Professional Issues Tracker
Welcome to the PIT
The Professional Issues Tracker keeps you informed of the legislation, testimony, statements, and thought leadership the PICPA is providing on behalf of all Pennsylvania CPAs and the accounting profession.
This is how we build a better profession.
Happening now
Licensure, Mobility, and the Future of the Profession
On June 30, Act 27 of 2025, formerly SB 719, was signed into law by Gov. Josh Shapiro. This landmark, bipartisan achievement modernizes Pennsylvania’s CPA licensure requirements and enhances workforce mobility for accounting professionals.
The bill addresses the challenges faced by the accounting profession by introducing two key provisions:
- First, it establishes an additional education pathway to CPA licensure in Pennsylvania
- Second, it provides for automatic practice mobility, enhancing professional flexibility across state lines.
Working Together to Keep You Informed
We're proud to share this helpful resource from the Minnesota Society of Certified Pubic Accountants, highlighting licensure updates happening across the country.
Progress: Tracking the conversation in all licensing jurisdictions
Thank Your Lawmakers
Pennsylvania legislators answered your call to address the CPA profession's coming retirement cliff by approving Senate Bill 719 to modernize and expand access to the CPA journey.
It only took 16 session days for the bill to move to the governor's desk!
Take a moment to thank them for acting swiftly - and THANK YOU for proving that when it comes to CPAs, there truly is strength in numbers.
We are currently tracking 23 issues relevant to the accounting profession.
We are spearheading change to ensure a solid future.
Challenges Facing the CPA Profession
Credit requirements, testing, and awareness of the profession affect the future of accounting.
Press Releases
CPA Licensure and Practice Mobility
The issue
The demand for CPAs and other accounting professionals continues to grow, yet the number of individuals entering the field is falling short of meeting this need. In 2022, the number of candidates taking the CPA Exam hit its lowest point in nearly two decades. Compounding this issue, the number of accounting degrees awarded between 2020 and 2022 declined by 7.8%. These trends underscore the urgent need for action to address workforce challenges and ensure the profession’s vitality.
Our position
The PICPA supports legislation designed to address critical updates to the licensure process in Pennsylvania, reflecting both the evolving needs of the accounting profession and the dynamic landscape in which it operates. PICPA-backed legislation proposes two significant changes to Pennsylvania’s CPA licensure process.
First, it introduces an additional pathway to licensure. Under current law, candidates must complete a master’s degree or 150 credit hours of education (including the required accounting concentration), gain one year of professional experience, and pass the Uniform CPA Exam to become licensed in Pennsylvania. While this pathway will remain intact, the PICPA supports creating an alternative option to qualify for licensure: candidates with a bachelor’s degree (including the required accounting concentration), two years of professional experience, and successful completion of the CPA Exam.
Second, the PICPA supports simplifying practice mobility for qualified CPAs from out of state. These individuals would be allowed to work in Pennsylvania without obtaining a Pennsylvania certificate and permit, which is current law under substantial equivalency, provided they meet specific requirements:
- Hold a CPA license in good standing in their home state
- Have at least a bachelor’s degree and completed an accounting concentration in coursework
- Have passed the CPA Exam
- Have completed an appropriate experience requirement
Status: Senate Bill 719, sponsored by Sens. Scott Hutchinson (R-Venango) and Nick Pisciottano, CPA-Inactive (D-Allegheny), received unanimous approval in the state Senate on June 11 (49-0) and in the state House on June 26 (202-0). The bill was signed into law by Gov. Josh Shapiro on June 30 as Act 27 0f 2025.
Reviewed June 2025
Advocating for Thoughtful Tax Policy and Analysis
The issue
Each year, as part of the state budget process, Pennsylvania lawmakers routinely consider changes to the state’s tax system. Any proposal — whether a sweeping overhaul or a minor adjustment — necessitates a thorough and consistent approach to analysis and comparison.
Our position
The PICPA stands ready to assist. To guide the evaluation of tax proposals, the PICPA advocates for the adoption of the 12 Guiding Principles of Good Tax Policy, a framework developed by the American Institute of Certified Public Accountants (AICPA), which ensures that changes to Pennsylvania’s tax system are evaluated through an objective lens, utilizing recognized benchmarks of effective tax policy.
