FREQUENTLY ASKED QUESTIONS
If you have additional questions, please do not hesitate to contact the board office. We are here to provide assistance to you. Helping you understand the accountancy laws and rules governing the accounting profession helps us to promote the Board’s mission of public protection!
(Contained in the answers to these questions, references will be made to SDCL 36-20B which is the accountancy statute or ARSD 20:75 which is the Chapter of Administrative Rules of South Dakota for the Board of Accountancy.)
CPA Examination Questions
Am I eligible to apply as a South Dakota exam candidate if I live in another state?
Yes, the residency requirement was eliminated in 2002.
What is the educational requirement to qualify to sit for the CPA Examination as a South Dakota candidate?
According to Rule 20:75:02:04, to be eligible to take the CPA exam in South Dakota, you must have completed:
Can work experience be used to replace courses?
There is no substitute of experience for college course credits.
Can credit awarded by CPA Review courses offered by a university be accepted to qualify towards the educational requirements?
Yes, if it shows on a college transcript and credit hours are given and added to your total hours.
How do I know if the college I attend is accredited?
The Board recognizes junior colleges, colleges, and universities accredited at the time the applicant’s degree was received by virtue of membership in one of the following regional accredited agencies:
North Central Association of Colleges and Schools
Middle States Association of College and Schools
New England Association of Colleges and Schools
Northwest Commission on Colleges and Schools
Western Association of Colleges and Schools
Southern Association of Colleges and Schools
If an on-line college or university is accredited by one of the above accrediting agencies, then the Board will recognize the school.
The Board will recognize colleges/universities outside of the US, but you must have your education evaluated by the Foreign Academic Credential Service, Inc., or a comparable service as approved by the Board.
After I am deemed eligible by the Board, what can I expect?
Once the board has reviewed your application and determined your eligibility to sit for the examination, you will receive a email from the board notifying you of your application status. Within a week of board notification you will be receiving a "notice to schedule" (NTS). Once you have received your NTS you may schedule your examination.
How long is my NTS valid?
Your NTS will be valid for one year. This will be your set period of time to schedule and take the exam section(s) for which you have been issued an NTS. After one year of receiving an NTS for any given section your NTS will expire and you will be required to re-apply. The board recommends scheduling during the same window in which your NTS is issued.
What can I do to prepare for the computer-based exam?
Visit www.cpa-exam.org and participate in the tutorial available. Also, familiarize yourself with the professional literature governing accounting, auditing and tax standards. You may visit www.aicpa.org to find information pertaining to the AICPA Professional Standards. The Financial Accounting Standards Board (FASB) has made their professional literature available at their website www.fasb.org. Also, visit a list of providers offering review courses for the CPA Examination.
This listing does not imply Board endorsement of the course, nor is it meant to imply that only these courses are offered as review courses.
How much will the exam cost?
The examination fees are listed below:
SECTION EXAM LENGTH EXAM FEES
Auditing 4.0 Hours $237.15
Accounting 4.0 Hours $237.15
Regulation 3.0 Hours $215.10
BEC 3.0 Hours $215.10
How much time will I have to pass all four sections of the computer-based exam?
You must pass all four sections of the Uniform CPA Examination within 18 months. All parts must be passed during the 18 month period. Credit will be lost for any exam passed outside the 18 month period.
How often can I take the computerized exam?
A candidate may sit for as many parts of the exam as they register for within any given window. Duplicate sections will not be allowed within the same testing window. You may register to sit for the exam during each testing window throughout the calendar year. The board does not recommend registering for more parts than you can reasonably expect to complete within a given window. If for some unanticipated reason you are unable to schedule a test for which you have been issued an NTS within the one-year allotted time period, you will be required to reregister and pay for those sections not taken.
Do I have to send in transcripts each time I apply or will the originals be kept on file?
No, you do not have to send in transcripts each time. When you are reapplying for the same section or applying for a different sections, use the re-application form rather than the initial and all transcripts are on file in our office.
Will I be required to pass one section of the exam before applying to take another section?
Candidates will not be required to pass one section before applying to take another section of the exam.
How do I schedule a test time?
Instructions for scheduling your test time will be sent with your NTS then you are eligible to contact Prometric to schedule your examination.
Where will I sit for the exam?
There are two Prometric testing sites in South Dakota, one located a block west of 57th Street and Louise at 4700 South Technopolis Drive, Suite 4-Phone# (605)362-4875 Site Code: 4400
in Sioux Falls and another one in Rapid City at 1719 West Main Suite 410-Phone# (605)348-4027. Please see CPA Exam Information if you have further questions.
