Michigan CPE Requirements for CPAs
Continuing professional education is a primary requirement for license recertification for members of the American Institute of Certified Public Accountants, as it helps CPAs stay aware of any changes in their industry as well as teaching new skills and sharpening existing ones. However, not every CPA has to complete the exact same requirements. State Boards of Accountancy are responsible for setting the CPE stipulations for their individual jurisdictions, meaning CPAs in one state may differ greatly from ones in another place with regard to their accepted methods of continuing professional education. So, it is vital for each member to know their state requirements in order to keep the recertification process as easy and intuitive as possible.
Members of the American Institute of Certified Public Accountants (AICPA) who are located in Michigan are required to renew their license every two years and must complete a minimum of 40 hours of continuing professional education per year and 80 hours each recertification period. The table below highlights the overarching requirements for CPAs in Michigan.
|License Renewal Date||CPE Reporting Period||Total CPE Hours||Self-Study Credit Limitations|
|July 31 biennially (on odd years)||July 1 – June 30 biennially (on odd years)||80 hours||Maximum of 50% of total required hours|
Subject Area Requirements
At least 4 hours each recertification period must deal with topics of Professional Ethics, with a minimum of 2 hours per year. At least 1 of the hours must be in Michigan Statutes and Administrative Rules applicable to Public Policy.
A further 8 hours must be in the subject areas of Accounting and/or Auditing.
Credit Limitations and Calculation
Formal instruction or presentation is a viable method of continuing professional education in Michigan, and CPAs can obtain up to 50% (20 hours) of their total required credit hours this way. Through this medium, 4 of the required 8 Accounting and Auditing hours can be completed and 1 of the 4 Ethics hours can be completed. Credit is equal to three times the length of presentation, and no credit will be awarded for repeat instruction of the same material.
Self-study is a Board-approved method for earning continuing professional education credits, though it is limited to 50% of the total required hours. Through this medium, 4 of the required 8 Accounting and Auditing hours can be completed, and 1 of the 4 Ethics hours can be completed. Credit for self-study can be obtained at a minimum of one-half credit initially, but may be earned in one-fifth or one-half hour increments once the first full hour has been achieved.
Active participants in college or university courses can earn up to 15 CPE hours per semester hour successfully completed and up to 10 CPE hours per quarter hour course. Non-credit university courses are worth 1 CPE hour per classroom hour.
Blended learning credit is an acceptable method for attaining CPE credit so long as the amount is within the current rounding rules.
Nano-Learning methods will always obtain credit in one-fifth hour increments.
Other Policies and Exemptions
40 hours maximum earned in excess of the 40 hours per year requirement may be carried forward into the following year. 8 hours maximum of Accounting and Auditing may be carried forward into the following year. 2 hours maximum of Ethics per year can be carried forward into the following year.
A non-resident licensee may meet Michigan’s CPE requirements by meeting the CPE requirements of their principal place of business. If the principal place of business does not have CPE requirements, the licensee must meet Michigan’s requirements.
CPAs who do not offer their services to any third parties and who fall into any of the following categories are automatically considered exempt and do not have to complete the continuing professional education requirements for license recertification:
- Unemployed persons
- Persons who have willingly left the workforce (permanent or temporary)
- Persons who are formally inactive with AICPA
Active CPAs can request waivers for CPE requirements on the following bases:
- Health issues
- Military service
- Natural disaster (specified with the Board)
- Other similar circumstances (specified with the Board)
Additional CPE Resources for CPAs
Article Written by Braden Norwood