00;00;00;05 - 00;00;27;07 Speaker 1 Welcome to Episode three of the Accounting for California Podcast. My name is David Hemphill. I'm an information and planning analyst here at the California Board of Accountancy, and we'll be discussing AB 298, which is a new law which went into effect on January 1st, changing when a CPA exam candidate can apply to sit for the exam. It was signed into law by Governor Gavin Newsom in late September 2021. 00;00;27;18 - 00;00;46;03 Speaker 1 The legislation was authored by Assembly member Jacqui Irwin and sponsored by the CPA. And here to discuss those changes brought on by AB to 98. I am happy to be joined by Denise Morata, who's the examination unit manager here at the CPA. Hello, Denise. Hi, David. Welcome to the podcast. 00;00;46;04 - 00;00;46;22 Speaker 2 Thank you. 00;00;46;23 - 00;00;47;27 Speaker 1 I know you're very excited. 00;00;48;02 - 00;00;48;20 Speaker 2 I am. 00;00;49;07 - 00;01;00;17 Speaker 1 We've got a lot to talk about. So now so we can all understand it, maybe. Can you explain to us about Assembly Bill 298 and how it's going to affect applicants getting close to applying for the CPA exam? 00;01;00;18 - 00;01;29;19 Speaker 2 So AB 298 now allows applicants to apply for the CPA exam prior to meeting their educational requirements so they don't have to have their bachelor's degree and they do not need to have the 24 accounting unit and 24 business units. They do, however, need to be enrolled in a college or a university. And one of the other requirements is that you will be graduating within 180 days and completing all the education requirements. 00;01;29;21 - 00;01;37;05 Speaker 1 So before I had to be completely done with everything, before I applied to take the CPA exam. But now I can apply even before I graduate. Yeah. 00;01;37;06 - 00;01;38;00 Speaker 2 Yes. You can. 00;01;38;13 - 00;01;45;03 Speaker 1 Very good. So how long now? We need to get specific, though. How long do I have to complete my education after I apply? 00;01;45;15 - 00;02;14;12 Speaker 2 So in order to apply for this under the AB 298, you have to be in the process of completing all your education requirements within 180 days of your application submission. And you have to submit all proof of education requirements within 240 days. That is your transcript showing a degree conferral and that you also have the 24 units in accounting and 24 units of business study. 00;02;14;18 - 00;02;22;03 Speaker 1 So 180 days that's that's about six months. So theoretically then if I'm going into my last semester. Yes. Could be a good time to do this. 00;02;22;04 - 00;02;26;08 Speaker 2 Yes. Essentially, it's for the students who are in their last semester of college. 00;02;26;08 - 00;02;33;18 Speaker 1 Yeah. But then you also threw out this 240 number. So make sure I understand the difference between the 180 and the 240 then. 00;02;33;23 - 00;03;06;22 Speaker 2 Okay. So the 180 is you need to be graduating within 180 days of when the CBA receives your application for the CPA exam. Now, from the day that you the CBA receives your application, you now have 240 days to submit all required documents to the CPA, which is any transcripts, your transcripts that show that you have your degree conferral and also that you meet the 24 an accounting study and 24 units in business. 00;03;06;28 - 00;03;13;04 Speaker 1 Okay, I've got six months to complete my education and I have eight months to let the CBA know about it. 00;03;13;07 - 00;03;13;19 Speaker 2 Yes. 00;03;14;06 - 00;03;19;10 Speaker 1 Correct. Okay. Get that all in. And so when exactly does the clock start taking? 00;03;19;11 - 00;03;26;24 Speaker 2 Day one of the timer starts when the CBA receives the application from the applicant. 00;03;26;25 - 00;03;41;16 Speaker 1 There you go. So I'll put a big note in my phone with a little timer, you know, 180 days, it'll that'll let me know. Okay. That all sounds good. I think I understand all that. So what happens if a candidate doesn't submit the documentation for the requirements? 00;03;41;25 - 00;03;52;20 Speaker 2 So, unfortunately, if the candidate does not submit all their requirements within the 240 days, they will lose all of the exam credits that they have already taken. 00;03;52;29 - 00;03;55;26 Speaker 1 Hmm. So that's bad news. Yeah. We don't want that to happen. 00;03;55;27 - 00;04;00;03 Speaker 2 We don't want that to happen. That's why it's best to stay on top of all of that. Exactly. 00;04;00;03 - 00;04;07;25 Speaker 1 So. So I've been approved. I took my first section. I passed it. But I didn't get the information in. I would lose that. 00;04;07;26 - 00;04;13;23 Speaker 2 Yes. And I hear how hard the exam is. I would hate for any candidate to lose any credits. Right. 00;04;14;06 - 00;04;24;18 Speaker 1 We will stress that. How important. Yes. To get the documentation. Very good. I'll make sure I get that proof in. But it sounds like on the front end now, it's pretty easy to get approved. 00;04;24;19 - 00;04;34;16 Speaker 2 Yeah. All we require is on the application. Candidates will self-certify that they are going to meet the requirements in the specified timeframes. 