Computer and Information technology (except Word processing)

• 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

Conversely, a licensee may claim no more than 40 hours of CE (50%) in non-technical

subject areas. The following are considered non-technical subject areas:

• Behavioral ethics (e.g., ethical decision-making; personal ethics; diversity, equity

and inclusion; etc.)

• Business management and organization (e.g., organization of a public

accounting practice, etc.)

• Communication and marketing (e.g., business presentations; business writing;

social media; customer communications; marketing professional services, etc.)

• Computer software and applications (e.g., courses in the general use of software

used in a business environment, etc.)

• Personal development (e.g., career planning; leadership; time management; etc.)

• Personnel/human resources (e.g., attracting; motivating; developing and

retaining employees; social justice in staff recruitment and retention; etc.)

• Production (e.g., operations management; inventory management; supply

operations, etc.)

Ethics Education

A licensee must complete four hours of ethics education as part of the required 80-

hours of CE. The course must pertain to any of the following:

• A review of nationally recognized codes of conduct emphasizing how the codes

relate to professional responsibilities

• Case-based instruction focusing on real-life situational learning

• Ethical dilemmas facing the accounting profession

• Business ethics, ethical sensitivity, and consumer expectations

The four hours of ethics education may be taken as a single course or as a combination

of courses totaling four hours. Each course must be at least one hour in length to be

accepted by CBA. To be considered a full one hour, the course must provide at least 50

minutes of instruction. The four-hour ethics requirement is part of the 80-hour total

requirement. Ethics is considered a technical subject area. Please note that this

requirement is not interchangeable with the Regulatory Review CE requirement.

Governmental Auditing

A licensee who engages in planning, directing, conducting substantial portions of field

work, or reporting on financial or compliance audits of a governmental agency during

the two-year period immediately preceding license expiration must complete 24 hours of

CE in governmental accounting, auditing, or related subjects.

To fulfill the

governmental auditing CE requirement, a licensee must complete CE in the following

related subjects:

• Those which maintain or enhance the licensee’s knowledge of governmental

operations, laws, regulations and reports

• Any special requirements of governmental agencies

• Subjects related to the specific or unique environment in which the audited entity

operates

• Other auditing subjects which may be appropriate to government auditing

engagements

The 24-hour government auditing requirement is part of the 80-hour total requirement.

Government auditing is considered a technical subject area.

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.

Accounting and Auditing

Similar to the governmental auditing requirement, a licensee that engages in the

planning, directing, approving or performing of substantial portions of the work, or

reporting on an audit, review, compilation, or attestation service of a non-governmental

agency during the two-year period immediately preceding license expiration must

complete 24 hours of accounting and auditing (A&A) CE. To fulfill the A&A CE

requirement, course subject matter must pertain to:

• Financial statement preparation and/or reporting (whether such statements are

prepared on the basis of generally accepted accounting principles or other

comprehensive basis of accounting)

• Auditing

• Reviews

• Compilations

• Industry accounting

• Attestation services

• Assurance services

A licensee who fulfills the governmental auditing CE requirement is deemed to have met

the A&A CE requirement. The 24-hour A&A requirement is part of the 80-hour total

requirement. Government auditing is considered a technical subject area.

Preparation Engagement

A licensee who performs preparation engagements of financial statements as his/her

highest level of service during the two-year period immediately preceding license

expiration must complete eight hours of preparation engagement CE. To fulfill the

preparation engagement CE requirement, course subject matter must pertain to:

• Preparation engagements of financial statements

• A&A course subject matter that includes financial statement preparation and/or

reporting, audits, reviews, compilations, industry accounting, attestation or

assurance services.

A licensee who fulfills the A&A CE requirement is deemed to have met the preparation

engagement CE requirement. The eight-hour preparation engagement requirement is

part of the 80-hour total requirement. Preparation engagement is considered a technical

subject area.

Fraud

A licensee subject to the governmental auditing, A&A, or preparation engagement CE

requirement must also complete four hours of fraud CE, specifically related to the

prevention, detection, and/or reporting of fraud affecting financial statements.

The four-hour fraud CE requirement is part of the 80-hour total requirement. Fraud is

considered a technical subject area.

Regulatory Review

Every three renewals (six years), a licensee is required to complete a CBA-approved

regulatory review course. This course provides information on the provisions of the

current Accountancy Act and California Code of Regulations as they pertain to the

practice of public accountancy. All courses are a minimum of two hours. This is the only

area of CE in which a licensee must choose from a CBA pre-approved course list. The

course can be taken prior to its due date and will be updated accordingly by staff to

establish a new six-year due date.

