Accountancy FAQs

EXAMINATION QUESTIONS

Q: What examination do I need to pass to obtain a Hawaii

CPA license?

A: The licensing examination is the Uniform CPA Examination of the

American Institute of Certified Public Accountants (“AICPA”).

Passing this examination will fulfill the education requirement for

a Hawaii CPA license; however, there are education and

experience requirements as well. These are discussed below.

More information on the examination can also be found on the

AICPA’s website at www.aicpa.org/becomeacpa/cpaexam.html.

Q: How do I apply for the Uniform CPA Examination as a

Hawaii candidate and what are the requirements to take

it?

A: All inquiries regarding the CPA exam should be directed to CPA

Examination Services of the National Association of State Boards

of Accountancy (“NASBA”). Call 1-800-CPA EXAM (1-800-272-

3926) or 1-615-880-4200 to obtain an application and review

the requirements to take the exam. The email address is

[email protected]. More information is available from NASBA’s

website at www.nasba.org/exam .

Generally, the requirements to sit for the examination are a

baccalaureate degree from a regionally or nationally accredited

four-year institution of higher learning (university or college) and

eighteen (18) semester hours of upper division accounting or

auditing coursework. These requirements are also available for

review on the Board’s application and information forms which

are available for downloading from this website.

Q: Is Hawaii residency required to take the examination as a

Hawaii candidate?

A: No. There are no residency requirements in order to take the

Uniform CPA exam as a Hawaii candidate.

Q: Where and when is the Uniform CPA Examination

administered?

A: Prometric is the national testing administrator for the

examination. The testing site is at 1132 Bishop Street in

downtown Honolulu.

The examination is given throughout the year. The first quarter

testing period is January and February, with March being a non-

test month. The second quarter testing period is April and May,

with June being a non-test month. The third quarter testing

period is July and August, with September being a non-test

month. The last quarter testing period is October and

November, with December being a non-test month.

Q: Where can I obtain general information about the Uniform

CPA Examination?

A: General information about the exam is now accessible at

www.cpa-exam.org; or you may wish to visit the American Institute

of Certified Public Accountants’ website at www.aicpa.org.

Q: Do I have to pass all four parts of the exam at the same

time?

A: No. A candidate may gain “conditioned credit” for passing one

or more sections with a passing grade of 75. The conditional

credit is valid for a “rolling” 18-month period, within which the

remaining sections of the examination must be passed in order

for the passing score of the conditional credit to remain valid.

Q: I expect to graduate within 120 days of the date of the

exam. I will then have met the educational requirement.

Can I sit for the exam?

A: Yes, you will be admitted to the exam on the expectation that

you will complete the educational requirements within 120 days

after the exam. You must indicate your intention on your exam

application. Your grades will not be released, nor will any

conditional credits be given unless you do meet the

requirements within the 120 days and the Board receives

evidence of this.

Q: Since I first took the exam prior to December 31, 2000,

what happens if I did not condition by December 31, 2000

or did not pass the remaining subjects under my

“conditioned status”?

A: You will then be required to apply as an initial candidate and

must meet the 150 semester credit hour education requirement.

Q: I received my education in a foreign country. What

requirements must I meet to sit for the CPA exam?

A: An individual with international education credentials must have

these credentials (degree and/or credits) evaluated to

substantiate that the degree is equivalent to a four-year

baccalaureate degree from an accredited U.S. college or

university, and must satisfy the 150 semester credit hour

education requirement required of all candidates.

Contact NASBA’s International Evaluation Services (“NIES”)

which is the only Board-approved evaluator. NIES is designed

specifically for CPA Exam and licensure candidates, and provides

academic evaluations to the Hawaii Board for consideration.

NIES can be contacted:

By phone 1.855.468.5382 (toll free);

1.615.277.9077

By fax 1.615.324.1268

By email nies@nasba.org

By mail NASBA-International Evaluation Services

150 4

Avenue, N., Suite 850

Nashville, TN 37219

Q: What can I do if I disagree with the evaluation from

NIES?

A: The Board relies on the expertise of the evaluators at NIES for

comprehensive and expert evaluation of international

coursework and for stringent authentication of education.

Should you disagree with the results of an evaluation, you will

need to contact the evaluation service directly to file your

complaint for NIES’ consideration. The Board will not intervene

in any disagreements, and if a disagreement exists, will rely on

the final evaluation from the NIES.

Q: I passed the Uniform CPA Examination. Can I call myself

a CPA?

A: No. A successful exam candidate has no status as a CPA.

Q: How do I transfer my exam grades to another state?

