For WizardKim-VDPR1

Wk4 Video Discussion Response:

Instructions: Respond to the video discussion post below. 3 substantial paragraphs, and 3 peer reviewed authoritative sources, not including the textbook, cited properly in APA format.

The video I selected this week I think may be of great interest to many of us who aspire to achieve the CPA license.  

The National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) have developed an initiative called CPA Evolution, which represents a dynamic new approach to CPA licensure that positions the profession for success now and in the future, and ensures continued public protection. 

The CPA Evolution initiative aims to transform the CPA licensure model to recognize the rapidly changing skills and competencies the practice of accounting requires today and will require in the future.  

Today’s newly licensed CPAs are expected to know more information than ever before.  Compared to the 1980s, today 3 times more Internal Revenue Code Pages, 4 times more Accounting Standards, and 5 times more Auditing  Standards are handled.  

The demands of practice require deeper skill sets, more competencies,  and greater knowledge of emerging technologies.   

The new CPA licensure model was developed asking for feedback from key stakeholders in the profession, academia, and the regulatory community.  They received the response of more than 3,000 individuals and organizations, with great insights.  

The support received was widespread to change the CPA Licensure Model still built around a robust common core of accounting, auditing, and tax, but with an increased emphasis on technology.  The new model should also address the ever-expanding body of knowledge for new CPAs as well, without continually increasing exam and education requirements to an unsustainable level.  

The model starts with a deep-rooted and robust core in accounting, auditing, tax, and technology, a requirement for all candidates. Next, each candidate would choose a discipline to demonstrate greater skills and knowledge. Regardless of discipline, the model leads to full CPA licensure with the same rights and privileges as any other CPA. This means CPAs would still be able to practice in any area,  as long as they have the required competence to do so.  

Researching a little about this new CPA licensure model, outside of the video, I was able to know that with the implementation of this it is intended to launch a new Uniform CPA Exam in 2024.  

Also, as part of the CPA Evolution initiative, the leadership of NASBA, in collaboration with the AICPA, determined that the Uniform Accountancy Act Model Rules around educational requirements for licensure needed to be updated to incorporate additional subjects and skills reflective of the evolving profession, and create more consistency. NASBA  expects to issue final rules for the model in the fall of this year.  

References:

AICPA. (2020, August 31). CPA Evolution: New CPA licensure model coming in 2024. https://www.youtube.com/watch?v=nkdecFSnUlk&t=62s

Evolutionofcpa.org. (n.d.) CPA Evolution. https://www.evolutionofcpa.org/

Nasba.org. (2019). CPA Evolution. https://nasba.org/app/uploads/2019/11/CPA-Evolution.pdf