How The Profession Is Organized In Illinois
While many jobs that require accounting skills in Illinois do not require licensure, certain roles—for example, that involve performing audits of public companies and preparing audited financial statements—require licensure as a Certified Public Accountant (“CPA”).
This guide assumes that you have not previously been licensed as a CPA in another state and provides an overview of how to become licensed as a CPA in Illinois as a foreign-educated accountant.
The Regulation of Certified Public Accountants
The Illinois Department of Financial and Professional Regulation (“IDFPR”) regulates CPAs in Illinois. If you describe yourself (or your business) as a public accountant or providing public accounting services (see Section 8 of Illinois Public Accounting Act), you must be licensed as a CPA in Illinois.
The following activities do not require a CPA license in Illinois:
- Keeping books
- Making trial balance or statements
- Making audits, preparing reports, provided that the person does not indicate or in any manner imply that the trial balances, statements, or reports have been prepared or examined by a CPA or that they represent the independent opinion of a CPA
- Preparing tax and information returns
- Acting as representative or agent at tax inquiries, examinations, or proceedings
- Preparing and installing accounting systems
- Reviewing accounts and accounting methods for the purpose of determining the efficiency of accounting methods or appliances; and/or studying matters or organization, provided that the person does not indicate or in any manner imply that the reports have been prepared by, or that the representation or accounting work has been performed by, a CPA
Trends in U.S. Accounting
Accounting is constantly evolving. Recent trends include:
- Increased regulation;
- Promulgation of new and updated reporting standards and requirements; and
- Development of new technologies (for example, automation and remote work).
Employment in Accounting
Salaries in the accounting field vary widely depending on education, credentials, experience, field of practice, and size of an organization. According to the Bureau of Labor Statistics, the median income of salaried (not self-employed) accountants and auditors was $77,250 in 2021.
There are a number of different types of accounting roles available. These include:
- Government accountants, who examine the records of government agencies (both state and federal) and audit private companies and individuals who are subject to governement regulation or taxation.
- Management accountants (also known as cost, corporate, industrial, managerial, or private accountants), who combine accounting and financial information to guide business decision making, such as by preparing budgets, evaluating performance, or partnering with financial managers on asset management.
- Public accountants, who work on a broad range of accounting, auditing, tax, and consulting matters. Some public accountants focus on specific areas of practice. For example, some specialize on tax matters, advising corporations about the tax advantages or ramifications of business decisions or preparing tax returns. Others may be forensic accountants, who specialize in investigating issues like financial crimes, bankruptcies, and contract disputes. CPAs also help publicly traded companies prepare submissions to the Securities and Exchange Commission (SEC).
Opportunities may exist for accountants with knowledge of International Financial Reporting Systems (IFRS) or the earlier International Accounting Standards (IAS). If you can show that you have practiced accounting according to these systems, private companies and accounting firms with an international presence may see this as a real advantage if they need people skilled in IFRS to facilitate international business. In addition, certain submissions to the Securities and Exchange Commission must be submitted using the IFRS taxonomy.
Eligibility For CPA License Or Registration
In general, foreign-educated accountants will need to (1) have their foreign credentials evaluated for equivalency, (2) pass the Uniform CPA exam and AICPA Ethics Exam, and (3) complete 12 months of experience in public or non-public accounting in order to be eligible for licensure as a CPA in Illinois.
Certain foreign-educated accountants, such as those who have taken the International Uniform Certified Public Accountant Qualification Examination (IQEX) and earned a passing score of 75 may be able to rely on their passage of those examinations instead of taking the Uniform CPA Exam. These applicants still need to submit their credentials for evaluation.
For more details on the licensing process, please refer to the Illinois Board of Examiner’s (“ILBOE”) website and the Illinois CPA Society’s Exam Resources page.
