Sitting Requirements and the CPA Exam

Abstract

This study examines the association between jurisdictions' CPA exam educational requirements and exam pass rates, scores, and number of candidates from 2006 to 2013. More specifically, we examine provisional candidacy to sit for the CPA exam. Provisional status allows a candidate to sit for the CPA exam prior to obtaining the required number of hours or graduate degree. Our results indicate that while 150-hour exam jurisdictions outperform 120-hour jurisdictions, provisional jurisdictions outperform both 150- and 120-hour jurisdictions for pass rates and average scores. We also find that the number of candidates sitting for the exam is significantly lower for provisional and 150-hour jurisdictions than for 120-hour jurisdictions. Our study contributes to the literature by considering the potential benefits of sitting in provisional jurisdictions and is likely to be of interest to accounting educators, state boards, and public accounting firms. Data Availability: Data are publicly available from sources indicated in the text.

Exploring CPA Partner’s Educational Path and Views on Meeting the 150-Hour Rule

“…Jurisdictions requiring completion of 150 hours were found to have higher pass rates, but only with two of the four sections of the exam (Briggs & He, 2012). Soileau, Usrey, & Webb (2017) found that jurisdictions requiring 150 hours prior to sitting had higher pass rates and higher average scores.…”

150 Credit-Hours: Stakeholders’ Benefits and Students’ Skills and Attributes

“…The literature on the additional 30 credit-hours is mixed. Prior studies (Menk, Nagle, & Rau, 2017;Soileau, Usrey, & Webb, 2017) found CPA candidates with advanced degrees performed significantly better on the CPA exam than candidates who only have an undergraduate degree. Conversely, NASBA (2015) and Gramling and Rossman (2013) found overall pass rates as better after candidates complete an undergraduate degree.…”

“…Hawaii, Colorado (subsequently rescinded), and Florida were early adopters of the 150 credit-hours requirement for candidates to sit for the CPA exam, enacted in 1978CPA exam, enacted in , 1978CPA exam, enacted in , and 1979 (Fuller & Hargadon, 2008). However, the new rule raised harsh criticisms from stakeholders who cited additional cost, reduction of students entering the profession, and decline in CPA candidates as consequences to the additional 30 credit-hours (Allen & Woodland, 2012;Boone, Legoria, Seifert, & Stammerjohan, 2006;Gramling & Rossman, 2013;Soileau, Usrey, & Webb, 2017). As a result, most states established a 120/150 model with at least 120 credit-hours eligibility requirements to sit for the CPA while maintaining the 150 credit-hours eligibility requirement for licensure.…”

“…Prior studies resulted in inconsistent findings on whether the increased hours have increased the quality of candidates or entrants into the profession (Allen & Woodland, 2012;Boone et al, 2006;Gramling & Rossman, 2013;NASBA, 2015;Soileau et al, 2017). To understand what benefits CPA firms, corporations, and accountants (practitioners) perceive from the additional 30 credit-hours, this study examined the following research questions.…”

Preparing for the Hybridization of the Accounting Profession: A CISA Boot Camp Case Study

“…Certification programs, which can easily be integrated into curricula, provide a supplemental means of validating evolving KSAs consistent with estimates that employers value experience 50%, academic degrees 30%, and certifications 20% when evaluating new hires (Daniels, 2011;Hunsinger et al, 2011;Wang & D'Cruze, 2019a;Wierschem & Méndez Mediavilla, 2018). Not surprising, 85% of hybridized internal or IT audit job descriptions prefer (or require) certification or that a candidate be working towards certification, which can also result in bonuses or higher starting salaries for entry-level employees (Hunsinger & Smith, 2009;Merhout & Buchman, 2007;Soileau et al, 2017).…”