What is the National Association of State Boards of Accountancy (NASBA)?
Introduction
The National Association of State Boards of Accountancy (NASBA) is a U.S. nonprofit organization that serves and supports the 55 state and territory boards of accountancy. Those boards are the official regulators that license and oversee CPAs and the practice of public accountancy in their jurisdictions. NASBA’s work is focused on protecting the public by promoting high standards, consistency among state boards, and effective regulation of the profession.
Quick facts
– Founded: 1908
– Membership: 55 state and territory boards of accountancy (all U.S. states plus territories)
– Primary mission: Protect the public through coordination, education, and services that support state boards and the CPA profession
– Role relative to the CPA Exam: Works with state boards and the AICPA but does not create exam content; it supports administration and score reporting processes. (The AICPA develops exam content and Prometric provides test delivery.)
Core functions and activities
– Serve as a coordinating body for state boards: NASBA brings boards together to share best practices, develop model policies, and advocate on regulatory issues that affect multiple jurisdictions.
– Support the Uniform CPA Examination process: NASBA works with state boards and the AICPA on eligibility, score reporting and candidate services, and helps align state policies related to the exam. (NASBA itself does not write exam questions.)
– Licensing support and mobility: NASBA administers services to help boards evaluate credentials and allow interstate recognition of qualifications—most notably the National Qualification Appraisal Service (NQAS) and the “substantial equivalency” framework that enables license mobility between states.
– Education, training and public trust: NASBA runs professional development and training programs, issues comment letters and white papers, and operates the NASBA Center for the Public Trust (focused on ethics and integrity in accounting).
– Convenings and publications: NASBA holds regional and national meetings, issues an annual report, and publishes guidance and informational materials for boards and the public.
How NASBA relates to other bodies
– State boards of accountancy: State boards are the licensing/regulatory authority. NASBA supports those boards—providing coordination, services, and policy input—but it does not itself grant licenses.
– AICPA: The American Institute of CPAs develops CPA Exam content and professional guidance. NASBA collaborates with the AICPA and offers feedback on exam-related and regulatory matters.
– Prometric (test delivery vendor): Prometric administers the computer-based CPA Exam at testing centers; NASBA and state boards coordinate with Prometric on scheduling and logistics.
Why NASBA exists (public protection)
NASBA’s purpose is grounded in the premise that reliable financial reporting and ethical accounting practices support economic trust. By helping state boards maintain consistent, high-quality regulation—especially after high-profile accounting failures—NASBA aims to protect investors, creditors, and the public that rely on accurate financial information.
Practical steps (for different audiences)
If you’re a CPA candidate (planning to become a CPA)
1. Determine which state board you will apply to: Licensure rules (education, experience, exam eligibility) vary by state. Select the state where you plan to be licensed.
2. Review that state’s CPA requirements: Confirm required education (credit hours/degree), experience, and any state-specific rules. State board websites list application forms and checklists.
3. Apply for exam eligibility with the state board: Most boards process candidate eligibility to sit for the Uniform CPA Exam. Some boards forward applicant information to NASBA for score reporting.
4. Create any required NASBA account(s): NASBA provides candidate services (score reporting, candidate records). Follow your state board’s instructions about NASBA registration if needed.
5. Schedule the exam with Prometric: Once the state board/NASBA confirm eligibility, schedule exam sections at a Prometric testing center.
6. After passing, complete licensing steps with the state board: That usually means submitting experience verifications, ethics exams (if required), and any final documentation for licensure.
If you’re a licensed CPA moving to another state (license mobility)
1. Check the new state’s requirements: Many states use “substantial equivalency” standards to accept out-of-state licenses; investigate whether you meet those criteria.
2. Contact the new state board: Ask about endorsement/reciprocity or direct application procedures. Boards will instruct you on required forms and documentation.
3. Use NASBA services if recommended: NASBA’s National Qualification Appraisal Service (NQAS) can evaluate credentials for boards that request or accept that service. NASBA can also assist with score transfers and verification requests.
4. Submit verification and application materials: Provide transcripts, experience verification, and any required fee. Some states may require an ethics exam or additional coursework.
5. Obtain the new state license: Once approved by the receiving board, you’ll receive the authority to practice in that jurisdiction. Keep in mind license renewal and continuing professional education (CPE) requirements differ by state.
If you’re an employer or verifier of CPA credentials
1. Verify the candidate’s license with the issuing state board (not with NASBA as the primary verifier). Use the state board’s online license lookup or contact the board directly.
2. If you need a national verification, NASBA can provide verification or direct you to the appropriate board and resources. NASBA’s services can help with interstate verification requests and records.
If you’re a member of a state board or policy stakeholder
1. Engage with NASBA resources: Attend NASBA regional and national meetings, review publications and comment letters, and participate in working groups.
2. Use NASBA’s model policies and guidance: When creating or updating state rules, leverage NASBA’s comparative analyses, white papers, and best-practice materials.