00;04;34;21 - 00;04;39;13 Speaker 1 Okay. So I don't have to give you any proof at that point what I'm putting in my application essentially. 00;04;39;13 - 00;04;42;22 Speaker 2 No, you just mark the check on the application. Yeah. 00;04;42;26 - 00;04;43;05 Speaker 1 Okay. 00;04;43;06 - 00;04;43;28 Speaker 2 Certified. Good. 00;04;44;02 - 00;05;02;05 Speaker 1 Yep. But of course, bad news. If 240 days later, I don't prove it. Yes, you've got that time in there. Okay, that makes good sense. This is exciting. You've explained the benefits of 82. 98 for students, you know, maybe in their last semester or something. But who else can take advantage of this? It probably could be useful for other people too. 00;05;02;05 - 00;05;02;19 Speaker 1 I'm thinking. 00;05;02;21 - 00;05;31;02 Speaker 2 Yeah. So there are, I don't know, a whole other pool of candidates I could possibly apply. Maybe those who are looking for a career change or they maybe have a degree in accounting, but they don't have the 24 and 24 unit specified units that we require or they've graduated in another degree. You don't have to have an accounting degree to qualify or it's not one of the we just have to have just a bachelor's a bachelor's degree. 00;05;31;02 - 00;05;51;11 Speaker 2 Right. And so if you have a bachelor's degree, that's not in accounting, but in a different field, you may not have all the 24 units of business or 24 units of accounting. So those are other college students or those who have graduated that we could reach out to also. They would still have to be enrolled in a college or university. 00;05;51;12 - 00;05;56;14 Speaker 2 So it's maybe they're working towards getting those other units that they're don't quite have yet. 00;05;56;20 - 00;06;16;04 Speaker 1 Yeah, I see. There's could be quite a few people that could follow maybe into one of those categories. Yeah. Where I just need to go back and get the 24 and 24 or maybe I own that, maybe I took some business classes which would count for some of that. Maybe I just need a few accounting classes. Yes. And I can maybe get the process started a little sooner than I would have been able to before. 00;06;16;11 - 00;06;16;21 Speaker 2 Yeah. 00;06;17;04 - 00;06;36;19 Speaker 1 The CBA has a lot of information on our website to try to help applicants out. There's a handy thing called the exam Quick Tips flier on the website. I'm taking a peek at it right now. It mentions an option A, option B and option C to qualify as a CPA exam candidate. Can you walk us through what each of those mean then? 00;06;36;23 - 00;07;10;11 Speaker 2 Yeah. So option A and B remain the same of the education requirements prior to 80 to 98 going into effect. This is for all the applicants that meet all the education requirements, which is the bachelor's degree and the 24 and 24 units in accounting and business. But the option C candidates are specific to A, B to 98. So these are applicants that do not have all the education requirements met but will complete them within 180 days of when they submit their application to take the CPA exam. 00;07;10;15 - 00;07;21;10 Speaker 1 Okay, so if I'm one of the ones taking advantage of everything we've just talked about, I'll I'll be an option C, correct. Okay. Yeah. How do I let the board know what type of CPA exam candidate I am? 00;07;21;18 - 00;07;44;27 Speaker 2 So when applicant is are submitting and filling out their application, we have a spot in there where you can identify which type of candidate you are. It'll either say option A, option buyer option C, and you would choose which option that applies to you. And once you do that, you're in form that the applicant will print out and they send to the board. 00;07;44;27 - 00;07;56;13 Speaker 2 It will show on their what type of option candidate you are. So if you are option C candidate, it will show on the remittance form. Option C and the board will automatically know where to place you. 00;07;56;14 - 00;07;56;28 Speaker 1 What to do. 00;07;56;29 - 00;07;57;08 Speaker 2 Yeah. 00;07;57;10 - 00;08;14;05 Speaker 1 Okay. Oh, this definitely is an exciting change and one the CBA hopes will shorten the overall amount of time it'll take for a candidate to obtain their CPA license. Speaking of licensure, there's also something in the bill A, B to 98 with a slight change to the ethics requirements. What's that all. 00;08;14;05 - 00;08;35;03 Speaker 2 About? Yeah. So ethics is a requirement for licensure. It's not a requirement to take the CPA exam, but you need to have it in order to get your CPA license. AB 298 now allows for auditing and fraud courses to be counted towards the ethics requirement. It doesn't have to be ethics specific. You can also take auditing and fraud now. 00;08;35;04 - 00;08;45;03 Speaker 1 So that's pretty easy. There's just kind of an expanded amount of things that will apply correct and be considered for those ten units of ethics. Okay. But again, that's for licensure. That's the next. 00;08;45;03 - 00;08;49;13 Speaker 2 Step. Yeah. So that would be the next step after you've once you pass all your exams. 