The American Institute of Certified Public Accountants (AICPA) is weighing a major change to the educational requirements for becoming a certified public accountant (CPA) in the United States.
This potential move comes as the accounting industry grapples with a severe shortage of new recruits entering the profession.
According to a report from the Financial Times, the AICPA is considering reducing the amount of university education needed to qualify as a CPA. Currently, becoming a CPA in the U.S. requires the equivalent of five years of education, one year longer than a typical bachelor’s degree.
The report states that this is a “watershed moment” in an increasingly intense debate between the professional accounting body and reformers calling for change.
As fewer U.S. students pursue accounting courses and professional exams, some firms have struggled to find replacements for retiring accountants.
On Tuesday, an AICPA advisory group with representatives from large and small firms recommended the profession “address the cost and time of education” as a priority. They called for “a competency-based licensure model not tied to university credit hours,” among other reforms.
The AICPA expressed “directional support” for the group’s recommendations, stating, “While expanding approaches to CPA licensure alone will not solve the accounting talent problem, we believe our licensure process does need to acknowledge changing market conditions.”
Some state accounting groups, including those in Minnesota, are also debating reviewing state laws to reduce the educational criteria for a CPA license.
However, the AICPA warned that such uncoordinated changes could threaten reciprocal agreements allowing accountants to practice across state lines.
AICPA’s Chief Executive for Public Accounting, Sue Coffey, said the organization aims to propose an alternative to the current education requirements by this time next year. However, getting state accountancy boards or legislatures to embrace the changes could take significantly longer.
Coffey stated that the currently mandated fifth year of education would need to be replaced with skill requirements, including technical knowledge, communication, and strategic thinking skills.
“I really hope Minnesota and others talking about this see value in working with the rest of the country,” Coffey said. “This is our attempt to bring everybody together.”
The potential reform highlights the accounting profession’s urgent need to address its talent shortage and adapt to changing market conditions.
