Continuing professional education definition
/What is Continuing Professional Education in Accounting?
Continuing professional education (CPE) is ongoing training that is required in order to remain certified as a professional in certain fields. The intent behind requiring this training is to force professionals to continue to update their knowledge of pertinent information that can improve their ability to serve their clients. In the accounting field, the state boards of accountancy all require a significant amount of CPE for certified public accountants (CPAs). Though the exact training requirements vary by state, the general requirements are:
To take 40 hours of training per year, with some minimum number of hours spent on accounting or auditing subjects; and
To take an ethics course every other year, which in some cases must pertain to the specific ethics requirements of the relevant state board of public accountancy.
CPE for CMAs
The CPE requirements for Certified Management Accountants (CMAs) are set by the Institute of Management Accountants (IMA) to ensure that CMAs maintain and enhance their professional competence. According to the IMA, all active CMAs are required to complete 30 hours of CPE annually. Of these 30 hours, at least 2 hours must be focused on ethics to reinforce professional responsibility and ethical decision-making.
CPE activities may include courses, webinars, seminars, conferences, workshops, and self-study programs, as long as they are related to management accounting, financial management, business strategy, leadership, or ethics. CMAs must document their completed CPE and keep supporting records, such as certificates of completion, for at least 3 years in case of an audit by the IMA.
CPE for Enrolled Agents
Enrolled Agents (EAs) are required to complete CPE to maintain their active status with the Internal Revenue Service (IRS). The IRS mandates that EAs complete a minimum of 72 hours of CPE every three-year enrollment cycle. Additionally, enrolled agents must complete at least 16 hours of CPE each year within that cycle, including a minimum of 2 hours of ethics training annually.
The CPE requirement ensures that EAs stay up to date with current tax laws, IRS procedures, and ethical practices. CPE courses can cover various topics such as federal tax updates, tax planning, representation before the IRS, ethics, and specialized tax areas. Only courses provided by IRS-approved continuing education providers qualify toward the requirement.
Impact of CPE on Certification
If a CPA does not meet the CPE requirements of the governing state board of public accountancy, there is usually a requirement to make up the missing training time. If this does not happen within a reasonable period of time, then the person's CPA certificate is revoked. The individual may also be fined or censured if he or she has renewed a CPA certificate without having acquired a sufficient amount of CPE training.
Types of CPE Classes
There are a number of ways to fulfill the CPE requirement, which are as follows:
NASBA-certified classes. You can take classes from a CPE provider that is registered with the National Association of State Boards of Accountancy.
State board-certified classes. You can take classes that have been registered with the applicable state board of public accountancy. Not that many of the boards offer this option.
Writing on accounting topics. Depending on the rules of the applicable state board of accountancy, you may be able to claim a portion of your CPE hours as being derived from writing about accounting topics.
Teaching about accounting topics. Depending on the rules of the applicable state board of accountancy, you may be able to claim a portion of your CPE hours as being derived from the preparation for classes that you taught.
These classes can take the form of online self-study training, online webinars, in-person training, and so forth. A recent change in the rules is nano learning, where extremely short courses are offered that grant fractions of a credit hour for course completion.