CPA Exam Changes
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Each year, the AICPA approves various changes and updates to the CPA Exam based on changes to the profession, as well as new laws and pronouncements. These changes can involve altering existing sections, adding new topics, and occasionally removing older ones. Read through the timeline below to learn about the recent CPA Exam changes and updates to the CPA Exam Blueprints. If you’re studying for the CPA Exam, you need to keep track of the latest announcements on the CPA Exam changes.
2024 CPA Exam Changes
Starting in 2024, the CPA Exam has three core sections and three disciplines. Candidates must pass all the core sections and one discipline to pass the CPA Exam. One significant change in the CPA Exam is that AUD, FAR, and REG remain core sections, while BEC has been replaced by the three disciplines.
In this section, we've reduced the multitude of exam changes down to the most essential takeaways by the exam section, incorporating new content being added, content being removed, and topics being deemphasized with a reduction in the skill level required to be demonstrated. These changes are eligible for testing in 2024. While BEC will no longer be available, its content will be distributed among several core and discipline sections.
It is important to note that the change is due to how technology has changed the accounting profession, how accountants perform their jobs, and the skills required to function.
Hence, the AICPA and NASBA have restructured the CPA Exam into a new CPA core-plus-discipline licensure model called CPA Evolution. Let's look at the three new disciplines and understand what content they entail.
- The Business Analysis and Reporting (BAR) CPA Exam tests financial statement and financial information analysis skills by comparing historical data to budgets and forecasts.
- It also tests candidates’ knowledge of the Financial Accounting Standards Board (FASB), Accounting Standards Codification, and the U.S. Securities and Exchange Commission (SEC) applicable to for-profit businesses and employee benefit plans.
- The Information System and Controls (ISC) CPA Exam integrates the technology aspect of accounting by testing skills in information systems, processing integrity, availability, security, confidentiality, and privacy.
- Successful candidates must demonstrate skills in data management. Including data collection, storage, and usage throughout the data life cycle.
- The Tax Compliance and Planning (TCP) CPA Exam is a comprehensive discipline that covers areas on U.S. federal tax compliance for individuals and entities with a focus on higher complexity transactions, U.S. federal tax planning for individuals and entities, and personal financial planning.
- The discipline tests a candidate’s knowledge of both preparation and review of tax returns and determining the tax implications of transactions, available alternatives, or business structures.
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2023 CPA Exam Changes
In this section, we've reduced the multitude of exam changes down to the most important takeaways by exam, incorporating new content that was added, content being removed, and topics being deemphasized with a reduction in the skill level required to be demonstrated. These changes were eligible for testing in 2023.
There are no content updates for the BEC or REG sections of the 2023 CPA Exam.
SAS 142: Audit Evidence
- Explains what constitutes audit evidence
- Sets out attributes of information that are considered by the auditor when evaluating information to be used as audit evidence
- Addresses the use of emerging technologies by preparers and auditors
- Incorporates the concepts surrounding professional skepticism, including the auditor’s consideration of susceptibility of information to bias and whether the audit evidence obtained corroborates or contradicts management’s assertions.
ASU 2018-12 Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts
- The amendments in this Update affect the following aspects of the guidance in Topic 944 as follows:
ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
- The amendments in this update require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606.