By leveraging this framework, policymakers, stakeholders, and taxpayers can better assess the merits of proposed tax changes, fostering transparency, fairness, and effectiveness in Pennsylvania’s tax system.
Status: The PICPA is committed to working with lawmakers and stakeholders to uphold these principles, ensuring Pennsylvania’s tax policies reflect the highest standards of good governance. As an example of this commitment to providing technically relevant tax information, please see the PICPA Issue Brief on Combined Reporting.
Reviewed June 2025
Charitable Giving Bill
The issue
State Reps. Abigail Salisbury (D-Allegheny) and Keith Greiner, CPA (R-Lancaster), have reintroduced legislation supported by the PICPA that would raise the monetary threshold that subjects charitable organizations to more extensive financial oversight, including mandatory audits. Under House Bill 965, charitable organizations receiving annual contributions of $1 million or more (currently $750,000) would be required to have an audit. Those receiving contributions of less than $1 million would have different levels of review or compilation required on their financial statements to be performed by an independent CPA.
Our position
The PICPA believes this legislation will benefit many not-for-profit organizations while also relieving human capital pressures in the CPA community.
Status: House Bill 965 was referred to the House State Government Committee on March 19, 2025.
Reviewed June 2025
E-Filing Local Tax Reform
The issue
To simplify local tax compliance for Pennsylvania taxpayers and tax practitioners, the PICPA is advocating for the Pennsylvania General Assembly to modernize the electronic filing of local earned income tax returns to leverage existing systems and minimize costs and operational disruptions. The IRS’s Modernized e-File (MeF) program enables taxpayers and tax professionals to electronically file tax returns directly with federal and state authorities. This system converts tax forms into a digital format, allowing tax preparation software to transmit the federal return to the IRS, which then forwards the relevant information to state tax authorities.
Our position
Currently, taxpayers can use the MeF system to electronically file both federal and state returns. Extending this process to local earned income taxes would streamline compliance and bring much-needed efficiency to Pennsylvania’s local tax system.
Status: PICPA continues to meet with legislators, the Department of Community and Economic Development (DCED), and local collectors to move this work forward. Our proposal has been well received.
Reviewed June 2025
Optional Entity-Level SALT Cap Workaround
The issue
The federal Tax Cuts and Jobs Act (TCJA) of 2017 imposes a $10,000 limitation on the deduction individual taxpayers may claim for state and local taxes paid for tax years 2018-2025 (SALT cap). This limitation presents challenges for taxpayers, particularly owners and shareholders of businesses structured as partnerships or S corporations. Income generated from the activities of these pass-through entities is currently taxed at the owner level at Pennsylvania’s 3.07% personal income tax rate.
Our position
The PICPA is urging state lawmakers to adopt legislation introduced by Sen. Doug Mastriano (R-Franklin) that provides a revenue-neutral elective pass-through entity tax (PTET). Senate Bill 396 would allow the tax to be paid at the entity level and facilitate the federal deductibility of state income taxes. In doing so, Pennsylvania would align with other states that have already enacted similar legislation to provide their constituents with a path to increased federal tax deductions. To date, 36 of the 41 states imposing a personal income tax have passed similar legislation.
Status: Congress is currently considering options which may extend and/or modify the SALT cap, which may continue to impact Pennsylvania taxpayers. Sen. Mastriano reported in his co-sponsorship memo that over 400,000 pass-through entities file tax returns in Pennsylvania, many of which would benefit from this legislation.
SB 396 was reported from the Senate Finance Committee on April 1, 2025, and is now pending in the Appropriations Committee. A companion bill will be introduced in the Pennsylvania House by Rep. Keith Greiner, CPA (R-Lancaster).
Reviewed June 2025
Resident Partner Credit
The issue
Pennsylvania resident partners subject to pass-through entity taxes (PTET) in other states may face double taxation due to the denial of a Pennsylvania resident tax credit. This issue arises even though the taxes paid through PTET to other states are equivalent to those which would otherwise be paid directly by Pennsylvania residents to those other states. The Pennsylvania Department of Revenue (DOR) has stated that resident partners are not entitled to a credit against personal income tax for PTET paid to other states. However, this stance differs from the DOR’s position on resident S corporation shareholders, who are eligible for a similar credit against their personal income tax.
