Dive Brief:
- Iowa Senate lawmakers passed new legislation Tuesday that will allow future certified public accountant candidates to become licensed with a bachelor’s degree that includes accounting coursework, two years of accounting work experience and passing the CPA exam, according to a press release from the Iowa Society of CPAs.
- The bill next goes through a certifying process before heading to Iowa Gov. Kim Reynolds’ desk to be signed, according to the ISCPA, which backed the legislation. The newly passed legislation retains the two existing options for CPA licensure already allowed in the state, which include obtaining a bachelor’s degree, a master’s degree, one year of work experience and passing the CPA exam, or getting a bachelor’s, 30 additional credit hours, one year of work experience, and passing the CPA exam.
- “The additional pathway helps to remove barriers to entering the profession such as the time and cost of an extra 30 college credits while ensuring the “Four E’s” (Education, Exam, Experience and Ethics) remain essential components to the CPA designation,” the release states.
Dive Insight:
Iowa joins a growing band of states passing new CPA licensure laws aimed at easing the accounting talent shortage, with most substituting more experience for 150 hours of college credit, which is typically a fifth year of school.
The Hawkeye State follows Indiana, Georgia, Ohio, Virginia, New Mexico, Utah and Hawaii in passing new CPA pathways legislation, according to Corey Butler, a spokesperson for the Minnesota Society of CPAs which is closely tracking the legislation.
The shortage of qualified accountants — and the risks of reporting error that potentially stem from it — will likely persist this year despite industry efforts to widen the pipeline of talented prospects, some accounting experts forecast.
