CBA approves new continuing education policy changes including ethics and fraud courses

The California State Board of Accountancy convened on March 20, 2025, to discuss significant policy changes regarding continuing education (CE) requirements for licensed accountants. The meeting focused on recommendations from a CE work group formed in March 2024, which has met three times to evaluate various CE regulation topics.

The work group proposed several key changes to the CE requirements. First, they recommended that courses on harassment and workplace violence prevention, workplace stress management, employee wellness, and world languages be eligible for nontechnical CE credits. Additionally, the group suggested removing the restriction on foreign language education as nontechnical CE, emphasizing that learning a world language promotes diversity, equity, inclusion, and professional competence.

Further recommendations included renaming the specialized industry and industry accounting subject areas to "specialized industry knowledge," allowing excess fraud courses to count towards the accounting and auditing (A&A) CE requirement, and eliminating the 24-hour governmental auditing CE requirement. However, licensees performing work under Generally Accepted Government Auditing Standards (GAGAS) would still need to complete four hours of fraud CE.

The Continuing Professional Education Committee (CPC) expressed agreement with the work group's recommendations and moved to direct staff to proceed with the proposed policy changes. This motion was fully formed and did not require a second.

During the discussion, board member Theresa Thompson raised a practical question regarding whether required harassment and security awareness trainings would be eligible for CE credits if the proposed changes were approved. While the response indicated uncertainty, it was noted that these courses would need to meet specific standards for delivery and content.

Another board member, Lehi, expressed concern about the potential impact of removing the 24-hour governmental accounting CE requirement, particularly regarding the risk of increased citations for licensees. However, it was clarified that the requirement was being removed rather than added, and that compliance with GAGAS would still be monitored through existing professional standards.

The board ultimately voted on the motion, which passed unanimously, signaling a significant shift in the continuing education landscape for California accountants. The meeting concluded with a commitment to further explore the implications of these changes and ensure that licensees remain compliant with professional standards.