Our position
The PICPA is urging state lawmakers to adopt legislation introduced by Sen. Doug Mastriano (R-Franklin) that extends equivalent credits to resident partners and S corporation shareholders. Senate Bill 253 addresses this inequity and mitigating the risk of double taxation. Reps. Ben Sanchez, CPA-Inactive (D-Montgomery) and Keith Greiner, CPA (R-Lancaster), have also introduced a companion bill - House Bill 1471.
Status: SB 253 was reported from the Senate Finance Committee on April 1, 2025, and is currently before the full Senate. HB 1471 was referred to the House Finance Committee on May 21.
Reviewed June 2025
A&A
Financial Key Performance Indicators
for Business Entities
The issue
The Financial Accounting Standards Board (FASB) issued an invitation to comment on Financial Key Performance Indicators (KPIs) for Business Entities that will help the FASB determine whether or not to add a project on financial KPIs and, if so, determine the objective and scope of the project.
The wide range of questions cover whether or not financial statement disclosures should include certain FASB-defined KPIs, whether to include nonpublic entities in the scope of the project, and whether an entity that presents KPIs externally should be required to include that KPI along with a related explanation in the footnotes.Our position
The PICPA does not support providing further measurement and disclosure guidance on KPIs for nonpublic entities. Creating additional prescriptive guidance on these metrics and requiring their disclosure would only add unnecessarily to the volume of disclosures as company-specific metrics will still be provided to stakeholders. Furthermore, not-for-profit entities already provide extensive disclosures related to liquidity in their financial statements. Requiring additional disclosures for not-for-profit entities would be unnecessarily cumbersome and result in increased audit fees, which is not helpful in a time when many not-for-profit entities are experiencing a reduction in funding. In light of the recently completed project on disaggregation of income statement expenses, and the current project on the information provided in cash flow statements, it seems more appropriate to pause consideration of the KPI project and reconsider at a future date after the implementation of the mentioned new standards.
Other concerns were covered by the following questions:
Question #12 – Should the FASB provide criteria for entities to use to determine when a defined Financial KPI needs to be disclosed? For example, an entity could be required to disclose a Financial KPI that has been defined by the FASB in the financial statements if it presents it or an adjusted version outside the financial statements (for example, if earnings before interest, taxes, depreciation, and amortization (EBITDA) is defined and an entity presents adjusted EBITDA).
Comment – It is unclear how the FASB requirements would extend beyond the financial reporting ecosystem. How would this be monitored if KPIs are issued outside of the established financial reporting system? Would financial statements and audit reports have to be reissued if clients report a KPI subsequent to the financial statements being released? It is unclear how this requirement would practically operate. The need for transparency could be achieved through education regarding best practices and encouraging transparency.
Question #14 – Should an entity be required to disclose a financial KPI in Generally Accepted Accounting Principles (GAAP) financial statements if the entity communicates the Financial KPI elsewhere? If so, what incremental benefits does requiring (rather than permitting) disclosure provide?
Comment – The PICPA does not support this requirement. The term "elsewhere" is overly broad. In the event that an entity provides certain metrics in its internal financial statements, to the board for example, would they be required to enhance their disclosures in the financial statements? If this is the intended outcome, it is overly burdensome.
Status: On April 30, 2025, the PICPA provided its feedback to the FASB on this invitation to comment.
Reviewed June 2025
PCAOB Proposals: Firm Reporting and Firm and Engagement Metrics
The issue
The Public Company Accounting Oversight Board (PCAOB) issued two proposals that would greatly increase the information firms would be required to report externally, including more detailed fee information, financial and operational information, and policies and procedures that relate to engagements for private company audit clients and for nonaudit services, cybersecurity policies and procedures. The proposals call for a vague and all-encompassing incident report requirement, details on firm governance and structure and the process for making changes to that structure, and a summary description of the firm’s policies and procedures, even for inactive firms. The largest firms also would be required to provide U.S. GAAP financial statements. Many of these proposed requirements would include information related to private company audits and services for nonattest clients, which we believe is outside of the PCAOB’s statutory authority. Proposed engagement and firm metrics include information on time reporting (e.g., average hours worked by partners each quarter), experience of personnel, retention rates, hours spent by senior level professionals on material audit areas, results of internal inspections, restatements, and the use of specialists and shared-service centers, etc.
