If you're a CPA Exam candidate gearing up for your examinations, it's imperative to stay abreast of the latest developments, especially considering the significant changes scheduled for 2021. The American Institute of Certified Public Accountants (AICPA) is introducing a new Blueprint on July 1, 2021, redefining the skills and knowledge expected of newly licensed CPAs (nlCPAs). Among the various alterations, one of the most substantial shifts involves a heightened emphasis on cultivating a digital and data-driven mindset.
Understanding a Digital and Data-Driven Mindset
The 2021 CPA Exam aims to assess candidates' grasp of data sources and their ability to evaluate the accuracy and relevance of data. This novel focus implies that candidates should approach accounting tasks with a keen awareness of and proficiency in handling data.
The AICPA underscores the necessity for nlCPAs to comprehend the flow of transactions within business processes and information systems. This comprehension leads to an understanding of data availability, reliability (completeness and accuracy), and the potential applications of data. In an era marked by technological advancements, nlCPAs are expected to possess a fundamental understanding of data, encompassing its accessibility and the capacity to engage in informed discussions with clients about data and its potential utilization.
Essentially, the evolving landscape requires nlCPAs to be increasingly oriented toward data, with a profound ability to scrutinize and interpret data. Beyond working with data, nlCPAs must comprehend the broader scope of data capabilities to effectively communicate critical insights to clients in an accessible manner. This proficiency is only attainable when nlCPAs can seamlessly assess data quality and understand its broader implications.
CPA Exam Changes: Data Analytics in AUD and BEC Sections
The data-focused changes in the new CPA Exam will predominantly manifest in the Audit (AUD) and Business Environment and Concepts (BEC) sections. It's crucial to note that for both AUD and BEC, task-based simulations (TBSs) will be designed to evaluate nlCPAs' data analytics capabilities.
AUD Section Changes:
The revamped AUD Blueprint places an increased emphasis on testing digital skillsets pertinent to the audit function. This includes assessing audit data analytics, requiring test-takers to analyze the results of such procedures and identify anomalies. AUD candidates should be adept at recognizing irregularities in data under specific circumstances and interpreting results to inform the development of planned audit procedures.
Moreover, the content has been revised to incorporate testing on the utilization of "automated tools and audit data analytics in audit sampling." With automation playing a pivotal role in data management, nlCPAs must acquaint themselves with these tools and the procedures to ensure their accuracy.
BEC Section Changes:
The updated BEC section allocates a more significant portion to working directly with data. This encompasses questions related to data governance, data relationships, and the extraction and transformation of data. Understanding data governance involves defining control over data assets within an organization and determining how these assets can be used—a critical concept for CPAs framing data valuation in financial statements.
nlCPAs will also be evaluated on their understanding of data extraction considerations, such as the data's source, format, integrity, and attributes of relational databases, including record, field, queries, and reports. Proficiency in handling data is a prerequisite for working with it in any capacity, making it a focal point of examination in the updated BEC section.
What to Focus On?
While the scope of these changes in AUD and BEC may seem extensive, the AICPA has provided clear outlines in the 2021 CPA Exam Blueprints and the Practice Analysis Final Report. To facilitate your adjustment to these changes, Vishal is committed to providing content updates to the CPA review on June 1, 2021. It's essential to approach these modifications with confidence, knowing that resources like Vishal are available to support your preparation.
In conclusion, as the accounting landscape evolves, embracing a digital and data-driven mindset becomes a cornerstone of success for nlCPAs. The 2021 CPA Exam changes reflect this shift, emphasizing the integration of data analytics skills. Stay informed, stay focused, and leverage the tools at your disposal to navigate these changes seamlessly. You've got this, and Vishal is here to guide you every step of the way!