A: You need to submit a written request for transfer/verification of

exam grades to the Board, along with a $15 verification fee.

Your check or money order should be made payable to

Commerce and Consumer Affairs, and must be U.S. funds only,

drawn on a U.S. bank or financial institution. Please provide the

address where the verification/transfer of grades should be

mailed.

LICENSING QUESTIONS

Q: When and how do I apply for a Hawaii CPA license?

A: After passing the Uniform CPA Examination and meeting the

educational and experience requirements, you may submit an

application to the Board office. License application forms and

instructions are available on the Board’s website at

cca.hawaii.gov/pvl/boards/accountancy or by calling the

Licensing Branch of the Professional and Vocational Licensing

Division at 808.586.3000.

Q: What are the educational requirements to obtain a CPA

license?

A: A baccalaureate or higher degree and 150 semester hours (or

225 quarter hours) of college education, which must include 24

semester hours in upper division or graduate level accounting or

auditing courses and 24 semester hours in upper division or

graduate level accounting or business-related courses.

License applicants who passed the CPA Examination before

December 31, 2000, or were conditioned before December 31,

2000 and subsequently passed before the conditional credits

expired, may continue to meet the educational requirements of a

baccalaureate degree and 30 semester hours of upper division or

graduate level business-related courses (in addition to the

baccalaureate degree), or 30 months of experience with a public

accounting firm (in addition to the work experience required to

fulfill the experience requirement for licensure), and 18 semester

hours of upper division or graduate level accounting courses

(which may have been earned while obtaining the baccalaureate

degree).

Q: What are the work experience requirements to obtain a

CPA license?

A: 1500 chargeable hours in the performance of audits involving

U.S. generally accepted accounting principles and auditing

standards earned while in public accounting practice; or 2 years

of professional experience in public accounting practice, private,

industry, government, or education.

Experience must be earned while employed on a full-time basis

(35 or more hours per week), and must be supervised by a

licensed CPA.

Q: May I combine two different categories of experience, say

750 chargeable hours in the performance of audits with 1

year of professional experience?

A: No. However, if the chargeable audit hours can be verified as

having been earned in 1 year, that year could be added to the 1

year of professional experience for the total of 2 years.

Q: Can I claim experience that was earned many years

before applying for a CPA license?

A: Yes. Qualifying experience, once earned, may be counted

toward the experience requirement for licensure. The law does

not differentiate between “recent” experience and any other

experience.

Q: Must the verifying CPA hold a Hawaii CPA license?

A: No. However, in order to sign the applicant’s experience

verification, the verifying CPA must have held a CPA license in

one of the 55 U.S. jurisdictions during the period of supervision

of the applicant.

Q: Do I have to work at one organization for the entire

period of experience?

A: No. Applicants may use experience from one or several

organizations to fulfill the experience requirement.

Q: Can my experience in a private company be accepted as

qualifying experience?

A: Yes. Your 2 years of professional experience in private, industry,

government, or education must have been earned while

employed on a full-time basis (35 or more hours per week), and

must have been supervised by a licensed CPA. Your experience

will be evaluated by the Board in order to be deemed equivalent

to experience gained in a public accounting practice.

Q: Can my experience from a firm outside of the U.S. be used

to satisfy the experience requirements?

A: Yes, so long as your work was performed in accordance with

U.S. accounting principles and auditing standards.

Q: Does Hawaii reciprocate licenses from other states or

jurisdictions?

A: No, licensees from other states or jurisdictions must qualify and

apply for Hawaii CPA licensure. However, if you have held your

out-of-state CPA license for the past 10 years and were in active

practice for the past 5 of those years, you may be eligible for a

waiver of the educational requirements for a Hawaii CPA license.

Q: Does Hawaii have a residency requirement for CPA

licensure?

A: No, you do not have to be a Hawaii resident, however, you must

be a U.S. citizen, U.S. national, or alien authorized to work in the

U.S. in order to be granted a CPA license.

Q: Once I have submitted my application, how long does it

normally take for the Board to issue an initial license?

A: Completed applications are deliberated upon at each Board

meeting. Please refer to the schedule of meetings on this

website for the dates. If your application is approved, you will

receive your license card approximately 2-3 weeks after the

meeting. Your wall certificate should be mailed to you

approximately 4-6 weeks after the meeting. Click here for the

schedule of Board meetings

cca.hawaii.gov/pvl/boards/accountancy/meeting_schedule/.

Q: How long is my CPA license valid, and how do I renew?

