NPAG Accounting Talent Strategy Report: Recommendation #2 – Address the Time and Cost of Education
The National Pipeline Advisory Group (NPAG) has released its Accounting Talent Strategy Report, sharing the results of months of research and feedback on how to improve the accounting talent pipeline. This series of six articles presents a brief overview of the recommendations outlined in the report.
The second major theme that has emerged from NPAG’s research involves addressing the time and cost of education. In developing its recommendations in this area, NPAG’s goal was to create a buildable set of concepts that adds to the existing licensure options and starts to shift to measuring competency instead of only academic experience.
The report explores three additional licensure options developed by NPAG based on its research, which included extensive study of the possible effects on mobility and substantial equivalency. Two of the options are experiential learning solutions to obtain the educational requirements needed post-bachelor’s degree, and one option is a competency-based model.
NPAG’s objectives for these solutions are:
- To continue to transform the licensure process while protecting the public interest and CPA brand
- To offer equitable access to all potential candidates
- To ensure a built-in methodology for transparent and ongoing evaluation of licensure
- To align licensure with the modern business world in an agile and adaptable manner
The foundation of the three solution concepts would be a common competency framework, and passing the CPA Exam would be a requirement with all solutions.
Reduced-Cost Education and On-Transcript Experiential Learning
One solution concept NPAG identifies in the report is experiential learning that earns college credit on the student's transcript. This option is currently available and could be expanded nationally. This concept eases the cost and/or time of education without material impacts to substantial equivalency or mobility.
One idea is to direct students to on-the-transcript learning options available today that are intended to make the final year of education less costly. Another idea entails employers working together with colleges and universities to offer on-the-transcript experiential learning to their employees who have earned their bachelor's degree and need to complete their final 30 hours.
Off-Transcript Experiential Learning
NPAG’s second solution concept involves experiential learning programs provided or facilitated by employers to their employees. Because these credits would not appear on a transcript, this concept could affect substantial equivalency and mobility. The learning for this near-term concept would be earned via work experience according to a common rubric, which has not yet been developed.
In order for this concept to be implemented, NPAG notes that the common rubrics and standards outlining the required last-year competencies must be developed, written into the Uniform Accountancy Act, and agreed to by stakeholders and state boards. Also, a form of program administration must be agreed upon.
Competency-Based Model
This longer-term solution concept would measure outputs (skills mastery, abilities, knowledge and experience) versus education hours. Competencies could be gained through institutional learning, experiential learning delivered by employers or self-study options.
In the report, NPAG acknowledges there are many questions to answer regarding this concept, including who would develop the competency framework, the educational options and the interim assessments.
NPAG believes this concept will require:
- A profession-wide effort to develop, assess and refine the approach with minimum standards
- A practice analysis to include the skills needed for success in the profession
- A commitment to maintain the rigor and quality the CPA designation is currently known for
More Information
For more details on this topic, or to read the full Accounting Talent Strategy Report, visit https://www.accountingpipeline.org.