Tennessee operates on a biennial continuing professional education cycle tied to license number. CPAs must complete 80 hours every two years, including a minimum of 20 hours annually, at least 40 hours in technical subjects and 2 hours of state-specific ethics.
General requirement
CPAs must complete 80 hours of CPE during each two-year reporting period, with a minimum of 20 hours completed each calendar year.
At least 40 hours must be in technical subjects. The reporting period runs Jan. 1 through Dec. 31 biennially.
License renewal occurs by Dec. 31, with even-numbered licenses renewing in even years and odd-numbered licenses renewing in odd years.
Ethics requirement
Tennessee requires 2 hours of Board-approved state-specific ethics during each biennial period. The course must cover Tennessee accountancy law, board rules and professional ethics.
Approved ethics providers are listed on the Tennessee State Board of Accountancy website.
Technical subject areas
At least 40 hours must be earned in technical fields of study, including:
- Accounting and governmental accounting
- Auditing and governmental auditing
- Business law, economics and finance
- Information technology and management services
- Regulatory ethics and specialized knowledge
- Statistics and taxation
Attest services and expert witness requirements
- Attest services (including compilations): Minimum of 20 hours in accounting and auditing.
- Expert witness services: Minimum of 20 hours in the subject area of expertise recognized by the court.
New licensees
- Licensed less than one year before renewal: No CPE required for the first renewal.
- Licensed more than one year but less than two years: 40 hours required, including 20 technical hours and 2 ethics hours.
- Up to 12 hours may be carried forward from the initial licensing period.
Credit limitations
- Instruction/teaching: Maximum of 50% (40 hours), with up to 3 CPE hours per hour taught.
- Published materials: Maximum of 50% (40 hours).
- Professional journals (with exam): Maximum of 20% (16 hours).
- Professional exams: Credit equals 5 times the exam length, up to 50% of total requirement.
- Nontechnical subjects: Maximum of 40 hours (50%).
- Self-study: Must be from NASBA QAS-approved providers.
Credit calculation
- Standard measurement: One CPE credit equals 50 minutes of instruction.
- Instruction: Up to 3 CPE hours per hour of presentation.
- University credit: 15 CPE hours per semester hour and 10 CPE hours per quarter hour.
- Group and blended learning: Credit may be earned in 10-minute increments after the first full hour.
- Self-study: Credit may be earned in 10-minute increments after the first half-hour.
Carryforward
Up to 24 excess CPE hours may be carried forward to the next reporting period, but only to meet the total 80-hour requirement.
Carryforward hours cannot be used to satisfy:
- The 20-hour annual minimum
- The 40-hour technical requirement
- The 2-hour ethics requirement
- Any penalty hours
Nonresident CPAs
Nonresident licensees may meet Tennessee’s CPE requirements by complying with the requirements of the state where their principal office is located.
If that state does not require CPE, Tennessee requirements apply. If that state does not require ethics, Tennessee’s ethics requirement must still be met.
Reactivation from inactive status
CPAs returning from inactive status must complete all 80 hours of required CPE in technical subjects.
Audits and penalties
The Board audits approximately 10% of renewing licensees each year. Audit notifications are typically issued in early May.
For each deficiency, an additional 8 hours of penalty CPE is required.