Come January 2024, the CPA exam will transform. Many students are still clueless about how the changes are going to impact their preparations for the CPA exam- should you also change your study plan or stay on the same track? The AICPA has already published the CPA exam final blueprint, which underlines the changes in structure and content to be included in the new test pattern starting from January 2024.
Don’t worry! Andrew Katz CPA tutoring is here to clear all your confusions and provide a full-proof study plan to be prepared for the new exam pattern.
Plan your CPA Exam testing around the CPA Evolution
Students who have recently finished or are completing college after 2023 will not need to modify their CPA Exam strategy based on the CPA Evolution. Recent graduates should prioritize taking the whole CPA Exam in its present format, whereas post-2023 grads will take the entire CPA Exam in its new format. Non-traditional CPA candidates and 2023 college grads may need to pay more attention to CPA Evolution specifics to decide when to take the test and which portions to focus on.
We offer the following choices for students to create their CPA exam strategy in light of the forthcoming CPA Exam amendments.
Auditing and Attestation (AUD)
The AUD section of the CPA Exam evaluates newly licensed CPAs’ knowledge and skills in executing audits and attestation engagements for issuer and non-issuer businesses, as well as professional duties such as ethics, independence, and professional skepticism. CPA Evolution leaves this area of the test mostly unchanged. However, select elements from the Business Environment and elements (BEC)—basic economic concepts like supply and demand, as well as business process and internal controls—are moving to AUD.
Students should plan to take this component of the test when they are ready, whether now or after the CPA Evolution because the syllabus in the AUD section will be substantially unaltered in 2024. There will be extra ideas in the AUD section in 2024, which may impact when you opt to take it.
Financial Accounting and Reporting (FAR)
The Financial Accounting and Reporting (FAR) part of the CPA Exam focuses on the financial accounting and reporting systems used by public and non-public entities, non-profit organizations, and state and local governments. Because it includes so much knowledge, this area has traditionally been frightening for students, however many subjects from the present FAR section will be transferred to the Business Analysis and Reporting (BAR) discipline section.
Students might consider taking FAR once CPA Evolution is operational, since it may be more convenient. While principles from the present BEC part will be included in the FAR section, a number of topics from the current FAR section will be moved to the BAR Discipline section.
Regulation (REG)
The REG part of the CPA Exam assesses a newly licensed CPA’s knowledge and abilities in U.S. federal taxes, business law, and ethics and professional obligations linked to tax practice. The REG section exam will now focus on routine and recurring transactions, while other non-routine information will be moved to the Tax Compliance and Planning Discipline area, perhaps making the test more manageable. As a result, students may plan on taking REG after CPA Evolution is effective.
Business Environment and Concepts (BEC)
The BEC section of the CPA exam has got the most changes as part of CPA Evolution. The majority of the topics earlier evaluated in the BEC part have been transferred to the AUD, FAR, BAR, and Information Systems and Controls (ISC) sections. The written communication task-based simulations will be completely gone, with the new exam pattern.
NASBA published transition guidelines from the present CPA exam to the exam under CPA Evolution. According to it, a candidate possessing BEC credit will not be required to take one of the discipline sections. If you are frightened by the requirement to select a Discipline or are concerned that you will not perform well in any discipline sections, take BEC before CPA Evolution.
Final Words
This study plan choice is just a recommendation based on the Blueprint of the exam. Therefore, your preparation strategy may differ depending on your job experience and preferences. However, the support from Andrew Katz CPA tutoring will remain constant. These significant changes in the pattern of the CPA exam might make you feel nervous. But Andrew Katz tutoring gives full assistance with accurate updates and necessary resources to help you stay on track to your ultimate goal- passing the CPA exam on the first attempt.