Oklahoma Society of CPAs’ Post

If you care about the future of the accounting profession, I invite you to comment on the CPA-Competency Based Exposure Draft that has been jointly proposed by NASBA and the AICPA. Comments are requested by December 6. While it is exciting to see these two stakeholders proposing an alternative to the 150-hour rule, I am afraid this proposed pathway would replace an old barrier to entry with a new one. I am an inactive CPA and Professional Certified Coach. I have firsthand experience with the intensity of a competency-based framework. I am now in pursuit of becoming a master certified coach- a process that requires a supervisor to evaluate my work against an eight-point competency model. This experience has been expensive and time intensive. ❗ To date, it has cost me $4,750 and I am not even done. I share this perspective because the existing pathway to CPA licensure is already expensive, especially for those coming from diverse communities. Whatever we chose as an alternative to the 150 hours, I sincerely hope it is not complicated nor cost prohibitive. 

Have you reviewed the AICPA's proposed additional pathway to CPA licensure yet? Under the “CPA Competency-Based Experience Pathway,” CPA candidates could meet initial licensing requirements by exhibiting their competency in specific professional and technical areas. For example, professional competencies include ethical behavior, critical thinking skills, and effective communication. Technical competencies include options in audit and assurance, tax, and financial reporting. These candidates would still be required to earn a bachelor’s degree, complete one year of general experience, and pass the CPA Exam. The draft pathway is still in development and requires further evaluation and input from across the profession. We encourage our members to provide feedback using this form: https://hubs.la/Q02QC1Yr0 Member opinions are vital to ensuring this pathway reflects the realities of evolving practice and changes at the state level. Comments are due December 6, 2024. Learn more about the proposal ⬇️ https://hubs.la/Q02QC22V0

The American Institute of Certified Public Accountants and National Association of State Boards of Accountancy are seeking comment on an exposure draft (ED) released last week entitled, CPA Competency-Based Experience Pathway. This ED outlines proposed requirements and processes for obtaining the certified public accountant designation through a competency-based approach. It focuses on assessing and demonstrating specific competencies and skills required for the CPA role, rather than traditional time- and education-based experience. If implemented, the new pathway will allow eligible individuals to sit for the CPA exam so long as they have a Bachelor's degree and relevant work experience. Such a pathway is a reasoned solution to address declining workforce recruitment in the public finance profession, without undermining the delicate system of uniform interstate modality currently administered by America's state boards of accountancy. https://lnkd.in/g-QBbRzx

🚀 **Exciting Update for Future CPAs!** 🚀 The AICPA and NASBA are inviting feedback on a groundbreaking proposal for a **Competency-Based Experience Pathway** for CPA licensure! This new model offers CPA candidates an alternative way to demonstrate their professional and technical skills after earning their bachelor's degree and fulfilling state requirements. The goal? Enhance flexibility for the next generation of accountants while preserving the high standards of public protection in our profession. Here's a quick overview: 📚 **Current Pathway**:  - Pass the CPA Exam - Complete one year of professional general experience - Obtain a master's degree or accumulate 150 total credit hours (most bachelor's programs require 120 hours) 🔍 **New Competency-Based Experience Option**:  - The proposal introduces a competency framework with **7 professional competencies** and **3 technical competencies** that candidates must demonstrate. - **Professional Competencies** include Ethical Behavior, Critical Thinking, Communication, Leadership, and more. - **Technical Competencies** include Audit and Assurance, Tax, and Business Reporting. 💡 **Why It Matters**: This pathway aims to balance flexibility with the rigorous standards necessary for protecting the public and maintaining the profession’s integrity. 🗓️ **Public Input**: You have until December 6 to share your thoughts on this proposal. Your feedback is crucial for shaping a pathway that reflects market needs and accessibility. Sue Coffey, CPA, CGMA, CEO of Public Accounting for the AICPA, emphasizes, "Our goal is to ensure accounting professionals have the necessary experience, knowledge, and competencies to excel, while also offering flexible licensure paths." Daniel Dustin, CPA, NASBA President and CEO, adds, "We look forward to input from the 55 U.S. boards of accountancy to strengthen the CPA pipeline." For more details and to submit your feedback, visit the link in the comments! #CPA #Accounting #CompetencyBasedPathway #AICPA #NASBA #PublicAccounting #FutureCPAs #Licensure #ProfessionalDevelopment

Big Changes in Play! AICPA and NASBA have proposed a new initiative aimed at helping CPA candidates meet licensure requirements. The CPA Competency-Based Experience Pathway would offer an additional route for candidates to demonstrate their professional and technical skills after earning a bachelor’s degree and completing the necessary accounting and business courses required by their state. Proposed Competency Framework Highlights: - The framework consists of seven professional and three technical competencies. - Candidates would need to demonstrate proficiency in all professional competencies and at least one of the three technical competencies, which would be verified by one or more evaluators within their organization. - Professional competencies include ethical behavior, critical thinking, and communication, while technical competencies focus on areas such as audit and assurance, tax, and financial reporting.

The AICPA and NASBA have proposed a new pathway to CPA licensure that would add a competency-based experience pathway as an alternative to the existing 150-credit hour requirement. I'm interested to hear what existing and aspiring accountants think about this possible change. Below is a link to an article about this proposal from the Journal of Accountancy: https://lnkd.in/g7X3cfAn

Input is requested through Dec 6

To all my CPA colleagues out there - this exposure draft is the work of thousands of hours of volunteer and staff time. A true collaborative effort from those in public practice, private practice, business and industry and academia with the goal of providing additional opportunities for those looking to enter the profession while maintaining the highest standards of public protection. Please read the exposure draft and share your comments.

The AICPA and NASBA are proposing a new CPA Competency-Based Experience Pathway to make the licensure process more flexible, allowing candidates to demonstrate their skills after completing their degree while maintaining high public protection standards. As an accounting student, I'm pleased about how this method will make the CPA journey more accessible while yet preparing us for the profession's intricacies. Your feedback is crucial—share your opinions before the public comment session closes on December 6th! #AICPA #NASBA #CPAlicensing #FutureCPA #Accounting