New Mexico CPE Requirements for CPAs
Continuing professional education is one of the primary requirements for members of the American Institute of Certified Public Accountants (AICPA) who are preparing for license renewal, though because each state is overseen by a local Board of Accountancy, the actual requirements vary from one location to another. As a result, individual CPAs must be clearly familiar with the state requirements imposed by their own Board, otherwise they might find themselves facing penalties for failure to meet those standards.
In New Mexico, CPAs must renew their license every three years, and during that time, they must complete 120 hours of continuing professional education, with a minimum of 20 hours per year. The following table highlights a few of the primary requirements for licensees in New Mexico.
|License Renewal Date||CPE Reporting Period||Total CPE Hours||Self-Study Credit Limitations|
|Last day of birth month, annually||First day of month following birth month – last day of birth month (three year rolling period||120 hours||None|
Subject Area Requirements
During the three-year, license renewal period, CPAs in New Mexico must take at least 4 hours of Professional Ethics, which can be counted toward the 120-hour total. 96 hours are required to be in technical subjects such as audit, attestation, financial reporting, tax, management consulting, financial advisory or consulting, and other areas acceptable to the Board. 24 hours of CPE must be sponsored by organizations other than a licensee’s firm or employer.
Credit Limitations and Calculation
CPAs who give presentations or lectures in a formal setting are able to claim up to 60 hours of credit (combined with credit for authorship). Instruction credit is equal to the presentation time plus that of preparation, where preparation time is limited to two times the length of the presentation. Repeated instruction is only accepted by the Board if the material has been substantially altered or changed beforehand.
Credit can be obtained for authorship, so long as the relevant instructional or educational material has been published. A maximum of 60 hours can be obtained through this method (in conjunction with instruction credit).
CPAs who are active participants in college or university courses have the option to claim CPE credit hours, equal to 15 CPE hours per semester hour, 10 CPE credits per quarter hour, and 1 CPE credit per qualifying classroom hour of a non-credit course.
Attending Board meetings is an acceptable method for obtaining CPE credit, though it is limited to 4 hours per recertification period.
Peer review is not a Board-approved method for obtaining CPE credit in the state of New Mexico.
Self-study credit has no stated limitations.
Credit is obtainable in half-credit increments following the completion of the first full hour of continuing professional education.
CPAs who offer no services to third parties, and who fall into any of the four categories listed below, will automatically be considered exempt and will not have to complete continuing professional education requirements:
- Members who are currently unemployed
- Members who have opted to temporarily leave the workforce
- Members who have formally listed their organizational status as “inactive”
However, it is also possible for active members to request waivers for exemption to the general continuing professional education requirements for:
- Health complications
- Active-duty military service
- Extreme natural disaster of a sort which prevents continuing professional education
- Any other similar circumstances
Additional CPE Resources for CPAs
Article written by Braden Norwood