CPA Evolution

CPA Exam’s future: Key tentative dates announced

133345 — Fri, 04 Nov 2022 13:06:26 +0000

CPA Exam’s future: Key tentative dates announced 133345 Fri, 11/04/2022 - 09:06

November 3, 2022

CPA Evolution is just around the corner. Have you heard of the CPA Evolution initiative? Are you aware that the Uniform CPA Examination® (CPA Exam) is changing significantly in January 2024? It is important that you learn about this initiative and the upcoming changes to the CPA Exam to fully understand how it might impact your journey to CPA licensure.

If you pass and retain credit for all four CPA Exam sections by December 31, 2023, the changes to the CPA Exam and its future administration will NOT impact your journey. If you will still be working your way through the CPA Exam in January 2024 and beyond, then the information about the CPA Evolution-aligned CPA Exam (the 2024 Exam) and its administration are most important to understand.

As we get closer to 2024, new information is being made available to help candidates plan their testing schedules in 2023 and into 2024. The National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) are now releasing tentative application information and testing schedules for late 2023 and tentative testing and score release schedules for 2024. It is important to note that these dates are not yet final but are being provided as early as possible to help candidates consider their testing plans.

Important 2023 Administration Dates

First, candidates should note that the last day of testing for all current CPA Exam sections (AUD, BEC, FAR and REG) is anticipated to be December 15, 2023. No CPA Exam sections may be scheduled from December 16, 2023, through January 9, 2024, to allow for conversion of IT systems to the 2024 CPA Exam sections. Candidates are encouraged to plan their testing schedules accordingly.

In addition, candidates wishing to take BEC in the latter part of 2023 need to know that the NASBA Gateway system will stop processing Authorizations to Test and Notices to Schedule for BEC on November 15, 2023. This will necessitate that Boards of Accountancy require final application deadlines (first-time and reexam) for BEC sections. These deadlines are yet to be determined and will be published on NASBA’s website once they become available, and shared by each Board of Accountancy.

Conversely, Boards of Accountancy will also need to establish initial application acceptance dates for discipline sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP). Authorizations to Test and Notices to Schedule for BAR, ISC and TCP will not be processed by NASBA’s Gateway system until November 22, 2023. These initial acceptance dates are also yet to be determined and will be published on NASBA’s website once they become available, and shared by each Board of Accountancy.

AUD, FAR and REG applications can be continually submitted and processed as the same codes will be used for the core sections that will start in 2024, however the scheduling blackouts do apply.

Important 2024 Administration Dates

AICPA has published the tentative 2024 CPA Exam testing schedule and score release schedule. Please note that these dates are tentative pending further review by AICPA.

It is anticipated that testing will commence on January 10, 2024, for all sections. While the core sections (AUD, FAR and REG) will first be available for scheduling through March 26, 2024, in the first quarter of 2024, the discipline sections (BAR, ISC and TCP) will be available through February 6, 2024. Scores are anticipated to only be released once per test section per quarter due to necessary standard-setting analyses and activities.

Boards of Accountancy Considering Credit Extension and Other Relief

Due to the limited testing schedule and delayed score releases in 2024, the CBT Administration and Executive Directors Committees of NASBA have recommended a policy to Boards of Accountancy for consideration, which would allow candidates with Uniform CPA Examination credit(s) on January 1, 2024, to have such credit(s) extended to June 30, 2025.

Each Board of Accountancy must individually consider if it wishes to adopt such a policy. NASBA has published a map on its website, which will be updated as boards consider the policy. To date, 39 jurisdictions have already approved the policy. Others will be reviewing it at upcoming board meetings. In some states, the board may be favorably inclined to adopt the policy, but legislative rule making may be required, which could take some time.

Boards of Accountancy will also be asked to consider a rule change that is currently under exposure for comment. It is anticipated that the model rule under the Uniform Accountancy Act, could be available in final form by early 2023. Such a rule, if adopted by a Board of Accountancy, would shift the start date of the 18-month credit period to the date a passing score was released by NASBA to the candidate or a board. Currently, many boards utilize earlier dates such as the date a candidate tests. If adopted, this could provide additional relief to candidates. Each board must decide whether or not to change their rules. This will be a longer-term initiative, as rule changes can take some time, depending on the jurisdiction. NASBA will develop and publish a map showing jurisdictional rules on this topic in the near future.

