South Carolina considers law to enhance CPA exam accessibility and mobility for candidates

In a pivotal meeting of the Senate Labor, Commerce and Industry Committee on February 12, 2025, discussions centered around proposed changes to the licensing requirements for Certified Public Accountants (CPAs) in South Carolina. The atmosphere was charged with urgency as committee members considered amendments aimed at enhancing the state's competitiveness in the accounting profession.

One of the key proposals discussed was the introduction of "open mobility," which would allow accountants licensed in other states to work with clients in South Carolina without needing to meet the current stringent licensing requirements. Currently, South Carolina mandates that CPAs possess a master's degree, a stipulation that has become a barrier for many potential candidates. Advocates for the change highlighted that over 30 states have already moved to lower their mobility barriers, allowing for a bachelor's degree as a minimum requirement. Failure to adapt could leave South Carolina at a disadvantage, potentially exposing clients to unregulated practitioners.

Another significant point of discussion was the extension of the time allowed to pass the CPA exam from 18 months to 36 months. This change aims to accommodate candidates who juggle work and study, particularly in light of rising educational costs and the demands of student loan repayments. The current 18-month limit has been deemed insufficient, especially as many candidates do not pass all parts of the exam on their first attempt. The proposed extension would align South Carolina with national standards, as most states have already adopted this longer timeframe.

The committee also addressed concerns regarding the educational requirements for CPA candidates. While the pathway to licensure has shifted from a bachelor's to a master's degree, the core coursework—24 hours in accounting and 24 hours in business—remains unchanged. This has raised questions about the actual impact of the degree requirement on the quality of education and preparedness of candidates entering the field.

As the meeting progressed, committee members expressed a desire to ensure that any changes made would ultimately serve the best interests of constituents and the accounting industry. The discussions underscored a broader commitment to modernizing the profession in South Carolina, ensuring that it remains competitive and capable of attracting new talent.

In conclusion, the proposed changes to CPA licensing requirements reflect a significant shift in South Carolina's approach to the accounting profession. By embracing open mobility and extending the exam timeframe, the state aims to enhance its workforce and protect clients, all while navigating the evolving landscape of professional education and practice. The committee's next steps will be crucial in determining the future of accounting in South Carolina.