Earning a US CPA in Canada: About the IQEX Exam

No matter the country, accounting licensures and certifications are a vital part of ensuring the quality and transparency of business transactions, reporting, and standards. In the USA and Canada, the most important licenses for public accountants are the Certified Public Accountant (CPA) and Canadian Chartered Professional Accountant (CPA), respectively. But if you’re already a Canadian CPA, is there value in earning a US CPA license—and is there an accelerated path to get there? Find out. 

Summary 

Canadian CPAs can significantly enhance their global career prospects and earning potential through an accelerated pathway to becoming a US CPA in Canada. The International Qualification Examination (IQEX) replaces the full four-part US CPA Exam for eligible candidates who meet specific education, audit rights, and professional standing requirements.

What Is the Difference: US CPA vs Canadian CPA? 

While both credentials are similar in scope, function, and expertise required, US and Canadian CPAs have some key differences.

Defining: US vs Canada CPA

• US CPA: A license issued by the state after the candidate meets state requirements related to education, ethics and experience and pass the CPA Exam
• Canadian CPA: A Canada-approved public accounting credential for candidates who enroll in the CPA Professional Education Program (PEP), pass the Common Final Examination (CFE) and fulfill the necessary education and experience requirements
   

Regulatory Authority: US vs Canada CPA

• US CPA: National Association of State Boards of Accountancy (NASBA), American Institute of Certified Public Accountants (AICPA), and individual state boards of accountancy
• Canadian CPA: CPA Canada and the regional or province CPA bodies

Exam: US vs Canada CPA

• US CPA: Pass 4 sections of the CPA Exam: 3 Core sections, 1 Discipline sections
• Canadian CPA: Pass 1 exam

Careers: US vs Canada CPA

• US CPA: Public accounting, corporate finance, auditing, government, consulting, taxation
• Canadian CPA: Public accounting, financial services, government, consulting, auditing 
   

Global Opportunities: US vs Canada CPA

• US CPA: Recognized worldwide: US, Canada, UK, UAE, India, Australia, and 120+ countries
• Canadian CPA: Recognized primarily in Canada 

Both the US CPA and Canadian CPA hold significant value within their respective countries; but a key distinction lies in the license to practice, which varies between jurisdictions and underscores the importance of adhering to local regulatory frameworks. 

Why Become a US CPA in Canada? 

As a Canadian CPA, you are well positioned to practice public accounting in Canada. However, your international career opportunities are limited. And with increasingly international business needs worldwide, earning your US CPA in Canada sets you up for substantially greater career growth. 

Becoming a dual-certified professional offers numerous benefits, including: 

1. Global Recognition and Versatility: Holding both certifications offers global recognition and versatility, enabling professionals to work effectively in diverse international environments.
2. Broader Knowledge Base: It enhances professionals' understanding of both US and Canadian accounting principles, providing a comprehensive knowledge base to address complex financial challenges.
3. Enriched Problem-Solving Skills: Successfully passing both examinations showcases your exceptional problem-solving abilities, critical thinking, and unwavering commitment to continuous improvement. Employers highly prize professionals capable of dissecting complex financial issues and devising innovative solutions.
4. Career Advancement Opportunities: Being dual certified opens doors to diverse career pathways in multinational corporations, accounting firms, and financial institutions. Not only does it enhance prospects in the U.S. and internationally, but it also addresses the shortage of U.S. tax professionals in Canada, making it easier to cross borders and access lucrative opportunities in the North American market.
5. Increased Earning Potential: It often leads to increased earning potential, with employers valuing the specialized expertise and global perspective of dual-certified professionals, resulting in competitive compensation packages and consulting opportunities.
6. Networking Opportunities: It fosters connections with professionals worldwide. Networking with peers of similar qualifications can unlock numerous opportunities for collaboration, mentorship, and partnership, accelerating your career progression. 

Plus, if you’ve already earned your Canadian CPA designation, your path to a US CPA license builds upon your current knowledge and experience, and is therefore accelerated compared to starting from scratch. 

How to Become a US CPA in Canada? 

Becoming a dual-certified professional is within reach for Canadian Chartered Professional Accountants (CPAs). All US CPAs must complete education and experience requirements, in addition to passing the Uniform CPA Exam. 

However, Canadian CPAs who wish to earn a dual license as a US CPA can qualify for licensure by passing the International Qualification Examination (IQEX) in lieu of all four CPA Exam sections. 

What Is the IQEX? 

The IQEX is an exam created by the AICPA and administered by NASBA, designed for individuals who hold professional accounting qualifications from outside the United States. It allows them to obtain a US CPA license without having to take all sections of the CPA Exam. 

