Maryland CPE Requirements for CPAs
Continuing professional education is a means by which the American Institute of Certified Public Accountants ensures its members comply with regulations and offer exemplary service to clients and businesses. However, not all CPAs are required to meet the same standards when it comes to obtaining CPE credits, because each state is governed by a Board of Accountancy which has the right to set its own stipulations and limitations on forms of continuing professional education. So, it is vital for CPAs to thoroughly research and understand the state requirements set for their specific location before attempting to complete the license recertification process, lest they find they’ve failed to meet the location-specific conditions.
AICPA members in Maryland are required by the Board to renew their license every two years and must complete 80 hours of continuing professional education per recertification period. Some of the primary recertification objectives and limitations are shown in the chart below.
|License Renewal Date||CPE Reporting Period||Total CPE Hours||Self-Study Credit Limitations|
|Based on the date of license issuance (biennial)||Two year period prior to application date for renewal (biennial)||80 hours||None|
Subject Area Requirements
During each two-year recertification period, 4 of the required 80 hours have to cover subjects dealing with Professional Ethics. There are no further subject area requirements for licensees in Maryland.
Credit Limitations and Calculation
CPAs who are instructors of related material or who offer formal presentations can earn up to 45 hours of CPE credit per recertification period through this medium. For first-time presentations, three credits will be granted for each hour of presentation time. No credit will be issued for repeat presentations of the same material within the same recertification cycle.
CPAs who provide formal education through an accredited college or university can also claim recertification credit for instruction, limited to 15 CPE hours per semester hour and 10 CPE hours per quarter hour. Likewise, CPAs who are currently participating in college or university courses can claim CPE cred hours equal to 15 CPE hours per semester hour or 10 CPE hours per quarter hour.
CPAs can also obtain credit if they have authored and published any material of an educational or instructional nature. This type of credit is limited to 10 hours per published article, and a maximum of 40 hours can be earned in any given reporting period.
For instances of peer review, credits are limited to 16 hours. A peer reviewer may allocate a maximum of 12 hours for an engagement review and 16 hours for a systems review.
For group study courses, credit will be granted in 0.2 increments once the first full hour of credit has been obtained, and interactive self-study credit courses will be granted in 0.2 hour increments.
Other Policies and Exemptions
All hours in excess of the 80 required during a reporting period can be carried forward to apply to the subsequent reporting period. Ethics hours, however, cannot be carried forward to meet future ethics requirements but can be applied to the total hours requirement.
It is the responsibility of the licensee to demonstrate that the CPE program contributes directly to the licensee’s professional competence.
The Board will not accept courses which are designed for the general public, not for CPAs or sales-oriented presentations of any kind, nor programs restricted to policies and procedures of a particular company or programs presenting scientific and technical knowledge of a sophistication beyond the scope required for the practice of a CPA.
The AICPA ethics course completed as a requirement for original licensure does not qualify for CPE credit.
Individual licensees who fall into the categories listed below are automatically excepted from the continuing professional education requirements of AICPA:
- Persons who are retired and not offering services to third parties
- Persons who are currently unemployed and not offering services to third parties
- Persons who have temporarily left the workforce of their own will and not offering services to third parties
- Persons who have listed their formal status as “inactive” and not offering services to third parties
Formally active CPAs can request exemption from continuing professional education requirements for the following reasons:
- Health issues and/or complications
- Active-duty military service
- Natural disasters of a sort which prevent adequate completion of CPE requirements
- Other similar circumstances of a sort which prevent adequate completion of CPE requirements
Additional CPE Resources for CPAs
Article written by Braden Norwood