A: All CPA licenses expire on December 31 of each odd-numbered

year. Renewal forms are mailed to the address of record at least

1½ months prior to the expiration date, so it is important to

notify the Board immediately when you change your address so

that forms and information can be mailed to you at the correct

address.

Q: What should I do if I don’t receive a renewal form?

A: If you have not received a renewal form by the end of November

(of each odd-numbered year), you should contact the Licensing

Branch at (808) 586-3000 to obtain a form. Failure in receiving

a renewal form does not relieve you of the responsibility of

timely renewal of your license.

Q: Is there a continuing professional education (“CPE”)

requirement to renew a CPA license?

A: Yes, you must have earned 4 hours of CPE in ethics or

professional conduct in order to renew a CPA license.

Q: How do I request a license verification?

A: You need to submit a written request for verification of licensure

to the Board, along with a $15 verification fee. Your check or

money order should be made payable to Commerce and

Consumer Affairs, and must be U.S. funds only, drawn on a U.S.

bank or financial institution. Please provide the address where

the verification should be mailed.

PERMIT TO PRACTICE and CPE QUESTIONS

Q: Do I need more than my CPA license to practice public

accountancy in Hawaii?

A: Yes, in addition to being licensed you must obtain an individual

permit to practice by submitting an application and certificates of

completion which verify that you earned at least 80 hours of

continuing professional education (CPE) during the 24 months

prior to the date of permit application. Of those 80 CPE credits,

4 must be CPE in ethics or professional conduct.

Q: I passed the Uniform CPA Examination recently. Can I

use this to fulfill (in whole or partially) my CPE

requirements?

A: Yes. If you were notified that you passed the exam within 2

years of the date of your permit application, you may claim 80

CPE hours. If you were notified within 3 years of the date of

your application, you may claim 40 hours.

Q: I’m a CPA working in industry (or government, education,

etc.). Do I need to have a permit to practice in addition

to my CPA license?

A: No, only CPAs practicing public accountancy are required to

obtain a permit to practice. However, you may elect to obtain a

permit to practice.

Q: I’m in a graduate degree program at an accredited

college/university. How do I count these credits as CPE?

A: Each graduate or undergraduate program semester credit which

you earn counts for 15 CPE hours, as long as the subject matter

of your studies qualifies for CPE credit. However, these credits

may not have been used toward qualifying for your CPA license.

Q: I teach seminars on qualifying subject matter. How do I

calculate CPE credits for preparation time?

A: The Board does not allow CPE credit for preparation time.

Q: Will I receive CPE credit for published articles or books?

A: Yes. Articles and books on qualifying subject matter may earn

credit, with proof of publication, for a maximum of 20 CPE hours

per biennium.

Q: I work for a CPA firm that provides in-house training.

How can I make sure these programs qualify for CPE

credit?

A: The firm must be registered as a CPE sponsor with the Board,

unless it is participating in the NASBA National Registry, or is

approved as a CPE provider by another state board of

accountancy.

Q: How do I know if my CPE will be approved?

A: Contact the sponsor for information on whether they have

registered with the Board, any other board of accountancy of

another state, or with the NASBA National Registry. You can

verify that a sponsor appears on the National Registry by

checking NASBA’s website at nasbaregistry.org. Sponsors that

need not register include recognized accounting and auditing

associations and accredited colleges and universities.

Q: How do carryover CPE credits work?

A: The Board allows a maximum of 40 CPE hours (earned in excess

of the 80 hour requirement) to be carried over to the next

biennium period.

Q: When is the deadline to submit my permit to practice

application?

A: Your permit application must be submitted at least 30 days prior

to the date you intend to begin practice.

Q: How long is my permit to practice valid, and how do I

renew?

A: All permits, like CPA licenses, expire on December 31 of each

odd-numbered year. Biennial application forms are available

from this website, or from the Board office. Click here for a

permit to practice application.

Q: If I obtained my permit to practice in the middle of the

last biennium, do I still need to earn 80 hours of CPE for

the upcoming biennium?

A: No. The Board will prorate the requirement according to the

time remaining. Generally, you will need 10 hours of CPE for

each full quarter remaining in the reporting period. The

reporting period is from January 1

of even-numbered years to

December 31

of odd-numbered years. See the chart on the

Permit to Practice application for specific information.

Q: What happens if I’m late renewing my permit to practice?

A: Your permit expires on December 31

of each odd-numbered

year. If you do not renew your permit before then, you may no

longer practice public accountancy until both your CPA license

and permit to practice have been properly renewed.

QUESTIONS ON THE FIRM PERMIT TO PRACTICE

Q: Are all CPA firms and PA firms required to hold a firm

permit to practice?

