To obtain the required body of knowledge and to develop the skills and abilities needed to be successful CPAs, students should complete 150 semester hours of education. Many states/jurisdictions now require or will require 150 semester hours of education for obtaining the CPA certification. Colleges and universities in these states/jurisdictions determine the curriculum for pre-licensure education of CPAs; it typically features a good balance of accounting, business, and general education.
Why an Emphasis on 150 Semester Hours of Education for Aspiring CPAs?
There are a number of reasons why a traditional four-year undergraduate program is no longer adequate for obtaining the requisite knowledge and skills to become a CPA:
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How to Meet the 150-Hour Requirement
Many colleges and universities offer bachelor's and master's degree programs in accounting. To obtain 150 semester hours of education, students do not necessarily have to get a master's degree. They can meet the requirement at the undergraduate level or get a bachelor's degree and take some courses at the graduate level. Students can also choose any of the following:
In most cases, the additional academic work needed to acquire the technical competence and develop the skills required by today's CPA is best obtained at the graduate level. Graduate-level programs are an excellent way to more fully develop skills such as communication, presentation, and interpersonal relations, and to integrate them with the technical knowledge being acquired.
For these reasons, leading professional organizations such as the AICPA, the National Association of State Boards of Accountancy, and the Federation of Schools of Accountancy have consistently supported the 150-hour education requirement for entry into the accounting profession.
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States/Jurisdictions That Have the 150-Hour Education Requirement in Effect
Currently, over 40 states have adopted the 150-hour requirement, while the remaining states/jurisdictions continue to work toward adoption.
Would the 150-hour requirement apply to CPAs who are already certified?
The requirement would not apply to CPAs who received their certification prior to the effective date of the change in the education requirement. For AICPA membership, the requirement applies to those who have taken the CPA exam and applied for membership after the year 2000.
Does the CPA candidate need to obtain a master's degree to meet the 150-hour requirement?
The AICPA education proposal does not require a master's degree to meet the requirement. It can be met in a variety of ways, including extra hours at the graduate level without a master's degree. None of the states that have passed the 150-hour law require a master's degree.
If a master's degree is obtained, need it be in accounting, or would an MBA also qualify?
Details on what will qualify may vary from state to state according to rules of the state board.The AICPA proposal would allow an MBA with an accounting concentration to qualify.
Does the adoption of the 150-hour proposal discontinue the experience requirement for new entrants in the accounting profession?
The education requirement is not a substitute for the experience requirement. A state which adopts the increased education requirement could decide to discontinue or modify the experience requirement. Many states have a reduced experience requirement for candidates who hold a master's degree.
Since accounting firms will be hiring students with an additional year of education, will this increase the starting salaries and be reflected in higher billing rates for clients?
Accounting firms are going to need to increase starting salaries in order to attract top students into the profession. This is true even in the absence of an increased education requirement. The phase-in period, usually adopted, should enable firms to absorb the increased cost over a period of years. New entrants who complete the requirement are expected to be more knowledgeable, efficient and work with less supervision. It is expected that both time and staff size will be reduced to offset increases in client costs.
Will small accounting firms successfully compete with larger firms in hiring graduates who complete the 150-hour program?
When the requirement is mandated by law, the competitive position of small and large firms should not change, since all will be affected equally.
Will the education requirement cause the brightest students to choose a non-accounting career because of the increased course work?
The requirement will probably attract a higher caliber student to accounting because it brings CPAs in line with other professions which require additional education. The brightest and best high school students are increasingly opting for careers that require graduate training. Also, students that complete the requirement will not only invest in their careers, but advance more rapidly in their firms due to an increased education base.
Will the 150-hour education requirement create a barrier to minorities and the economically disadvantaged?
Education requirements have not created entry barriers in other professions that require graduate education. Statistics show that a higher percentage of minorities are MDs and JDs than are CPAs. Minority students who plan to go on to graduate education will now be attracted to accounting.
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