
The AICPA and the National Association of State Boards of Accountancy (NASBA) are soliciting comments on a proposed initiative to help CPA candidates meet initial licensure requirements, according to a joint press release.
In the exposure draft titled the CPA Competency-Based Experience Pathway, the organizations said that this added option is a way “to provide flexibility for candidates without compromising the rigor needed to protect the public.”
In a press release, Susan Coffey, the CEO of Public Accounting for the AICPA, said, “Our goal is to ensure that accounting professionals have the necessary experience, knowledge, and competencies to handle the complex nature of CPA work, while also providing paths to licensure that reflect market conditions and make licensure as accessible as possible.”
“The proposed pathway encompasses the perfect mix of flexibility for CPA candidates while maintaining rigor for public protection,” said NASBA President and CEO Daniel J. Dustin, CPA. “We look forward to the input and direction from the 55 U.S. Boards of Accountancy on this important and necessary framework to strengthen the CPA pipeline.”
Under the proposed pathway, CPA candidates can meet initial licensing requirements by demonstrating their skills in model competencies—identified by the exposure draft—during their work experience before CPA licensure is granted. The proposal also delineates how a candidate, the candidate’s employer and boards of accountancy can implement this pathway. Another key goal is to develop an evergreen framework that can be adapted to the profession’s evolution and to state-level regulatory updates.
According to the release, the competency framework includes seven professional and three technical competencies. CPA candidates would have to exhibit all professional competencies and at least one of the three technical competencies, which one or more evaluators in their organization would verify.
These professional competencies are spelled out in areas such as ethical behavior, critical thinking and communication. Technical skills are in audit and assurance, tax and financial reporting.
This additional avenue is not a replacement for the current pathways to licensure, according to the draft, "but instead respond to market changes and expand opportunities for the next generation of accountants."
CPA candidates must still earn a bachelor’s degree, complete a year of general experience and pass the CPA exam.
The current number of credit hours needed to qualify for CPA licensure is 150, even though a bachelor's degree only requires 120. Candidates must either get a master’s degree or an additional 30 credit hours to become a licensed CPA. The competency-based experience pathway would make up for the 30-credit-hour requirement.
In the exposure draft, the organizations explained why they are proposing this new avenue for CPAs, saying that “along with an aging workforce with many CPAs nearing retirement age, there is a need for CPAs with evolving competencies and experiences. Recent years have also seen a steady decline in the number of accounting graduates and new candidates taking the CPA Exam.”
They also said that they are addressing “the financial and time constraints some individuals face in completing the education needed post-bachelor’s degree to achieve CPA licensure.”
Comments to the proposed initiative are due Dec. 6, and can be submitted via this
form.