00;08;49;14 - 00;09;03;03 Speaker 1 Very good. Yes. Which I'm ready to do. Yes. Okay. I heard there's another potential timesaver that's gone into effect with the CBA in 2022, not related to AB 298. Can you explain what that's all about, Denise? 00;09;03;08 - 00;09;32;21 Speaker 2 So we now have what we call an enhanced education review process. So at the time of when applicants send in their application for the CPA exam, if they have 150 units completed, we will also check for licensing requirements as well. So not only will we be approving you to sit for the exam if you meet, all those requirements will also look to see if you have all the education requirements for licensure. 00;09;32;22 - 00;09;36;10 Speaker 1 Now that 150 is also a licensing requirements. 00;09;36;10 - 00;09;39;06 Speaker 2 It is, yes, not an exam requirement. 00;09;39;07 - 00;09;46;13 Speaker 1 Again, is this something I have to tell you? Hey, look, I've got my 150 or will CBA staff just kind of figure that out on their own? 00;09;46;20 - 00;10;05;20 Speaker 2 We'll be able to tell once you submit all your transcripts. There are instances where we may not have all the transcripts. And you said that you have certain chances in certain, certain schools, but we don't have them yet. So you want to make sure that we have all of them because based off of all the transcripts that we have, we can tell you candidates have taken 150 units. 00;10;05;21 - 00;10;12;16 Speaker 1 Okay. So what happens if I have 150 units, but not all of the specific courses required for licensure? 00;10;12;16 - 00;10;36;16 Speaker 2 So if candidates who have the 150 units but they don't have all the specifics units that we are looking for, board staff will review and all the transcripts and look at what units you have and whatever you're missing. You'll receive a letter letting you know what still needed and it'll lay out like you have X amount of units in this, but you also need X amount of units and this other one as well. 00;10;36;20 - 00;10;48;10 Speaker 2 So it's very specific, should be easy to follow. Hopefully this will allow candidates to kind of work towards getting those requirements done at a earlier stage and move the process along and getting license. 00;10;48;11 - 00;11;01;03 Speaker 1 Yeah, and the good news is you've got time to get it done. Yep. So that's another pretty cool thing because that earlier in my process, right then I'll find out. I may know already. Yes. I've got all the education requirements for licensure. 00;11;01;03 - 00;11;16;18 Speaker 2 Yeah. So that's the one main reason for this new process is to help candidates along the way if they are missing some licensing requirements, they now have an opportunity to kind of tackle those down earlier and get those completed when they are ready to submit for licensure. 00;11;16;18 - 00;11;37;20 Speaker 1 Yeah, I think that's great. So instead of finding out after you've already applied for your license, oh no, there's some things you still need to do. Now, I could potentially learn a lot earlier, so. Correct. Okay. That's a that's a really cool that the CPA is doing a good job, too. Whoever thought of that just in wrapping up here you are one of the newer managers here at the CPA. 00;11;37;20 - 00;11;43;17 Speaker 1 You've been with the CPA for almost six years. Is that right? And you've kind of worked your way up. You started as a student assistant? 00;11;43;17 - 00;11;56;22 Speaker 2 I did. I started back as a student assistant trying to just have a part time job while going to school. And it just so happened that once I graduated, there is an opening and I happened to get the position. Good for you. 00;11;57;01 - 00;12;00;29 Speaker 1 Work your way up to manager. What's something you like the most about working for the CBA? 00;12;01;04 - 00;12;17;18 Speaker 2 I think one of the most fulfilling things working at the board is knowing that you are doing your duty to protect California consumers. That's the whole mission of the board of accountancy. And so it's fulfilling to know that my job is directly doing that. 00;12;17;19 - 00;12;30;04 Speaker 1 Yeah, no, it does. It is a good feeling, right. Because that's that's our mission. That's what we're all here at the CBA to do and especially with a lot of things that we've just talked about, is making things more streamlined for applicants. 00;12;30;10 - 00;12;31;21 Speaker 2 Oh, yeah, definitely. 00;12;32;11 - 00;12;54;29 Speaker 1 Hopefully that's all something that if you are an exam applicant, you will be able to take advantage of this in the very near future. Well, thank you for joining us, Denise. Appreciate your taking some time to explain this, some exciting new legislation and try to break it down because it's not always easy to understand all of this stuff mean so, yes, be on the lookout for another accounting for California podcast coming soon. 00;12;54;29 - 00;13;09;11 Speaker 1 I hear there's some more exciting changes involving something called CBA Connect. We're going to have to explain that to you, too. So that'll be our next episode for now. Thank you so much for listening to the California Board of Accountancy Accounting for California Podcast.