SHARE:  

NEWS UPDATE

November 29, 2024

Nebraska Society of CPAs Submits Comment Letters

AICPA & NASBA Seek Input on Exposure Drafts

To address the talent needs within the accounting profession and expand access to accounting careers, the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) have proposed changes to the profession's model law.


Below is information regarding each exposure draft, how to submit your comments, and links to the comment letters submitted by the Nebraska Society of CPAs to the AICPA and NASBA. All comment letters will be made public.

Exposure Draft No. 1: CPA Competency-Based Experience Pathway


The first proposal is aimed at helping CPA candidates meet initial licensure requirements. This additional option would not replace existing pathways, but instead respond to market changes and expand opportunities for the next generation of accountants.


The Uniform Accountancy Act (UAA) provides state legislatures and boards of accountancy with a national model that can be adopted in full or in part to meet the specific needs of each state and jurisdiction. The UAA provides a national framework for regulating CPAs, promoting consistent standards, and protecting the public.


The proposed changes to the UAA would allow states to potentially adopt the CPA Competency-Based Experience Pathway, an additional option for CPA candidates to demonstrate professional and technical skills in the workplace after earning a bachelor’s degree and meeting their state’s requirements for accounting and business courses. 


Under the UAA currently, after candidates obtain a bachelor's degree, they must pass the CPA Exam, complete one year of professional general experience, and either earn a master's degree or take college courses that bring them to 150 total credit hours—most bachelor’s degrees require 120 hours. (NOTE: In Nebraska presently, two years of public accounting experience or three years of experience in business, government, or academia are required to obtain a permit to practice.)


The competency framework at the heart of the proposal includes seven professional and three technical competencies. Candidates would be required to exhibit all seven professional competencies and at least one of the three technical competencies. The proposed professional competencies are ethical behavior; critical thinking and professional skepticism; communication; collaboration, teamwork, and leadership; self-management and continuous learning; business acumen; and technology mindset. The proposed technical competencies are audit and assurance; tax; and business and financial reporting. 


The competencies, which would be verified in the workplace by licensed CPAs, are expected to take most candidates a year, but there is flexibility in the timing for completion.


Comments on the Competency-Based Experience Pathway Exposure Draft are due Dec. 6.

 

Exposure Draft No. 2: Uniform Accountancy Act


The second proposal includes changes aimed at modernizing the UAA to pave the way for states to adopt an additional pathway for CPA licensure while maintaining public protection, mobility, and the rigor of CPA licensure.


The AICPA and NASBA board of directors each approved for exposure changes to the UAA that would:


  • Specify the education required to sit for the Uniform CPA Examination at a baccalaureate degree or higher;
  • Define the requirements for an additional pathway for licensure as a CPA;
  • Maintain mobility for those licensed under a pathway defined in the UAA;
  • Facilitate a means to identify those licensed under a pathway that is not substantially equivalent to the UAA through a national licensee database; and
  • Provide a mechanism for those who are licensed under a pathway that is not defined in the UAA but who later meet the mobility requirements defined in the UAA.


Separately, the NASBA Board of Directors approved for exposure UAA Model Rule changes updating the definitions to reflect the additional pathway for licensure and the experience required for the issuance of an initial certificate under the proposed additional pathway.


Comments on the UAA Exposure Draft are due Dec. 30.


After both the Pathway and UAA exposure periods close, the related committees will review all comments, consider additional changes, and finalize the respective proposals. The AICPA and NASBA anticipate presenting updated proposals to the AICPA and NASBA boards in early 2025. Adoption and implementation will vary by jurisdiction, as the UAA is ultimately a model document that may be adopted in full or modified to a jurisdiction’s own laws and rules.

 

Your insights and continued commitment to the accounting profession are greatly appreciated.

NEBRASKA SOCIETY OF CPAs
Facebook  Twitter  Linkedin