The two-hour regulatory review CE requirement is part of the 80-hour total requirement.

Regulatory review is considered a technical subject area. Please note that this

requirement is not interchangeable with the ethics education CE requirement.

Note: New licensees must take the regulatory review course before their first expiration

date. Licensees must take it every six years thereafter.

20/12 Requirement

Licensees renewing a license in an active status must complete a minimum of 20 hours

of CE in each year of the two-year license renewal period. Of those 20 hours, a

minimum of 12 hours must be in technical subject matter.

For example: A license is set to expire on January 31, 2025. The licensee must

complete a minimum of 20 hours of CE (at least 12 of those 20-hours in technical

subject matter), between February 1, 2023 and January 31, 2024. In addition, a

licensee must complete a minimum of 20 hours of CE (at least 12 of those 20-hours in

technical subject matter), between February 1, 2024 and January 31, 2025.

Other Renewal Requirements:

Peer Review Reporting

CPAs/PAs practicing as sole proprietors must to report to the CBA peer review

information as required on the Peer Review Reporting Form (commonly known as the

PR-1 Form) at the time of license renewal. Although not all sole proprietors are required

to undergo peer review, all sole proprietors must report peer review information to the

CBA by completing and submitting the PR-1 Form with their license renewal application.

Licensees employed by an accounting firm, work for a non-accounting firm, employed

by the government, or are retired are not subject to this requirement.

Fingerprinting

All licensees renewing their license in an active status must submit fingerprints to the

Department of Justice (DOJ) for the purpose of having a state and federal criminal

offender record background check (CCR section 37.5). Licensees who have renewed

their license in an active status after January 1, 2014, have likely already met the

requirement to submit fingerprints.

If the DOJ has no record of your fingerprints on file for the CBA, you must submit your

fingerprints to the DOJ to comply with the renewal requirements. Note that fingerprints

on file with the DOJ under another agency cannot legally be shared with the CBA

(Penal Code Section 11142). When the CBA identifies that a licensee is required to

submit fingerprints as a condition of license renewal, the CBA will send the licensee a

notification letter to the licensee’s address of record. The notification letter will include

information on how to complete the process and all necessary forms.

Licensees residing in California who have not completed this requirement must submit

fingerprints via Live Scan. Licensees residing outside of California needing to complete

this requirement must submit fingerprints via hard card. Licensees actively serving in

the United States military are exempt from the fingerprint requirement.

Contact the CBA to obtain the Request for Live Scan Service form or fingerprint hard

cards. Additional information regarding this requirement can be found in the

Fingerprinting FAQ’s on the CBA website.

Renewing a License That Has Expired

If a licensee does not renew by the license expiration date, the license will be placed in

a delinquent status. A delinquent status means that the license has expired.

Consequently, individuals who have allowed their licenses to expire may not hold

themselves out to the public as a CPA or engage in the practice of public accountancy,

as defined in the Accountancy Act. Individuals may renew and return a license to an

active or inactive status at any time for up to five years after the license expiration date

by paying all accrued license renewal fees, paying a one-time delinquency fee, and

meeting all other requirements for renewal.

To renew a license to an active status, licensees must complete a minimum of 80 hours

of qualifying CE, including four hours of ethics, within the two-year period immediately

preceding the date on which the licensee applies for license renewal. A regulatory

review course may be required if it has been six or more years since the licensee last

completed a Regulatory Review course.

Additionally, in order to renew a license to an active status, licensees must complete a

minimum of 20 hours in each year of this two-year period. Of those 20 hours, a

minimum of 12 hours must be in technical subject matter.

The CBA will send one delinquent license notification to the licensee’s address of record

approximately 30 days after the license expiration date. No subsequent notifications will

be sent.

Converting to an Active Status Prior to Renewal

A licensee in the inactive or retired status may convert their license back to active at any

time prior to renewal. In order to do so, the licensee must complete a minimum of 80

hours of qualifying CE, including four hours of Ethics, within the two-year period

immediately preceding the date on which the licensee applies for a status conversion. A

Regulatory Review course may be required if it has been six or more years since the

licensee last completed a Regulatory Review course.

Additionally, in order to convert a license to an active status, licensees must complete a

minimum of 20 hours in the one-year period immediately preceding conversion, with a

minimum of 12 hours in a technical subject area.

To request a conversion to active status, a licensee must submit the Status Conversion

Form to the CBA. There is no fee to convert to an active status.

To request a restoration from retired to active, a licensee must submit the Restoration

from Retired to Active Form to the CBA with a $50 restoration fee.