3. Coordinate on multi-state issues: Work with NASBA and other boards to harmonize licensing mobility, CPE standards, and disciplinary procedures.
What NASBA does not do (important limits)
– NASBA does not itself license CPAs; licensing decisions are made by individual state boards.
– NASBA does not write the CPA Exam content—the AICPA develops exam Blueprints and test questions. Prometric delivers the testing environment at test centers. NASBA’s role is supportive and coordinating in the exam ecosystem.
How to engage or find more information
– Visit NASBA’s website for state board listings, services, meeting schedules, and publications.
– Contact the state board of accountancy where you plan to be licensed for official application and licensing instructions.
– For CPA Exam specifics, consult both your state board and the AICPA/Prometric resources for candidate information.
Conclusion
NASBA is the central coordinating organization that helps state boards of accountancy regulate the CPA profession effectively and consistently across the United States. It supports the CPA Exam process (without creating exam content), facilitates interstate license recognition, delivers education and training for boards and the profession, and promotes public trust in accounting. For anyone pursuing a CPA license, transferring a license, or working with license verification, NASBA is a key resource in the broader regulatory ecosystem.
Sources and further reading
– Investopedia — “National Association of State Boards of Accountancy (NASBA)” (source summary): https://www.investopedia.com/terms/n/nasba.asp
– NASBA — About NASBA: https://nasba.org/about/
– NASBA — State Boards of Accountancy (membership information): https://nasba.org/state-boards/
– NASBA — CPA Exam information: https://nasba.org/exams/cpa-exam/
– NASBA — Substantial Equivalency and licensure mobility: https://nasba.org/licensure/substantial-equivalency/
– NASBA Center for the Public Trust — History and mission: https://nasba.org/about/center-for-public-trust/
Additional sections
NASBA’s Organizational Structure and Governance
– Membership and scope: NASBA is a nonprofit association whose members are the 55 boards of accountancy in the 50 U.S. states, the District of Columbia, Puerto Rico, Guam, the Northern Mariana Islands and the U.S. Virgin Islands. It convenes these independent state boards to coordinate policy, share best practices and provide services that support state regulation of public accounting.
– Governance: NASBA is governed by a board of directors that includes officers, regional directors and directors-at-large drawn from the membership and the public. Committees and staff carry out operational activities, education, regulatory monitoring and service delivery.
Key NASBA Functions and Services
– Liaison and coordination: NASBA acts as a central forum for state boards to discuss regulatory responses, examine trends and develop consistent approaches to issues such as licensing standards, discipline and continuing professional education (CPE).
– Examination support: NASBA facilitates administration and candidate services related to the Uniform CPA Examination (the “CPA Exam”), though the exam content is developed by the AICPA and Prometric administers test delivery. NASBA coordinates application processing, score reporting and candidate eligibility on behalf of many state boards.
– Licensing and mobility services:
– National Qualification Appraisal Service (NQAS): evaluates credentials of applicants who were educated or licensed outside the U.S. or who lack documentation the state board requires.
– Substantial Equivalency / CPA mobility: NASBA works with state boards to implement mobility concepts (e.g., substantial equivalency) that let many CPAs practice across state lines without obtaining a new license — subject to each state’s rules.
– CPE and professional education: NASBA maintains the National Registry of CPE Sponsors, offers quality standards for CPE providers, and runs or supports training for regulators and practitioners.
– Public trust and ethics: Through the NASBA Center for the Public Trust and related programs, NASBA promotes ethics and public-interest initiatives designed to strengthen public confidence in financial reporting and the accounting profession.
– Regulatory monitoring and advocacy: NASBA monitors legislation and regulatory developments affecting accounting regulation and provides coordinated feedback or comment letters on proposed rules.
Practical steps — For CPA candidates and licensees
1. If you want to sit for the CPA Exam:
– Determine which state board you will apply through (generally the state where you intend to practice or where you meet education requirements).
– Review the state board’s education and experience requirements. NASBA’s “Boards of Accountancy” pages and the state board’s website list required coursework and credit hours.
– Submit your CPA Exam application to the state board (or the board’s agent). NASBA often processes candidate certifications and issues a Notice to Schedule (NTS) once eligibility is confirmed.
– Schedule and sit for the exam sections via Prometric within the NTS validity period.
2. If you are a newly licensed CPA and plan to move to another state:
– Check the destination state board’s licensing requirements and mobility/substantial equivalency rules.
– If your current license meets the destination state’s substantial equivalency criteria, you may be eligible for reciprocity or license mobility without re-taking the exam—file for a license by endorsement or use NASBA resources to confirm eligibility.
– If your credentials are unusual (foreign degree, nonstandard experience), use NASBA’s National Qualification Appraisal Service to have your education and experience evaluated.
3. If your employer or a third party needs to verify a CPA license:
– Use NASBA’s CPAverify service (or the state board’s verification portal) to confirm an active license and disciplinary status.
4. If you encounter an ethics or discipline matter:
– Report concerns to the relevant state board of accountancy. State boards have authority to investigate complaints and impose sanctions on licensees. NASBA publishes disciplinary actions and helps boards share information.
