Authors: NATALIE DIXON

Abstract

Purpose This study examines the ripple effects of the approval by the AICPA and NASBA of a third pathway to satisfy CPA licensure requirements. The new model allows candidates to qualify with a bachelor’s degree, two years of relevant professional experience, and successful completion of the CPA examination. It offers an option that reduces the traditional 150-credit-hour requirement to 120 hours supplemented by experience, introducing greater flexibility into the licensure process. This study explores the implications of this policy shift for higher education institutions, the accounting talent pipeline, and accounting students, while identifying strategies to support stakeholders during the transition. Given persistent concerns about declining accounting enrollments and talent shortages, understanding the consequences of this structural change is both timely and important. Design/Methodology/Approach This qualitative study is based on 16 semi-structured interviews with senior stakeholders across the accounting education and licensure ecosystem. Participants included audit partners, a corporate CEO, a state Society of CPAs leader, accounting department chairs, faculty members, a career advisor, and representatives from CPA exam review providers, capturing micro-, meso-, and macro-level perspectives. Interviews were designed to elicit insights into the perceived benefits, risks, and expected outcomes of the alternative licensure pathway. Data were analyzed using an iterative thematic approach, with coding and recoding to identify recurring patterns and emergent themes grounded in participant experiences. Findings Eight interconnected themes emerged. First, participants indicated that the 150-hour requirement has not consistently achieved its intended goal of enhancing technical competence, often lacking alignment with professional skill development. Second, the new pathway was viewed as a pragmatic shift toward a more flexible, experience-based model, though concerns remain about unintended consequences, particularly regarding candidate preparedness without advanced coursework. The pathway is widely perceived as improving access by reducing financial and time barriers, with potential to enhance diversity, especially among first-generation and underrepresented students. However, respondents emphasized risks related to uneven quality of experiential learning across employers and regions. While most participants anticipated a positive effect on the accounting pipeline, uncertainty persists regarding the scale and sustainability of increased CPA supply. The findings also underscore the need for curriculum reform and stronger collaboration among educators, regulators, and employers to ensure consistency in training and professional readiness. Originality/Value This study offers one of the earliest empirical examinations of stakeholder perspectives on the alternative CPA licensure pathway. By integrating multi-level insights, it provides timely evidence on its system-wide implications and offers practical guidance for navigating this significant policy transition.

Keywords: 150-/120-Hour Education Requirement; Accounting Pipeline; CPA Licensure; Alternative Pathways.

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