In a bid to increase flexibility for aspiring accountants while maintaining public protection standards, the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) have proposed a new pathway to Certified Public Accountant (CPA) licensure.
The CPA Competency-Based Experience Pathway, unveiled on September 12, 2024, would allow candidates to demonstrate their professional and technical skills after completing a bachelor’s degree and meeting state requirements for accounting and business courses. This framework, developed with input from industry practitioners, regulators, academics, and state society leaders, includes seven professional competencies and three technical competencies.
The proposed pathway aims to provide a more accessible route to licensure without compromising the rigor necessary to protect the public, the AIPCA and NASBA said. Candidates pursuing this pathway would need to complete a separate year of general experience and pass the CPA Exam, in addition to attaining the competencies. Licensed CPAs would verify the competencies in the workplace.
“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,” said NASBA President and CEO Daniel Dustin in a statement.
The proposal is open for public comment until December 6, focusing on the model competency framework and other aspects of the potential pathway.
“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,” said AICPA Public Accounting CEO Susan Coffey in a statement.
The proposed alternative pathway comes at a critical time for the accounting industry, which is facing a crisis-level decline in graduates and new CPA candidates that threatens to upend the entire economy.
At the heart of the problem are the two current CPA licensure paths, which are proving to be major obstacles for many aspiring accountants, according to industry discussions. The traditional routes to becoming a CPA– either by earning a master’s degree or piling on up to 30 extra credits beyond a bachelor’s degree – are often financially burdensome and time-consuming. These constraints have led to a sharp decline in the number of accounting grads and new CPA candidates, putting the entire industry at risk.
By providing a more accessible route to licensure, this new initiative would slash the financial and time burdens that have been scaring off would-be CPAs, the AICPA and NASBA said. The goal is to inject new life into the CPA pipeline, unleashing a fresh wave of skilled professionals to fuel economic growth and safeguard the public’s interests.
This article originally appeared in the September 13, 2024, edition of Accounting & Compliance Alert, available on Checkpoint.
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