What do I do if my testing session is interrupted?
Do not leave the testing center without completing a Center Problem Report (CPR). Once you have completed the CPR call us at the state board office and we will ensure immediate implementation of proper re-testing procedures, if necessary.
When will I receive my scores/grades?
The AICPA is responsible for making the final determination on score/grade release dates.
In an effort to expedite your exam results, if you list email as your preferred contact method when you apply to sit for the exam, you will receive an email with your advisory score before the official score is mailed to you. When scores are released from the AICPA to NASBA, NASBA has 3 business days to match the exam ID to the individual. On the 4th business day NASBA will generate our candidate list of those with email as their preferred contact and send out an advisory score. The Board will mail out all official scores once they are received in the office within one business day.
If you need to submit final transcripts or any fees to the board, your exam results will not be emailed or mailed until you fulfill your obligations.
After I pass the exam, what do I have to do to get a CPA certificate?
You must meet the experience requirement which is one year of accounting. This experience may be in public, private, governmental or academia. If you are planning to perform attestation functions, you will be required to complete 375 hours of the 2000 hour requirement in a licensed firm, performing compilation, audit or reviews. Further you must complete an Ethics course to be determined by the board. You must request an application from the board and submit it along with a fee of $50. You must also provide the board with three character references. The board will send reference forms to the three individuals whose names you provide. These references may not be relatives and you must have known them for at least one year. As soon as the results of your ethics examination and the character reference forms have been received, your application may be processed.
If I am working for a licensed CPA firm, when am I required to get a certificate and/or a permit to practice?
An individual employed by a licensed firm is required to obtain a certificate within 90 days of meeting the experience requirement. There is a $50 additional fee for failing to apply for the certificate within the 90 day period allowed.
If I am not working for a licensed CPA firm, is there a deadline to apply for my CPA certificate?
The board requires an applicant to apply for a certificate within 3 years from the time of passing the CPA exam. After three years, the exam application expires and exam grades are nullified, unless the applicant can show the board good cause for not applying within the 3 year period.
What is the experience requirement for a license to practice?
The experience requirement is one year (2000 hours) accounting experience. To perform attest functions the experience requirement is 375 hours in compilations, audits or reviews in any combination
How do I verify these hours to the Board?
A Certificate of Experience form should be obtained from the Board office. This form should be completed by the applicant and certified by a certified public accountant.
Can the experience be fulfilled in less than an actual 1 year period?
Yes, if you accumulate 2,000 hours in less than a 1 year period, you should request and complete a Certificate of Experience form at that time. You are required to apply for a certificate and pass the AICPA ethics exam within 90 days of completing the experience requirement.
If I hold a CPA license in another state in good standing and transfer to South Dakota to practice public accounting will the board grant me a South Dakota certificate to practice?
Regardless of whether the state you are from is substantially equivalent, you may be issued a license in SD, if you are currently licensed in good standing in any of the 55 jurisdictions, have passed the Uniform CPA Examination with grades that would be passing grades in South Dakota and have four years experience in the preceding 10 years. If you will be performing attest work you will need to verify to the board that you have 375 hours in compilation, audit and/or review by submitting a certificate of experience form provided by the board.
What is required for me to use the CPA designation?
Anyone registered in an active status with the Board of Accountancy may use the CPA designation. Active status does require compliance with the continuing professional education requirement established by the board.
A CPA who does not perform or offer to perform accounting services to the public may file their certificate “inactive” with the board. An “inactive” status does not require the CPA to comply with the CPE requirements however you must include the caveat “inactive” in the same size font next to your designation wherever it is displayed, except on your certificate.
An individual holding a valid South Dakota certificate must register with the board annually in either an active, inactive or retired status. If the individual does not wish to maintain their certificate in good standing, they must relinquish the certificate to the board. Individuals’ holding a certificate from another state, must either register the certificate with the South Dakota board or sign an affidavit stating they will not use the CPA designation while in South Dakota.
What is the CPE requirement for an active CPA certificate?
The holder of a active CPA certificate, must comply with the 120 hour CPE requirement. A minimum of 20 hours per year must be reported and 120 hours must be obtained in a rolling three year period.
The reporting period is from July 1 – June 30th of each year and the format for reporting is on the back of your annual renewal notice.
If you are filing “active” and are not practicing public accounting, the board will broadly interpret qualifying CPE based on your industry or profession. The criteria used to determine qualifying CPE for a licensee not working in public accounting, is a course of study which elevates the licensee’s current level of knowledge relevant to their employment. The limit of 24 hours in a three year period for motivational and/or behavioral courses has been removed for individuals working in the private sector.
