Definition
Continuing professional education (CPE) is the training CPAs must complete in cycles to keep their license. State boards set requirements, often a multiple-year total with an annual minimum and a specific ethics course. AICPA members must complete 120 hours in each three-year period. Many state boards add an annual minimum, often 20 hours. Auditors who plan, direct, perform procedures on or report on GAGAS engagements also need the GAGAS CPE: 80 hours every two years, including at least 24 hours related to the government environment or government auditing.
Why it matters in an audit or review
CPE links to audit quality. Peer reviewers look for evidence that staff on audits in specialized areas, such as employee benefit plans or governmental work, have relevant CPE. Firms track hours, sponsors, and field-of-study categories, because boards may disallow courses from unqualified sponsors. Overlap between requirements helps, but a single course may not satisfy every body's categories.
Example
Illustrative: an auditor on a city audit completes 80 hours over two years: 24 hours of government-specific CPE, 40 hours of general auditing and 16 hours of other relevant topics (24 + 40 + 16 = 80). The auditor tracks the 24 hours separately because they must qualify under the GAGAS definition.
Common mistakes
Assuming general CPE counts toward the government-specific 24 hours.
FAQ
Who sets CPE hours for a license?
The state board of accountancy. Firms and associations may add their own.
Sources
- GAO, Government Auditing Standards, 2024 Revision (GAO-24-106786), Chapter 4, Competence and continuing professional education
- AICPA, membership requirement for CPE: 120 hours per three-year reporting period
- State boards of accountancy, CPE rules for license renewal
Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error