Dive Brief:
- The American Institute of CPAs and the National Association of State Boards of Accountancy jointly took another step to open a pathway allowing accountants to obtain a CPA license with less schooling than is now required. The groups released model language that state accountancy boards and lawmakers can adopt that would put the proposed new licensure rules into effect.
- The industry groups this week published an exposure draft of revisions to the Uniform Accountancy Act — used as a template for licensure by states — that would expand options that CPA candidates have to become a CPA. Public comment on the changes is due by Dec. 30.
- “It is model legislative language that we would hope all 55 jurisdictions and legislatures would adopt,” Susan Coffey, CEO of public accounting for AICPA said in an interview Thursday, noting getting all parties aligned will take time. “It is a lift…there are always challenges with how things are written and how they fit into existing law so we need to manage and monitor that throughout the course of the several years that it will probably take.”
Dive Insight:
The professional associations’ new push for expanded paths to CPA licensure is a joint effort to add flexibility designed to develop the next generation of accountants and tackle the accountant shortage.
A recent major report on the talent issue released by the National Pipeline Advisory Group, comprised of accounting industry stakeholders, cited the cost and time of education required to become a CPA among the key problems that need fixing, CFO Dive previously reported.
Current rules generally require 150 college credit hours — effectively a fifth year of college that some say dampens students’ interest in the profession — to become a CPA. Under the new alternative, candidates would need a Bachelor’s degree but those not interested in a fifth year of college coursework could choose two additional years of accounting relevant work.
That would entail one year of certified work experience using accounting, attestation, compilation, management advisory, financial advisory, tax or consulting skills, and an additional year of general work experience, according to an exposure draft detailing the new model, CFO Dive previously reported.
The AICPA previously cautioned against making such changes, citing concerns that they would lead to a patchwork of licensing rules across states and harm the ability for CPAs to practice outside the states they are certified to practice in, what some see as a privilege referred to as “mobility.”
Coffey said the AICPA has pivoted from its previous concerns to embrace the alternative paths. Still, she said that agreement on the new rules among all states and jurisdictions will be key to maintaining uniformity and the mobility that is central to the profession.
“The operative word is really uniformity because uniformity in the licensure is what creates mobility and allows people to service businesses across the country with no barriers,” Coffey said. After comment letters are received the industry groups plan to issue model legislation sometime early in 2025, she said.
