{"id":128041,"date":"2024-07-25t17:05:13","date_gmt":"2024-07-25t21:05:13","guid":{"rendered":"\/\/www.g005e.com\/?p=128041"},"modified":"2024-08-29t23:52:45","modified_gmt":"2024-08-30t03:52:45","slug":"150-credit-hours-helping-or-hindering","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/07\/25\/150-credit-hours-helping-or-hindering\/","title":{"rendered":"150 credit hours: helping or hindering?"},"content":{"rendered":"

\"\"<\/strong><\/p>\n

one study suggests there is little if any upside but plenty of downside.<\/strong><\/p>\n

by 卡塔尔世界杯常规比赛时间 research<\/em><\/p>\n

four decades ago, the american institute of cpas promulgated a rule requiring accountants to complete 150 credit hours to qualify for certification, an increase from 120 hours. basically, it required a fifth year of college education.<\/p>\n

more: <\/b>can\u2019t recruit? retain!<\/a> | the accountant as a strategic business partner<\/a> | report: efficiency still the top priority for accounting firms<\/a> | is tech causing both cpa shortage and low salaries?<\/a> | staffing tops list of woes at cpa firms<\/a> | to replenish the talent pipeline, go back to the classroom<\/a> | beware the work-life\/workload doom spiral<\/a> | why the dry pipeline? it\u2019s about time<\/a> | whole person retention: when it\u2019s not just the money<\/a> | global trends show many dissatisfied cpas<\/a> | more big firms shut their doors to new college grads<\/a> | seven enticements to keep talent on board<\/a>
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state boards of accountancy had discretion over when to enact the rule. by 2015, all states and u.s. territories had adopted it.<\/p>\n

fun fact: the national rule did not impose any requirements on what courses the students had to take. it didn\u2019t have to be courses on tax law or accounting standards. philosophy, music theory or basket-weaving would do. state boards, however, often mandate specific course requirements.
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\nthat extra year costs a lot in terms of time, money and, it seems, diversity, equity and inclusion (dei), not to mention the supply of cpas coming into the profession.<\/p>\n

but is the extra ed really necessary?<\/p>\n

maybe not, according to an international trio of academics.<\/p>\n

little upside, plenty downside<\/strong><\/p>\n

andrew g. sutherland (mit sloan), matthias uckert (u. of amsterdam) and felix w. vetter (u. of mannheim, germany) have issued a paper suggesting that the additional 30 credit hours has little if any upside but plenty of downside.<\/p>\n

the abstract of the paper concludes with \u201cstudying exam passing patterns, professional misconduct and job postings we find a deterioration, or at best, no change in cpa quality following enactment [of the 150-hour rule].\u201d<\/p>\n

it\u2019s the time and money factors that create the dei factor. following the enactment of the rule, the number of minority students taking the extra courses declined by 26 percent. the decline for non-minority students was 14 percent.<\/p>\n

the connection between time and money and dei fairness is kind of obvious. the notorious income and wealth inequality in the u.s. drives students from lower-income families \u2013 disproportionately black or latino \u2013 to graduate and get to work as soon as possible.<\/p>\n

that extra year also costs an extra year of tuition. for lower-income students, that tuition is out of reach because it\u2019s sometimes hard to find funding for courses beyond the standard four-year undergraduate curriculum.<\/p>\n

the authors calculate that in the absence of the 150-hour rule, 1,390 more minority professionals would have become cpas in the past 10 years. in a typical year, some 700 minority cpas enter the profession.<\/p>\n

whether the 150-hour rule causes a decline of 14 percent or 26 percent, the loss of potential accountants is critical in a profession in numerical descent. in 2022, the number of graduates taking a degree in accounting was below that of 2008. the number of cpa exam candidates dropped 7 percent in 2021 and 6 percent more in 2022. the u.s. needs more than 300,000 more accountants than are currently available.<\/p>\n

is it worth it?<\/strong><\/p>\n

the paper, \u201coccupational licensing and minority participation in professional labor markets,\u201d also finds that the 150-hour requirement may not be serving much purpose. it was instituted by the aicpa in the belief that public accountants need extra instruction in the nation\u2019s complex and arcane tax laws and financial regulation.<\/p>\n

the paper finds<\/p>\n