All aboard: time for ca to adopt the 150-hours educational pathway.

• Author: Allen, Bruce C.
• Position: Capitol Beat

It's almost 2009, which makes the California Legislature 32 years late hopping on the 150-hour train.

Why is it important to get on the train? Adhering to national licensing standards is the only way California can obtain substantial equivalency, which will allow California CPAs "practice" in other states on behalf of consumers.

What do you mean "practice?" You don't need to physically go to a state to practice in that state. Practice can mean:

* File an out-of-state tax return.

* Speak to an out-of-state banker on behalf of an in-state client.

* Send a business-related e-mail out of state.

* Perform an inventory in an out-of-state warehouse for an in-state audit client.

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* Perform a forensic investigation into an out-of-state manufacturing site of a California-based company. You get the idea.

Will other states really take enforcement action against us? Some states, such as Oregon, already do and several states passed legislation that says starting in 2012, CPSs from nonsubstantially equivalent states will not be able to practice in their states without obtaining that state's license.

What would an enforcement action look like? You could be barred from future practice in the state in question, and the charge of practicing without a license would be sent to the enforcement folks at the California Board of Accountancy, who might levy a fine, suspend your license or revoke it.

How do we get California into compliance? Conformity with national licensing standards defined by the Uniform Accountancy Act requires adherence to three main licensing requirements:

* Passage of the Uniform CPA Exam;

* One year of work experience; and

* 150 semester hours of education that include a bachelor's degree and a specified number of units in accounting and business subjects.

How is California out of synch? California issues about one-third of its licenses annually to candidates with only 120 hours of education.

How close are most graduates to 150? The average California CPA candidate today has completed 147.5 semester hours of education prior to sitting for the CPA Exam.

Why did the profession decide on more education? With the proliferation of standards and the increasing complexity of business, practitioners recognized that candidates needed additional units to achieve the broad-based communication skills, computer knowledge and analytical skills necessary to enter the profession and succeed. National CPA Exam data shows that candidates...