Expansion of CPA licensure pathways by AICPA and NASBA 

In a significant move to modernize and enhance the accessibility of the CPA licensure process, the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) have approved a new pathway for aspiring CPAs to obtain a license. This addition reflects a commitment to contemporizing the profession and providing flexibility for CPA candidates, while still maintaining a standard of public protection.

The existing pathways include:

• Post-baccalaureate degree, one year of professional experience and passing the CPA exam
• Baccalaureate degree, 30 credits, one year of professional experience and passing the CPA exam

The new path is an expansion of the current model for licensure, which will require:

Baccalaureate degree with an accounting concentration, 2 years of professional experience and passing the CPA exam

This new pathway offers added flexibility for CPA candidates who may not be able to pursue a post- baccalaureate degree, or obtain additional credits, but have a substantial amount of professional experience. The requirement of two years of professional experience allows candidates to gain exposure to practical knowledge and skills while in the workforce instead of an academic environment. Despite the added flexibility, the new pathway still ensures that candidates meet high standards through professional experience and passing the CPA exam. By removing the barrier of needing a post-baccalaureate degree or 30 credits, it allows the profession to be more accessible to a diverse range of CPA candidates.

Other modifications being made are:

• A transition from state-based mobility to individual-based mobility to allow CPAs to practice across multiple state lines under one license and reduce location barriers
• Safe harbor language will also be added to allow CPAs who were licensed under previous requirements as of Dec. 31, 2024 to retain practice privileges

These modifications are part of a larger strategy to adapt to the evolving needs of businesses and the accounting profession. The modifications and new pathway will be included in the updated Uniform Accountancy Act (UAA), set for release in summer 2025.

The AICPA and NASBA hope that by jointly publishing this new model framework they can encourage more uniformity amongst state legislators and Boards of Accountancy in individual jurisdictions. Although approved by the AICPA and NASBA, individual states must still pass legislation or establish rules and regulations specific to their needs before CPA candidates within their jurisdiction can follow this new pathway.