Does the three year renewal cycle start over every three years?
No. CPE is figured on a rolling three year cycle. Each June 30th, you must have a total of at least 120 hours when you add the current year just ending and the previous 2 years. Each year, the previous 3rd total drops off. You always count the current year and the previous two years.
What happens if I am not able to acquire the minimum number of hours?
If you are going to be short hours, you should contact the Board office as soon as possible and explain the situation. ARSD 20:75:04:11 allows for extensions to complete CPE hours. A 30 to 90 day extension period may administratively be granted on a one time basis. Good cause is defined as personal emergency, acts of God or administrative errors by the Board. If you need further extensions, you need to petition the Board explaining your reasons and request the period of time you feel is required to complete the CPE needed.
How do I know if a course qualifies as CPE?
ARSD 20:75:04:02 describes the general qualifying criteria of continuing professional education. It must be a program of formal learning that directly contributes to the professional competence of a licensee in the practice of accountancy. A program that promotes professional competence in the practice of accountancy is defined as one that refers to the process, methods, or principles of accounting or directly relates to the licensee’s employment and is above the level of the licensee’s current knowledge. The course provider should provide a completion certificate and retain an attendance sheet for four years. The board accepts all QAS and Registry approved courses which can be verified at http://www.LearningMarket.org
What documentation is required to be kept to validate a CPE course? (ARSD 20:75:04:14)
The following documentation of a CPA's or PA's participation in sponsored learning activities should be retained by the CPA or PA for four years:
1. Name and address of CPE sponsor
2. Title and description of content
3. Dates of program;
4. Location of program; and
5. Number of credits.
Any CPA or PA claiming continuing professional education provided by informal organizations must maintain documentation as required by ARSD 20:75:04:19 and 20:75:04:20.
What is acceptable evidence of completion of a CPE course? (ARSD 20:75:04:15)
1. For group and independent study programs, a certificate or other verification supplied by the CPE program sponsor;
2. For self-study programs, a certificate supplied by the CPE program sponsor after satisfactory completion of an examination;
3. For instruction credit, a certificate, program outline, or other verification supplied by the CPE program sponsor;
4. For a university or college course that is successfully completed for credit, a record or transcript of the grade the participant received;
5. For university or college noncredit courses, a certificate of attendance issued by a representative of the university or college;
6. For published articles, books, or CPE programs:
a. A copy of the publication, or in the case of a CPE program, course development documentation, that names the writer as author or contributor;
b. A statement from the writer supporting the number of CPE hours claimed; and
c. The name and contact information of the independent reviewer or publisher.
Should I submit documentation when I report my hours at renewal time?
No, this is not necessary. Please keep accurate records of the CPE reported to the board in the event that you are chosen for our annual CPE audit, you will be requested to provide documentation to substantiate your CPE claims.
If I hold a reciprocal license in South Dakota, do I have to maintain my license in the state for which I was granted the reciprocal license?
South Dakota does not require you to maintain your license in the state by which you were granted reciprocity. However, the board highly recommends you check with the state Board where you were originally licensed to ensure compliance with their licensing regulations. Many states require licensees to maintain their licenses in either an active or inactive status regardless of whether or not they live or practice in that state. Allowing your license to lapse may subject you to fines for unpaid fees, and in some cases, you may have to re-sit for the Uniform CPA Examination to renew your license in that state at a later date. South Dakota is keenly aware of the mobility issues facing CPAs and thereby allows CPAs no longer engaged in performing or offering to perform accounting services to the public several options. A CPA may register their certificate in an inactive status, by submitting the form and paying the $50 filing fee. This status exempts the CPA from compliance with the Continuing Professional Education requirement. If the CPA is 55 or older and no longer performs or offers to perform accounting services to the public, they may file in a retired status, by filing the "retired" form provided by the board and paying the reduced fee of $10. A final option to CPA’s would be to relinquish their certificate. An example of a case whereby a CPA may wish to relinquish their certificate would be if they no longer practice or have clients in South Dakota, and they have moved to another state, and are currently complying with the Accountancy laws in that state. The South Dakota Board maintains relinquished certificates on file in the board office and will return them upon the fulfillment of the respective requirements for an active, inactive or retired status. If a CPA chooses to relinquish their South Dakota certificate, they should first check with any states in which they have been granted reciprocity based on their good standing in South Dakota. Many states granting reciprocity require CPAs maintain their license in an active status, in the original state in which they were licensed.
(Revised 05/09)
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