International Licensure Through Reciprocity

Mutual recognition agreements (MRAs) between professional accounting associations in the U.S. and six other countries allow accountants who have been certified or chartered in any of those countries to qualify to practice in the U.S. without being completely re-credentialed. This is because, before the MRA could be signed, the International Qualifications Appraisal Board (IQAB) had to determine that the qualifications for licensure in that country were "substantially equivalent" to those required of a U.S. CPA in the areas of education, examination, and experience.

IQAB is the link between the U.S. accounting profession and other General Agreement on Trade in Services (GATS) and North America Free Trade Agreement (NAFTA) signatory countries. IQAB represents the National Association of State Boards of Accountancy (NASBA) and the American Institute of CPAs (AICPA) in protecting the public interest by helping ensure that only qualified individuals become licensed as U.S. CPAs.

To date, IQAB has established MRAs between the U.S. accounting profession and that of the following countries: Australia, Canada, Hong Kong, Ireland, Mexico, New Zealand, and South Africa. The Professional Mutual Recognition Agreement signed by the U.S., Mexico, and Canada is a tripartite agreement that provides reciprocity for accountants among all three countries.

IQAB currently has established MRAs with the following professional bodies:

• Institute of Chartered Accountants in Australia
• Chartered Professional Accountants of Canada
• Hong Kong Institute of Certified Public Accountants
• Chartered Accountants Ireland
• Instituto Mexicano de Contadores Publicos
• New Zealand Institute of Chartered Accountants
• South African Institute of Chartered Accountants (SAICA)

Professional accountants in any of the signatory countries who are seeking the CPA designation in the U.S. must apply to take the International Qualification Examination (IQEX), which is available only to those from countries with whom the U.S. has an MRA. The IQEX tests applicants on their knowledge and understanding of ethics, professional and legal responsibilities, and U.S. taxation and business law.

Qualifying by reciprocity from an MRA country is a much quicker process than that available to accountants in non-signatory countries, who must not only be evaluated for education and experience, but must take and pass the Uniform CPA Examination. For more information on qualifying for the CPA designation in the U.S. through reciprocity, see www.nasba.org/international.

U.S. CPAs who want to practice in another country should contact the professional licensing body for accountants in that country to determine the qualifications for licensure there.