The American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) proposed a “competency-driven experience pathway” to CPA licensure to address a growing talent shortage impacting finance teams across industries.
The proposal tries to address concerns over the 150-credit hour requirement, a factor that has been criticized as a deterrent to young people from pursuing accounting. The effort is designed to give candidates more options by shifting the focus from class credits to verified skills.
This new model allows candidates to showcase key competencies that both the AICPA and NASBA say should typically be completed within a yearlong timeline with “flexibility.” Candidates also need to fulfill a year of general work experience, pass the CPA exam and have their competencies validated by licensed CPAs at their workplace.
The competency model includes seven professional and three technical skills, requiring candidates to demonstrate professional skills and at least one technical competency. Professional skills cover areas such as ethical behavior, critical thinking and communication, while technical competencies focus on audit and assurance, tax and financial reporting.
With shortages imoacting the perception of public accounting as a profession, including a lack of work-life balance within Big Four firms and high rates of burnout, steps toward addressing this issue may begin to provide relief for companies struggling to keep their finance teams functioning — especially during growth.
“The proposed pathway encompasses the perfect mix of flexibility for CPA candidates while maintaining rigor for public protection,” said NASBA president and CEO Daniel Dustin. “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.”
The comment period for the potential additional pathway ends on December 6, 2024.
