IMA Response to AICPA NASBA Exposure Draft

The American Institute of CPAs (AICPA) and National Association of State Boards of Accountancy (NASBA) recently issued an exposure draft inviting comments on a proposed solution to adopt a new competency-based experience requirement to qualify to take the CPA exam. The proposal aims to provide flexibility for CPA candidates seeking initial licensure. As a 105-year-old global professional body representing accounting and finance professionals in business, the Institute of Management Accountants’ (IMA) feedback is important to provide on behalf of the members and stakeholders we serve in the U.S. and around the world.

IMA is fully supportive of efforts to create alternative pathways to the profession. We are keenly aware of the challenges the profession faces with a shrinking pipeline of new talent. We recognize the rapidly increasing need for current and future accounting and finance professionals to serve as strategic business partners. This condition emphasizes the critical need for a rigorous and holistic accounting education. While the intention of AICPA and NASBA is to make an impact on the accounting talent pipeline in the profession via the CPA licensure education requirements, it is necessary to recognize that the CPA licensure is a career path option and does not solely represent the accounting profession.

We know the overwhelming majority of accounting professionals work in industry, supporting crucial value-creation functions for organizations that rely on their talent and skill in accounting and finance. And there are many reasons beyond credentialing or education requirements as to why the younger generation is not choosing accounting as a career path. We should be willing as a profession to address these head-on. We emphasize the need to take a holistic view of the education and training required for the accounting profession to protect the public and serve the public interest. We are open to collaborative efforts to address the root causes for and developing solutions to the talent pipeline shortage beyond any specific licensure or certification.

We emphasize to our members and stakeholders that accounting and finance professionals need strong critical thinking, communication, and collaboration skills, in addition to skills in advanced technologies, sustainability, data science, cybersecurity, risk management, and leadership – to shape the way business will get done in the future. Therefore, we agree with the proposal that the “professional competencies in the Framework are necessary in the accounting profession, regardless of career path.” This is why it is essential in today’s rapidly changing business environment to have a robust pool of individuals choosing to become accountants.

We must ensure we are communicating with aspiring professionals so that they can make a real difference in their organizations as accountants. IMA is working with organizations in different industries, academia, and governments to facilitate and encourage dialogue about how the workplace can take actions to attract, retain, and nurture accounting talent as business partners at different value-added levels and areas in their organizations.

We recognize the importance of building a robust, diverse and inclusive pipeline to the profession to support these efforts. IMA’s research and thought leadership, in partnership with leading accounting associations such as IFAC, CalCPA, etc., Diversifying Global Accounting Talent: Actionable Solutions for Progress, includes recommended solutions that can be implemented today to shape our future.

As the profession continues to transform, IMA’s long-standing commitment to support professionals, advocate for diverse career paths, and enhance the understanding of the profession, will help shape a stronger future for all of us.

Sincerely,

Mike DePrisco signature