March 20, 2026
Photo courtesy of Adobe Stock Images
This is Part 2 of a Two-Part series.
In last week’s post, The Balance Sheet of Barriers Part 1, I examined how CPA licensing fees vary across states and how those costs can create uneven financial barriers to entry. While those upfront and ongoing expenses are significant, they represent only one side of the equation.
This second part shifts the focus from financial costs to structural requirements, by exploring education, examination, and experience pathway requirements. Although the CPA license is built around a nationally standardized exam, the process of qualifying licensure remains fragmented across states. By analyzing these differences, this post highlights how variations in requirements can either restrict or expand access to the profession at a time when the supply of CPAs is declining.
Table 1
| Observations | Average | Standard Deviation | Minimum Value | Maximum Value | |
|---|---|---|---|---|---|
| Credits Required to Take Exam | 51 | 122.35 | 8.15 | 120 | 150 |
| Number of Exams Required | 51 | 4.69 | 0.51 | 4 | 6 |
Educational requirements to sit for the CPA exam are relatively consistent across states. The average number of credits required is 122.35, with a minimum of 120 credits and a maximum of 150 credits, reflecting states that require candidates to complete additional coursework beyond a traditional undergraduate degree. Similarly, the number of exams required shows limited variation, with an average of 4.69 exams, indicating that all states require the four sections of the Uniform CPA Exam, while most also require additional testing.
While these summary statistics show that educational requirements and examination structure are largely consistent across states, they mask important differences in how candidates ultimately qualify for CPA licensure. States vary in the pathways available to candidates, including differences in education thresholds and experience requirements. Most states require candidates to complete 150 credit hours for licensure, even though they may be permitted to sit for and pass the CPA exam after completing only 120 credit hours. However, this requirement is not uniform across all states, because as of December 2025, when the Knee Center's Annual Licensing Database Snapshot was released, 6 states offered additional pathways to licensure.
Figure 1
The most common form of an additional pathway to CPA licensure consists of completing a bachelor’s degree totaling 120 credit hours, followed by two years of qualifying work experience. Each year of qualifying experience must total approximately 2,000 hours, resulting in a total of 4,000 hours of supervised professional work. As of the most recent Annual Licensing Database Snapshot (Norris et al., 2025), six states recognize some version of this alternative pathway.
Since the release of the snapshot, additional states have started to consider or adopt similar pathways, reflecting a broader shift toward reducing educational barriers while maintaining professional standards. These alternative routes aim to provide greater flexibility for candidates who demonstrate competency through experience rather than additional coursework, potentially lowering the time and financial costs associated with CPA licensure without compromising quality.
This reform is important because it could help address the shortage of CPAs. As Harvard Law School reports, “The 2021–2022 academic year saw a 7.8 percent decrease in undergraduate accounting majors and a 6.4 percent decrease in master’s degree hopefuls” (Harvard, 2024). Because fewer students are choosing accounting, lawmakers are working to change the rules. For example, as of February 13, 2026, 45 states have passed or introduced new CPA licensing laws (CFO Dive, 2025). These changes could make it easier for people to become CPAs while still making sure they are properly trained.
Figure 2: Is Your Accountant Ethical?
In figure 2, the states with darker blue require an accountant to take and pass an ethics exam or course. Usually, they require the AICPA ethics course or exam. This will cost accountants an extra $200-$320 for the states that require it. The standout state, Utah, requires in addition to the four sections of the uniform CPA exam, an ethics exam, and the Utah Laws and Rules Exam.
Accountant licensure is standardized in principle yet uniquely applied across states. While core requirements such as a bachelor’s degree and 80 hours of continuing education biennially are largely consistent nationwide, meaningful differences remain in fees, examination requirements, and available pathways to licensure. These variations demonstrate that the process of becoming a CPA is not uniform in practice.
Although CPA licensure appears consistent at the national level, this analysis reveals a system shaped by subtle but important state-level differences. Variations in experience requirements, alternative pathways, and ethics components create uneven barriers to entry across jurisdictions. Recent reforms, particularly the introduction of experience-based alternatives to the 150-hour rule, signal a shift toward greater flexibility. These changes are likely a response to declining interest in accounting and a tightening labor market.
Taken together with Part 1’s findings on financial barriers, this evidence suggests that entry into the CPA profession is influenced by both cost and structure. In addressing supply constraints for new CPAs, experts may consider adopting regulations that balance accessibility with rigor to ensure efforts to strengthen the CPA workforce do not undermine professional standards.
Ultimately, CPA licensure highlights a broader challenge of designing regulatory systems in an everchanging environment.
Works Cited
CFO Dive. (2025, April 14). Tracking CPA licensure paths: Removing the 150-hour-rule hurdle. Updated February 13, 2026. https://www.cfodive.com/news/broadening-cpa-licensure-paths-marching-beyond-150-hour-rule-accounting-talent-shortage/745282/.
Harvard Law School Center on the Legal Profession. (2024, January/February). Accounting for licensure. https://clp.law.harvard.edu/knowledge-hub/magazine/issues/rethinking-licensure/accounting-for-licensure/.
Norris, Conor, Kelley, Ethan, and Carneal, Troy. (2025). “ KRRC Annual Licensing Database Snapshot: 2025.” Knee Regulatory Research Center.