CPC Item 4 - CBA Item 9.A.2 - Overview of Board-Approved Policy Direction

Sep 25, 2026

Uploaded by Asher

Board staff seeks California Board of Accountancy (CBA) review and approval of revised definitions for the ethics subject area and advanced degree subjects. These changes would allow substitute education to replace one year of the general accounting experience requirement if Assembly Bill (AB) 1175 becomes law. The agenda aligns with Strategic Plan 2025-29, Goal 2 (Licensing), clarifies “Three Es” requirements, and outlines ethics units and education/experience scenarios.

LanguageEnglish

CategoryExam

FormatPDF

Pages16

Reading Time40 min

AccessFree to download

Action(s) Needed

Strategic Plan 2025-29

Goal 2 – Licensing

Objective 2.2

Background

Overview of Issue

Examination

Education

Staff Policy Recommendation

Experience

CPC Item 4. CBA Item 9.A.2. July 17, 2025 Overview of Board-Approved Policy Direction for Licensure to Implement Assembly Bill 1175, Including Possible Approval of a Revised Definition of the Ethics Subject Area and Approval of Advanced Degree Subjects to Substitute for One Year of General Accounting Experience The mission of the California Board of Accountancy (CBA) is to protect consumers by ensuring only qualified licensees practice public accountancy in accordance with established professional standards. Action(s) Needed Staff is requesting the CBA to review, discuss , and approve a revised definition for the ethics subject area and advanced degree subjects that will substitute for one year of the general accounting experience requirement to inform future regulatory changes that will be necessary if CBA-sponsored Assembly Bill (AB) 1175 becomes law. Strategic Plan 2025-29 Goal 2 – Licensing Objective 2.2: Develop and implement enhanced licensure requirements, as needed, to ensure newly licensed certified public accountants (CPA) meet minimum competency expectations associated with safe and effective practice. Background On February 21, 2025, AB 1175, authored by Assembly Member Jacqui Irwin, was introduced into the 2025-26 legislative cycle. If the bill is passed and signed in fall of 2025, it would take effect January 1, 2026. The new licensure requirements would take effect January 1, 2027. Additional background information, including links to prior CBA meeting materials and the bill’s current status, may be found on the Information About California’s Recently Introduced Legislation webpage. The bill establishes the minimum requirements for examination and licensure as: • Uniform CPA Examination • Bachelor’s degree • Accounting concentration of courses • Two years of general accounting experience At its meetings in January 2025 and May 2025, the CBA approved a series of policy directions that will shape a future rulemaking item. Attachment 1 provides a list of the CBA’s policy decisions regarding AB 1175. These policies will allow AB 1175 to be implemented in a way that provides flexibility for future CPAs to choose a method of licensure that best fits their needs and circumstances. Attachment 2 depicts selected scenarios that demonstrate some of the licensure options that will be available to applicants from varying educational backgrounds under AB 1175. The following CBA-approved policy decisions are most pertinent to revising the ethics subject area definition and approval of advanced degree subjects to substitute for one year of general accounting experience: • The accounting concentration shall consist of a minimum of 24 units 1 in accounting, 24 units in business (extra accounting and business units also apply), and three units of ethics as defined by the subject area definitions. • Applicants with a bachelor’s degree in any subject area, including an accounting degree, may earn a master’s degree in accounting, taxation, or laws in taxation to substitute for one year of general accounting experience. 1 All references to units in this item are in semester units. • Applicants with a bachelor’s degree in accounting may obtain a master’s degree in a related field, such as business administration, data analytics, economics, finance, or management to substitute for one year of general accounting experience. Overview of Issue Under the provisions of AB 1175, licensure applicants will need to complete what is commonly referred to as the “Three Es” – examination, education, and experience. Attachment 3 illustrates how these three components fit together. In addition to providing an overview of the examination and licensure requirements, this item will focus on modifying two of the policy directions previously approved the CBA – the ethics subject area definition and advanced accounting-related degree subjects to count toward general accounting experience. Examination T

FAQs

What approvals is CBA staff requesting under AB 1175?

Staff is requesting CBA review, discussion, and approval of a revised definition for the ethics subject area and advanced degree subjects that would substitute for one year of the general accounting experience requirement.

What are the key licensure requirements established in the bill?

The bill sets minimum requirements including passing the Uniform CPA Examination, completing a bachelor’s degree, completing an accounting concentration, and obtaining two years of general accounting experience.

How will the ethics education requirement affect exam qualification?

CPA Exam applicants will need to complete three units of ethics to qualify for the exam, as described in the next section, based on the revised ethics subject area definition.

Sep 25, 2026

Uploaded by Asher