For anyone pursuing a Certified Public Accountant (CPA) license, understanding the roles of the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) is crucial. Both organizations play a key role in the CPA certification process, yet they serve different functions and have distinct responsibilities.
At first glance, AICPA and NASBA may seem interchangeable since they both influence the CPA Exam and licensure process, but each organization has a specific role in ensuring that CPAs meet the highest standards of the profession. AICPA focuses on setting accounting standards and developing the CPA Exam, while NASBA works directly with state boards of accountancy to oversee licensing requirements.
This guide provides a detailed comparison of AICPA vs. NASBA, explaining their differences, roles, and how they work together to support aspiring and licensed CPAs.
What Is the AICPA?
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The American Institute of Certified Public Accountants (AICPA) is the leading professional organization for CPAs in the United States. Founded in 1887, AICPA is responsible for setting ethical, auditing, and accounting standards, developing the CPA Exam, and providing guidance on best practices in the accounting profession.
Key Responsibilities of AICPA:
Developing and Maintaining the CPA Exam
- AICPA designs and updates the Uniform CPA Examination, ensuring it tests candidates on relevant and up-to-date accounting knowledge.
- The organization determines the content, question types, and scoring structure of the exam.
Establishing Professional Standards
- AICPA sets the Generally Accepted Auditing Standards (GAAS) used by auditors.
- It provides guidelines for financial reporting, ethics, and tax practice.
Providing Continuing Education and Resources
- The AICPA offers CPA training, certifications, and continuing professional education (CPE) courses.
- It supports CPAs with professional development programs, including specialized certifications in forensic accounting, financial planning, and cybersecurity.
Advocating for the Accounting Profession
- AICPA represents CPAs in legislative and regulatory matters, influencing policies related to taxation, financial reporting, and business law.
Although the AICPA is responsible for creating the CPA Exam, it does not handle CPA licensing. That responsibility falls under NASBA and the individual state boards of accountancy.
What Is NASBA?
The National Association of State Boards of Accountancy (NASBA) is the organization that supports and coordinates CPA licensing at the state level. Unlike AICPA, which is a private professional association, NASBA works directly with all 55 U.S. state and jurisdictional accountancy boards to ensure consistent CPA licensure policies.
Key Responsibilities of NASBA:
Administering the CPA Exam Process
- NASBA acts as the bridge between CPA candidates and state boards of accountancy.
- It processes CPA Exam applications, collects fees, and issues Notices to Schedule (NTS) for the exam.
Handling CPA Licensing and Credential Evaluation
- NASBA assists state boards with evaluating candidates’ education, experience, and exam results.
- It helps verify whether candidates have met the 150-hour education requirement and work experience criteria for CPA licensure.
Maintaining the National Candidate Database
- NASBA manages a centralized database of CPA candidates, ensuring accurate records for exam scores and licensing status.
Providing Support to State Boards of Accountancy
- NASBA works with state boards to ensure licensing regulations remain consistent across different jurisdictions.
- It offers guidance on reciprocity agreements, license mobility, and ethics exam requirements.
Unlike AICPA, which focuses on setting standards and exam content, NASBA is involved in the logistics of CPA licensing and candidate verification.
Key Differences Between AICPA and NASBA
Although AICPA and NASBA work closely together, their functions are distinct. Below are the major differences between the two organizations:
Role in the CPA Exam
- AICPA develops and updates the CPA Exam, ensuring that the content remains relevant to industry standards.
- NASBA administers the application and scheduling process, ensuring candidates meet eligibility requirements before taking the exam.
CPA Licensing Authority
- NASBA oversees the CPA licensing process by working with state boards of accountancy.
- AICPA does not issue CPA licenses, but it provides continuing education and professional support to licensed CPAs.
Regulatory and Professional Standards
- AICPA sets accounting, auditing, and ethical standards used by CPAs nationwide.
- NASBA helps state boards enforce licensing regulations, ensuring CPAs meet educational and experience requirements.
Interaction with CPA Candidates
- AICPA interacts with candidates through CPA Exam resources and continuing education programs.
- NASBA handles candidate applications, score releases, and licensing verification.
Continuing Education and Professional Development
- AICPA offers CPE courses, specialized certifications, and training resources for CPAs.
- NASBA ensures CPAs meet their state’s CPE requirements and maintains compliance with licensing laws.
How AICPA and NASBA Work Together
Despite their differences, AICPA and NASBA collaborate to ensure a smooth CPA licensure process. Their partnership ensures that CPA candidates experience a seamless transition from exam completion to licensure.
- AICPA develops the CPA Exam, ensuring it aligns with industry standards.
- NASBA processes CPA Exam applications and coordinates with state boards to verify candidate eligibility.
- State boards of accountancy (with NASBA’s assistance) determine CPA licensure requirements, including education, ethics, and work experience.
- Once licensed, CPAs rely on AICPA for professional support, ongoing education, and industry updates.
In short, AICPA creates the exam, NASBA handles licensing logistics, and state boards issue CPA licenses.
Which Organization Should CPA Candidates Contact?
Since AICPA and NASBA serve different functions, CPA candidates must know which organization to contact for specific concerns:
- For CPA Exam content, study materials, and exam structure: Contact AICPA.
- For CPA Exam application status, fees, and scheduling: Contact NASBA.
- For CPA licensing, work experience requirements, and license renewals: Contact your state board of accountancy (with NASBA guidance).
- For continuing education and professional development: Contact AICPA.
Understanding the distinct roles of these organizations can help CPA candidates navigate the certification process more efficiently.
Frequently Asked Questions
What is the main difference between AICPA and NASBA?
AICPA develops the CPA Exam, sets accounting and auditing standards, and provides continuing education for CPAs. NASBA manages CPA Exam applications, licensing processes, and candidate eligibility requirements in coordination with state boards of accountancy.
Does AICPA or NASBA issue CPA licenses?
NASBA, in partnership with state boards of accountancy, oversees the CPA licensing process and ensures candidates meet education and experience requirements. AICPA does not issue CPA licenses but provides professional resources and guidance for CPAs.
Who should I contact for CPA Exam application and scheduling issues?
For CPA Exam application processing, eligibility verification, and scheduling issues, NASBA is the primary point of contact. AICPA is responsible for developing the exam but does not handle candidate application logistics.
Do AICPA and NASBA require CPAs to complete continuing education?
NASBA enforces continuing professional education (CPE) requirements through state boards to ensure CPAs maintain their license. AICPA offers CPE courses and certifications, but individual states determine whether those credits fulfill CPA licensing requirements.
Bottom Line
Both AICPA and NASBA play essential roles in the CPA certification process, but their responsibilities differ. AICPA focuses on setting professional standards and developing the CPA Exam, while NASBA works directly with state boards to oversee CPA licensing and ensure candidates meet all requirements.
For CPA candidates, understanding the differences between AICPA and NASBA can simplify the licensing process and help them know where to turn for support. Whether you’re applying for the CPA Exam, checking your licensing status, or seeking professional development opportunities, knowing which organization to contact will make your CPA journey smoother and more efficient.