Transition Policy Reminder

The new CPA licensure and CPA Exam model is a Core and Discipline model. In February 2022, a transition policy was announced. This policy lays out how CPA Exam sections passed under the current CPA Exam map to credit under the 2024 CPA Exam. Candidates who will start taking the CPA Exam in 2023 but continue to take sections in 2024 should review this policy and the FAQs on NASBA’s website.

It’s never been a more exciting time to pursue the CPA license. The role of today’s CPA has evolved, and newly licensed CPAs are taking on increased responsibilities that were traditionally assigned to more experienced staff. Becoming a CPA means you’ll need great skill sets and competencies, and a greater knowledge of emerging technologies. That is why the CPA Evolution initiative is underway.

As additional information becomes available pertaining to CPA Evolution and the 2024 CPA Exam, we will continue to share it with you.

FAQS are available that might answer some of your more detailed questions regarding the information provided above, as well as the transition policy released in February 2022.

Additional information and FAQs regarding the CPA Evolution initiative are available at EvolutionofCPA.org. If your questions on the new CPA licensure model and CPA Exam are still not answered, please reach out to us at [email protected]">[email protected].

For information on becoming a CPA, please visit This Way to CPA.

Topics

CPA Evolution

AICPA announces 2024 infrastructure changes to the CPA exam

133345 — Thu, 07 Apr 2022 14:49:49 +0000

AICPA announces 2024 infrastructure changes to the CPA exam 133345 Thu, 04/07/2022 - 10:49

April 7, 2022

The AICPA periodically undertakes a Practice Analysis to provide assurance that the knowledge and skills assessed in the Uniform CPA Examination (“CPA Exam”) are those necessary for newly licensed CPAs to protect the public interest. The AICPA is currently performing a Practice Analysis in connection with the CPA Evolution licensure initiative and the CPA Evolution-aligned Exam is expected to launch in January 2024.

The CPA Exam is also updated on a regular basis to remain current with revisions to auditing and accounting standards as well as tax laws and regulations, in accordance with policies established by the AICPA’s Board of Examiners.

Additionally, the AICPA continually evaluates how to improve the assessment of content and skills in the CPA Exam while maintaining reliability, accuracy, and validity, as well as improving the overall Candidate experience. The AICPA considers how testing can be undertaken efficiently, reducing unnecessary complexity in constructing the CPA Exam, with a view of its longer-term sustainability and cost effectiveness. The AICPA considers and makes changes at opportune times to minimize Candidate disruption. For example, in 2018, the CPA Exam user interface was upgraded to provide Candidates with an improved testing experience leveraging the high-definition displays installed in Prometric test centers at that time.

Planned Exam Infrastructure and Content Changes

The AICPA has identified multiple changes to the CPA Exam designed to reduce complexity in constructing the CPA Exam and improve the CPA Exam software performance, while also maintaining a rigorous exam and providing for greater flexibility in future delivery. Rather than implement these changes now, which would require delayed score releases, the AICPA plans to implement these changes concurrently with the launch of the CPA Evolution-aligned CPA Exam in January 2024, taking benefit of score delays that occur with the launch of a new exam. The following infrastructure and content changes are planned for the CPA Exam and will be implemented concurrently with the launch of the CPA Evolution-aligned Exam in January 2024:

Assessing research and related critical thinking skills differently
Replacing the Excel spreadsheet with a JavaScript based spreadsheet - SpreadJS
Removing the Written Communication Task (essay question)
Eliminating Multistage adaptive testing in the multiple-choice question testlets

The AICPA also plans to consolidate the four CPA Exam Sample Tests (one for each CPA Exam section) into a single Sample Test. This change will occur between July and October 2023 for the existing CPA Exam Sample Test as well as the CPA Evolutionaligned Sample Test.

Each of these changes is discussed in further detail below.

