The CPA Ethics Exam: Which States Require It, What's on It, and How to Pass

Passing all four sections of the CPA Exam is the milestone everyone celebrates, but in many states it isn't the last test standing between you and your license. Depending on where you plan to get licensed, you may also need to pass a separate CPA ethics exam—most often the AICPA's Professional Ethics exam—before your state board will issue your CPA license. 

The good news is that the ethics exam is a very different experience from the CPA Exam. This guide walks you through which states require it, what it covers, how much it costs, the score you need to pass, and how to approach it so it doesn't hold up your licensure timeline. 

Summary 

The AICPA Ethics Exam is an open-book, online multiple-choice test, required by many (but not all) state boards for CPA licensure, and you must score at least 90%—well above the 75 you need on each CPA Exam section. 

What Is the CPA Ethics Exam? 

When people say "the CPA Ethics Exam," they usually mean the test at the end of Professional Ethics: The American Institute of Certified Public Accountants' Comprehensive Course (For Licensure), a self-study course from the AICPA. You work through the course material online, then complete a multiple-choice exam that's graded by the AICPA. Most candidates simply call it the AICPA Ethics Exam. 

The ethics exam is not part of the Uniform CPA Exam. It's a separate licensure requirement set by individual state boards of accountancy, which is why the rules, and whether you need it at all, depend on your state. A handful of states use their own state-specific ethics exam or course instead of the AICPA version, and some don't require a standalone ethics exam for initial licensure. 

According to the AICPA's course listing, the licensure version of the course: 

• Earns 9 CPE credits in the Regulatory Ethics field of study, at a basic level with no prerequisites, so you don't need prior coursework to start. 
• Is delivered online with one year of access from your purchase date, which gives you a clear window to finish. 
• Costs $235 for AICPA or CIMA members and $289 for nonmembers when purchased directly from the AICPA. Some state CPA societies sell the course, too, often at their own member pricing, so check whether your state society offers a discount. 
   

Which States Require the AICPA Ethics Exam? 

Ethics requirements for initial licensure fall into three broad groups. Because state boards update their rules regularly—and some have changed theirs in just the past two years—always confirm the current requirement with your state board of accountancy before you buy any ethics course. 

States that Require the AICPA Ethics Exam 

As of fall 2026, these jurisdictions require (or accept) the AICPA's Professional Ethics course and exam for initial licensure: 

• Alaska, Arizona, Colorado, Connecticut, Delaware, Idaho, Illinois, Iowa, Kansas, Maryland, Minnesota, Missouri, Montana, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, South Carolina, Tennessee, Virginia, Washington, and Wyoming 
• Nebraska and Utah require the AICPA exam plus a separate state-specific exam 
• Vermont requires an eight-hour ethics course, which can be the AICPA course or a Vermont-specific option 
   

States With Their Own Ethics Exam or Course 

Some states have built ethics requirements around their own laws and rules instead of the AICPA course: 

• Texas requires a three-semester-hour board-approved ethics course plus an open-book exam on the Texas State Board of Public Accountancy's Rules of Professional Conduct, which you need to pass with a score of 85% or higher. The board emails you a link to that exam after it receives your application for issuance. 
• Wisconsin, North Carolina, and Ohio each use a state-specific exam or course rather than the AICPA exam 
   

States with No Standalone Ethics Exam for Initial Licensure 

Several states don't require a separate ethics exam before licensure, though nearly all of them require ethics CPE once you're licensed. These include Alabama, Arkansas, Florida, Georgia, Hawaii, Indiana, Kentucky, Louisiana, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Pennsylvania, West Virginia, and Washington, D.C. 

California is a notable recent change. The California Board of Accountancy stopped requiring its Professional Ethics for CPAs (PETH) exam for licensure on July 1, 2024. Instead, newly licensed California CPAs complete a two-hour, board-approved Regulatory Review course on California-specific laws and rules by their first license renewal. 

What's on the AICPA Ethics Exam? 

The exam tests the material in the AICPA's course, which centers on the AICPA Code of Professional Conduct and the independence rules that apply to CPAs. According to the AICPA, key topics include: 

• The AICPA Code of Professional Conduct and its conceptual framework, which gives you a structured way to identify threats to compliance and evaluate safeguards. 
• Independence rules, including how they apply to your personal financial interests, loans, employment, and business relationships, as well as those of your immediate family. 
• Ethics and independence rules from other regulators, including the SEC, the PCAOB, and the U.S. government, since many CPAs answer to more than one set of rules. 
• Integrity and objectivity, including conflicts of interest, confidentiality, and interpretations on gifts and entertainment. 
• Ethics in tax practice, including the AICPA Statements on Standards for Tax Services, Treasury Department Circular No. 230, and IRS penalty provisions. 
• Acts discreditable to the profession and responding to noncompliance with laws and regulations (NOCLAR). 

The course also uses case studies and realistic examples. That matters for the exam, because many questions ask you to apply a rule to a specific situation rather than recall a definition. 

Is the CPA Ethics Exam Open Book? 

