As an accounting educator, staying abreast of changes in the CPA profession is crucial for adequately preparing students for the CPA Exam. The American Professional Accounting Certification Providers Association (APACPA), a distinguished assembly of accounting review course providers, recently convened to discuss pivotal updates to the CPA Exam. In this article, we'll unravel the top three insights from the 2021 APACPA meeting, focusing on the CPA Evolution initiative.
1. Embracing the Evolution: Revised Exam Structure
The paramount revelation from the APACPA meeting centers on the forthcoming transformation of the CPA Exam structure, scheduled for launch in January 2024. Termed the "Evolution CPA Exam model," this innovative structure comprises three core exams and three discipline exams.
Each core exam will integrate technology-related content, acknowledging the profound impact of technology on contemporary accounting practices. Notably, the audit exam is slated to emphasize technology topics more extensively than the other core exams.
- Tax Compliance and Planning (TCP):
- Individual tax compliance and planning
- Entity tax compliance and planning
- Personal financial planning
- Business Analysis and Reporting (BAR):
- Assurance and advisory services
- Financial statement analysis and reporting
- Technical accounting
- Financial and operations management
- Information Systems and Controls (ISC):
- Assurance or advisory roles related to a client’s business processes
- Information systems
- Information security
- Governance and IT audit
2. New Passing Requirements: A Strategic Shift
Under the Evolution CPA Exam model, candidates must successfully complete all three core exams plus one discipline exam to attain a CPA license. Notably, candidates are restricted from passing more than one discipline exam. In the event of failure in one discipline, candidates have the option to undertake another discipline exam as an alternative. However, the disciplines will not lead to differentiated licenses, ensuring a standardized certification process.
3. Content Restructure: Adapting to the Future
While the specific content for each exam is still under consideration, the AICPA indicates continuity in testing the existing content from FAR, AUD, REG, and BEC exams. The distribution of current BEC content across the six exams is anticipated, aligning with the yet-to-be-developed Blueprints for each exam. This restructured content alignment aims to seamlessly integrate current exam content into the new model.
The Timeline: Unveiling the Evolution
The proposed timeline outlines key milestones in the development and launch of the Evolution CPA Exam, spanning from the foundation phase to question development. As the project progresses, adjustments to the timeline may occur. A Transition Task Force has been established to draft exam transition policies for candidates commencing under the current model and transitioning to the Evolution model in January 2024.
Looking Ahead: Evolution in Accounting Education
Acknowledging the need for a synchronized evolution in accounting education, the AICPA and NASBA are set to unveil a new CPA Evolution model accounting curriculum. This curriculum, designed by a task force comprising educators, regulators, and practitioners, serves as a roadmap for aligning accounting education with the skills and competencies demanded by newly licensed CPAs (nlCPAs). The unveiling event, scheduled for June 15-16, is open to all interested parties and promises insights into the educational paradigm shift.
As accounting educators, understanding the scope of these changes is imperative for guiding students through the evolving landscape of the CPA Exam. The Evolution CPA Exam does not introduce new experience requirements, emphasizing the need for accounting education to adapt to adequately prepare candidates.
The 2021 APACPA meeting offers a glimpse into the future of the CPA Exam—a future marked by innovation, adaptability, and a collaborative effort to shape the next generation of CPAs. Stay tuned for further updates on the CPA Evolution and its implications for accounting education.
Learn more about the CPA Evolution here.