those key competencies. NASBA, state boards, or other third parties would approve an individual at a firm or organization, who would ultimately ensure the competencies were met and oversee the testing, review, and evaluation. Saunders says the concept ticks a lot of important boxes, as it: Ensures cost effectiveness by allowing students to graduate with a bachelor’s degree with an accounting concentration and get right to work earning money; Establishes an equivalent pathway in the UAA to meet the flexible 30 hours component; Protects the public interest; Allows for quick pivots in the future by not relying on universities to change their curriculum; and, Leverages existing programs in larger accounting firms that may already meet the requirements. Deep dive details, such as will the experience window be longer or will there be a minimum number of hours, have not been developed yet. That step will be challenging, Saunders acknowledges. “But the big picture goal is a model that can keep up with the pace of change and can be reviewed as needed.” For any solution generated, there may be a transition period, much like what took place for the change from 120 hours to 150 hours of education. Some states will face bigger challenges because 150 hours is hardwired into their state statutes. Saunders says once the concept is agreed upon, the task force will address how state boards can work with their state legislatures. There’s a long, tough road ahead, but Saunders describes herself as an eternal optimist. “Many professionals embrace 150 hours and say their firms continue to seek out and hire those individuals,” she says. “But when there is a lack of people entering the profession, you need to act accordingly because, based on an AICPA study, in 15 years, 75% of current licensees will be gone.” Working Towards the Green Light In June, NASBA brought the development of the concept to the Eastern and Western Regional Conferences where board members from the 55 U.S. accounting jurisdictions received more information and had additional opportunities to provide comment. Once the state boards give the green light, the language to update the UAA will go through an exposure process led by the joint AICPA/NASBA UAA Committee. “The concept will be vetted by all stakeholders, and if all goes well, we hope that in the fall, it will be presented to and voted on by the NASBA and AICPA boards of directors to update the UAA language for states to adopt,” Saunders says. It’s an aggressive but necessary timeline. “One of our task force members related our situation to a train that has already left the station,” Saunders says. “We don’t want to jump too far ahead until we feel everyone is on board, but right now, some states lack the number of CPAs to perform government audits. Time is not on the profession’s side right now.” Embracing Change For those who are not in favor of changing the way CPAs are licensed, Saunders emphasizes the need to continually evolve the profession. “The world is changing so quickly,” she says. “Think about our financial markets. We’re in a global economy. Other countries are also dealing with this type of situation. It will become a larger problem if we do not have the necessary accounting experts.” Saunders feels the pressure from the pace of change every day in her own practice. “As a CPA, I can tell you I am not performing the same services as I did 40 years ago or even five years ago. Our small practice is incorporating artificial intelligence into much of what we do. CPAs encounter change all the time through pronouncements, tax law, and technology. The model must continue to evolve; otherwise, we lose the trusted advisor accounting space.” Circling around to the “train has left the station” analogy, Saunders asks, “Who is going to be the conductor here? I want it to be the State Boards of Accountancy because, at the end of the day, it is their legislatures that are going to adopt the rules.” Two states already have legislation in the works to revert to 120 hours, with more states planning to introduce similar legislation in 2025. “It’s out there,” Saunders cautions. “These discussions are currently happening among state boards and state societies. So, we need to do this together with open, honest conversations while we build future relationships for the profession and the public.” Natalie Rooney is a freelance writer from Colorado who has been writing for State CPA Societies for more than 20 years. She can be reached at nrooney@centurytel.net. Reprinted with permission of The Georgia Society of CPAs. 31 nescpa.org
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