Alabama CPA CPE Requirements

How to reach the regulator directly.

Alabama State Board of Public Accountancy

Physical Address: 770 Washington Avenue, Suite 226, Montgomery, AL 36104-3807

Mailing Address: P.O. Box 300375, Montgomery, AL 36130-0375

Tel: (334) 242-5700
Fax: (334) 242-2711
Email: nicole.robinson@asbpa.alabama.gov

The regulator's own published rules and related resources.

Alabama State Board of Public Accountancy

The total continuing education hours required.

40 hours.

The continuing professional education requirement applies to all registered Public Accountants and Certified Public Accountants holding annual permits issued by the Board and all nonlicensee owners (NLOs) registered with the Board.

The detailed rules behind that total -- category minimums, ethics, and other conditions.

Each person to whom the continuing professional education requirement applies must complete forty (40) hours of acceptable continuing professional education each fiscal year ending September 30.

Accounting and Auditing Requirement:

At least eight of the forty hours reported must be obtained in the subject of accounting and auditing.

Effective October 1, 2019: Computer software and applications courses dealing with the general use of software will not qualify for accounting and auditing CPE; although, software courses that focus on the application of the software in accounting or audit will qualify as accounting and auditing CPE.

Ethics:

Effective October 1, 2019: At least 2 hours must be earned in a qualifying ethics course.

• October 1, 2019: Note from CeriFi CPEdge: The AL Board has confirmed that either category of ethics (Regulatory Ethics or Behavioral Ethics) would meet this requirement. If it is not a NASBA Sponsor, the Board would want to review the course. If it meets NASBA’s requirements for either behavioral or regulatory ethics, the Board would accept it. Additionally, a 4-hour ethics course would meet the 2-hour requirement and also all 4 hours would apply toward the 40 total hours required.

Behavioral Courses:

Effective October 1, 2019: The Board will accept a maximum of twelve hours of the forty in behavioral/personal development courses. CPE classified as behavioral/personal development center on workplace behaviors, including but not limited to time management, leadership, team building, goal setting, and other soft skills related to working in an office or professional setting

Prior to October 1, 2019: The Board will accept a maximum of eight hours of the forty in behavioral courses.

How the reporting cycle is structured.

Fiscal year (ending annually on September 30).

When a reporting cycle begins.

October 1.

How completed credits are reported to the regulator.

Controls And Reporting.

Annual permits to practice expire on the last day of September of each year. Applications and fees for renewal of annual permits shall be submitted to the Board no later than the last day of December of each year. Each licensee applying for renewal of an annual permit to practice public accounting must submit a signed statement to the Board, under penalty of perjury, that all applicable continuing professional education (CPE) requirements have been met and must disclose at a minimum the following information pertaining to each educational program submitted for the purpose of meeting the CPE requirements:

1. School, firm or organization conducting or sponsoring the course, program or study.
2. Location of course, program or study.
3. Title of program or description of content.
4. Principal instructor.
5. Dates attended.
6. For self-study programs, the synopsis of the study.
7. Number of CPE hours.

Licensees shall maintain written evidence of satisfactory completion in the form of certificates of completion, attendance records, examination results, transcripts, or other such independently verifiable evidence of completion acceptable to the Board. All such evidence of completion shall be maintained for a period of five years following completion of each learning activity. The Board at its discretion may require other information it deems necessary to determine the acceptability of a program for the purposes of the continuing professional education requirements or for administration of these rules.

In all cases, the responsibility for establishing that a particular course or other program for which credit is claimed is acceptable and meets these CPE rules rests solely on the licensee.

The renewal or reporting deadline.

December 31.

→ Get monthly reminders before this deadline

What happens if the requirement is not met.

The Board will verify on a test basis the information submitted by licensees for renewal of their annual permits. In cases where the Board determines that the CPE requirement is not met, the Board may grant an additional period of time in which the deficiencies can be resolved. Subsequent tests that reveal repeated noncompliance may result in disciplinary action by the Board. Fraudulent reporting is a basis for disciplinary action.

Reduced or prorated requirements for a first renewal.

A person who passes the Certified Public Accountant examination, remaining in public practice, must complete at least forty (40) acceptable professional continuing education hours within the period ending one year after the September 30 following the date of passage of the examination.

