NASBA Announces Historic CPA Exam Model Rule Amendment
April 27, 2023
On April 21, the National Association of State Boards of Accountancy (NASBA) amended its Uniform Accountancy Act (UAA) to increase the length of the Uniform CPA Exam testing windows from 18 months to 30 months.
The highly-anticipated change comes nearly 20 years after the launch of the computer-based CPA Exam. Starting in 2004, candidates have had 18 months from the date of passing the first section of the Exam to complete the remaining three sections without losing credit. This has been labeled the “conditioning” rule, which all 55 U.S. states and territories adopted.
However, with disruptions inflicted by the pandemic, the reduction of candidates in the pipeline, and the increased workload of firms, there has been increasing interest in providing candidates and firms relief by extending the conditioning period.
NASBA Board of Directors voted to adopt an amendment to UAA Model Rule 5-7, which not only increases the length of conditional credit from 18 months to 30 months but also bases the calculation of conditional credit for Exam sections passed on the date that scores are released and adds descriptive language to provide greater clarity for when Boards of Accountancy may extend conditional credit.
However, the UAA Model Rules have no immediate effect on state board rules but uniform adoption is encouraged. Each individual state board may consider the amendment to Model Rule 5-7 and, if so choose, commence a process to change the rules at the state level. Current Exam candidates remain under existing rules until, if and when, the board to which they applied makes changes.
“Providing an additional year of conditional credit to candidates for Exam sections passed provides more flexibility to those seeking licensure as a CPA," said NASBA President and CEO Ken L. Bishop. "The additional time also provides greater latitude to firms and candidates as they negotiate the demands of today’s complex career environment.”
Over a 60-day comment period leading up to the adoption of the new rule, more than 850 respondents gave input to the exposure draft, which was issued by NASBA’s UAA Committee. Comments were received from a broad representation of stakeholders, including State Boards of Accountancy, State CPA Societies—including the OSCPA—CPA firms, licensed CPAs, educators and students.
“On behalf of the NASBA Board of Directors, we would like to thank the [UAA] Committee and the many stakeholders who provided valuable input to the rule making process,” said Richard N. Reisig, CPA, 2023-24 NASBA Chair. “We believe this amendment made to the UAA Model Rules will support the best interests of the candidates in their journey to entering the profession.”