AICPA, NASBA propose a new pathway to CPA licensure

The AICPA and the National Association of State Boards of Accountancy (NASBA) are seeking input on a proposed competency-based experience model for CPA licensure.

The CPA Competency-Based Experience Pathway would provide an additional option for CPA candidates to demonstrate professional and technical skills after earning a bachelor’s degree and meeting their state’s requirements for accounting and business courses — increasing flexibility for the next generation of accountants while maintaining the profession’s rigorous public protection mandate.

Currently, after candidates obtain a bachelor’s degree, they must pass the CPA Exam, complete one year of professional general experience, and either earn a master’s degree or take college courses that bring them to 150 total credit hours (most bachelor’s programs require 120 hours).

The master’s degree/+30 pathways remain, but the proposal would add a competencies-based experience option. AICPA and NASBA received significant input and advice on the competency framework from a diverse cross-section of the profession, including members of a working group made up of practitioners, regulators, academics, and state society leaders.

“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,” Sue Coffey, CPA, CGMA, CEO of Public Accounting for the AICPA, said in a news release. “Feedback from the profession is essential to building a workable pathway.”

Public input on the proposed model and other aspects of the potential additional pathway can be submitted through Dec. 6.

The competency framework at the heart of the proposal includes seven professional and three technical competencies. Candidates would be required to exhibit all seven professional competencies and at least one of the three technical competencies.

The proposed professional competencies are:

• Ethical behavior; 

• Critical thinking and professional skepticism; 

• Communication; 

• Collaboration, teamwork, and leadership; 

• Self-management and continuous learning; 

• Business acumen; and 

• Technology mindset. 

The proposed technical competencies are: 

• Audit and assurance; 

• Tax; and 

• Business and financial reporting. 

The competencies, which would be verified in the workplace by licensed CPAs, are expected to take most candidates a year, but there is flexibility in the timing for completion.

“The proposed pathway encompasses the perfect mix of flexibility for CPA candidates while maintaining rigor for public protection,” NASBA President and CEO Daniel Dustin, CPA, said in a news release. “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.”

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.