Exemptions in CPA

By IIC Lakshya

03 Feb 2026

One of the most common questions among CPA aspirants is whether the CPA (Certified Public Accountant) qualification offers exemptions based on prior education or professional credentials. Students coming from backgrounds such as B.Com, M.Com, CA, ACCA, CMA, or MBA often expect paper exemptions similar to other professional courses.

However, the exemption structure in CPA is very different from courses like ACCA or CA. Understanding how exemptions actually work in CPA is crucial for setting the right expectations and planning your certification journey effectively.

CPA does NOT offer subject-wise or paper-wise exam exemptions.

The CPA exam consists of four mandatory sections:

AUD – Auditing and Attestation
FAR – Financial Accounting and Reporting
REG – Regulation
BEC - Business Environment and Concepts

Regardless of your academic or professional background, all candidates must pass all four CPA exam sections to qualify. This applies equally to:

Commerce graduates
CA-qualified professionals
ACCA members
CMA USA holders
MBA graduates

There is no provision to skip any CPA exam paper.

Why CPA Does Not Have Exam Exemptions?

The CPA qualification is a licensing program, not just an academic certification. CPAs are legally authorized to perform regulated accounting and audit functions in the United States.

Every licensed CPA must demonstrate competence in all core areas
Uniform standards are maintained across all jurisdictions
Public trust and professional accountability are protected

Granting exam exemptions could dilute the regulatory strength of the CPA license, which is why the exam structure is non-negotiable and standardized.

What CPA Actually Exempts?: Entry-Level Barriers

While CPA does not offer exam exemptions, it does provide flexibility in eligibility, which many students mistakenly call “exemptions”.

Educational Credit Flexibility

To pursue CPA, candidates need:

120 credit hours to appear for the exam
150 credit hours to obtain the license

CPA allows candidates to fulfill these credits through:

Undergraduate degrees (like B.Com, BBA)
Postgraduate degrees (M.Com, MBA)
Professional qualifications
Additional bridge or accounting courses

This flexibility means candidates are not forced into foundation exams, unlike some other professional courses.

Professional Qualifications and CPA: No Exam Waivers

Even candidates holding advanced qualifications such as:

Chartered Accountant (CA)
ACCA
CMA USA
CIMA
CPA from another jurisdiction

must still pass all four CPA exam sections.

However, these candidates often benefit from:

Faster syllabus understanding
Strong conceptual overlap
Shorter preparation time per paper

So while no exemption is granted, the preparation advantage is significant.

No Exemptions from Ethics or Experience Requirements

CPA licensing also requires:

Relevant work experience (usually 1–2 years)
Ethics exam (required by many state boards)

There are no exemptions from these requirements either. Experience and ethics are core components of CPA licensing, ensuring that CPAs are competent and ethically responsible professionals.