Yes. The AICPA Ethics Exam is an open-book online test, so you can refer to the course materials while you answer questions. The Illinois CPA Society, for example, describes the course as self-study that concludes with an open-book online test. 

Open book, however, doesn't mean you can skip the reading. With a 90% passing score, you have very little room for error, and searching for answers in material you haven't read is slow and unreliable. The candidates who pass comfortably tend to read the course first, take notes on where key rules live, and then use the materials to confirm answers rather than discover them. 

What Score Do You Need to Pass the CPA Ethics Exam? 

You need a score of 90% or higher on the licensure version of the AICPA exam. That's a much higher bar than the CPA Exam, where you need a 75 on each section. The AICPA notes that the 90% threshold applies when you're taking the course to earn your license; CPAs taking the same course to maintain an existing license need 70%. 

State-specific exams set their own standards. Texas, for instance, requires 85% on its Rules of Professional Conduct exam. 

When Should You Take the Ethics Exam? 

Timing rules vary by state, so check yours before you plan: 

• Some states let you take it early. In Illinois, for example, you can take the ethics exam at any time, even before you're approved to sit for the CPA Exam, and the Illinois CPA Society notes that the passing score doesn't expire. 
• Some states put an expiration date on your score. The Arizona Society of CPAs notes that passing scores in Arizona are valid for two years. 
• Some states want proof with your application. The Kansas Board of Accountancy asks applicants to include a copy of the certificate of completion showing a score of 90% or higher with their licensure application. 

For most candidates, the practical approach is to take the ethics exam after you've passed the CPA Exam (or are close to finishing) and before you submit your license application, while staying within your state's validity window. Remember that your one year of course access starts when you purchase, so don't buy until you're ready to work through it. 

How to Prepare for the CPA Ethics Exam 

The ethics exam is far more manageable than any CPA Exam section, but the 90% passing score means you'll want a plan. 

1. Confirm your state's requirement first. Make sure you're buying the course your state board accepts—the AICPA itself cautions that many states don't accept its course for licensure—and select the licensure version. 
2. Read the material before you test. Working through the course content first helps you understand how the Code is organized, so you can find what you need quickly during the open-book exam. 
3. Take notes on where things live. A simple index of key rules (independence, conflicts of interest, confidentiality, tax practice standards) makes looking up answers faster and more accurate. 
4. Read every question carefully. Scenario-based questions often hinge on a single detail, such as whether a family member counts as immediate family under the independence rules. 
5. Build on what you learned for REG. Ethics, professional responsibilities, and federal tax procedures make up 10–20% of the REG CPA Exam, so the concepts you studied there—especially Circular 230 and ethics in tax practice—give you a head start.
    

Ethics Doesn't End at Licensure 

Passing the ethics exam is a licensure requirement, but ethics stays part of your career. Most states require ethics CPE as part of license renewal, and some, like New York, require ethics CPE even though they don't have a pre-licensure ethics exam. Once you're licensed, Becker's ethics CPE courses can help you keep those requirements on track. 

Get Exam Day Ready℠ with Becker 

Before the ethics exam, there's the CPA Exam itself. Becker's CPA Exam Review gives you lectures that teach the concepts and show how they're tested, personalized practice that targets your weak areas, Newt™ AI built into the course for answers and examples while you study, and a customizable study planner that maps your schedule to the hours you can realistically study each week. 

Try it free for 14 days and see how Becker CPA Exam Review helps you prepare to pass. 

Frequently Asked Questions 

Do All States Require the CPA Ethics Exam? 

No. Many states require the AICPA Ethics Exam, some (like Texas and Wisconsin) use their own state-specific exam or course, and others—including New York, Florida, and Pennsylvania—don't require a standalone ethics exam for initial licensure. California dropped its ethics exam requirement on July 1, 2024. Because these rules change, always confirm your requirement with your state board of accountancy. 

Is the AICPA Ethics Exam Hard? 

Most candidates find it much easier than the CPA Exam because it's open book and you work through it online at your own pace. The challenge is the 90% passing score, which leaves little margin for misreading a question or rushing a lookup. Reading the course material first and noting where key rules are located will help you pass on your first attempt. 

How Much Does the AICPA Ethics Exam Cost? 

When purchased directly from the AICPA, the licensure version of the course and exam costs $235 for AICPA or CIMA members and $289 for nonmembers. Some state CPA societies sell the course with their own pricing; for example, the Illinois CPA Society lists a discounted member price of $220. Check your state society before buying, since it may also handle score reporting to your state board. 

What Happens If I Fail the CPA Ethics Exam? 

If you don't reach 90%, you can generally retake the exam, but the number of attempts and any retake rules depend on the course and where you purchased it. Review the instructions that come with your course before you start so you know exactly how many attempts you have. Keep in mind that your course access lasts one year from purchase. 

Does the CPA Ethics Exam Count Toward CPE? 

The AICPA's licensure course carries 9 CPE credits in Regulatory Ethics. Whether those credits count toward your first renewal depends on your state's CPE rules, since many states don't count CPE completed before you're licensed. For ethics CPE after licensure, explore Becker's ethics CPE courses or check your state CPE requirements.