AICPA, NASBA propose competency-based path to CPA licensure

The American Institute of CPAs and the National Association of State Boards of Accountancy have proposed an alternative pathway to CPA licensure. 

Instead of completing 150 credit-hours, the CPA Competency-Based Experience Pathway would enable candidates with a bachelor’s degree, and who meet their state’s requirements for accounting and business courses, to earn their CPA by demonstrating their professional and technical skills.

The proposed competency framework would require candidates to meet seven professional competencies (ethical behavior; critical thinking and professional skepticism; communication; collaboration, teamwork and leadership; self-management and continuous learning; business acumen; and technology mindset) and three technical competencies (tax; business and financial reporting; and audit and assurance). Competencies would be verified in the candidate’s workplace by licensed CPAs.

Attaining the competencies is expected to take most candidates a year, the AICPA and NASBA estimate, but there is flexibility in the timing for completion. Those pursuing this pathway would also be required to gain a year (or 2,000 hours) of general experience and pass the CPA Exam.

“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,” Susan Coffey, CEO of public accounting for the AICPA, said in a statement. “Feedback from the profession is essential to building a workable pathway.”

The AICPA and NASBA are requesting public input on their proposed model competency framework and on other aspects of the potential additional pathway. Feedback can be submitted here through Dec. 6. 

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