Summary of AICPA, NASBA Competency-Based Path to CPA Licensure

TLDR:

• AICPA and NASBA propose alternative to 150 credit hours for CPA licensure
• Candidates with a bachelor’s degree can earn CPA by demonstrating professional and technical skills

In a recent proposal by the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA), a new pathway to CPA licensure has been suggested. The Competency-Based Experience Pathway offers an alternative to the traditional 150 credit-hour requirement, allowing candidates with a bachelor’s degree to earn their CPA by showcasing their professional and technical skills. The pathway involves meeting seven professional competencies and three technical competencies, which would be verified in the candidate’s workplace by licensed CPAs.

The proposed competency framework includes competencies such as ethical behavior, critical thinking, collaboration, and technology mindset, among others. Candidates pursuing this pathway would also need to gain a year of general experience, pass the CPA Exam, and receive verification of their competencies by licensed CPAs. The AICPA and NASBA estimate that most candidates would take a year to attain the competencies, with flexibility in timing for completion.

Feedback on the proposed model competency framework and additional aspects of the pathway are being sought from the public, with submissions accepted until December 6. The goal of the new pathway is to ensure that accounting professionals have the necessary skills and competencies for CPA work while making licensure accessible and reflecting market conditions. NASBA President and CEO Daniel Dustin emphasized the importance of flexibility for candidates while maintaining rigor for public protection.

The proposed Competency-Based Experience Pathway represents a significant shift in the requirements for CPA licensure, aiming to better align with the demands of the profession and provide a more accessible route to licensure for candidates with diverse backgrounds and experiences.