Our position
The PICPA is concerned regarding the magnitude and granularity of the proposed requirements. The costs of compliance would be astronomical and would not contribute to improving audit quality. Instead, they would further strain the pipeline and challenge the already constrained talent pipeline. The PICPA also argued that investors would not have sufficient context to understand many of the proposed metrics, including the results of a firm’s internal inspection findings. While the PCAOB’s proposal is predicated upon the need to provide investors with additional information to assist in their ratification of the auditor, in many cases investor votes on ratification are nonbinding. We believe that audit committees already access much of this information, and this required reporting disintermediates the role of the audit committees.
Status: After making some revisions based on feedback received, the PCAOB voted to adopt the new standards in late November of 2024 and forwarded them for Securities and Exchange Commission approval. The PICPA responded to the SEC on both of the proposals and met with Congressman Dan Meuser’s office to encourage the SEC to extend the response deadline into the next administration. On Jan. 10 the SEC extended the comment period to Feb. 4th. Then on Feb. 11th the PCAOB withdrew the originally approved rules. On Jan. 10 the SEC extended the comment period to Feb. 4th. Then on Feb. 11th the PCAOB withdrew the originally approved rules.
- Listen to Allison Henry, Vice President of Professional and Technical Standards, discuss how PICPA championed this change
- PICPA Comment Letter on PCAOB Rulemaking Docket Matter No. 041 - June 7, 2024
- PICPA Comment Letter on PCAOB Rulemaking Docket Matter No. 055 - June 7, 2024
- PICPA Comment Letter to the SEC on the PCAOB’s Proposed Rules (Firm Reporting) - December 24, 2024
- PICPA Comment Letter to the SEC on the PCAOB’s Proposed Rules (Firm and Engagement Metrics) - January 2, 2025
- PICPA met with Jackson Notes, Policy Advisor – Financial Services for Congressman Dan Meuser to discuss an extension of time to submit feedback to the SEC on the proposed PCAOB rules and the required time for the SEC to consider and address the proposed rules - January 10, 2025
Reviewed June 2025
Audit Quality and Standards
The issue
The AICPA Code of Professional Conduct requires practitioners to maintain a high level of practice excellence. This is an ongoing challenge.
Our position
We support high and consistent audit quality and rigorous standards that support high audit quality. To raise awareness of the need to maintain high audit quality, the PICPA has hosted a town hall on the AICPA’s Quality Management Standards and the results of the DOL Audit Quality study, and are working on additional education highlighting performance challenges. We are also monitoring the AICPA projects on standards revisions related to fraud that are intended to improve audit quality.
Status: The PICPA issued a comment letter on June 5, 2024.
Reviewed June 2025
Increasing Investor Access and Facilitating Capital Formation
The issue
The U.S. House Committee on Financial Services held hearings on February 26, 2025 regarding legislative proposals to increase investor access and facilitate capital formation. Feedback was requested on four areas: access to capital, investor access, public markets and company lifecycle, and technology and artificial intelligence in capital markets. PICPA provided feedback to the questions related to public markets and company lifecycle and technology and artificial intelligence in capital markets.
Our position
Our primary concerns related to increasing costs and compliance burden stemming from recent Public Company Accounting Oversight Board (PCAOB) actions and the impact of these pressures on small firms in particular. We support changes at the SEC and PCAOB that will reduce the regulatory burden that increases costs unnecessarily and discourages small and mid-sized audit firms from auditing small public companies.
Status: The PICPA submitted a response to the U.S. House Committee on Financial Services.
Listen to this summary from Allison Henry, vice president of professional and technical standards.
Reviewed June 2025
PCAOB Proposed Rule on NOCLAR
The issue
The Public Company Accounting Oversight Board's (PCAOB) noncompliance with laws and regulations (NOCLAR) proposal would fundamentally change the nature and scope of the audit by proposing to change the auditor’s responsibility for identifying noncompliance with laws and regulations. These responsibilities would be greatly expanded to include those agencies having an indirect impact on the financial statements or operational compliance such as EPA, OSHA, FDIC, FDA, FCPA, and AML on privacy laws, tax laws, and consumer protection laws.