Assessing Research and Related Critical Thinking Skills Differently

Recent research conducted by the AICPA suggests the shift of assessment from basic research skills to research application, analysis and problem solving. A research taskbased simulation (research TBS) will be introduced that will provide an assessment of research and critical thinking skills.

The current research question format focuses solely on search, determining the appropriate citation in the professional literature (AuthLit) based on a narrow technical question. The research TBS assesses a Candidate's ability to:

identify an issue,
consider and analyze facts and multiple excerpts of the AuthLit provided in accompanying exhibits, and
determine the appropriate response.

The research TBS will include multiple responses, some of which will go beyond research and into problem solving. Eliminating the current research question format will also permit removal of the AuthLit library1 from the CPA Exam which will reduce exam restarts, reduce Candidate complaints over the functionality of the AuthLit search features, and provide greater flexibility with future delivery of the CPA Exam.

Replacing the Excel spreadsheet with a JavaScript based spreadsheet - SpreadJS

The current spreadsheet used in the CPA Exam - Microsoft Excel 2016 ®, desktop version - will be replaced with SpreadJS, a JavaScript-based spreadsheet developed by GrapeCity. Excel is available for candidates to use as a scratch spreadsheet to support calculations. The CPA Exam does not assess a Candidates ability to use Excel and the use of the application is not required to solve questions on the CPA Exam. Candidates are also provided on-screen and handheld calculators.

It is acknowledged that Excel is ubiquitously used by firms and their clients. Excel is designed to support collaboration across systems, networks, and the internet. The CPA Exam must operate in a secure and stable environment, requiring various Excel features and functionality to be locked down and unavailable to Candidates. From a Candidate's perspective, the effect of these lockdowns is so severe that many Candidates comment either (i) Excel is not working properly, or (ii) they do not even recognize the spreadsheet is Excel. While the preference would be to continue to use Excel, it has significant challenges from security, performance, and future-adaptability perspectives. Additionally, continued use of Excel will not be technologically possible when the CPA Exam test delivery provider and the AICPA move to a cloud-based infrastructure.

SpreadJS has many features and functionality similar to Excel. SpreadJS provides Candidates spreadsheet features and functionality that will support its use as a scratch spreadsheet. While SpreadJS will require limited security lockdowns and some Candidates may continue to be frustrated that they do not have a fully featured Excel spreadsheet available during their Exam, SpreadJS should provide an overall improved Candidate experience by reducing exam restart rates.

Sample Test users currently must access their own version of Excel, so Candidates are unable to replicate the actual CPA Exam experience with Excel lockdowns. The CPA Exam version of SpreadJS will be accessible in our Sample Test beginning in the third quarter of 2023 enabling Candidates to practice with it in advance of their Exam. Candidates will be strongly encouraged to access the Sample Test to become familiar with the features and functionality of SpreadJS prior to their testing experience. Additionally, guidance will be provided on the AICPA’s CPA Exam website www.aicpa.org/cpaexam (the website) highlighting the more significant differences between Excel and SpreadJS.

Removing the Written Communication Task (essay question)

The Written Communication question (WC) will be removed from the CPA Exam for multiple reasons, including but not limited to:

Eliminating the WC releases CPA Exam “real estate” for the assessment of increasingly relevant and important knowledge and skills.
The WC does not provide an assessment of the content accuracy of the written responses; it is focused solely on the measurement of writing ability.
Eliminating the WC removes the delay in reporting related scores.
The assessment value of the WC items is extremely limited and does not support the ongoing cost of the development and administration of the WC items.

Feedback from the previous Practice Analysis indicates that stakeholders want Candidates to not only be able to communicate well, but also accurately. However, the current WC is only testing whether Candidates can communicate clearly, without scoring them on the technical accuracy of their responses. When the WC was implemented, it was expected that the automated scoring of an essay response would soon be able to assess both effective and accurate writing. Research into the automated scoring of an essay has not advanced as expected.

Removal of Multistage adaptive testing in the multiple-choice question testlets

Multistage adaptive testing (MST) will be eliminated and replaced with a linear test design. This change will simplify assembly of the CPA Exam and provide greater flexibility in the alignment of the CPA Exam driver software in the future.

