Over 300,000 accounting professionals have exited the workforce since 2019, a reduction of 17 percent.
- Joel Price
- (805) 370-0542
SACRAMENTO – Assemblymember Jacqui Irwin (D-Thousand Oaks) is authoring legislation to modernize the licensing process for Certified Public Accountants (CPA). To address a shortage of accounting professionals in California, Assembly Bill (AB) 1175 will modify requirements for the CPA license and enhance consumer access to accounting services.
“AB 1175 is a critical step to improve our state’s pipeline for qualified and skilled CPAs,” said Assemblymember Irwin. “I am proud to champion this legislation and look forward to seeing this bill open more opportunities for aspiring accountants across California.”
The demand for CPA services is outpacing the number of new CPAs entering the profession, placing strain on current CPAs, their clients, and the public interest. Over 300,000 accounting professionals have exited the workforce since 2019, a reduction of 17 percent. Baby boomers make up the bulk of the accounting profession, and it is estimated that 75 percent of CPAs were of retirement-age in 2020. Additionally, in 2022, there was a 17-year low in terms of the number of students who took the CPA Exam.
AB 1175 will allow CPA licensure applicants to satisfy requirements for the CPA license with a bachelor’s degree, two years of work experience and completion of the CPA Exam. Applicants will also be able to substitute one year of work experience with a master’s degree in accounting. Currently, applicants are required to acquire a total of 150-semester unit credits of education, which amounts to a fifth year of college. This requires students to spend more in expensive tuition for courses they likely do not need and delays their entrance into the workforce.
Additionally, AB 1175 will update California’s CPA mobility program, allowing accountants from other states to temporarily practice in California while ensuring strong consumer protections and regulatory oversight.
AB 1175 is sponsored by the California Board of Accountancy, which is charged with regulating the accountancy profession in California.
Yen C. Tu, President of the Board of Accountancy, shares, “This bill aims to make the CPA designation more accessible to candidates from all backgrounds while maintaining strong consumer protection safeguards for out-of-state licensees practicing in our state.”
Research has shown that adoption of the 150-semester unit requirement by states did not improve the quality of CPAs, rather, the extra education contributed to a 26 percent decline of entry by minority CPAs.
“As the demand for CPAs grows, it’s important to have qualified professionals ready to support those who rely on them,” said Matthew Martin, Chair of CalCPA. “CalCPA is excited to back this effort to modernize CPA licensure, by offering more inclusive, flexible, and affordable pathways for aspiring CPAs while maintaining the high standards that make the profession trusted and respected.”
Assemblymember Irwin’s website: https://a42.asmdc.org
Assemblymember Jacqui Irwin represents California’s 42nd Assembly District, which includes portions of both Ventura and Los Angeles Counties; including all of Agoura Hills, Bel Air, Beverly Glen, Brentwood, Casa Conejo, Calabasas, Hidden Hills, Lake Sherwood, Malibu, Moorpark, Oak Park, Pacific Palisades, Santa Susana, Simi Valley, Thousand Oaks, Topanga, Westlake Village, and portions of Camarillo.