The third CPA licensure pathway swaps 30 credit hours for one extra year of experience. A candidate with a bachelor's degree that includes an accounting concentration, two years of professional experience, and a passing score on the CPA Exam qualifies for licensure in a state that has enacted the pathway. This article covers the mechanics and what each piece means for the firm that supplies the experience.
For a state-by-state view of who has enacted it, read the 150-hour rule changes by state. This article covers the pathway itself.
Where the pathway comes from
The AICPA and NASBA approved model legislation for the pathway in May 2025, after a 60-day public comment period on the proposed language. The ninth edition of the Uniform Accountancy Act (UAA), updated in July 2025, carries it. The UAA is a model. The AICPA is explicit that each jurisdiction decides whether and how to adopt it, and that a candidate can use the pathway only after a state enacts legislation or adopts rules.
The three pathways side by side
Every pathway requires passing the CPA Exam. The differences are in education and experience.
| Pathway | Education | Experience |
|---|---|---|
| Graduate degree | Post-baccalaureate degree with an accounting concentration | 1 year |
| Traditional 150-hour | Bachelor's degree with an accounting concentration plus 30 additional credits | 1 year |
| New third pathway | Bachelor's degree with an accounting concentration | 2 years |
NASBA describes the new pathway's education requirement as a bachelor's degree in accounting (120 semester hours). The model leaves the exact coursework that makes up an accounting concentration to each jurisdiction's rules.
The exam is a requirement inside the pathway, not a separate route.
The credit mechanics
Under the 150-hour route, the 30 extra credits come before licensure, through additional coursework. Under the third pathway, there are no extra credits to buy. The cost moves from tuition to time: a second year of experience.
The education gate for sitting for the exam is a separate question. Boards set their own rules for how many hours and which accounting courses a candidate has before the first exam section. See the exam sections after CPA Evolution for what a candidate sits for, and the previous article for the difference between exam eligibility and licensure.
The experience mechanics
The model gives jurisdictions a broader role in defining what experience counts. The pathway as adopted leaves the details to each state board.
That means three things a firm cannot assume across state lines:
- What type of work counts. The board that issues the license decides. California's experience form shows one board's approach: applicants who want authority to sign attest reports need 12 months of general accounting experience that includes at least 500 hours of attest services.
- Who can verify it. California requires the attest experience form to be signed by a licensee authorized to perform attest services. Other boards write different rules. See CPA experience verification and supervisor responsibilities.
- How the time is counted. Each board sets its own counting rules.
What a firm should do differently
Document the experience as it happens. Two years is a longer window than one. A candidate who leaves in month 14 needs a verification from a supervisor the firm must still be able to reach. Keep a running log of engagements, role, hours, and reviewer for each candidate. The log is also the evidence for a board that asks for backup.
Plan the staffing arc. A candidate on the third pathway spends two years under supervision. Map the first year to preparation and testing, the second to review work and planning, and tie the progression to workpaper documentation standards. The audit file a candidate prepares is the experience evidence.
Ask which board will license the candidate. The state where a candidate works and the state where the candidate licenses can differ. The board that issues the license sets the experience definition.
Do not market it as a shortcut. The pathway removes credits, not rigor. The exam, the experience, and the supervisor's attestation stay.
Related reading
- How to become a CPA
- Audit career path from staff to partner
- CPA mobility and practice privileges across state lines
Sources
- AICPA, State policy trends shaping accounting in 2026
- AICPA, Uniform Accountancy Act landing page
- NASBA, AICPA and NASBA Publish Ninth Edition of the UAA
- NASBA, AICPA and NASBA Advance Public Protection-Focused and Market-Responsive Model Licensure Legislation
- NASBA, New CPA Licensure Pathways and CPA Mobility
- California Board of Accountancy, Certificate of Attest Experience (Private Industry or Government), Form 11A-6
CORAA prepares ready-to-review audit files for US CPA firms from client books; you review and sign. See /us.
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AU-C references are to AICPA Professional Standards, paraphrased here; read the standard itself before relying on a requirement. This page is guidance, not professional advice. Report an error