CPA Evolution:

New CPA
Licensure Model

Coming January 2024
1 New CPA Licensure Model

Background
The CPA Evolution initiative aims to transform theCPA licensure model to recognize the rapidly changingskills and competencies the practice of accounting
requires today and will require in the future. It is a joint
effort of the National Association of State Boards ofAccountancy (NASBA) and the American Institute ofCPAs® (AICPA®).
Based on the feedback received from over 3,000
stakeholders, NASBA and the AICPA developed anew model for CPA licensure, which will go into effectin January 2024. The AICPA Governing Council andthe NASBA Board of Directors both voted to support
advancing the CPA Evolution initiative.

The changingprofession
Stakeholder feedback, results of the most recent Uniform
CPA Examination® (CPA Exam). Practice Analysis andother research show that the body of knowledge requiredof newly licensed CPAs is growing rapidly.
Additionally, procedures that licensed CPAs historically
perform are being automated, offshored or performedby paraprofessionals. Now, entry-level CPAs arehandling procedures that require deeper criticalthinking, problem-solving and professional judgment.
Responsibilities that were traditionally assigned tomore experienced professionals are being pushed
down to the staff level. As a result, newly licensed
CPAs need to know more than ever before to meetthe needs of practice. To protect the public, the CPA
licensure model must reflect these changes.

•		 Stretch the examination and education requirements
to cover a greater range of material with less depth,
which would water down the requirements forlicensure;•		 Expand the number of examination and curriculum
hours as the body of knowledge continues to grow,which would increase barriers to entry for theprofession and ultimately prove unsustainable;•		 Or find an alternative solution.

Body of knowledge for newly
licensed CPAs growing rapidly
Compared to 1980, today there are:

3X
4X
5X

As many pages in the Internal
Revenue CodeAs many accounting standards

As many auditing standards

Demands of practice require deeper
skill sets
• Critical thinking

The examination and education requirements of ourcurrent model do not cover all of the knowledge CPAs
need in today’s professional environment. As theknowledge required of newly licensed CPAs continuesto increase over time, we could:
2 New CPA Licensure Model• Professional judgment/skepticism• Problem-solving• Understanding ofbusiness systems,controls, risk
• Data management andanalysis• SOC engagements

Stakeholder engagement
Over three years, NASBA and the AICPA talked to morethan 3,000 stakeholders from across the profession togather input on how to transform CPA licensure. Here issome of the feedback we received:•		 The profession agrees with the need to change theCPA licensure model•		 Newly licensed CPAs should all demonstratestrong common core competencies•		 The new CPA licensure model should position
CPAs for the future•		 The new CPA licensure model should protect
the public interest

3 New CPA Licensure Model

Stakeholders we talked to:• AICPA Council• Federal regulators• Boards of Accountancy• Students• State CPA societies• Technology experts• Firms of all sizes• CPAs in business andindustry• Academia• Volunteer committees

New CPA licensuremodel: Expected tolaunch in 2024
In Fall 2019, NASBA and the AICPA carefully reviewed
all of the feedback received, studied other professions’licensure models and considered multiple options for
updates to the CPA licensure model before developing
the approach presented in the above image. We havebegun planning for the launch of a new CPA Exam inJanuary 2024.
We believe this approach is responsive to stakeholder
input while still propelling the profession into thefuture. The new model is a core + disciplines licensuremodel. The model starts with a deep and strong corein accounting, auditing and tax, with a recognition of
the impact technology has on each. All candidates
will be required to complete the core sections. Then,each candidate will choose a discipline in which to
4 New CPA Licensure Modeldemonstrate more skills and knowledge. Regardless ofchosen discipline, this model leads to full CPA licensure,with rights and privileges consistent with any other CPA.
The discipline selected for testing does not mean theCPA is limited to that practice area.

This model:•		 Enhances public protection by producing candidates
who have the deep knowledge necessary to perform
high-quality work, meeting the needs of organizations,firms and the public•		 Is responsive to feedback, as it builds accounting,auditing, tax and technology knowledge requirements
into a robust common core
•		 Reflects the realities of practice, requiring deeper
proven knowledge in one of three disciplines that arepillars of the profession•		 Is adaptive and flexible, helping to future-proof theCPA as the profession continues to evolve•		 Results in one CPA license

What’s next
With a multi-year effort underway to implement thelicensure model, the goal is to launch a new CPA Exam inJanuary 2024.
To help colleges and universities prepare students forthe demands of professional practice and future CPA
Exam changes, educators and practitioners are guiding
the development of an CPA Evolution model curriculumaligned with the CPA Evolution model. The team plansto publish the curriculum in June 2021. For educatorspecific inquiries, contact the AICPA Academic team at
academics@aicpa.org.

For more information, visit EvolutionofCPA.org
or contact Feedback@EvolutionofCPA.org.

5 New CPA Licensure Model

Through their Academic Resource Hub (ARH), the teamprovides access to Faculty Hour webcasts and aneducator database that contains a variety of contentfor use in the classroom, including cases, simulations,videos, articles and more.
The AICPA Examinations team began a new practiceanalysis to develop a CPA Evolution-aligned CPA Exam,which will be announced in January 2023. In the comingmonths, the team will periodically share details about
the development of proposed content and topics to be
included in the core and discipline sections of the CPA
Exam as well as solicit stakeholder feedback.

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6 New CPA Licensure Model