Will AICPA and NASBA’s New CPA Pathway Solve the Accountant Shortage?

Alright, people, here’s the deal, getting that CPA license has been like climbing Mount McKinley with a briefcase full of tax forms. It’s rigorous, it’s demanding, and let’s be honest, it’s made plenty of aspiring accountants rethink their life choices. But now, the AICPA & NASBA are shaking things up with a brand-new pathway to CPA licensure, and let’s just say, it’s stirring up more debates than a Thanksgiving dinner with your opinionated uncle.  If you’ve been following the great CPA shortage of recent years, you know firms are scrambling for new talent like it’s Black Friday. Add in discussions about higher CPA salaries, AI-driven accounting, and regulatory shake-ups, and you’ve got yourself a real financial thriller. So, what’s this new pathway all about, and is it going to change the profession for the better or are we opening Pandora’s accounting ledger? Let’s dive in.

A High Bar to Entry

For years, the CPA licensure process has followed the “150-hour rule” basically, an extra year of education (often a Master’s degree) before even qualifying to sit for the CPA exam. And let’s not forget the one-year work experience requirement. While this ensures only the best of the best make it through, it also means more student debt and delayed entry into the workforce. And guess what? Young professionals aren’t exactly lining up to jump through these hoops. With rising tuition costs and plenty of other lucrative finance careers to choose from, many students are giving the CPA route the cold shoulder. The result? A shrinking pipeline of new accountants that’s got firms sweating bullets.

The New Kid on the Block

A fresh, flexible approach designed to make licensure more accessible without lowering the profession’s standards. Here’s the cheat sheet on what’s changing:

• Bachelor’s Degree + Two Years of Experience: Instead of requiring additional coursework, candidates can fulfill licensure prerequisites by demonstrating key competencies on the job.
• Competency-Based Verification: Candidates must showcase technical and professional skills, validated by licensed CPAs within their workplaces.
• Flexibility with Rigor: The required experience will emphasize:
  • Professional Skills: Ethics, critical thinking, communication, collaboration, and technology adaptability.
  • Technical Competencies: Proficiency in audit, tax, or financial reporting.

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

Keeping the CPA Standard Strong

While the alternative path introduces flexibility, it still preserves critical safeguards:

• Candidates must still pass the Uniform CPA Exam.
• The existing pathways remain intact: Master’s Degree + 1 Year of Experience or Bachelor’s + 30 Credits + 1 Year of Experience.
• The experience requirement will be closely monitored by state boards and licensed CPAs to ensure competency.
• This isn’t about lowering the bar, it’s about adapting to a changing workforce.

A Welcome Change or a Risky Move?

The proposal has sparked mixed reactions across the profession:

Supporters argue:

• It removes unnecessary financial barriers for aspiring CPAs.
• More inclusive hiring practices could attract a more diverse talent pool.
• Practical, hands-on experience prepares candidates better than extra coursework.

Critics warn:

• Competency-based models may introduce subjectivity in assessments.
• Interstate mobility concerns – Will states recognize CPAs under different pathways?
• Ensuring consistency across firms and industries may be a challenge.

“Firms have strict hiring requirements around ‘CPA exam eligibility.’ If the industry doesn’t align hiring policies with new pathways, this change may not be as impactful,” noted Amber Setter, Chief Enlightenment Officer at Conscious Public Accountants.

Wait, There’s More!

If you thought the CPA licensure debate was the only game in town, think again. The AICPA Auditing Standards Board (ASB) just voted to release two new exposure drafts for public comment. Why should you care? Because they could change how CPAs handle attestation reviews and external confirmations—two critical aspects of auditing. Expect these changes to roll out by December 2026 for attestation reviews and December 2027 for external confirmations. If approved, these standards could improve the way auditors verify financial statements.

What’s Next for CPAs?

This proposal is part of a broader modernization wave within the accounting profession:

• AICPA & NASBA have opened a 60-day public comment period: Stakeholders, firms, and educators are encouraged to weigh in.
• Audit & tax standards are evolving: The AICPA Auditing Standards Board (ASB) recently approved two exposure drafts for public review.
• Higher CPA salaries & improved work-life balance: Industry leaders, including AICPA CEO Mark Koziel, emphasize better pay and sustainable workloads as key to attracting new talent.
• Tech integration is redefining the role of CPAs: AI-driven automation is shifting expectations for entry-level accountants.

“This is an important and exciting step for our profession. We are ready to get this done.”  Carla McCall, AICPA Chair

Final Take

AICPA and NASBA’s alternative licensure pathways represent a bold shift in how CPAs enter the profession. By prioritizing real-world experience over extra coursework, the proposal aims to reduce barriers while maintaining high standards. But challenges remain: Will states align? Will firms adjust hiring practices? Will competency assessments remain consistent? One thing is clear—the CPA profession can’t afford to stay stagnant. With talent shortages, tech disruptions, and industry reforms reshaping accounting, this proposal could be the inflection point that defines the next generation of CPAs. What’s your take? Should CPAs be licensed based on experience, or should education remain the priority? Share your thoughts during the public comment period! Subscribe to MYCPE ONE Insights for the latest in finance, accounting, and corporate news delivered straight to your inbox.