National Pipeline Advisory Group
The group’s Accounting Talent Strategy Report explores the latest pipeline data, root causes of the profession’s attrition and potential solutions.
Background
In 2023, the AICPA created the National Pipeline Advisory Group (NPAG) to address the decline in accounting graduates and CPA candidates. In May 2024, the group released its report that includes themes for stakeholders to address, including promoting more compelling stories about accounting careers, making the college experience more engaging for accounting majors and potential majors, reducing the time and cost of education, increasing support for CPA Exam candidates, expanding access for under-represented groups, and transforming employer cultures and business models. These insights help inform and focus pipeline efforts across the country.
Additionally, NPAG has organized a pipeline pledge, profession-wide effort encouraging individuals to participate in at least two activities annually that will positively impact the talent pool. CalCPA encourages all members to consider taking the pledge.
As a follow-up to the NPAG work, the AICPA and NASBA released two exposure drafts: A proposed Competency-Based Experience Pathway and proposed updates to the Uniform Accountancy Act (UAA).
Competency–Based Experience Pathway
The competency-based framework embeds professional and technical competencies into the experience requirement for licensure. CPA candidates would need to exhibit seven professional competencies—ethical behavior, critical thinking, communication, collaborative teamwork, self-management, business acumen and technology mindset—and at least one of the three technical competencies, which include audit and assurance, tax, and financial reporting. The exhibition of these competencies would be evaluated by one or more CPA evaluator within the candidate’s organization. In developing the proposed pathway, AICPA and NASBA leadership sought to create a pathway that may be prescribed in a revised UAA Section 5 and would be considered equivalent to the current licensure pathways that are centered on 150 semester units of education. This proposed pathway is open for comment through Dec. 6.
Proposed Uniform Accountancy Act (UAA) Amendments
AICPA and NASBA leadership are proposing changes to the UAA to incorporate a proposed CPA Competency-Based Experience Pathway. Specifically, the proposed changes would:
Specify the education required to sit for the Uniform CPA Examination;
Define the requirements for an additional pathway for licensure as a CPA;
Retain mobility for those licensed under a pathway defined in the UAA; 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, NASBA's 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. These proposed changes are open for comment through Dec. 30.
Other National Efforts
Pipeline Acceleration Plan
Before forming the National Pipeline Advisory Group, the AICPA gathered stakeholders like state CPA societies, firms, academia, NASBA and the CAQ to tackle the root causes of CPA pipeline issues. Their efforts focus on increasing awareness of career opportunities, improving perceptions of the profession, providing quality education and training, fostering positive firm culture, attracting diverse talent, and partnering with educational institutions to support aspiring CPAs. The plan has evolved with feedback, including from CalCPA, to expand beyond the initial initiatives to create a comprehensive approach with focused efforts to strengthen the CPA pipeline.
Experience, Learn and Earn (ELE) Program
The Experience, Learn and Earn (ELE) program is an AICPA and NASBA initiative to develop an integrated education and experience program for students who need a path to the 150 credit hours required for CPA licensure. Starting in Fall 2023, participants can earn up to 30 educational credits while working at a CPA firm. The program includes online courses from Tulane University, allowing students to apply their learning in real-world settings with support from their employers. As the program grows, more universities and diverse learning options are expected to be added to meet the needs of both firms and student associates.
What are Other States Doing?
States across the country are addressing similar pipeline and licensing challenges with their profession and regulatory leaders. Many are exploring or advancing concepts that align closely with California’s framework. While approaches differ, most aim to introduce flexible, alternative pathways to licensure. In addition, states are reviewing their mobility provisions to ensure they support these licensing changes and maintain a strong interstate practice framework. Recognizing the importance of consistency, states are loosely coordinating with profession leaders at both state and national levels as they work on these updates.
