The Uniform CPA Examination is made up of 4 complete sections: Financial Accounting and Reporting (FAR), Business Environmental Concepts (BEC), Auditing and Attestation (AUD), and Regulation (REG). Each of the 4 sections of the CPA examination in 2022 is made up of multiple-choice questions and task-based simulations. The BEC CPA examination part additionally incorporates a written communication part that asks the candidate to jot down info relating to varied subjects that may vary from managerial accounting ideas to monetary reporting and auditing requirements. The under info is designed to supply candidates with a CPA Exam guide in an effort to have a greater understanding of what’s to come back.
CPA Exam Changes:
There is not any secret in the CPA examination world that the examination construction is altering, and I imply massive time. CPA exam evolution is the up to date model of the CPA examination that expects to be launched in January of 2024. The American Institute of Certified Public Accountants (AICPA) and National Association of State Boards of Accountancy (NASBA) have teamed as much as enhance the total evaluation of accounting skilled competencies to make it extra reflective of what’s taking place in at present’s accounting career. The new CPA examination focuses closely on CPA candidates’ capability to assume critically and interpret difficult knowledge.
Will the Exam be Harder?
The CPA exam is a hard exam, and can at all times be a tough examination. This isn’t essentially because of the present future construction itself, however quite the CPA examination content material that’s being examined and the CPA exam pass rates positively communicate to that. If you might be at present, or planning to sit down for the CPA examination, we suggest buying a CPA evaluation course that’s aligned with the way you be taught. Universal CPA Review course is a good selection as it’s cost-effective and likewise a fantastic useful resource for individuals who be taught extra visually.
How Does CPA Exam Evolution Impact What is Tested?
The CPA Evolution mannequin is switching to a singular format that features CORE disciplines and one Discipline mode. This mainly implies that there will likely be three CORE sections (the present FAR, AUD, and REG sections) whereas examination candidates will likely be allowed to pick one self-discipline. The three disciplines include the following:
Business Analysis & Reporting (BAR) –
this self-discipline is extra aligned with assurance and advisory providers. It additionally contains parts of monetary evaluation and reporting.
Information Systems & Controls (ISC) –
this self-discipline covers subjects of expertise and inside controls. Similar to Business Analysis and Reporting (BAR), it’s a self-discipline designed for candidates which have extra of an curiosity in auditing and assurance providers as a profession path.
However, that is extra of an IT self-discipline than Business Analysis & Reporting.
Tax Compliance & Planning (TCP) –
this self-discipline speaks to the identify itself. This is a self-discipline that’s meant for candidates which have a spotlight in tax work and tax rules.
How Will CPA Evolution Impact Pre-Evolution Exam Takers?
CPA Exam candidates that haven’t handed all 4 sections of the CPA pre-evolution examination mannequin is not going to need to retake any sections that they handed underneath the prior mannequin. In different phrases, in case you cross one among the 4 sections in the pre-evolution mannequin (FAR, AUD or REG), you’ll not need to retake them as CORE exams underneath the new examination mannequin.
How Will the CPA Exam Format Change?
How Will the Contents of the FAR, AUD, and REG Change Under the New CPA Evolution Exam?
Per the American Institute of Certified Public Accountants (AICPA), the CPA examination blueprints will change barely for the CORE exams. However, it’s recognized that almost all of the content material itself will stay the identical.
How Does CPA Exam Evolution Impact International Candidates?
There will likely be no distinction in expectations for United States primarily based CPA candidate’s vs these primarily based in India. The availability of testing facilities for worldwide candidates continues to develop as availability exists in a few of the following cities:
- Ahmedabad
- Bangalore
- Calcutta
- Chennai
- Hyderabad
- Mumbai
- New Delhi
- Trivandrum
How Long Will the CPA Exam Be Under the New Format?
The CPA examination will stay the identical 4-hour examination. There will likely be no modifications made to the size of the examination as the identical quantity of knowledge stays testable. The exams will proceed to increase 15-minute breaks in between testlets, so you’ll not be required to sit down at your examination pc for 4 straight hours. You can anticipate to proceed to schedule and take your examination at a Prometric heart close to you.
Bottom Line:
The CPA examination is altering for the higher. It is permitting accounting professionals to deal with a self-discipline (or a service) that’s aligned with what it’s they need to pursue as a profession. The pre-CPA examination evolution model of the exams has at all times been somewhat bit broader. While CPA evolution’s construction nonetheless requires accountants to have an knowledgeable understanding of the fundamentals of all accounting CORE ideas, it’s also permitting them to exhibit and showcase their area of interest in the trade by choosing a self-discipline as effectively.
Authored by Joey Reeve
Joey Reeve, CPA is cofounder and lead teacher of Universal CPA Review. This put up is designed for these curious about studying extra about the CPA exams or at present learning for them. As a disclosure, Universal CPA Review is a CPA examination research useful resource that’s significantly designed for visible learners. If curious about studying extra about Universal CPA Review, you’ll be able to join a free 7-day trial with this link.
