What Is NASBA & What Does It Do? [Full 2025 Guide]

Complete Guide to Understanding What NASBA Is and Why They are Important

what-is-nasbaThe National Association of State Boards of Accountancy (NASBA) plays a crucial role in the regulation, administration, and licensing of Certified Public Accountants (CPAs) in the United States. While the American Institute of Certified Public Accountants (AICPA) is responsible for developing the Uniform CPA Exam, NASBA oversees the CPA licensing process in collaboration with state boards of accountancy.

For CPA candidates, understanding NASBA’s role is essential because it determines exam eligibility, processes applications, and ensures compliance with state-specific licensing requirements. Whether you are considering becoming a CPA or are currently preparing for the exam, knowing how NASBA fits into the CPA licensure process can help you navigate the journey more effectively.


The History and Purpose of NASBA

NASBA was established in 1908 as a nonprofit organization to support and enhance the effectiveness of state boards of accountancy. Each U.S. state, along with U.S. territories such as Puerto Rico, the U.S. Virgin Islands, and Guam, has its own board of accountancy, which is responsible for regulating CPA licensure, continuing education, and professional conduct.

Since CPA licenses are issued at the state level, there is no single national governing body for CPA licensure. Instead, NASBA serves as a centralized organization that coordinates efforts among different state boards to ensure consistency and compliance with national standards.

While NASBA does not directly license CPAs, it facilitates the process by helping candidates meet requirements, managing CPA Exam applications, and overseeing interstate mobility for licensed professionals.


The Role of NASBA in the CPA Exam Process

NASBA plays a vital role in the CPA Exam process, ensuring that candidates meet the necessary requirements before they can take the test. It works closely with the AICPA and state boards of accountancy to maintain the integrity and fairness of the exam.

Determining CPA Exam Eligibility

Before a candidate can take the CPA Exam, they must apply through NASBA or their respective state board of accountancy to determine eligibility. Each state has specific education and experience requirements, but NASBA provides guidance and standardized resources to help candidates understand the application process.

Common eligibility requirements include:

  • A bachelor’s degree or higher from an accredited institution.
  • Completion of specific accounting and business-related coursework.
  • Meeting the minimum semester hour requirements (usually 120 or 150 credit hours).

NASBA helps streamline the application review process, ensuring that candidates meet their state’s requirements before receiving approval to schedule the CPA Exam.

Processing CPA Exam Applications

Once eligibility is confirmed, NASBA processes exam applications and fees, issuing the Notice to Schedule (NTS)—a document required for scheduling CPA Exam sections. Without an NTS, candidates cannot register for an exam appointment.

NASBA’s role includes:

  • Collecting exam application fees and processing payments.
  • Verifying education and eligibility documents.
  • Issuing the NTS for approved candidates.

The application process varies by state, but NASBA ensures that all candidates go through a standardized verification process to maintain consistency across jurisdictions.

Administering the CPA Exam

While the AICPA develops and maintains the CPA Exam, NASBA is responsible for overseeing its administration through Prometric testing centers. This includes:

  • Coordinating exam scheduling and testing appointments.
  • Ensuring candidates comply with exam security policies.
  • Managing exam score releases and reporting results to state boards.

NASBA plays a key role in ensuring that the CPA Exam remains secure, fair, and accessible to all qualified candidates.

CPA Exam Score Release and Reporting

After candidates complete an exam section, NASBA is responsible for releasing scores based on the AICPA’s grading timeline. CPA Exam scores are typically released several times per quarter, and candidates can check their results through NASBA’s online portal.

NASBA also reports exam scores to the candidate’s state board of accountancy, which determines whether the candidate has met all exam requirements for licensure.


NASBA’s Role in CPA Licensure and Certification

Passing the CPA Exam is only one part of the licensure process. Candidates must also meet additional education, ethics, and experience requirements before obtaining a CPA license. NASBA provides resources and guidance to help candidates navigate these steps.

Licensing Services

Many state boards partner with NASBA for licensing services, which means candidates submit their CPA license applications directly through NASBA’s system. The organization helps verify that applicants have met:

  • The 150 credit hour requirement.
  • The experience requirement, usually one to two years under a licensed CPA.
  • Any additional state-specific requirements, such as an ethics exam.

NASBA’s CPA Central portal allows candidates to track their licensure progress and submit required documentation.

CPA Exam International Administration

NASBA also facilitates CPA Exam administration for international candidates who wish to become licensed CPAs in the U.S. It oversees the International Qualification Examination (IQEX), which allows accountants from certain foreign countries to obtain a U.S. CPA license without taking the full CPA Exam.

This initiative enables qualified professionals from countries with Mutual Recognition Agreements (MRAs) to practice in the U.S. under certain conditions.

CPA Mobility and Interstate Licensing

Since CPAs are licensed at the state level, professionals who move to another state may need to transfer their license. NASBA’s CPA Mobility program helps simplify this process, allowing CPAs to practice in multiple states without needing to reapply for a new license.

NASBA provides interstate mobility resources, ensuring that CPAs can practice across jurisdictions while complying with state regulations.


Other Services and Resources Provided by NASBA

In addition to its core functions related to the CPA Exam and licensure, NASBA offers a range of resources, services, and continuing education programs to support accounting professionals.

Continuing Professional Education (CPE) Standards

Many states require CPAs to complete Continuing Professional Education (CPE) credits to maintain their license. NASBA sets CPE standards and provides an online registry of approved CPE courses to ensure CPAs meet their state’s requirements.

Ethics Exam Administration

Some state boards require CPA candidates to pass an ethics exam before obtaining their license. NASBA facilitates ethics exam administration, helping candidates meet this requirement efficiently.

Advocacy and Industry Research

NASBA collaborates with regulators, lawmakers, and accounting organizations to advocate for improvements in CPA licensure, exam policies, and accounting standards. It conducts industry research and publishes reports on trends in CPA education, certification, and public accounting.


Frequently Asked Questions

What is NASBA’s role in the CPA Exam process?

NASBA is responsible for processing CPA Exam applications, determining candidate eligibility, issuing Notices to Schedule (NTS), and releasing exam scores. It works alongside the AICPA and state boards of accountancy to ensure the CPA Exam is administered fairly and consistently.

Does NASBA issue CPA licenses?

No, NASBA does not issue CPA licenses; state boards of accountancy are responsible for granting CPA licensure. However, NASBA assists with licensing services, application processing, and verifying candidate qualifications in many states.

Can international candidates take the CPA Exam through NASBA?

Yes, NASBA facilitates international CPA Exam testing in select countries and oversees the International Qualification Examination (IQEX) for accountants from countries with Mutual Recognition Agreements (MRAs). This allows eligible international candidates to become U.S. CPAs without taking the full CPA Exam.

How does NASBA support CPAs after they pass the CPA Exam?

NASBA provides licensing support, CPA mobility resources, and continuing professional education (CPE) guidance to help CPAs maintain their credentials. It also advocates for regulatory updates and best practices in public accounting to support career advancement and compliance with evolving industry standards.


Bottom Line

NASBA is a vital organization in the CPA licensure process, working alongside state boards of accountancy and the AICPA to ensure that CPA candidates meet educational, exam, and licensing requirements. From exam eligibility determination and application processing to score reporting and licensing services, NASBA helps standardize and streamline the CPA certification process across the United States.

For CPA candidates, understanding NASBA’s role can make the application, exam, and licensure process more transparent and manageable. Whether you are just starting your CPA journey or preparing for the next step in licensure, NASBA provides the tools and resources necessary to navigate the path to becoming a CPA with confidence.

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