Our position
The PICPA is vigorously advocating against the untenable expansion of the scope of the audit proposed by the PCAOB. Legislative outreach efforts are in progress. PICPA members are strongly encouraged to reach out to their state congressional representatives — U.S. Reps. Mike Kelley, Brian Fitzpatrick, and U.S. Sen. John Fetterman — to make them aware of this significant issue.
Status: The PCAOB has delayed action on the proposed NOCLAR standard after strong feedback from audit firms and stakeholders, including the PICPA.
- Outreach to U.S. Rep. Brian Fitzpatrick to schedule a meeting - July 9, 2024
- Outreach to U.S. Reps. Bill Huizenga (MI), Ann Wagner (MO), and Dan Meuser (PA) - Sept. 4, 2024
- PICPA Met with Rep. Huizenga’s staff to discuss concerns over the NOCLAR proposal and the aggressive PCAOB agenda, as well as Huizenga’s previous proposal to fold PCAOB into the SEC. - Sept. 27, 2024
Reviewed June 2025
Charter School Audit Requirements - Act 55 of 2024
The issue
Senate Bill 700, signed into law as Act 55, on July 11, 2024, is an omnibus measure that introduced numerous amendments to the Pennsylvania School Code. Among its provisions are new audit requirements that raised concerns for PICPA upon review.
Our position
PICPA analyzed the legislation and identified several key issues, particularly provisions that appear to conflict with current professional auditing standards.
Status: In early 2025, PICPA developed and distributed an Issue Brief outlining our concerns. The brief includes illustrative examples related to government auditing standards, scope of work, and audit boundaries. It was shared with the Pennsylvania Department of Education and relevant members of the Pennsylvania General Assembly and other key stakeholder groups.
Reviewed June 2025
Proposed Regs Governing Practice Before the IRS
The issue
Treasury Department Circular 230 (Circular 230) provides guidance for attorneys, certified public accountants (CPAs), enrolled agents (EAs), enrolled retirement plan agents, and other persons with representation rights before the IRS (31 C.F.R. Part 10). Circular 230 was last revised in June 2014, and many legal, economic, and technological changes have occurred that affect practice before the IRS since the last revision. The proposed regulations (REG-116610-20) seek to update Circular 230 and harmonize those regulations with changes in law.
Our position
We support Treasury’s efforts to modernize Circular 230 regulations, but believe significant changes are needed before these important regulations are finalized. Key areas of concern include:
- Broad language that does not include materiality consideration
- Potential restrictions on contingency fees
- Regulatory control over fees
- Best practice guidance that is misguided (focusing on understanding the risks and benefits of all technology tools used), too detailed (data security and incidence reporting and business continuity and succession planning), and potentially impossible to implement (e.g., taking action in the event of a practitioner’s mental impairment)
- Subjective behavioral guidance
- Other
Status: The PICPA has submitted a response to the Treasury Department expressing our concerns regarding the proposed rules and requesting an extension of time for improved due process.
Reviewed June 2025
Input on the Private Company Counsel
The issue
The Financial Accounting Foundation requested input on the Private Company Counsel (PCC). Specific questions included the effectiveness of the PCC, potential areas of improvements, whether the PCC has been successful in proposing alternatives within GAAP that address the needs of users of private company financial statements, whether the FASB has been appropriately responsive to the needs of private companies and the recommendations from the PCC, whether changes to the standard-setting process for private companies are warranted, and suggestions about changes to the size, composition, term length, or responsibilities of the PCC.
Our position
The PICPA acknowledges that a number of significant changes were made when the PCC was first established, but we believe improvements are needed to ensure that the PCC represents the financial reporting needs of smaller organizations. Our response noted that many privately held entities have switched their financial reporting framework to alternative special purpose frameworks other than U.S. GAAP due to cost considerations. However, this use of special purpose financial reporting frameworks is not in the public interest since many are not sufficiently robust (e.g., tax basis) to appropriately present an organization’s financial performance and others (e.g., special purpose framework for small to medium sized entities) are not commonly accepted. The PICPA believes that improvements can be made to the PCC to ensure that the needs of privately held entities are timely met.
