Regents Pass 150-Hour Curriculum, Effective in 2009

By James A. Woehlke, CPA

In June, the New York State Board of Regents approved the 150-hour curriculum as a requirement to sit for the CPA examination. The new regulation mandates that candidates sitting for the CPA examination after August 2009 have 150 hours of college credit.

While a master's degree is not specifically required, many educators and policymakers involved in drafting the regulation believe that candidates will generally obtain master's degrees when meeting the new requirement. The experience required for licensure is set at one year under the new regulation.

Until now, the State Education Department's regulations required CPA candidates to either have 120 hours of college credit, with the candidate satisfying a two-year experience requirement, or a master's degree with an accounting concentration, in which case the candidate needs only a one-year experience requirement.

Colleges and universities wishing to register their 150-hour accounting programs with the SED will have until August 2004. The regulations give great flexibility to the colleges in designing their 150-hour programs. Each accounting program is required to fall within specified minimum and maximum hours for professional accounting, general business, and liberal arts and sciences coursework. See the accompanying box for details.

Professional accounting includes coursework in financial accounting theory and principles, managerial accounting, tax accounting, and auditing and computer auditing. General business includes coursework in business statistics, commercial law, computer science, economics, finance, and quantitative methods. Liberal arts and sciences include mathematics/sciences, social sciences, humanities, economics, and computer science. In addition, coursework must incorporate study in ethics and professional responsibility, business and accounting communication, and accounting research.

"The Board of Regents and I are committed to high standards." said Commissioner Richard Mills at the SED. "That includes high standards for the 38 licensed professions we regulate to ensure the highest quality of service and public protection. The increased educational preparation for Certified Public Accountants, from 120 to 150 hours, is consistent with the increase in the types of services CPAs are now providing to the public. To meet the needs of the public, this broader educational base includes accounting, business knowledge and the development of skills essential for continued growth in a fast changing global economy."

The openness of the curriculum approach is highlighted by the fact that no specific credit hours are required for any of the curricular subjects in the three broad content areas. In other words, there will no longer be a required six-credit course in business law or a three-credit course in business statistics. Instead, the regulation simply requires "coursework" in these areas and the individual schools will determine the necessary amount of subject coverage to meet their conception of an appropriate educational program for CPAs. This regulatory approach is similar to that suggested by the AICPA in its work with state CPA societies and legislators and regulators throughout the country.

Over the past several years, the Society has worked hard for passage of the 150-hour regulation, including forming a special member group, the General Committee on Higher Education and Entry into the Profession, to study the issue in depth. Chair T. Edward Hollander and committee members worked closely with Society and SED staff to draft a proposal to present to the Regents.

New York's adoption of the 150-hour curriculum makes it the 44th of 54 CPA-regulating jurisdictions to implement the requirement. It is an important step in preparing the CPA profession in New York for its expanded role as the preeminent financial profession in the 21st century. *