NASBA upholds 150-hour schooling requirement for CPA licensure

Editor’s word: Following NASBA’s reaffirmation of its reinforce for the 150-hour schooling requirement for CPA licensure, the JofA interviewed NASBA President and CEO Ken Bishop for NASBA’s view of the problem.

Around the board, stakeholders charged with selling and protective the accounting career are on the lookout for answers to a ability acquisition factor that’s not distinctive to the career.

What is exclusive to the career, on the other hand, is a licensing style that empowers CPAs to paintings in just about each state — in individual or nearly — with no need to acquire further credentials in different states.

The requirement for 150 credit score hours for CPA licensure prescribed by means of the Uniform Accountancy Act (UAA) bureaucracy the basis of the licensing style. The Board of Administrators of the Nationwide Affiliation of State Forums of Accountancy (NASBA), the nationwide frame for state forums of accountancy, not too long ago reaffirmed its reinforce of the usual by means of a unanimous vote.

“Will have to any state or jurisdiction decrease the licensure requirement to 120 hours, their CPAs would now not be routinely considerably similar and would now not benefit from the mobility and reciprocal observe privileges they lately are afforded,” NASBA President and CEO Ken Bishop stated in an interview with the JofA. “Reducing the bar to 120 hours is most effective some of the choices now we have heard that has been mentioned and thought to be. Others, together with decreasing the lower rating for passing the CPA Examination, have the prospective and possibility of making the belief of dumbing down the career. No person is speaking about, as an example, decreasing the bar to develop into an legal professional, and they are additionally affected by loss of access.”

Bishop stated the NASBA board vote used to be triggered by means of “a couple of state society team of workers individuals however no longer the career basically” taking into consideration motion that may create other pathways to CPA licensure. Bishop understands the sentiment at the back of the dignity however wired that any adjustments at the state stage that do not align with the UAA could be counterproductive for the career.

“If I used to be a society CEO and I had some individuals who have been having bother hiring CPAs knocking on my door, I might be seeking to react. We are not announcing do not react; we are announcing let’s do it in a uniform method,” Bishop stated. “What actually will get our consideration is one thing that has a chance to disturb or totally adulterate the really extensive equivalency, mobility, reciprocal licensure — issues that we are operating to offer protection to and handle.

“That does not imply that issues would possibly not exchange at some point. We are open to modify, nevertheless it cannot be state-specific or state-unilateral exchange, or we are in actual bother. We’re attaining out to influence states not to take any unilateral motion that might injury each the general public and the career.”

The NASBA criminal group not too long ago despatched a letter to the AICPA according to an AICPA inquiry relating to a up to date motion taken by means of the Minnesota Society of CPAs. The Minnesota Society’s board of administrators authorized the drafting and creation of law to create an extra schooling and enjoy pathway to CPA licensure.

“If a brand new CPA candidate obtains their preliminary licensure in any state that has necessities which can be not up to the UAA, they are landlocked in that state,” Bishop stated. “It could be very similar to Minnesota passing a regulation and their driving force’s license would most effective be just right within the state of Minnesota. It could imply that folks may no longer move the state line into any other state and feature the similar stage of privilege that they’ve in Minnesota.”

NASBA itself qualifies as a stakeholder suffering in the middle of what Bishop referred to as the best pipeline disruption of his lifetime. The 16-year NASBA veteran and his team of workers are operating tirelessly to get a hold of answers that paintings for everybody within the career.

“All professions are experiencing the similar struggles,” Bishop stated. “Organizations reminiscent of state CPA societies are underneath super force from companies to handle this factor, and it has created some panic and a hurry to seek out answers. However we do not need to make shoot-from-the-hip selections.

“NASBA and the AICPA are aggressively having a look at choices and choices that experience the prospective to extend the collection of CPA applicants making use of for licensure with out disrupting really extensive equivalency and observe privilege mobility.”

— To remark in this article or to indicate an concept for any other article, touch Bryan Strickland at [email protected].