A: Yes, all firms actively engaged in the practice of public

accountancy in the State of Hawaii must obtain a permit to

practice.

Q: How does a firm apply for and obtain a firm permit to

practice?

A: The application form is available from the Board’s website at

cca.hawaii.gov/pvl/boards/accountancy, or from the Professional

and Vocational Licensing Division’s Licensing Branch located at

335 Merchant Street, #301 in downtown Honolulu. You may

also call the Licensing Branch at (808) 586-3000, for an

application to be mailed to you.

Q: What are the requirements for a firm permit to practice?

A: The firm must have at least 1 CPA who is licensed in the State of

Hawaii with a valid individual permit to practice. Also, the firm is

required to hold a current and valid Hawaii General Excise Tax

license.

QUESTIONS ON MANDATORY PEER REVIEW FOR CPA FIRMS

Q: Are all CPA firms/PA firms required to under mandatory

peer review?

A: No, only CPA/PA firms that perform Hawaii attest engagements

must comply with the peer review law. Please review the

Board’s peer review requirements in HRS sections 466-31 to

466-43.

Q: What is “Hawaii attest work”?

A: “Hawaii attest work” means attest services provided or attest

reports issued by an individual or firm licensed and authorized to

practice public accountancy in Hawaii or any other state, to any

of the following clients: (1) An individual who is a resident of

Hawaii; (2) A person, entity, firm, or trust that is domiciled

within this State, or whose principal or home office is physically

located within this State; (3) A subsidiary that has a physical

presence in this State, and has a separate, stand-alone financial

statement or report issued on that subsidiary.

Q: What effect does mandatory peer review have upon the

firm’s firm permit to practice?

A: The firm that is required to undergo mandatory peer review,

must do so in the 3 years prior to renewing the firm’s firm

permit to practice. This requirement is effective for the renewal

of a firm permit to practice for the 2018-2019 biennial period.

Q: Where can a firm obtain further detailed information on

mandatory peer review?

A: Please review the Important Announcements that are posted on

the Board’s website and also review the application for a firm

permit to practice. The firm should also familiarize itself with

HRS sections 466-31 to 466-43 of the Board’s statutes.

QUESTIONS ON APPLICATION FORMS and PAYMENT OF FEES

Q: I’ve completed the application form and am ready to

submit it to the Department of Commerce and Consumer

Affairs. What are the fees?

A: If you are applying for a CPA license in an even-numbered

year, the fee is $215. If you are applying in an odd-numbered

year, it is $139. Please make all checks payable to Commerce &

Consumer Affairs. Also, be sure that you answer all questions

on the application and that you sign it.

If you are applying for an individual permit to practice, the

fee for the biennium is as follows:

Sole Practitioner $155

Partner $155

Principal of public accounting corporation $155

Staff member of one of the above $ 63

If you are applying for a firm permit to practice, the fees are

?as follows:

Sole Proprietorship

Even-numbered year $121

Odd-numbered year $ 89

Partnership/LLP/Corporation/LLC/Other

Even-numbered year $345

Odd-numbered year $230

If you have any questions on fees, please refer to our website at

cca.hawaii.gov/pvl/boards/accountancy, or contact the Licensing

Branch at (808) 586-3000.

Q: Where do I submit my application form?

A: Mail all required items to:

Board of Public Accountancy

DCCA, PVL Licensing Branch

P. O. Box 3469

Honolulu, HI 96801

Or deliver to the office location at:

King Kalakaua Building

335 Merchant Street, Room #301

Honolulu, HI 96813

COMPLAINTS

Q: I believe that I have a legitimate complaint against a

licensed certified public accountant. Who do I call?

I went to a certified public accountant and paid money for

him to do my tax returns. But I’ve been waiting for over a

year and still haven’t gotten it. He doesn’t want to refund

my money and keeps telling me that he’s obtained

extensions of time to file. I just found out that he’s not

licensed as a CPA like he had advertised. Who do I call to

file a complaint?

A: The Regulated Industries Complaints Office (“RICO”), a

statewide agency of the DCCA, is the office to contact when you

have a complaint against a licensed or unlicensed certified public

accountant or public accountant.

Click on to RICO’s website at cca.hawaii.gov/rico/ to file a

complaint online, or call the DCCA Consumer Resource Center at

(808) 587-4272. To call the Consumer Resource Center from

the neighbor islands, dial 274-3141 from Kauai; 984-2400 from

Maui; 974-4000 from the Big Island; and 1-800-468-4644 then

74272# from Molokai or Lanai.

