A Rundown of the Changes in The US CPA Exam For 2024.

The American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) have revamped the CPA exam, introducing a new model named CPA Evolution. This restructuring, effective from January 1, 2024, focuses on a core + discipline licensure approach.

Under the CPA Evolution model for 2024:

• The CPA becomes more tech-savvy.
• It employs a core + disciplined format, with candidates needing to pass three core exam sections: Financial Auditing and Accounting (FAR), Auditing and Attestation (AUD), and Taxation and Regulation (REG).
• Aspiring CPAs must also choose one discipline section from Business Analysis and Reporting, Information System and Control, or Tax Compliance and Planning.
• Regardless of their chosen discipline, candidates have the flexibility to explore and practice other disciplines.
• Technology-related questions will be integrated throughout the entire exam.
• Both core and disciplined exams consist of a mix of multiple-choice and task-based questions.

Also read: What is the scope of Indian CPAs in the USA

Key Advantages of the Updated CPA Model:

1. Future Readiness for Candidates:

The new model is adaptive and flexible, ensuring CPAs are prepared for the evolving demands of their profession.Unified License Approach:

The new model simplifies licensing, proposing a single license that covers all facets of a CPA's responsibilities.

2. Heightened Proficiency:

Under the new model, CPAs gain an in-depth understanding of their roles, empowering them to deliver high-quality work and ensure public safety.

3. Continuous Learning and Improvement:

The model emphasizes continuous improvement, with a focus on feedback, prompting candidates to enhance their skills. Core subjects cover areas such as accounting, tax, auditing, and technology.

CPA Exam 2024: Changes in Curriculum

Core Subjects:

• The Auditing and Attestation section remains unchanged. However, new topics, such as basic economic concepts, business processes, and internal controls, have been incorporated into the AUD section.
• Certain topics previously in FAR, like R&D costs, Business Combinations, Stock Compensation, and Public Policy Reporting, have been transferred to the BAR section.
• Topics from the REG section, like gross income concepts, are now part of the TCP discipline.

Discipline Subjects:

• The BAR section covers challenging technical accounting topics such as lease accounting and revenue recognition, along with managerial and cost accounting, variance analysis, and financial valuation decision models.
• The ISC section assesses candidates on their knowledge of IT audit and advisory services.
• The TCP section evaluates candidates' skills in federal tax compliance policies.

Also read CPA REG Exam- A Comprehensive Guide

Changes to CPA Exam Format in 2024:

In terms of the exam pattern, alterations are categorized into three aspects: Section time, scoring weight, and question count.

The new model maintains consistent scoring weight across subjects, with each except the ISC discipline having a 50% distribution between Multiple Choice Questions (MCQs) and Task-Based Questions (TBSs). The Information System and Control (ISC) subject deviates slightly, with a distribution of 60% MCQs and 40% TBSs.

The section time allocation remains at 4 hours per section in the new model.

Here's a breakdown of the question count per section:

AUD: 78 MCQs and 7 task-based simulationsFAR: 50 MCQs and 7 task-based simulationsREG: 72 MCQs and 8 task-based simulationsBAR: 50 MCQs and 7 task-based simulationsISC: 82 MCQs and 6 task-based simulationsTCP: 68 MCQs and 7 task-based simulations

US CPA 2024 Transition Policy:

Commencing January 2024, the current CPA Exam sections will no longer be available for testing. However, a Transition Policy is in place for candidates who have initiated but not completed the current exam by December 2023.

Candidates who pass AUD, FAR, or REG on the current exam won't be required to retake the corresponding new Core section (AUD, FAR, or REG). They retain credit for these core sections for the remaining 18 months from their passing date for each part.

For those passing BEC before January 2024, there is no obligation to take any of the new Discipline sections. However, those not passing BEC by January 2024 must select one of the three discipline sections. Losing credit for any section mandates taking the corresponding Core section or one of the three Discipline sections in the new exam.

How Will Miles Help Me With the Transition?

Miles Education, recognized as the best CPA training institute in India, is well-prepared to guide CPA aspirants in India through the transitional phase of the 2024 exam changes. With a proven track record of excellence, Miles Education has consistently equipped candidates with the knowledge and skills required to succeed in the CPA Exam. 

The institute's experienced faculty and comprehensive study materials are tailored to align with the evolving exam structure. The revised CPA course has been initiated, and your study materials will be adjusted according to your examination date. Mock tests mirroring the actual CPA exam's difficulty level will be offered, ensuring thorough preparation. Additionally, personalized assistance for the eligibility and application processes is available through one-on-one support.