Status: Invited Jere Shawver, chair of the PCC, to speak at PICPA’s A&A conference to highlight recent PCC initiatives. We are seeing an uptick in PCC activity and an increased focus on providing practical expedients and policy elections to reduce financial reporting complexity for privately held companies. - Sept. 27, 2024
Reviewed June 2025
PCAOB Inspection Results and Enforcement Actions
The issue
Recent Public Company Accounting Oversight Board (PCAOB) inspection reports reveal exaggerated deficiency levels that contradict the positive trends in audit quality. The PCAOB’s 2023 report shows 46% of reviewed engagements had at least one significant Part I.A deficiency, meaning firms lacked sufficient evidence to support their audit opinions. U.S. Sens. Elizabeth Warren and Sheldon Whitehouse described the results as “astonishing” and urged the PCAOB to take significant actions.
Our position
We disagree. Although audit quality can improve, PCAOB’s pass/fail model does not provide a full picture. Changes to PCAOB’s inspection reports are necessary. Similarly, the rise in enforcement action is concerning, and it may worsen talent acquisition pressures due to a hostile regulatory climate.
Status:
- Enforcement vs. progress: Audit reform amid heavy regulation, written by PICPA’ Allison Henry, highlights the disconnect between improvements in certain key audit metrics (e.g., restatement trends) and extreme PCAOB enforcement actions. The article discusses the negative impact of regulatory overreach on the profession, the talent pipeline, and the public trust. – Oct. 18, 2024
- PICPA proposes revisions to the PCAOB’s inspection reports to better articulate the degree of severity of the inspection findings. – Oct. 30, 2024
Reviewed June 2025
Quality Control Standards
The issue
On May 13, 2024, the Public Company Accounting and Oversight Board adopted A Firm's System of Quality Control and Other Amendments to PCAOB Standards, Rules, and Forms. The PCAOB adopted a standard that it believes will lead registered public accounting firms to significantly improve their Quality Control (QC) systems. An effective QC system protects investors by facilitating the consistent preparation and issuance of informative, accurate, independent, and compliant engagement reports. Properly conducted audits and other engagements enhance the confidence of investors and other market participants in the information firms report on.
Our position
We support rigorous audit quality and the modernization of audit standards that will achieve that end. Thus, we believe that the proposed standards should be weighed against the overall objective of improving audit quality and the expected costs. We are concerned that this proposal will not improve audit quality, but instead will reduce competition, increase audit fees, and introduce conflicts with international standards.
Status: The PICPA issued a comment letter to the U.S. Securities and Exchange Commission on June 24, 2024.
Reviewed June 2025
Ethics
Tax Planning and Related Services
The issue
The International Ethics Standards Board for Accountants (IESBA) proposed revisions to the Code of Professional Conduct (the Code) are intended to develop a principles-based framework, leveraging the fundamental principles and the conceptual framework of the Code to guide practitioners when providing tax planning and related services to clients or performing tax planning activities for employing organizations.
Our position
The PICPA has significant concerns regarding this far-reaching proposal that would potentially conflict with authoritative tax regulations, expose tax practitioners to additional legal liability, and require accountants to factor stakeholder perceptions into their proposed tax planning services. The adoption of these aggressive tax standards could jeopardize the use of the CPA credential for tax planning services.
Status: The IESBA finalized the new standard addressing some of the areas the PICPA found to be troublesome. However, as a result of our feedback the AICPA Professional Ethics Executive Committee is considering not fully converging with many of the problematic requirements in the new IESBA standard. We are monitoring the related PEEC project and provided feedback on the related proposed revised interpretation, Tax Services (ET Sec. 1295.160) – Sept. 10, 2024
- PICPA Comment Letter on Consultation Plan, Proposed IESBA Strategy and Work Plan, 2024-2027 - June 29, 2023
- PICPA Comment Letter on AICPA's Professional Ethics Executive Committee Exposure Draft - Proposed Revised Interpretation Tax Services (ET Sec. 1295.160) - Sept. 10, 2024
Reviewed June 2025
Collective Investment Vehicles and Pension Funds
– Auditor Independence
The issue
The consultation paper notes that there is a concern that "the Code’s definitions of 'audit client' and 'related entity' might not capture certain parties that are (a) responsible for decision-making and operation of the Scheme, (b) able to substantially affect the financial performance of the Scheme, or (c) in a position to exert significant influence over the preparation of the Scheme’s accounting records or financial statements (hereinafter referred to as 'connected parties’'." They are concerned that management and those charged with governance are delegating key responsibilities to these connected parties.