The current structure of the CPA Exam within the multiple-choice question (MCQ) component includes a two-stage adaptive design. All Candidates first receive a medium-difficulty MCQ testlet and then, based upon their scores, are routed to either another medium-level testlet or a difficult-level testlet.

MST was implemented into the CPA Exam with its computerization in 2004. At the time, there were many more MCQs and they accounted for a greater percentage of a Candidate’s score. From 2004 - 2017, there were three MCQ testlets per exam. In 2011, the CPA Exam saw increased weight given to task-based simulations and the assessment of higher-order skills. In 2017, the number of MCQs was further reduced (included in two MCQ testlets per exam section) and greater emphasis again was placed on higher-order skills and TBSs. These trends are likely to continue. When MST was originally implemented, an MST design provided opportunities to enhance scoring models, operational efficiency, and security. Subsequent changes to the test specifications (fewer MCQs per form and more emphasis on higher-order skills), have reduced those benefits. Implementation of a linear design will still provide sufficient reliability, accuracy, and validity and provides efficiencies and reduced costs.

Consolidating the Sample Tests

The purpose of the Sample Test is to familiarize Candidates with the format, features and functionality of the CPA Exam user interface before their test day. The website currently includes a Sample Test for each of the four CPA Exam sections providing a selection of MCQs, TBSs, and WC items as they would appear on the Exam on test day. The website also links to Sample Tests (one for each CPA Exam section) designed for Candidates requiring testing accommodations (JAWS® or ZoomText® Magnifier/Reader). Candidates can find answers to any questions about the different features and tools of the Exam user interface under the “HELP” icon in the toolbar of each Sample Test. Candidates do not receive a score for completing a Sample Test, and the Sample Test does not determine a Candidate's readiness to take the CPA Exam.

As part of the CPA Exam’s streamlining efforts, the multiple CPA Exam section Sample Tests will be consolidated into a single Sample Test. The purpose of the Sample Test will remain the same, familiarizing Candidates with the format, features, and functionality of the CPA Exam user interface before their test day. The single Sample Test will continue to include MCQs and TBS, the latter of which will include examples of the various question response formats, as is the case today. The AICPA will continue to maintain a separate Sample Test designed for Candidates requiring testing accommodations (JAWS® or ZoomText® Magnifier/Reader), and this too will be consolidated into a single Sample Test.

Consolidation of the Sample Tests will occur between July and October 2023 to allow Candidates time to become familiar with features and functionality that will be introduced with the planned CPA Evolution-aligned CPA Exam launch in January 2024. The CPA Evolution-aligned Sample Test will include SpreadJS allowing Candidates the opportunity to familiarize themselves with the spreadsheet as it will appear in the CPA Exam on test day. Given the other planned changes discussed above, the CPA Evolution-aligned Sample Test will not include the WC items or AuthLit.

Topics

AICPA

CPA Evolution

NASBA announces CPA Exam transition policy for 2024

133345 — Mon, 28 Feb 2022 21:33:15 +0000

NASBA announces CPA Exam transition policy for 2024 133345 Mon, 02/28/2022 - 16:33

February 25, 2022

The new CPA Exam is coming our way in 2024, and we have new details to share!

On Friday, NASBA publicized the official transition policy for CPA candidates who have completed one or more but not all four parts of the exam by Dec. 31, 2023.

On Jan. 1, 2024, CPA candidates with outstanding sections to pass will take the new corresponding sections shown below. (Note: The 18-month rule remains in effect for all sections on the current and 2024 CPA Exam.)

Simply put: If you have not passed AUD, FAR or REG on the current CPA Exam, you will need to take the corresponding new core section of AUD, FAR or REG on the 2024 CPA Exam. If you have not passed BEC on the current CPA exam, you will need to take ANY of the three discipline sections. (Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), Tax Compliance and Planning (TCP).

Additional details on the transition and an FAQ guide are linked below.

The FICPA does not anticipate any licensure changes concerning education or experience for the state of Florida.

Please contact FICPA's Academic & Student Initiatives Manager, Megan Altizer, at [email protected]">[email protected] or at (850) 521-5948 with any additional questions.

