Licensure Analysis: CBA Re-examining Experience Requirement.

• Author: Fox, Jason
• Position: CapitolBeat

The CBA has formed the Consideration of the CPA Experience Requirements Task Force (CERT) to study and advise the CBA on whether the attest experience requirement for CPA licensure is necessary and sufficient to support the CBA's consumer protection mandate by ensuring only qualified licensees practice public accountancy in accordance with professional standards.

The task force is made up of members of the CBA. split evenly between CPAs and public members, and external groups representing various stakeholders, including representative from academia, NASBA, consumer users of CPA services, the CPA profession (CalCPA) and a licensee with general experience.

Currently, all CPAs must complete a minimum of one year of experience involving the use of accounting, attest, compilation, management advisory, financial advisory, tax or consulting skills. The experience can be gained through employment in public accounting, private industry, government or academia.

Upon issuance of a license with general accounting experience, this CPA with a general or "G" license can perform a wide range of accounting services, including participating in attest engagements; however, the CPA may not sign reports on attest engagements.

Those who want the authority to sign reports on attest engagements, in addition to completing the general experience requirement, must also document a minimum 500 hours of experience with attest services like the planning and execution of an audit, application of auditing procedures and standards, and preparation of work papers and other documentation. A CPA with this type of experience receives an attest or 'A" license.

California is unique in offering the two experience tracks that lead to two license types. Most states require a broadly defined minimum of one year of experience that leads to a CPA license with the full scope of authority afforded by the license.

In essence the CBA will be looking to the task force to assist the CBA in determining if California should continue to offer two experience tracks that lead to two different types of CPA licenses, or adjust toward one experience requirement that leads to one CPA license. And if so, what does that new-track look like.

If this sounds a bit familiar, it is because the CBA formed a similar taskforce in 2013 that helped examine a similar question about the experience requirement for the CPA license. After length)' discussions, analysis, and a comprehensive survey, the CBA ultimately...