A refresher on CPE requirements

To ensure Virginia citizens receive services from well-skilled CPAs equipped with the latest knowledge, the Virginia Board of Accountancy requires CPAs to take a certain amount of continuing professional education (CPE) each year. If you fall behind on this requirement, you could be subject to fines or other consequences after a CPE audit.

It’s never a bad idea to review your requirements to ensure you’re in compliance!

The rules

All active CPAs must complete 120 CPE hours over a rolling three-year period, with a minimum of 20 hours each year. The CPE requirement also includes completing the two-hour Virginia-specific ethics course annually and eight hours of accounting and auditing courses, if applicable (see below under “What qualifies”). Other specifics:

CPE compliance is determined by a rolling three-year calendar period, including the three calendar years prior to the current year.
CPAs do not need to submit CPE documentation to the VBOA each year when renewing their licenses unless specifically asked.
Licensees should retain CPE documentation for the four calendar years preceding the current year.
Fifty minutes of CPE is equal to one credit.
The deadline for taking CPE to qualify in a previous year is January 31.

New CPAs

New licensees need to earn CPE to maintain their active license statuses, of course. However, during a new CPA’s first licensed calendar year, no CPE is required for initial licensure if the application is submitted within the same calendar in which the candidate passed the CPA Exam.

If a candidate applies for licensure after the end of the year in which they passed the Exam, though, they must obtain a minimum of 40 hours of CPE prior to application. That CPE must include the two-credit Virginia-specific ethics course.

What qualifies

The VBOA accepts a variety of CPE as long as the licensee can demonstrate learning objectives were met. The VBOA does not currently require licensees to obtain CPE from specific or approved sponsors, except for the Virginia-Specific ethics course. All VSCPA ethics courses fulfill the VBOA requirement.

In addition to education designated “CPE,” the VBOA has also approved these other education designations are acceptable as CPE credits: Continuing Education (CE), Continuing Education Units (CEU),
Continuing Legal Education (CLE), Continuing Medical Education (CME), Quality Assurance Service
(QAS), and semester and quarter-hour credits. The VBOA will determine on a case-by-case basis the acceptability of other forms of CPE.

Someone who releases or authorizes the release of reports on attest, compilation or financial statement preparation services for persons or entities located in Virginia must obtain a minimum of eight hours annually of CPE related to attest, compilation, or financial statement preparation services.

Many different types of CPE are acceptable, allowing CPAs to upskill based on their own needs, preferences, and work demands:

Seminars and conferences. Instructors must have up-to-date knowledge of the subject matter and use appropriate teaching materials. Attendance should be monitored in a manner that can be verified by the VBOA.
Course credits at an accredited college or university. One semester-hour of credit for courses at an accredited college or university constitutes 15 hours of CPE and one quarter-hour of credit constitutes 10 hours of CPE.
Nano-learning or incremental CPE courses. The VBOA accepts nano-learning —learning and absorbing information in smaller increments of time.
Self-study courses. Licensee must be able to demonstrate that learning objectives were met.
Presentations. The licensee may present at a professional seminar, educational conference or classroom setting, provided that up-to-date knowledge of the subject matter is demonstrated and appropriate teaching materials are used. Repeat presentations may not be counted as additional CPE. During each three-year period, a maximum of 30 hours for preparing and making presentations is allowable.
Written materials. The licensee may write on a topic relevant to providing services to the public or on behalf of an employer. The material is formally reviewed by an independent party and must be published in a book, magazine or similar publication.
Certifications, exams and other licensures. The VBOA has approved CPE hours for passing exams and obtaining additional certifications for certain designations. CPE hours must not exceed a total of 60 hours over a three-year rolling period.

Documentation

You’ve taken the course — now, how do you show it? The VBOA accepts the following CPE documentation:

Certificates of completion from the CPE sponsor, including the sponsor’s name, participant’s name, course/content name, date taken and CPE hours earned.
Official transcript of the college or university for earning course credit at an accredited institution.
For speaking engagements, syllabus/agenda and signed statement indicating the length of the presentation.
For written material, proof of publication like a copy of a published article or book.

There ARE restrictions for documentation. The VBOA will not accept receipts, registration confirmations, cancelled checks, outlines, PowerPoint presentations or sign-in sheets, etc., as valid CPE documentation. The VBOA has the final authority on the acceptance of individual courses and documentation for CPE credit.

How to keep track

All active Virginia CPAs can take advantage of the CPE Audit Service available for free from the VBOA in cooperation with the National Association of State Boards of Accountancy (NASBA). Through the system, CPAs can track and store all CPE records in one place by uploading CPE certificates and entering information.
CPAs selected for a CPE audit by the VBOA are required to use this system to submit CPE records and documentation.

For more info
You can find all CPE requirements detailed here on the VBOA website, as well as in VBOA regulations 18VAC5-22-90 and 18VAC5-22-140. And every year, the VSCPA’s Regulatory Ethics course covers CPE requirements; check out all our ethics courses (VBOA-approved) online.