Their proposal would require you to evaluate your independence with respect to "connected parties," such as investment advisors, external fund managers, and others.Our position
We fundamentally disagree with their underlying premise and do not believe that there is a need to augment the independence standards. We do not believe that the audit standards would permit auditors to take on an engagement in which management does not agree to assume key management responsibilities. We therefore do not believe that the independence standards need to be expanded to consider "connected parties".
Status: The PICPA issued a comment letter to the IESBA on June 25, 2025
- IESBA Consultation Paper Comment Letter - June 25, 2025
Reviewed June 2025
IESBA - Ethics Standards for Sustainability Assurance
The issue
The International Ethics Standards Board for Accountants (IESBA) approved the proposed new International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and proposed Revisions to the International Code of Ethics for Professional Accountants (the Code) on Sustainability Reporting. The Exposure Draft contains proposed independence standards for use by all sustainability assurance practitioners regardless of whether they are professional accountants, and specific ethics provisions relevant to sustainability reporting and assurance.
Our position
The PICPA supports the IESBA’s efforts to develop ethics standards applicable to practitioners performing sustainability assurance engagements. Fundamentally, the PICPA has concerns with the broader effort to develop profession-agnostic standards without evaluating how the standards work together with education, training, peer review, licensure, regulatory, and enforcement mechanisms similar to those of public accountants.
Status: The PICPA issued a comment letter on May 10, 2024.
Reviewed June 2025
Using the Work of an External Expert
The issue
The Exposure Draft on Using the Work of an External Expert proposes an ethical framework to guide professional accountants or sustainability assurance practitioners, as applicable, in evaluating whether an external expert has the necessary competence, capabilities and objectivity in order to use that expert’s work for the intended purposes. The proposals also include provisions to aid in applying the Code of Professional Conduct’s conceptual framework when using the work of an external expert.
Our position
The PICPA supports the International Ethics Standards Board for Accountants' (IESBA) efforts to ensure that public accountants use external experts who are objective and competent and agrees with the decision not to require all external experts to be independent. However, we believe that the proposed Section 5390 on using the work of an external expert for sustainability assurance providers should be considered holistically in connection with the Proposed International Ethics Standards for Sustainability Assurance (discussed below).
Status: The PICPA issued a comment letter on April 30, 2024.
- PICPA Comment Letter on Using the Work of an External Expert - April 30, 2024
Reviewed June 2025
CPA Exam Window Extension
The issue
To increase the accounting pipeline capacity and remove further barriers to entry within the industry, it's important to rethink the 18-month window to pass all parts of the CPA Exam.
Our position
The PICPA supports extending the exam window from 18 to 30 months. In addition to our support of reinstating credits for exams lost during the pandemic, the PICPA has encouraged the State Board to adopt the new suggested window of time for future candidates to complete their exam.
Status: Approved
Update: Regulations are unlikely to be adopted until mid-2025, and the PICPA continues to work with stakeholders and policymakers on this issue. We encourage any candidates who currently meet the requirements to continue to apply for extensions as needed.
A Win for the Profession: The Importance of NASBA's CPA Exam Window Extension
by PICPA CEO Jennifer Cryder, CPA, MBA
NASBA approves one-year extension to CPA Exam window
Journal of Accountancy
Reviewed April 2025
Work and Learn
The issue
According to research conducted by the Center for Audit Quality (CAQ) and PICPA, the significant time and cost associated with the pursuit of 150 credit hours of education in order to get the CPA license is a barrier for those considering a career in accounting. The additional 30 credits beyond a bachelor’s degree is leading many candidates to reconsider their choice of career or delay pursuing licensure.
Our position
Providing work-and-learn programs and opportunities offers a practical, feasible solution to help grow the accounting profession. The PICPA is helping to facilitate these programs and encouraging higher education institutions and firm leaders to adopt these programs.
