In this post, we’ll break down what the new legislation model means, how the new licensure path works, and why this matters to aspiring and current CPAs.
The accounting profession is rapidly evolving—driven by automation, big data, cybersecurity risks, and ever-changing regulatory landscapes. To keep pace, the AICPA (American Institute of CPAs) and NASBA (National Association of State Boards of Accountancy) have joined forces to launch a new, forward-looking licensure model known as CPA Evolution.
This initiative isn’t just a tweak to the CPA exam—it’s a full-scale modernization of how accountants are licensed, what they’re tested on, and how state laws should adapt.
Here, we’ll break down what the new legislation model means, how the new licensure path works, and why this matters to aspiring and current CPAs.
The CPA Evolution is a bold overhaul of the CPA licensure framework, built on a "Core + Discipline" model.
Here’s how it works:
Core: All CPA candidates must demonstrate strong, foundational knowledge in three core areas:
Discipline: Candidates then choose one discipline area to demonstrate deeper expertise in:
While each candidate chooses one discipline, every successful candidate earns the same CPA license, with full rights and privileges.
The accounting profession today is not the same as it was even 10 years ago. With AI, blockchain, cybersecurity threats, and digital transformation, CPAs need to be ready for broader roles that go beyond traditional bookkeeping or tax prep.
However, many state accountancy laws were outdated, locked into a model that assumed a uniform exam with fixed, siloed content areas. That no longer fits the modern landscape.
To support this transformation, AICPA and NASBA developed and released a model legislative framework that states are encouraged to adopt. Here's what the model covers:
New definitions of what constitutes CPA practice now reflect emerging services like:
The legislation references the revised CPA Exam structure and ensures it is legally supported within each state’s licensing system.
Regardless of which discipline a candidate selects, the CPA license remains uniform across jurisdictions—ensuring mobility and equal status for all CPAs.
States are encouraged to allow more diversity in academic backgrounds while still maintaining the 150-hour rule—recognizing coursework in emerging fields like:
The legislation maintains key components of the Uniform Accountancy Act (UAA) to ensure CPAs licensed in one state can work across others, supporting national mobility.
Each state must amend its own laws and board rules to align with the new model. NASBA has been working closely with state boards of accountancy to help them update their statutes accordingly.
As of 2025, most states have already adopted or are in the process of adopting the CPA Evolution-aligned legislation and exam structure.
If you're:
You'll be tested not just on the basics, but on the skills needed to thrive in today's data-driven economy. You’ll also have the chance to specialize early in your career.
Your license remains fully valid, but you may want to stay informed about how this shift affects future hires, team training, and advisory services.
You must align your training, curricula, and hiring practices with the core + discipline framework.
The CPA Evolution model is more than a redesign of the CPA Exam—it's a reimagining of what it means to be a CPA in the 21st century. Backed by both AICPA and NASBA, this new legislation model ensures the profession stays relevant, responsive, and ready for the future.
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