Renewing After Conversion or Restoration

A licensee who converted or restored their license to active status less than two years

prior to the license expiration date will 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 converted or restored to active and the license expiration date. In most

cases, this results in the CE requirement being less than 80 hours. The CBA will specify

how much CE will be needed to renew on the conversion or restoration approval letter.

New Licensees

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 of license was issued through the first license expiration date. In

most cases, this results in the CE requirement being less than 80 hours. 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. A licensee that took

and passed the California Society of CPA’s (CalCPA) Professional Ethics Exam (PETH

Exam), and received their initial license after July 1, 2024, may use the PETH Exam to

satisfy the Regulatory Review requirement. If a CBA-approved Regulatory Review

course was completed, the PETH Exam may be used as two hours of technical CE.

Licensees must complete the Regulatory Review course even if their first expiration

date is less than six months from their license issuance date. More information can be

found at https://www.dca.ca.gov/cba/licensees/peth-requirement-change.shtml.

Continuing Education Exemption/Extension Requests

The CBA offers the option to request an exemption from, or an extension of time to

complete, the CE requirements due to extenuating circumstances that may impact the

ability of a licensee to complete the requisite CE requirements. These requests must be

on the Exemption/Extension Request Form and accompanied by substantiating

documentation. Extension requests are generally granted for one to six months

beginning from the date of license expiration.

Licensees wishing to apply for an extension must submit a paper renewal application

with the extension/exemption form and supporting documentation. Exemption/extension

request forms cannot be submitted through CBA Connect. Please contact the Renewal

Unit at renewalinf[email protected]a.gov to receive a paper renewal application.

CE exemption/extension requests must fall under one of the following categories:

• Health reasons

• Military service

• Other extenuating circumstances such as death of a family member or natural

disaster

For a licensee requesting an exemption/extension for health reasons, the request must

be certified by a medical practitioner documenting the circumstances that prevented

compliance. For a licensee submitting a request due to military service, the CBA

generally accepts paperwork from the Armed Forces noting the date on which he/she

was called to active duty. And finally, for a licensee submitting a request on the basis of

other extenuating circumstances, the substantiating documentation may range from a

death certificate (for death of a family member) to an evacuation notice (for natural

disasters).

Additionally, CCR section 90 also allow for an extension of time for a licensee to

complete the Governmental Auditing, A&A, and Fraud CE subject matter requirements.

This extension is for six months, with certain criteria needing to be met. First, a licensee

must have become subject to the requirement during the last six months of the two-year

licensure period. Secondly, a licensee must have completed the full 80-hour

requirement. A licensee may request this type of extension on the license renewal

application.

Accountancy Corporations and Accountancy Partnerships

The license renewal cycles for Accountancy Corporation’s (COR) and Accountancy

Partnerships (PAR) are the same for CPAs – every two years. The expiration date is

based on the month and year that the CBA originally approved the COR or PAR

application. If approved in an even year, the license will expire each even year on the

last day of the month in which it was originally approved. If approved in an odd year,

the license will expire each odd year on the last day of the month in which it was

originally approved.

All CORs and PARs will be required to report peer review information to the CBA as

required on the PR-1 Form at the time of license renewal. Although not all firms are

required to undergo peer review, all firms must report peer review information to the

CBA by completing and submitting the PR-1 Form with the firm’s license renewal

application. The CBA will include the PR-1 Form with the firm renewal package.

To renew a COR license, the corporation must have at least one shareholder holding an

active California CPA license in good standing. The corporation must submit the

following to the CBA with the signed and completed license renewal application and

$280 renewal fee:

• The Shareholder Reporting Worksheet (reverse side of the license renewal

application) listing all shareholders, or a list providing all the information

requested on the Shareholder Reporting Worksheet.

o The list must include all licensed and non-licensed shareholders and

include any shareholders associated or disassociated since the last

renewal, including the date of association or disassociation.

• PR-1 Form

To renew a PAR license, the partnership must have at least two partners, one of whom

must have an active California license. If the partnership is comprised of only two

partners, one of the partners may be a non-licensee owner providing the licensed

partner has an active California license in good standing. The partnership must submit

the following to the CBA with the signed and completed license renewal application and

$280 renewal fee:

• The Partner Reporting Worksheet (reverse side of the license renewal

application) listing all partners, or a list providing all the information requested on

the Partner Reporting Worksheet

o The list must include all licensed and non-licensed partners and include

any partners associated or disassociated since the last renewal, including

the date of association or disassociation.

• PR-1 Form