AICPA previews revamped CPA exam

The American Institute of CPAs is asking for feedback Wednesday on an exposure draft of the redesigned Uniform CPA Exam as the AICPA tries to expand the dwindling pool of young people entering the accounting profession.

The AICPA has been working with the National Association of State Boards of Accountancy on a CPA Evolution initiative to overhaul the exam to make it more relevant for businesses today and test more for technology skills. The revamped exam and CPA licensing model are expected to launch in January 2024, and the AICPA is asking for feedback through Sept. 30, 2022. The exposure draft includes the draft Uniform CPA Examination Blueprints, the official document that presents content that’s eligible for assessment on the exam, based on the knowledge and skills required of a newly licensed CPA.

In recognition of the pervasive role of technology in accounting, core parts of the exam include a focus on understanding how data is structured and information flows through underlying IT systems and business processes, as well as determining methods for transforming data to make it useful for decision-making, verifying the completeness and accuracy of source data, and using the outputs of automated tools, visualizations and data analytics techniques.

“The CPA exam is always evolving to meet the needs of today’s practice,” said Michael Decker, vice president of CPA examination and pipeline at the AICPA, in a statement Wednesday. “With CPA Evolution, we have an opportunity to assess the required knowledge and skills all newly licensed CPAs need. Our goal is for the exam to remain rigorous and representative of the evolving role of accounting professionals. We believe input from various stakeholders is integral in developing an exam that will meet these needs.”

Under the new CPA Evolution licensure model, all CPA candidates will need to take three core sections: financial accounting and reporting, auditing and attestation, and taxation and regulation. Each candidate will then select a discipline in which to demonstrate extra skills and knowledge: business analysis and reporting, information systems and controls, and tax compliance and planning. No matter what a candidate’s chosen discipline is, the model will lead to a full CPA license.

“Ensuring that candidates possess appropriate levels of skills and knowledge through the CPA Evolution-aligned exam will greatly benefit the profession in the long term,” said NASBA executive vice president and chief operating officer Colleen Conrad in a statement. “I strongly encourage all interested parties to participate in this process by submitting their comments on the exposure draft.”

Both the AICPA and NASBA are hoping to reverse worrisome signs in the pipeline of new accountants in the profession. The AICPA trends report from 2021 found accounting graduates trended downward in the 2019–20 academic year, with decreases of 2.8% and 8.4% at the bachelor’s and master’s levels, respectively. The number of new CPA exam candidates entering the CPA pipeline declined in 2020 due to short-term closings and the various restrictions at Prometric test centers, with overall COVID concerns carrying forward into 2021. While new CPA exam candidates decreased less than 0.5% between 2018 and 2019, there was a 17% decrease between 2019 and 2020, although there was a 6% increase between 2020 and 2021.

The AICPA is asking for comments on the exposure draft via email to practiceanalysis@aicpa.org by Sept. 30, 2022. All feedback will be considered when finalizing the design of the 2024 exam.

A final report, including the final CPA Exam Blueprints, will appear early next year, well in advance of the expected launch of the CPA Evolution-aligned CPA exam in January 2024.

More information on the CPA Exam is available online and will be updated regularly.