03 OCT 2024 / PEOPLE UPDATES

AICPA and NASBA Propose Changes to CPA Licensure Pathway through Uniform Accountancy Act Revisions

- MYCPE ONE Insights Team

Summary

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The American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) proposed changes to the Uniform Accountancy Act (UAA), aiming to combat talent shortages and broaden access to the CPA profession. The amendments outline a CPA Competency-Based Experience Pathway, offering an alternative route to licensure, and introduces modifications to the UAA Model Rules.

New York and Nashville, September 30, 2024 — In an effort to address talent shortages in accounting and make the CPA profession more accessible, the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) have jointly proposed updates to the Uniform Accountancy Act (UAA). These proposed amendments would create a new pathway to CPA licensure, called the CPA Competency-Based Experience Pathway, offering candidates an alternative method to achieve licensure.

The UAA serves as a model framework that states can adopt to create consistency in accounting regulations. The AICPA and NASBA’s proposed updates would enable states to adopt this competency-based pathway, which allows candidates to demonstrate practical professional skills after meeting educational requirements, including a bachelor’s degree and relevant state-mandated accounting and business courses. This pathway provides an alternative to the traditional experience-based requirements and aims to broaden access to the profession.

Public Input and Next Steps for Proposed CPA Competency-Based Pathway

The AICPA and NASBA released a detailed draft of the proposed CPA Competency-Based Experience Pathway on September 12, inviting public feedback. The comment period remains open through December 6. Separately, the NASBA Board of Directors has also approved proposed changes to UAA Model Rules, which provide necessary updates on licensure definitions and experience requirements under the new pathway.

Key elements of the proposed amendments include:

1. Education Requirements – Establishing a bachelor’s degree or higher as the minimum education requirement to sit for the CPA exam.

2. Defining Additional Pathway Requirements – Setting standards for the competency-based licensure route.

3. Ensuring Mobility – Maintaining licensing flexibility across jurisdictions for those who achieve licensure through pathways defined in the UAA.

4. Identification Mechanism – Enabling state boards to distinguish individuals licensed through non-UAA-compliant pathways via a national licensee database.

5. Pathway Compliance – Providing a structure for those initially licensed through non-UAA pathways to later achieve compliance with mobility standards.

The NASBA board has also opened a separate comment period for these UAA Model Rule changes, which will accept feedback through December 30.

Mark Koziel, CEO of NASBA, commented, “By expanding pathways to licensure, we’re helping to strengthen the CPA pipeline, ensure state-level consistency, and address the ongoing talent shortage that challenges the accounting profession.” Both organizations urge stakeholders to submit their feedback by the respective deadlines to help shape the future of CPA licensure.

Until next time…

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