Are you aware of US CPA Exam changes from 2024? Technology is rapidly changing the accounting profession, how accountants perform their jobs, and the skills and knowledge needed to be successful. In response to these changes, The American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) are restructuring the CPA Exam into a new CPA core-plus licensure model. This initiative is called CPA Evolution. The advent of digitization and the implementation of new technologies have revolutionized the finance and accounting industry. To ensure that CPAs are updated and competent with the technology-driven business landscape, AICPA has introduced the CPA Evolution Initiative. The US CPA Exam Evolution Initiative will come into effect from January 1, 2024 and will have significant changes to the CPA curriculum. The passage below explores in detail the CPA 2024 changes. Why is the CPA licensure model changing? The CPA profession is always moving forward, adopting new technologies, new skills, and new best practices. The job requirements of most CPAs today are completely different from those of a CPA even 10 years ago. As the profession evolves, so must the skills and disciplines tested on the CPA Exam. To meet the needs of the accounting profession, newly licensed CPAs must adapt to these changes. CPAs are now required to perform more advanced tasks and contribute to increasingly complex projects earlier in their accounting careers. CPA Evolution Initiative – What is the New Model? The new model has been proposed to make the CPAs more tech competent. The new model will follow a Core + Discipline model with 3 Core Sections and 3 Discipline Sections. CPA students have to study all three core sections.
The three core sections are:
● Financial Auditing and Reporting (FAR)
● Auditing and Attestation (AUD)
● Taxation and Regulation (REG)
CPA students can choose one discipline section out of the three.
The three discipline sections are:
● Business analysis and reporting (BAR)
● Information systems and controls (ISC)
● Tax compliance and planning (TCP)
Irrespective of the discipline section the CPA candidate chooses, he can opt to practice in other areas well. His choice of discipline section will not have any effect on his CPA licensure. Transition Policy – What it Means to CPA Aspirants? AICPA along with NASBA, have created a smooth transition policy for implementing the new changes. The transition policy is simple and straightforward.
Below is the break of the transition policy and how it affects the CPA candidates.
● Candidates who have passed and have credit for AUD, FAR, or REG on the current CPA Exam will not need to take the corresponding new core section of AUD, FAR, or REG on the 2024 CPA Exam.
● Candidates who have passed and have credit for BEC on the current CPA Exam will not need to take any of the three discipline sections.
● Candidates without credit for AUD after Dec 31, 2023, will have to take the AUD core section on the 2024 CPA Exam.
● Candidates without credit for FAR after Dec 31, 2023, will have to take the FAR core section on the 2024 CPA Exam.
● Candidates without credit for REG after Dec 31, 2023, will have to take the REG core section on the 2024 CPA Exam.
● Candidates without credit for BEC after Dec 31,2023 will have to take one Discipline section on the 2024 CPA Exam.
The current sections and curriculum of the CPA Exam will not be available for testing after Dec 2023. It should be noted that these changes are not finalized. There might be a few changes to the new model. But, the core concept of the model will remain the same. AICPA has announced that it is waiting for inputs on the new model till September 30, 2022. Post that, it will review the comments and make any changes if deemed fit. The blueprint will be finalized in December 2022 and will be published in January 2023. If you have any further information or want to check your eligibility, please feel free to Contact Orbit Institutes @ +9529114392 or mail us at [email protected]
know more on https://www.orbitinstitutes.com/CPA.html
A US Certified Public Accountant is a certification offered by the American Institute of Certified Public Accountants (AICPA), to build competency in the field of Accountancy.
A CPA is considered a trusted financial advisor who helps individuals, businesses, and other organizations reach their financial goals.A US CPA certification is a professional recognition largely beneficial for all Commerce Graduates, CA, CS, MBA, and Financial Advisors and semi-qualified as well.
Educational EligibilityTo pursue US CPA certification, the candidate must possess a Post Graduate degree; preferably from the Commerce stream i.e.
However, the exact criteria for the same vary from state to state in the United States of America where a candidate would like to enroll.
The CPA Exam is administrated by the American Institute of Certified Public Accountants (AICPA) - the governing body of CPAs in the United States of America which is the largest member association of accountants in the world.The 16-hour computer-based exam consists of MCQs, task-based simulations, and written communications to assess a candidate’s skill and knowledge to gain the coveted designation of CPA through the following four papers:Auditing and Attestation (AUD)Financial Accounting and Reporting (FAR)Regulation (REG)Business Environment and Concepts (BEC)A candidate is required to pass all 4 parts of the exam within an 18-month passing rolling window.
Experience RequirementIn order to earn the US CPA license, a candidate must complete 150 hours of study followed by 1-2 years of work experience focussing on accounting, auditing, or finance under an experienced CPA that many states require.To earn the US CPA designation, aspirants must pass all four sections of the CPA exam, gain appropriate work experience, expertise, and meet some supplementary educational requirements like an online Ethics exam for some states.