Download the Work-and-Learn Toolkit
For Higher Education and Public Accounting Firms
Work-and-Learn Models for CPA Candidates: Taking Action to Eliminate Barriers
by PICPA CEO Jennifer Cryder, CPA, MBA
Pennsylvania CPAs Try Out Work-and-Learn Model
Accounting Today
Reviewed April 2025
CPA Credit Relief Initiative
The issue
In response to significant health, economic, education, and travel disruptions resulting in CPA Examination candidate hardships, extensions were proposed for any CPA Examination credits that expired from Jan. 30, 2020, through May 11, 2023.
Our position
The PICPA supports the Credit Relief Initiative and encourages the Pennsylvania State Board of Accountancy to adopt the policy. We also encourage all of our CPA candidate members to apply for credit relief by the March 31 deadline.
Status: Passed December 2023
Update: 223 Pennsylvania candidates received credit for lost exam sections restored.
NPAG Report and Pipeline Promise
The issue
The National Pipeline Advisory Group (NPAG) was created to develop a unified strategy that reflects the needs of multiple stakeholders, leverages unbiased research, and leads to meaningful change. The Advisory Group is focused on boosting awareness of the profession’s vital role, driving innovative pipeline strategies, and ensuring the next generation of accountants is prepared for tomorrow’s challenges. The NPAG reflects diverse perspectives from across the profession.
Our position
The PICPA supports NPAG's findings and report. We're encouraging our members to take the Pipeline Pledge, an individual commitment to participate in two activities of your choosing that can influence and grow the talent pool.
Read the Final Strategy Report
NPAG
Reviewed April 2025
The CPA Pipeline Crisis
The issue
The pipeline challenges the profession are facing are reflective of the fact that relevance of CPAs are in question. Firms must lean on business model transformation to fix the relevance problem and thus pipeline. Firms are struggling to attract new talent, keep their Gen 2 or Gen 3 around, and grow their practice.
Our position
The PICPA believes it is critical that business owners and executives in the accounting profession look inward and plan for significant adjustments to address our current pipeline and quality challenges. Firms must look at how their current model is set up and determine if it's time to change. The next generation of CPAs must be provided with more to unlock their potential and keep them interested. Firms can do this by building more distinct career paths, adding new revenue opportunities or client services and automating or digitizing their business. This will give employees a greater sense of purpose while increasing revenue channels. Clients have come to value CPAs as business advisors and not just bookkeepers. By expanding client services to encompass consulting, mergers and acquisitions, and more, accounting firms can better support their CPAs, fostering professional growth and development. Such a diversified service portfolio allows these firms to cross-sell to clients, strengthening client relationships and ensuring long-term business sustainability. The tech-savvy generations coming into the profession are increasingly drawn to career paths that promise innovation and technological advancement, and presenting accounting in this light will be a significant draw. CPA firms must also rethink their equity and compensation strategy. Rethinking an entire business model and implementing meaningful changes won't happen overnight, but the conversation needs to be had before it is too late.
Why the CPA Profession Needs to Overcome its Challenges Quickly and Collaboratively
by PICPA CEO Jennifer Cryder, CPA, MBA
The Evolving Role of State Societies
The Unique CPA Podcast
Why the CPA qualification’s 150-hour college credit rule is outdated–and inequitable
Fortune
Despite Record Profits, Accounting Firms Must Change Business Models. Here’s Why…
by PICPA CEO Jennifer Cryder, CPA, MBA
Reviewed October 2024
Dual Enrollment
The issue
Early exposure to accounting is proven to be influential to students choosing majors and future career plans. There is also significant cost associated with obtaining a college degree and, specifically, the additional credits needed for a CPA license. Offering high school students the chance to enroll in a college accounting course not only introduces them to exciting curriculum, but also offers an affordable way to begin obtaining college credits.
Our position
The PICPA has partnered with Outlier to offer a 3 credit, completely virtual asynchronous Intro to Accounting Course through the University of Pittsburgh, paid for by the PICPA. Students participating in the program have a support person at their school who can provide direction through proctoring exam and adhering with course timeline.
Update: 64 students are enrolled in this program for the 2024-2025 school year. Notably, more than half of these participants lacked access to accounting coursework within their own educational institutions.
Why the CPA Profession Needs to Overcome its Challenges Quickly and Collaboratively
by PICPA CEO Jennifer Cryder, CPA, MBA
PICPA and Outlier Bring College Accounting to High Schools
by Matt Greene and Kristen Wilbert • CPA Now Blog
Reviewed October 2024
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