• October 19, 2020: Note from CeriFi CPEdge: The AL Board has confirmed that as a new licensee (or registered nonlicensee owner), your first compliance period ends on the second September 30th following the date you passed the CPA exam. This first period begins on the October 1 following the date you passed the exam, which gives you a full fiscal year to earn CPE.

Rules for professionals licensed elsewhere.

Updated October 1, 2019: A non‐resident licensee seeking renewal of an annual permit in this state shall be deemed to have met the CPE requirements of this state by meeting the CPE requirements for renewal of a certificate in the state in which the licensee’s principal office is located.

1. Non‐resident licensees applying for renewal of an annual permit in this state shall demonstrate compliance with the CPE renewal requirements of the state in which the licensee’s principal office is located by signing a statement to that effect on the annual registration form of this state.
2. If a non‐resident licensee’s principal office state has no CPE requirements for renewal of a certificate, the non‐resident licensee must comply with all the CPE requirements for renewal of an annual permit in this state.

Who may be excused from all or part of this requirement.

Updated September 13, 2018: The Board may make exceptions from the continuing professional education rules where:

1. Reasons of health, certified by a medical doctor, prevent compliance by the permit holder; or
2. The requirement does not apply to individuals over the age of 55 who are retired from the practice of public accountancy. For purposes of this regulation, retirement is defined as not performing any of the duties of Public Accountancy, although nothing in this section shall preclude a retired CPA or PA, at least 55 years of age, from providing the following volunteer, uncompensated services: tax preparation services, participating in a government-sponsored business mentoring program, serving on the board of directors for a non-profit or governmental organization, or serving on a government-appointed advisory body. In addition, retired CPAs and PAs, at least 55 years of age, should place the word “retired” adjacent to their CPA title or PA title on any business card, letterhead or any other document or device, with the exception of their CPA certificate or PA registration, on which their CPA or PA title appears. Such individuals shall notify the Board upon retirement. Retirement from the practice of public accountancy after reaching the age of 55 shall be deemed to be reasonable cause for the failure of a certificate holder to report continuing professional education and renew his annual permit to practice under Code of Ala. 1975, §34-1-11, so as not to constitute grounds for revocation or suspension of the individual's certificate under Code of Ala. 1975, §34-1-12. If the retiree wishes to reenter the practice of public accountancy, he shall make application to the Board for an annual permit to practice. The Board, in its discretion, may require the retiree to obtain continuing professional education hours in excess of 40 so as to ensure the retiree is competent to practice.
3. The licensee informs the Board in writing that he wishes to leave the practice of public accountancy and be placed on inactive status with the Board. For purposes of this regulation, inactive status is defined as not performing any of the duties of public accountancy. Election of inactive status shall be deemed to be reasonable cause for the failure of a certificate holder to report continuing professional education and renew his annual permit to practice under Code of Ala. 1975, §34-1-11, so as not to constitute grounds for revocation as suspension of the individual's certificate under Code of Ala. 1975, §34-1-12. Effective October 1, 2007, Certified Public Accountants or Public Accountants granted inactive status by the Board must place the word “inactive” adjacent to their CPA title or PA Registration, on which their CPA or PA title appears. If a licensee who has elected inactive status wishes to reenter the practice of public accountancy, he shall make application to the Board for an annual permit to practice with proof that he has obtained forty (40) hours of continuing professional education (CPE) for each year that he was on inactive status, not to exceed a total of 120 hours of CPE. Fifty percent of the hours submitted to the Board must be obtained in accounting and auditing courses, twenty-five percent of the hours obtained must be in tax courses, and all of the hours must be obtained during the three-year period preceding the date of request for an annual permit to practice. Upon satisfaction of the Board that the applicant has completed the above requirement, the Board shall issue him a permit to practice and transfer him to active status.
4. Other good cause exists.