The IQEX is, in fact, the Taxation and Regulation (REG) section of the CPA Exam—renamed for the purpose of the IQEX program. It tests ethics, legal responsibilities, business law, and taxation related specifically to US accounting. It features 72 multiple-choice questions (MCQs) and eight task-based simulations (TBSs) across five specific content areas:  

• Ethics, Professional Responsibilities and Federal Tax Procedures
• Business Law
• Federal Taxation of Property Transactions
• Federal Taxation of Individuals
• Federal Taxation of Entities 

The exam is scored from 0 to 99 points, with 75 as the minimum passing score. 

Are Canadian CPAs Eligible for a US CPA through IQEX? 

In short, yes! But the long answer is that US CPA licenses are granted at the jurisdiction level, by each state board of accountancy. To become a dual license holder, you must apply for your license through a jurisdiction that accepts the IQEX for Canadian CPAs. 

But you’re in luck: most US state boards of accountancy accept IQEX eligibility from Canadian CPAs. You may therefore apply through any US state board of accountancy, except: 

• Alaska
• Commonwealth of the Northern Mariana Islands
• Guam  
• Hawaii
• Mississippi
• Puerto Rico
• Vermont
• Washington (if Canadian CPA only. Eligibility granted if you possess Canadian CPA and an audit license) 
   

Apply and Sit for the IQEX 

To apply for the IQEX exam, you must first ensure that you meet the eligibility requirements: 

1. Get a letter of good standing from the Chartered Professional Accountants of Canada and a Provincial or Territorial CPA Body.
2. Meet education requirements depending on your credential status (one of the following):
   1. Legacy credential holders must hold a bachelor's degree and have completed the relevant legacy body's education program.
   2. Post-unification CPA credential holders need a bachelor's degree and must have completed either CPA Canada's Professional Education Program (PEP) or a graduate program accredited by a Provincial CPA Body.
   3. Complete at least one year of experience as detailed in the Mutual Recognition Agreement (MRA)
3. Meet examination requirements which vary based on credential holder status (one of the following):
   1. Legacy credential holders must have passed the full capstone final examination for their legacy credential.
   2. Post-unification CPA credential holders must have passed the Common Final Examination (CFE) administered by CPAC.
4. Earn the right to perform audits (Audit Rights) from the Canadian CPA body.  
   1. Legacy credential holders must have the right to perform audits or if they met the education requirement for the right to perform audits through the legacy body's education program and passed the licensing examination, or if they have completed CPA Canada's Post Designation Public Accounting module and passed the associated examination.
   2. Post-unification CPA credential holders must:
      1. Have the right to perform audits
      2. Meet the current exam requirements for licensure with one of the following:
         1. Completing the elective modules, PEP Tax, and PEP Assurance
         2. Completing the equivalent of PEP Tax and PEP Assurance in a graduate program at a post-secondary institution accredited by a Provincial CPA Body and passed the final exam
         3. Completing CPA Canada’s Post Designation Public Accounting module and passed the final exam for the module.
5. Complete experience requirements of at least one year of qualifying experience.
6. Be up to date with continuing professional education (professional development (CPD)) requirements of your Provincial or Territorial CPA Body. 

Once you’ve verified your eligibility, apply to sit for the IQEX: 

1. Create an account and fill out the eligibility application through NASBA’s online portal.
   1. This will include your letter of good standing, plus all the materials that prove your completion of the eligibility requirements above.
   2. You must pay a $255 application fee.
   3. Make sure that you use the name listed on your official government ID, and that it remains the same through all stages your application and testing process.
2. Fill out the exam application your NASBA online account.
   1. Once accepted, you will have just six months to test, so time your application accordingly.
   2. You must pay a $660 application fee.
3. Receive your Notice to Schedule (NTS).
   1. Testing dates are available within specific dates.
   2. Schedule your test early. Testing centers fill up very quickly for the IQEX dates, and if you fail to schedule within the six-month time frame, you must apply and pay all application fees again.
4. Study!
   1. US CPA regulations differ than those in Canada. It’s vital that you prepare for the exam with a trusted CPA Exam Review provider to ensure your success.
   2. If you fail the exam, you must re-apply (and pay the fees) for both eligibility and the exam.
5. Take and pass the IQEX.
   1. You will test a Prometric testing center, available across the US and at specific locations in Canada. 
       

Apply for the US CPA in Canada 

Once you pass the IQEX exam, you’ve proven that you possess the knowledge to practice as a US CPA in Canada! All that’s left if to choose a jurisdiction and apply for licensure. 

Become a US CPA in Canada with Becker 

Passing the IQEX offers Canadian CPAs a pathway to obtaining their US CPA license, unlocking a wealth of opportunities for career advancement, professional development, and global recognition. 

Becker has been the most trusted CPA Exam Review provider in the US (and worldwide) for 70 years. Choose our REG section CPA Exam Review to access a full, totally updated course for the REG CPA Exam (IQEX), including adaptive learning technology, engaging video lectures, customized study planner, unlimited personalized practice tests, and much more. 

Get Becker's REG CPA Exam Review. Start your path toward passing the IQEX and becoming a US CPA in Canada!