Credential Evaluation
Candidates planning to take the Uniform CPA Examination must meet specific education requirements. Be sure to review the specific educational requirements! As of January 2023, there are several options for eligibility:
Option 1 | Degree: a graduate degree in accounting conferred by a Board-recognized institution of higher education whose accounting program has either AACSB accreditation or ACBSP accreditation. Total Hours: 150 semester credit hours. |
Option 2 | Degree: a graduate degree in business conferred by a Board-recognized institution of higher education whose business program has either AACSB accreditation or ACBSP accreditation; OR a graduate degree in accounting conferred by a Board-recognized institution of higher education whose business department has either AACSB accreditation or ACBSP accreditation. Total Hours: 150 semester credit hours Accounting Hours: 30 semester credit hours in accounting that include Managerial Accounting, Financial Accounting, Taxation, and Audit . |
Option 4: | Degree: a baccalaureate degree in any concentration conferred by a Board-recognized institution of higher education accredited by an accrediting association recognized by the Counsel for Higher Education Accreditation (CHEA), the U.S. Department of Education (USDE), and/or any accreditation organization approved by the Board; OR a graduate degree in any concentration other than accounting or business conferred by a Board-recognized institution of higher education accredited by an accrediting association recognized by CHEA, USDE, and/or any accreditation organization approved by the Board; OR a graduate degree in accounting or business conferred by a Board-recognized institution of higher education but without a business or accounting department accredited by the AACSB or ACBSP. Total Hours: 150 semester credit hours. Accounting Hours: 30 semester credit hours in accounting that include Managerial Accounting, Financial Accounting, Taxation, and Audit. Business Hours: 24 semester credit hours in business that include 2 semester credit hours in Business Communication and 3 semester credit hours in Business Ethics. |
You will need to have your transcript evaluated. The ILBOE accepts education evaluation reports for foreign transcripts from only the National Association of State Boards of Accounting (NASBA). To learn more about the specific documents you will need to submit to NASBA for your evaluation, please visit NASBA’s website. But in general, you will need to pay an application fee to NASBA, send in copies of your passport, and have copies of your transcripts sent to NASBA. You will also need to include English translations for any non-English documents. Note that NASBA can produce certified translations for a fee.
Once you are ready, you can submit a Foreign Credential Evaluation to the ILBOE by opening an account and submitting the application on ILBOE’s website. As part of this application, you will have NASBA send your official evaluated transcript report to ILBOE. As of January 2023, there is no fee associated with submitting a Foreign Education Evaluation to ILBOE.
Apply for and Pass the Uniform CPA Exam and PETH Exam
The Uniform CPA Exam
The Uniform CPA is administered by the National Association of State Boards of Accountancy (NASBA). To take the exam, after you have been qualified to sit for the Uniform CPA exam based on your credential evaluation, you will submit an Initial Examination Request to ILBOE, which can be done on the ILBOE website. You can select up to 4 exam sessions in your request. Make sure that the number of exams you select is the number of exams that you can realistically taken in the next 6 months!
ILBOE will send you a letter confirming your exam request and containing your jurisdiction ID. You will also receive an email from NASBA, inviting you to open an account and receive your Payment Coupon. About 1-2 days after you pay for your exams, you will receive a Notice to Schedule (NTS), which will allow you to schedule your exam with Prometric.
The substance of the Uniform CPA Exam will be discussed in more detail later in this guide.
AICPA Ethics Exam
The AICPA Ethics Exam is administered by the American Institute of Certified Professional Accountants. The exam is taken after completing a self-study course called Professional Ethics: The AICPA’s Comprehensive Course. You can register for the course and the exam through the AICPA website.
The AICPA Ethics Exam can be taken at any point in your registration process.
The substance of the AICPA Ethics Exam will be discussed in more detail later in this guide.
The Experience Requirement
Illinois requires that applicants complete 12 months of general accounting experience before they are eligible for CPA licensure. The experience should include the use accounting, attest, management advisory, financial advisory, tax, or consulting skills, and may be obtained through employment in government, industry, academia, or public practice.
Complete the Illinois CPA License Application
Once you have passed your examinations and received confirmation from the ILBOE that you are certified, you will apply for CPA licensure with the Illinois Department of Financial & Professional Regulation (IDFPR). The application is available through IDFPR’s online portal.
Your application will contain information including but not limited to:
- Your date and place of birth
- Any name change information
- Education information
- Social Security Number or an SSN affidavit
- Certificate from ILBOE regarding the Uniform CPA Exam
- Verification of employment/experience
- Payment of the application fee
Once you begin your application for licensure, you have 3 years from the initial date of application to complete the process; otherwise, you will need to resubmit your application and fee.
Tests
AICPA Ethics Exam
The AICPA Ethics Exam is a 40 question multiple choice test on professional ethics that you must pass in order to be eligible for licensing as a CPA in Illinois. The exam covers materials in the AICPA Code of Professional Conduct, Statements on Standards for Tax Services, U.S. Treasury Department’s Circular No. 230, and Internal Revenue Code (IRC) provisions applicable to federal tax practice. Key topics include:
- Introduction to the AICPA Code of Professional Conduct
- Conceptual framework of the AICPA Code of Professional Conduct
- Independence rules from the AICPA and other regulators
- Ethics rules per the AICPA and the U.S. Government
- Activities that discredit the profession
- Ethics interpretations issued by PEEC
The exam is taken after completing the self study course Professional Ethics: The American Institute of Certified Public Accountants’ Comprehensive Course (For Licensure). You must pass the exam with a 90% score or higher.
Uniform CPA Exam
The Uniform CPA Exam is a 16-hour, computer-based test comprising multiple choice questions, task-based simulations, and written communication tasks administered by NASBA.
NASBA regularly publishes a Candidate Bulletin, which you should read to familiarize yourself with the exam. The December 2022 edition of the Bulletin is available here.
