Rethinking the 150-Hour Requirement for CPA Licensure

Can Alternative Paths Surmount the Barriers to Entry?

Steven M. Mintz, PhD, and William F. Miller, EdD, and Tara J. Shawver, DBA

In BriefThe accounting profession continues to suffer from the barrier to entry caused by the 150-hour CPA licensure requirement and is struggling to find ways to ensure a greater supply of well-prepared professionals. Some jurisdictions have moved towards a 120/150-hour bifurcated system, which enables accounting students to take the CPA exam after graduating with a bachelor's degree—or after completing 120 units of education—and then completing the 150 units needed for licensure. One goal is to alleviate the barriers to entry into the profession, both in time and the costs of additional education. CPA firms can help by offering paid internships and partnering with universities to reduce these costs. Whether the 150-hour requirement remains unchanged, or it evolves fully into a 120/150 regime, the additional 30 units should be targeted to best serve client needs, including information technology skills, and incorporate critical thinking, analytical reasoning, and ethical skills to enhance professional judgment. Nevertheless, the question remains whether alternative paths to CPA should be considered.