Understanding the Professional Ethics (PETH) Exam Change

Watch this video for everything you need to know about the PETH Exam requirement change.





Replacement of PETH Requirement FAQs



The implementation of the new CPA Exam that launched on January 10, 2024, has created a duplication of content in the Professional Ethics (PETH) Exam.* Therefore, as of July 1, 2024, the CBA no longer requires applicants to complete the PETH Exam for issuance of a CPA license. Instead, applicants need to complete a CBA-approved Regulatory Review Course for their first license renewal.

It is important to note, the CBA remains committed to protecting consumers, and this change does not reflect a relaxing or loosening of the requirements to become a CPA.

To ensure any money or time spent studying will not be wasted, any applicant licensed after July 1, 2024, who has passed the PETH Exam may use the passing score to satisfy the new Regulatory Review Course requirement or as two hours of technical continuing education at their first renewal. These options will be available through July 1, 2026, to ease the transition.

Keep in mind, as illustrated in the visual below, the date a license is issued, NOT when you applied, is the key to whether an applicant was subject to the old rule (PETH Exam required to be licensed) or the new rule (Regulatory Review Course due for first license renewal).




The CBA remains committed to ensuring that consumers receive quality accounting services from professionals they can trust. Stay informed of the latest updates on this developing topic, such as when the effective date becomes official, by adding the CBA website to your favorites and following the CBA on LinkedIn, 𝕏, Facebook, and Instagram.


*The California Department of Consumer Affair’s Office of Professional Examination Services reviewed the PETH Exam and determined that most of its topics are now covered in the new version of the CPA Exam. The new Regulatory Review Course requirement will fill in the gaps related to California-specific laws and regulations related to the practice of accountancy in the state. Additionally, many college courses embed ethics within their curriculum.

Replacement of PETH Requirement FAQs

What will be replacing the PETH Exam?
Once the CBA approves your license, you will need to complete a CBA-approved Regulatory Review Course as part of your first license renewal.
When does this rule change become effective?
The effective date is July 1, 2024.
Will any type of credit alternatives be given to applicants that have already taken and passed the PETH Exam once it is no longer required?
If you are licensed after July 1, 2024, you may use your PETH Exam passing score at your first renewal to either meet the new Regulatory Review Course requirement or as two hours of technical CE.
I found a Regulatory Review Course online, but I can’t find it listed on the CBA website. Is it possible the CBA would accept it?
No. Unfortunately, only a CBA-approved Regulatory Review Course may be used to satisfy this requirement.
I already paid for the PETH Exam but have not completed it. Since it is no longer required, am I eligible for a refund?
There will not be refunds for candidates who have purchased and started the PETH Exam. Even when the PETH Exam is no longer a requirement, you can still take and pass the exam, as you may use the passing score at first renewal to meet the new Regulatory Review Course requirement or to satisfy two hours of technical CE. CalCPA reached out to everyone in this situation to explain their options once the rule change became effective on July 1, 2024.
Can I still take the PETH Exam?
If you already purchased the PETH Exam, you can still take it. We will accept a passing PETH Exam score at your first renewal to meet the new Regulatory Review Course requirement or to satisfy two hours of technical CE until July 1, 2026.
I worked hard for my CPA designation. Why is the CBA loosening the requirements for licensure?
The CBA is not loosening the requirements for CPA licensure and remains committed to ensuring that consumers receive quality accounting services from professionals they can trust. Simply put, the implementation of the new CPA Exam has created a duplication of content in the PETH Exam. This change does not reflect a relaxing or loosening of the requirements to become a CPA.
Do I still need to complete 4 hours of Ethics CE to renew my CPA license?
To renew a license to an active status, as part of your minimum of 80 hours of qualifying CE, it must include at least four hours of Ethics, within the two-year period immediately preceding the date on which the licensee applies for license renewal. This requirement is not changing with the new rules.
If I have further questions about the removal of the PETH Exam requirement, who may I contact?
Any additional questions regarding the requirements change may be submitted to examinfo@cba.ca.gov or asked via phone at (916) 561-1703. For questions specific to the PETH Exam itself, please contact CalCPA Support at support@calcpa.org or (800) 922-5272.