GENERAL QUESTIONS

Q: I went to a college that has a calendar based on quarters

or trimesters rather than semesters. How do quarter

credits convert to semester credits? How do trimester

credits convert to semester credits?

A: One semester credit is equivalent to 1½ quarter credits; so 1

quarter credit is ⅔ of a semester credit. A trimester credit is the

same as a semester credit.

Q: I’ve moved. How do I notify the Board?

A: We need a change of address notification in writing, which must

include your CPA license number, old address, new address, and

a signature. Mail your notification to:

Licensing Branch – Address Change

P. O. Box 3469

Honolulu, HI 96801

Q: I recently changed my name. How do I notify the Board?

A: We need a change of name notification in writing, which must

include your former name, your new name, type of license,

license number, and a signature. You must also include

evidence of the name change (e.g., a copy of the marriage

license, divorce decree, court order, or other legal document

which effected the change). Mail your notification to:

Licensing Branch – Name Change

P. O. Box 3469

Honolulu, HI 96801

Or you can deliver your notification to:

King Kalakaua Building

335 Merchant Street, #301

Honolulu, HI 96813

Q: What do I do if I want my name changed on my wall

certificate?

A: You will need to return your original wall certificate along with

your written request for a new certificate and a check or money

order for $10, payable to Commerce and Consumer Affairs.

Your duplicate certificate will bear the signature of the current

Chairperson of the Board.

Q: How can I obtain a listing of all CPAs and/or Public

Accountants licensed in Hawaii?

A: Please utilize the on-line service available from the Board’s

website. Click on On-Line Services, then on Professional &

Vocational Licensing List Builder to create and purchase a list of

licensee information.

Q: How do I verify that someone is a licensed Hawaii CPA?

A: Please utilize the on-line service available from the Board’s

website. Click on On-Line Services, then on Professional &

Vocational Licensing Search.

QUESTIONS FROM CONSUMERS:

Q: I believe my CPA has overcharged me. What can I do?

A: The Board of Public Accountancy has no jurisdiction over fee

disputes.

You may want to contact the Hawaii Society of Certified Public

Accountants (“HSCPA”). They will forward to their Ethics

Committee any potential disciplinary matter that alleges, implies,

or suggests that an HSCPA member has or may have violated

one or more of an applicable code of professional conduct. View

their website here www.hscpa.org for further information.

QUESTIONS FROM LICENSEES:

Q: I am a licensed CPA. I’ve been asked to verify an

applicant’s experience. Am I required to do this?

A: The decision to verify an applicant’s experience is a personal and

business decision to be made by the licensed CPA.

Q: I am a licensed CPA in Hawaii with a permit to practice

public accounting. May I accept a commission for

referring a financial product to a client, or may I pay

someone a commission to obtain a client for me?

A: No, you cannot pay a commission to obtain a client, nor accept a

commission for a referral to a client of products or services of

others.

Q: I am a licensed CPA in Hawaii with a permit to practice

public accounting. Can I offer to perform or perform

professional services for a fee which is contingent upon

the findings or results of those services?

A: No, you are prohibited from that activity. However, this

prohibition does not apply to: (1) professional services involving

federal, state, or other taxes in which the findings are those of

the tax authorities; and (2) professional services for which the

fees are to be fixed by courts or other public authorities.

Q: My CPA license has lapsed. Can I put “retired CPA” on my

résumé?

A: No. If you allowed your license to lapse, you have no legal

usage of the CPA title. You may not put “retired CPA” on your

résumé.

Q: I allowed my CPA license to lapse. Can I put “Member,

Hawaii Society of CPAs” on my résumé?

A: You may put the words “Member, Hawaii Society of CPAs” on

your résumé, provided the information is factual and is not

provided in a misleading manner. For example, you may not put

the words “Member, Hawaii Society of CPAs” by your name in

the manner of a title. Also, you may not use the words

“Member, Hawaii Society of CPAs” on your business card.

However, you may place the information within your résumé as

a statement of a fact.

Q: How can I become a member of the AICPA?

A: Although membership in the AICPA is not required and is outside

the jurisdiction of the Board, to apply for membership with the

American Institute of Certified Public Accountants, contact the

AICPA at:

AICPA

Harborside Financial Center

201 Plaza #3

Jersey City, NY 07311-3881

1-800-862-4272

201-938-3000

www.aicpa.org

Q: How can I become a member of the HSCPA?

A: Although membership in the HSCPA is not required and is

outside the jurisdiction of the Board, to apply for membership

with the Hawaii Society of Certified Public Accountants, contact

the HSPCA at:

HSCPA

P. O. Box 1754

Honolulu, HI 96806

808-537-9475