Catch-Up CPE for those who have previously been actively licensed:

Updated October 1, 2019: If a CPA or PA who has been licensed previously (active status) and who has since elected any status other than active wishes to return to active status, he shall make application to the Board for an annual permit to practice with proof that he has obtained forty (40) hours of continuing professional education (CPE) for each year that he was not on active status, not to exceed a total of 120 hours of CPE. Twenty percent of the hours submitted to the Board must be obtained in accounting and auditing courses, and all of the hours must be obtained during the three-year period preceding the date of request for an annual permit to practice. Upon satisfaction of the Board that the applicant has completed the above requirement, the Board shall issue him a permit to practice and transfer him to active status.

Catch-Up CPE for those who have never been actively licensed:

Updated October 1, 2019: If a licensee has never elected active status, has elected inactive status for more than five years, and wishes to enter the practice of public accountancy, he shall make application to the Board for an annual permit to practice with proof that he has obtained forty (40) hours of continuing professional education (CPE) for each year that he was on inactive status, not to exceed a total of 120 hours of CPE. Twenty percent of the hours submitted to the Board must be obtained in accounting and auditing courses, and all of the hours must be obtained during the three‐year period preceding the date of request for an annual permit to practice. Upon satisfaction of the Board that the applicant has completed the above requirement, the Board shall issue him a permit to practice and transfer him to active status.

Rule changes the regulator has finalized, with effective dates.

Refer to the specific sections above for more details on any of the items noted below.

Effective October 1, 2019: The Alabama Board has updated its CPE rules that are effective for the annual period beginning October 1, 2019 and all annual periods going forward. Changes include:

1. Clarification of software courses qualifying for Accounting and Auditing credit;
2. New 2-hour ethics requirement;
3. Expanding/clarifying the definition of behavioral/personal development CPE, maximum hours increased from 8 to 12;
4. Addition of nano-learning and blended learning as acceptable program types and their definitions;
5. Addition of 1/5 increments of CPE (following NASBA 2016 CPE standards) after certain program type minimums are reached;
6. Addition of "developer," which now allows CPE course developers to obtain CPE;
7. Removes 8-hour cap on technical sessions and clarifies that only instructional portion may qualify;
8. Addition of technical committee sessions for credit;
9. Clarifies the requirements for group internet‐based to be live webinars that provide for real‐time interaction with instructors;
10. Change in percentage of credit allowed for authorship from 25% to 50%;
11. Clarification that on-demand webinars are self-study, and additional language requiring a qualified assessment for self-study;
12. Other changes noted preceded by October 1, 2019 noted in the paragraphs above.

Exemptions:

Effective September 13, 2018: The Board updated the exceptions rules. Refer to the "Exemptions" section above for more details.

Effective March 1st, 2005:

• A non resident licensee seeking renewal of an annual permit in Alabama shall be deemed to have met the CPE requirements of Alabama by meeting the CPE requirements for renewal of a certificate in Alabama in which the licensee's principal office is located. However, this section is applicable only if the principal office state grants reciprocal treatment to its licensees residing in Alabama.
• Credit will be given based on program length, with one fifty (50)-minute period equal to one CPE hour. One-half CPE hour increments (equal to 25 minutes) are permitted after the first CPE hour has been earned in a given learning activity. For learning activities in which individual segments are less than 50 minutes, the sum of the segments should be considered one total program. For example, five 30-minute presentations would equal 150 minutes and should be counted as three CPE hours. When the total minutes of a sponsored learning activity are greater than 50, but not equally divisible by 50, the CPE hours granted should be rounded down to the nearest one-half hour. Thus, learning activities with segments totaling 140 minutes should be granted two and one-half CPE hours; however, learning activities with segments totaling 120 minutes should be granted two CPE hours.

Effective February 27, 2004:

• The professional education requirement applies to all registered Public Accountants and Certified Public Accountants holding annual permits issued by the Board and all non-licensee owners registered with the Board. (Prior to this amendment, there was no CLE requirement for non-licensee owners registered with the board.)
• Individuals over the age or 55 who are retired from the practice of public accountancy are exempt from CPE requirements. (The previous age for this rule was 60.)
• Reactivated licensees: Prior to reactivation, must complete 40 hours of CPE for each year on inactive status, but not to exceed 120 hours (previously 160 hours). 50% of the hours must be obtained in accounting and auditing courses, and 25% of the hours must be obtained in tax courses, and all of the hours must be obtained during the three-year period preceding the date of request for an annual permit to practice.