CPA Preparation and Eligibility
Developing a 150-Hour Curriculum

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Florida was a trailblazer in 1979 when it became the first state to require 150 semester hours to sit for the CPA exam. (The requirement took effect on August 1, 1983.) New York approved the additional education requirement for CPA exam eligibility almost 20 years later, in 1998, with an August 1, 2009, date for implementation.

Over the years, there has been much debate regarding whether the 150-hour requirement would improve the quality of future accounting professionals or simply construct barriers to entry for economically disadvantaged individuals. Most practitioners, educators, and regulators have decided that the benefits of the additional 30 semester hours outweigh the potential costs, and only six jurisdictions have not yet enacted this requirement: California, Colorado, Delaware, New Hampshire, Vermont, and the Virgin Islands.

120 or 150?

Recently, however, the debate has shifted to whether CPA candidates should be allowed to sit for the exam after they’ve completed the first 120 academic credits. Nineteen state boards now allow candidates with 120 credits (or close to the completion of those credits) to sit for the CPA exam while requiring 150 credits for licensure.

Although most professionals agree that a four-year program is not long enough to provide the breadth of knowledge and skills needed for an entry-level CPA, the content of the extra 30 credits was never defined. Many felt that the additional credits should intentionally be unspecified to provide flexibility within the accounting curriculum. This has triggered debate of what direction the curriculum should take: The NYSSCPA’s white paper, Examination of Pre-Certification Education (which appears on page 26 of this issue and on www.nysscpa.org), takes the position that the expanded curriculum culminate in a graduate degree with the goal of having graduate-level study promote the nontechnical skills “that would enhance the profession’s ability to perform the complex activities that the public expects.”

The AICPA’s and NASBA’s initial intention for the 150-hour provision was to broaden the base of accounting education by enhancing communication skills, such as writing and public speaking, as well as providing a better understanding of general business concepts. Some argue that this runs counter to the purpose of post-baccalaureate programs, which generally provide a more detailed understanding of a specific area of study within the discipline. So which should it be? Is our goal for the 150-hour requirement a better-rounded CPA or a more technically educated expert?

The Need for Guidelines

The overwhelming majority of professionals who have recruitment responsibilities in their organizations prefer to hire individuals with the ability to communicate well and think critically. Although a basic understanding of accounting, auditing, tax, business law, and computer fundamentals is expected, virtually all employers are willing to train new hires in the more technical areas in which they will be working.

If we expect successful entry-level CPAs to have good “soft” skills, such as writing and speaking, shouldn’t those skills be tested on the CPA exam? Ironically, the AICPA’s Board of Examiners (BOE) seems to be reducing the number of essay questions and moving toward objective questions to expedite the grading process.

Perhaps it’s time for better communication between regulators, educators, and the BOE. Teaching and testing the knowledge and skills necessary to prepare students to use their professional judgment and succeed in their chosen career would provide a stronger link between academe, practice, and the CPA exam. One of the many reasons proponents of the 120/150 model cite for allowing candidates to take the exam after 120 credits is that the current CPA exam content can be covered within the undergraduate curriculum. Perhaps it’s time to reconsider the CPA exam content in light of the extra credits: If the exam is to remain focused on the technical material covered in an undergraduate accounting program, then that content could be tested after 120 credits with an objective-question exam. Then, at the completion of the 150-hour program, a much-needed soft skills section of the CPA exam should be administered, to include a combination of a written essay and verbal presentation. Basic guidelines for the additional credit-hours, along with appropriate revisions to an exam that provides entry to our profession, could better prepare CPAs and ultimately protect the public.

As always, I welcome your comments.

Mary-Jo Kranacher, MBA, CPA, CFE
Editor-in-Chief
mkranacher@nysscpa.org

©2009 The New York State Society of CPAs. Legal Notices