AICPA and NASBA Release New Model CPA Licensure Rules for State Consideration
The American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) jointly released a draft amendment to the Uniform Accountancy Act this week, aiming to provide an alternative pathway to CPA licensure without requiring additional college credits. The draft suggests that candidates with a bachelor's degree could meet licensure requirements through two years of relevant work experience, to alleviate the talent shortage in the accounting profession. The public comment period ends on December 30. Susan Coffey, CEO of Public Accounting at AICPA, expressed hope that all 55 jurisdictions would adopt the model, emphasizing that uniformity is crucial for maintaining cross-state licensure mobility.
Key Takeaways
- The American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) are jointly advancing a new pathway that would allow accountants to obtain a CPA license with less education than currently required. The two organizations have released model legislative language for state boards of accountancy and legislatures to adopt in order to implement the new rules.
- The industry groups this week released a draft of revisions to the Uniform Accountancy Act — which states use as a model for licensure — aimed at expanding access to CPA candidacy. The public comment period ends December 30.
- "This is model legislative language that we hope all 55 jurisdictions and legislatures will adopt," Susan Coffey, CEO of public accounting at AICPA, said in an interview Thursday, noting that getting all parties aligned will take time. "It's a heavy lift... There will always be challenges in terms of wording and how it aligns with existing laws, so we need to manage and monitor this over the next several years." She added that full alignment could take several years.
Deep Dive
The two professional associations' push to expand CPA pathways is a joint effort to add flexibility in training the next generation of accountants and alleviate the industry's talent shortage.
A major report on talent issues released recently by the National Pipeline Advisory Group, a group of accounting industry stakeholders, identified the cost and time required to become a CPA as one of the key issues to address, CFO Dive previously reported.
Current rules generally require 150 college credit hours — equivalent to an extra year of college education, which some argue discourages students from pursuing the profession — before one can obtain a CPA license. Under the new alternative pathway, candidates would need a bachelor's degree but could choose two additional years of relevant accounting work experience if they do not wish to complete a fifth year of college coursework.
According to the draft previously reported by CFO Dive, the pathway includes one year of verified work experience using skills in accounting, attestation, compilation, management consulting, financial consulting, taxation, or consulting, and one year of general work experience.
AICPA had previously been cautious about making such changes, expressing concerns that it could fragment state licensure rules and undermine CPAs' ability to practice outside their licensing state — a privilege some refer to as "mobility."
Coffey said AICPA has shifted from its earlier concerns to supporting the alternative pathway. However, she still emphasized that consensus among states and jurisdictions on the new rules will be key to maintaining uniformity and the industry's core mobility advantage.
"The key word is really 'uniformity,' because uniformity in licensure creates mobility, allowing people to serve businesses across the country without barriers," Coffey said. She said that after receiving comment letters, the industry groups plan to release the model legislation in early 2025.