Practical steps — For firms and continuing education providers
– CPE providers should apply to be listed on NASBA’s National Registry and meet NASBA’s standards so that courses are accepted by state boards.
– Firms hiring CPAs who were licensed in other states should verify licensure and ensure the CPAs comply with the hiring state’s mobility or licensure-by-endorsement rules.
Examples and illustrative scenarios
Example 1 — CPA candidate applying for the CPA Exam in State A
– Maria completed her accounting degree and 150 credit hours in State A. She applies to State A’s board to sit for the CPA Exam. NASBA processes her application; the board confirms she meets education requirements and issues an NTS. Maria schedules the FAR, AUD and REG sections over several months at Prometric test centers.
Example 2 — Licensed CPA moves from State B to State C
– Tony is licensed in State B and accepts a new job in State C. State C recognizes licenses that meet “substantial equivalency.” Tony confirms his State B license is substantially equivalent; he applies for licensure by endorsement in State C, submits verification of his original license (via CPAverify), and—after satisfying any state-specific CPE or fee requirements—obtains a State C license without retaking the CPA Exam.
Example 3 — Foreign-educated applicant seeks U.S. CPA license
– An applicant with an international accounting degree seeks to become a CPA in the U.S. The state board requires a U.S.-equivalency evaluation. The applicant submits transcripts to NASBA’s National Qualification Appraisal Service; NQAS provides a course-by-course evaluation that the state board uses to determine exam eligibility or licensing requirements.
Example 4 — Employer verifies a candidate’s license and disciplinary history
– A hiring manager requests CPA verification before making an offer. They use NASBA’s CPAverify portal to confirm the candidate’s license is active and view any public disciplinary actions listed by the state board.
NASBA’s role in public trust and regulatory improvement
– Historical context: High-profile corporate accounting failures in the early 2000s (Enron, WorldCom) heightened public scrutiny of accounting oversight. NASBA’s mission—protecting the public by supporting high-quality regulation—gained renewed emphasis on enforcement, ethics and education to rebuild confidence.
– Ongoing priorities: NASBA supports stronger licensure standards, consistent enforcement among states, improved CPE and ethical training, and cross-border credential recognition where appropriate. NASBA also publishes guidance and commentary to state boards on emerging issues (e.g., auditor rotation, practitioner mobility, technology impacts on audit quality).
How NASBA interacts with other bodies
– With state boards: NASBA provides services, research and coordination for boards but does not replace their regulatory authority.
– With the AICPA: The AICPA develops CPA Exam content, while NASBA and state boards handle candidate eligibility and licensing rules; all three coordinate on exam structure and policy.
– With testing vendors: Prometric administers the CPA Exam at testing centers; NASBA and state boards work with Prometric on scheduling and test delivery issues.
Limitations and common misconceptions
– NASBA does not create CPA Exam questions or set the exam passing score; the AICPA writes the examination content and the Uniform CPA Examination Development (and state boards) set policies for scoring and passing criteria.
– NASBA does not issue licenses—state boards do. NASBA facilitates processes like credential evaluation, candidate communication and inter-board coordination.
Practical checklist — Moving across states (quick reference)
1. Before relocating:
– Check the destination state board’s licensure and mobility rules.
– Confirm whether your current license is deemed substantially equivalent.
– Prepare verification of your current license via CPAverify.
2. Applying in the destination state:
– Submit application for licensure by endorsement or reciprocal licensure.
– Provide required documentation: verification of education (transcripts), exam scores, experience affidavits, background checks if required.
– Obtain any state-specific CPE or ethics exam requirements.
3. After licensure:
– Update employer and insurance (if applicable) on new license.
– Comply with continuing professional education and renewal deadlines in the new state.
Further resources and reading
– NASBA official website: nasba.org — state board directories, National Qualification Appraisal Service, CPAverify, CPE Registry and position statements.
– AICPA: aicpa.org — CPA Exam content information and policy coordination.
– Prometric: prometric.com — CPA Exam scheduling and test delivery information.
– Investopedia primer on NASBA (source provided): https://www.investopedia.com/terms/n/nasba.asp
Concluding summary
The National Association of State Boards of Accountancy is a central coordinating body for U.S. state and territory accountancy boards. While it does not license CPAs or write the CPA Exam, NASBA provides essential services—credential evaluation, candidate processing support, CPE oversight, license verification and policy coordination—that help state boards regulate the profession consistently and protect the public interest. For individuals and firms, understanding NASBA’s services (such as the National Qualification Appraisal Service, CPAverify and the CPE Registry) and the differences between NASBA’s role and state board authority will streamline exam applications, license mobility and compliance with regulatory requirements.
Sources
– Investopedia. “National Association of State Boards of Accountancy (NASBA).” https://www.investopedia.com/terms/n/nasba.asp
– NASBA official site: https://nasba.org (referenced for NQAS, CPAverify, CPE Registry and board information)
[[END]]