Test Content
The exam is divided into four, four-hour sections:
- Auditing and Attestation
- Business Environment and Concepts
- Financial Accounting and Reporting
- Regulation
More information about each of these topics is available from the American Institute of CPAs (AICPA), which publishes Blueprints about the specific breakdown of each exam section and sample exams.
You must pass each of the four sections with a score of 75 or higher within 18 months. If you do not pass an exam section, you will need to re-apply to take the section again with the Board. There is no limit on the number of times you may repeat a failed section (though you will incur additional costs if you need to retake sections).
Fees and Scheduling
You will need to pay the ILBOE an application fee (based on the number of exams you intend to take within the next 6 months) for approval to take the Uniform CPA Exam. There are separate fees to take each of the the sections of the CPA exam that are paid to NASBA. The NASBA fees vary by jurisdiction but should be in the range of $225-250 per exam section.
Once you have your NTS, you can schedule your exam at a Prometric testing center.
CPA Evolution
NASBA plans to release a redesigned CPA Exam in January 2024. The new exam will follow a core + discipline licensure model, where applicants will be tested on a core set of topics (accounting, audit, tax) as well as an elected specialty picked from tax compliance and planning, business analysis and reporting, and information systems and controls. For more information on the new examination, please see NASBA’s website.
Time And Costs
Successfully licensing or registering as a CPA in Illinois depends on many factors. Just some of these include:
- The completeness of your educational and professional records;
- Your performance on the Uniform CPA Exam and AICPA Ethics Exam; and
- Your free time and how much you can afford to spend.
Other Careers And Credentials
In addition to the CPA credential, you are also eligible for other credentials as an accountant. Some of these credentials do not require you to be a CPA, while others do require that you become a CPA before you are eligible.
No CPA Required
- Certified Management Accountant (CMA): this certification requires experience in management accounting, an exam, and continuing education requirements and is offered by the Institute of Management Accountants.
- Certified Internal Auditor (CIA): this certification requires work experience in internal auditing and an exam. It is offered by the Institute of Internal Auditors.
CPA Required
- Certified Information Technology Professional (CITP): this credential shows additional professional development in the area of business technology as it applies to accounting practice. The coursework and the exam are offered through the American Institute of Certified Public Accountants.
Accredited in Business Valuation specialist (ABV): this credential reflects special expertise in business valuation and forensic accounting. The coursework and the exam offered by the American Institute of Certified Public Accountants.
Beyond Licensing
Setting Up Your Business
If you plan to have your own accounting business, you may need to register a Public Accountant Firm with the IDFPR. For more information, please see the IDFPR’s website.
Joining a Professional Association
State and national associations for CPAs provide opportunities for professional development and networking. They also help set help introducing new accounting standards, develop exams, and give information and opinions on policy in Illinois and across the U.S. For CPA candidates, their websites may offer useful information the licensing and examination process, including test preparation. For CPAs, these associations also often provide Continuing Professional Education (CPE) opportunities to members as well.
There are many more professional associations for CPAs (and accountants generally), including associations that emphasize specific functional areas of accounting, different types of workplaces or sectors, race and ethnicity, gender, or religion.
Continuing Professional Education (CPE) Requirements
A CPA licensed in Illinois must complete 120 hours of CPE every three years, including no less than 4 hours of professional ethics and 1 hour of sexual harrassment training. Depending on your practice focus and membership, there may be additional CPE requirements that you will be subject to, so you should confirm to make sure that you are in compliance once you have been licensed. There are many opportunities for completing CPE hours, including opportunities offered by professional associations.
Licensing Mobility (Reciprocity)
Licensing as a CPA in Illinois qualifies you to practice in Illinois. If you plan to practice as a CPA another state after obtaining an Illinois license, you may need to seek separate CPA licensure in that other state.
Illinois may endorse an accountant licensed as a CPA in other state if that license is substantially equivalent to Illinois’ license.
Tips
Volunteer: Volunteering your services is a great way to help you expand your practice, network, help others, and keep your skills current. Many accountants volunteer with nonprofits directly or through professional volunteering associations like the Taproot Foundation. You can help nonprofits with their accounting or help individuals prepare taxes or learn about personal finance and budgeting.
Speak Up: Be your own advocate throughout the licensing process! Seek clarification about questions and concerns directly from official sources. Organize your questions and ask for assistance.
Check Credit for Courses: If you need to take courses to meet the education requirements before you can sit for the CPA exam, you should consider consulting with the ILBOE directly before beginning any classes to ensure that it does not find them duplicative of courses you have already completed.
Your Identification Must Match: Your name should appear the same on all documents and identification you will use in licensing as a CPA. You will not be allowed to take the Uniform CPA exam and you will lose all of your fees if your forms of identification are not identical. If you have differences in the way your name is spelled or written on documents like your application or driver’s license, you will need to invest the time and money to correct them.