Topics

NASBA

CPA Evolution

CPA Evolution will impact today’s interns; how can firms prepare?

133345 — Tue, 08 Feb 2022 20:19:36 +0000

CPA Evolution will impact today’s interns; how can firms prepare? 133345 Tue, 02/08/2022 - 15:19

February 8, 2022

For the past few years, the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) have collaborated with stakeholders to reimagine CPA licensure through the joint CPA Evolution initiative, an effort to transform the CPA licensure model. The organizations have now reached the critical implementation phase of this initiative, which addresses the rapidly changing skills and competencies required of a 21st Century CPA.

Many of the students slated for Spring and Summer 2022 internships will sit for the new, CPA Evolution-aligned CPA Exam, which is expected to launch in early 2024. This has implications for firms in a variety of areas, from recruiting considerations to engagement with academia. The time to start plotting out your firm’s strategy is now.

CPA Evolution will bring about some of the most substantive changes to licensure in decades, including a new Core + Disciplines licensure model, increased coverage in areas like information systems and data analytics, and the addition of personal financial planning.

But what does it all mean for your firm? Here are some top considerations to aid your hiring and recruitment strategies.

Students are more interested in pursuing CPA under the new licensure model

In a Fall 2021 AICPA-NASBA survey of accounting students, 85% of respondents indicated the new approach to licensure either increases their interest in pursuing CPA or keeps their interest at a very high level. In discussion groups with students, common themes surrounded their heightened interest in areas like data analytics, cybersecurity and information privacy, all of which are expected to be addressed in the new CPA Exam based upon preliminary practice analysis research.

This may represent an opportunity for firms when recruiting new staff. In addition to highlighting the earnings power of CPAs and the impact they can have on society, consider discussing the impending changes to the licensure model and how they reflect the exciting work firms are doing in emerging areas. For students interested in technology, there has never been a better time to pursue CPA.

Universities are changing their curricula to incorporate emerging topics

In another Fall 2021 pulse survey, the AICPA and NASBA asked accounting faculty about their plans relative to CPA Evolution. Here’s what they heard:

88% of respondents indicated their accounting program will be making curriculum changes based on CPA Evolution
81% said they expect to make curricular changes by Fall 2022

To inform hiring decisions, firms may want to reach out to the universities they recruit from to determine what, if any, curriculum changes are being made. Practitioners may also consider aiding the academic community in the transition, as nearly half of the faculty that won’t be making curriculum changes cited challenges in finding qualified personnel to teach emerging topics. Subject matter experts at your firm might consider serving as guest lecturers or adjunct professors to ensure the next generation of CPAs has the skills and competencies they need to be successful.

Many accounting program graduates will have different skillsets

As academic programs evolve, students are expected to pursue learning tracks aligned with their interests. In a 2020 AICPA-NASBA survey of students,

54% of respondents indicated they plan to pursue the Business Analysis and Reporting discipline,
24% plan to pursue Information Systems and Controls, and
22% plan to take Tax Compliance and Planning.

To pass these disciplines, students will need more knowledge and skills in the related subject matter, and firms will be the beneficiaries. In fact, in an April 2021 AICPA-NASBA survey of firm hiring directors, 83% of respondents from firms with 11 or more personnel indicated that if accounting programs were aligned with CPA Evolution, their hiring of new graduates from accounting programs would likely increase, accounting program graduates would be considered more valuable than they are today, or both.

Firm leaders may want to engage with the firm’s HR team to consider how CPA Evolution will impact their approach to talent acquisition moving forward.

Next steps

The AICPA is currently conducting a practice analysis to determine the knowledge and skills required of newly licensed CPAs that should be assessed in the CPA Evolution aligned Exam. An associated CPA Exam Blueprint, which will detail content eligible for testing in each of the Core and Discipline sections, is expected to be issued for public comment in mid-2022 and published in final form in early 2023, with the launch of the new CPA Exam planned for January 2024.

As CPA Evolution continues to progress, please check back for updates at EvolutionofCPA.org. If you have any questions, please reach out to the AICPA and NASBA at [email protected]">[email protected].

Topics

AICPA

CPA Evolution

NASBA