What is NASBA and What Does NASBA Do?

The National Association of State Boards of Accountancy (NASBA) is a non-profit organization founded in 1908 that supports the 56 State Boards of Accountancy with establishing CPA exam and licensing standards, processing of CPA exam applications, and guiding candidates through their path to licensure.

Today, NASBA aims to promote, oversee, and increase the efficiency of the State Boards of Accountancy within the USA. It also serves as a platform for regulators, practitioners, and academics to establish clear and consistent licensing standards and facilitate the CPA examination process.  

What is the National Association of State Boards of Accountancy (NASBA)’s Role in the CPA Exam?

The role of the National Association of State Boards of Accountancy (NASBA) in the Uniform CPA Examination is to operate the National Candidate Database (NCD) and CPA Examination Services (CPAES). It also supports more than 30 state boards of accountancy in processing applications, evaluating credentials, managing the CPA exam process, and reporting candidate scores. 

While NASBA assists state boards in facilitating the CPA exam process, it doesn’t issue actual CPA licenses. Rather, that task belongs to the State Boards of Accountancy.  

NASBA offers a wide selection of products and services that help provide those in the accounting industry with tools and skills that enable them to work toward protecting the financial interests of the public. 

NASBA Standards and Values

NASBA is built around a core set of values that serve as the foundation of the organization. Here are some of the key NASBA standards and tenets they adhere to:

• NASBA focuses on preserving public trust by effectively and precisely regulating the accounting profession. It also works closely with specific practitioners and regulatory bodies. 
• Maintains fairness and respect in its treatment of business partners, stakeholders, and every member.
• NASBA ensures a working environment that is diverse and creative, thereby encouraging teamwork and accountability. 
• The association works towards making sure that all issues are addressed in a fair, orderly manner through discussions and an optimized resolution process.  

NASBA’s role in CPA Licensing

NASBA’s role in CPA licensing can vary from state to state. Here’s the path to becoming a CPA and NASBA’s role:

• Satisfy the Education Requirements – Many states enlist NASBA to communicate the various educational requirements to sit for the CPA exam and become licensed, while others do themselves State Board of Accountancy. Either way, NASBA is critically important to ensuring that education requirements are clear and consistently applied.
• Apply to Sit for the Exam – Applications are processed through your State Board, which reviews your application and ensures that you’ve met the examination standards. NASBA facilitates this process for some states through their application portal, while other states require applying directly through their own systems.
• Receive Your Notice to Schedule (NTS) – After your CPA exam application has been accepted, you’ll receive your NTS, which will allow you to schedule your exams at a Prometric test center.
• Receive Your Test Results – After completing your exam, Prometric transmits your exam to the AICPA, which oversees the CPA exam grading process. Once your score is determined, the AICPA will transmit your test results to your State Board and NASBA, who will then communicate the results of your exam.   

Other Organizations Involved in the CPA Exam Process

Several organizations and exam partners work together to support the licensure of CPAs. Here’s an overview of the other organizations involved that NASBA works with:

Individual State Boards of Accountancy

Each US jurisdiction has its own Board of Accountancy (there are 56 of them) as part of its state government. The Accountancy Boards enact accountancy laws that govern the licensing of and ongoing practice of professional accountants within their  jurisdiction. As a result, the State Boards oversee the initial issuance of CPA license, establish and enforce the code of professional conduct, investigate complaints, and, when necessary, take disciplinary action.

American Institute of Certified Public Accountants (AICPA)

The AICPA is a national professional association of CPAs in the US. The AICPA establishes the CPA exam blueprints and testing standards. In other words, they establish the framework for what will appear on the CPA exam. 

The body is involved in designing and overseeing the administration of the CPA exam through its Board of Examiners, an executive committee that is responsible for preparing and scoring the Exam.

Prometric

Prometric is the global leader in the field of computer-based training and administers the CPA exam via computer from its nationwide network of established test centers. When you sit for a section of the CPA exam, you’ll be taking the exam in a Prometric test center.

Prometric ensures that the CPA exam maintains the highest standards of professionalism and excellence in the accounting and financial niche by ensuring the integrity and consistency of the examination process.  

How NASBA, AICPA, Prometric and the State Accounting Boards Work Together

The CPA examination process is a coordinated effort between the AICPA, NASBA and the State Boards of Accountancy, with each carrying different responsibilities in the process. 

• State boards of accountancy are responsible for establishing licensing rules and standards for their respective jurisdiction, and assessing the eligibility to sit for the CPA examination. Boards are also the final authority on communicating exam results received from NASBA to candidates.
• The AICPA is responsible for setting and scoring the CPA examination, and transmitting scores to NASBA.
• Prometric is responsible for administering the CPA exam and ensuring the quality and integrity of of the examination process.
• NASBA maintains the National Candidate Database and matches score data received from the AICPA with candidate details. Many states offer online score reporting on NASBA’s website at www.nasba.org. NASBA also maintains exam records for those who have passed the exam.

Further, the AICPA and NASBA also coordinate Mutual Recognition Agreements with accounting firms overseas. Agreements presently exist with Ireland, Canada, Hong Kong, Mexico, Scotland, and New Zealand. Accountants from these countries who meet certain eligibility criteria can sit for the International Qualification Examination (IQEX), instead of the standard CPA exam to be certified to practice in the USA. 

NASBA’s role in Continuing Professional Education (CPE)

While NASBA plays a big role in the initial licensing of CPAs, their responsibility in maintaining the integrity of the accounting profession by overseeing CPE requirements and standards is even more important. 

Typically, CPAs must complete 120 hours of CPE in a 3-year cycle, with at least 20 hours in each year. CPE can come from a wide range of sources and methods, so there’s a need for some level of quality control over the process. That’s where NASBA comes in.

NASBA maintains the integrity of the CPE process by establishing national standards and rules that must be followed in order to qualify for CPE. NASBA sets rules that govern how course content should be structured, acceptable delivery methods, time requirements, and attendance requirements, among other things. 

In order to issue CPE, entities must register and apply to NASBA to become an approved CPE sponsor. Once accepted, sponsors must submit course materials, maintain attendance records, and adhere to other requirements set by NASBA. 

Summing It All Up 

Since 1908, NASBA has been critical to supporting the quality and integrity of the accounting profession. Through its support of the State Boards of Accountancy, the NASBA has helped more than 650,000 Certified Public Accountants earn their license and practice public accountancy in the United States.

Now that you know more about NASBA’s role in the CPA licensing process, the rest of the path to becoming a CPA should make much more sense.