Virginia CPAs reconsider 150-hour rule

The Virginia Society of CPAs is rethinking the 150-hour requirement for earning a CPA license as state societies across the country try to come up with ways to entice more young people to join the accounting profession.

The VSCPA reported on its efforts Wednesday in its-house magazine, noting that last summer, the VSCPA board of directors asked a task force of members of the society to make a recommendation to the board regarding whether the VSCPA should change its standing position supporting the 150-hour requirement for licensure.

Other states like Minnesota have also been reconsidering the longstanding requirement for 150 credit hours of study to attain a CPA license (see story). The VSCPA noted that an overwhelming majorithy of states, including Virginia and, just recently, Oklahoma (see story), now allow candidates to take the exam once they have completed 120 hours — though they still must complete their 150 hours before they can become licensed as CPAs.

Oklahoma passed legislation allowing candidates to sit for the CPA exam after 120 hours in mid-April. Indiana joined the majority of states allowing candidates to sit after 120 hours of study last year, joining 47 other jurisdictions. However, lowering the requirement for getting a license is another matter.

The task force in Virginia included VSCPA board representatives,  members of the VSCPA Diversity, Equity & Inclusion Advisory Council, other members and educators as well as a representative from the Virginia Board of Accountancy.

The task force met four times between September of last year and this past January and evaluated historical data and statistics, surveyed the VSCPA membership to elicit feedback, spoke with accounting students, educators and other key stakeholders, including the American Institute of CPAs, which has long pointed to the importance of preserving the 150-hour requirement to allow for mobility so CPAs can practice across state lines. 

The Task Force presented a draft position to the VSCPA board reiterating the VSCPA's previous position in support of substantial equivalency. However, the task force thinks the 150-hour requirement clearly doesn't meet the profession's overall expectations and should be redefined.

At its meeting on April 27, the VSCPA board of directors modified its longstanding position on the requirement, striking out the words "150 hours" and adding a sentence saying, "The Society further endorses redefining the education requirement and advocating for a combination of traditional course work and/or other approved programs and experience relevant to the newly licensed CPA."

The VSCPA board also set specific pipeline-related goals for its 2023–2024 membership year which began May 1. Those include working with Virginia colleges and universities and other entities to create programs that allow CPA candidates to attain the 150-hour education requirement through internships or other experience-related programs. The VSCPA also plans to engage in a national dialogue with other state societies to review the Uniform Accountancy Act and determine what changes are needed to reflect the current business and education environment.