Tomorrow's CPAs: how changes to the CPA exam are challenging and preparing future CPAs: nothing may be more significant in the professional life of a CPA than preparing for, taking and passing the CPA Examination. And quite possibly, nothing is more difficult. It's a rite of passage--an experience that all CPAs have in common.

AuthorWest, Karen

[ILLUSTRATION OMITTED]

Successful candidates take great pride in achieving this highest level of accounting credential. There are tangible rewards as well. Passing the exam and becoming a licensed CPA generally means greater earning power, broader career and business opportunities, and enhanced confidence from employers, clients and the public.

Those who took the exam in Ohio in 2003 or earlier are likely to share not-so-fond memories of the exam experience. You might remember sitting on unforgiving metal folding chairs for hours along with 500 other nervous, sweating CPA hopefuls. Maybe you remember frantically writing answers to essay questions--generating as much information as possible to earn the most points possible. The ultimate goal was to complete all four parts in 2.5 days. There were no computers or spreadsheets. Candidates were armed with only a clear zip-lock bag with their ID, pencils, erasers and maybe some gum or candy. It was physically, emotionally and intellectually exhausting.

The CPA exam experience is much different today. The content isn't any easier, but the advent of the computer-based exam in 2004 brought many changes and improvements to the process and the candidates' test-taking experience. Now, candidates can schedule the shorter 14.5 hour exam one section at a time at their convenience. Candidates sit at computer stations in comfortable testing centers located throughout Ohio.

With the conveniences of the new computer-based test and a computerized format more in tune with the skills and knowledge required in today's business environment, the AICPA and NASBA naturally expected positive results.

WHERE DID THE CANDIDATES GO?

Nationwide, the number of candidates sitting for the CPA exam declined sharply by a startling 59% in 2004--the first year the exam was offered in the computerized format. AICPA survey results showed the primary reason for the dramatic drop was candidate procrastination. No longer did candidates have two clearly defined testing opportunities exclusively in May and November. Now, they could take any section of the exam on demand at any time during the year--and in any order. Candidates could even take one part at just three to four hours at a time. In other words, candidates were not facing a deadline. Not only were candidates inclined to procrastinate, but employers lost some measure of control over their potential CPAs. Without the limitations of two specific testing months, many managers simply lost track of when their staff was studying and when they were scheduled to take the CPA exam. And with the increased workload from Section 404 of the Sarbanes-Oxley Act, preparing for and taking the exam became secondary priorities in many cases.

THE GOOD NEWS

Today, there's good news to report regarding the CPA exam. After years of slumping statistics, the number of candidates taking and passing the CPA exam is quickly approaching levels prior to 2004. The Accountancy Board of Ohio reported that the number of exam passers in 2008 was 698, which is just 3% below the 2003 number--the last year the paper and pencil exam was offered.

New information in the AICPA's 2008 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits report indicates that the reported 2004 decline may have been unintentionally misleading.

"Under the paper-and-pencil format, candidates who took the exam in both May and November were counted twice," according to Dennis Reigle, director, academic and career development at AICPA. Under the computerized format, each candidate is counted only once per year regardless of how many times they attempt a section or in how many windows they test. "In light of the way candidates were counted, it is likely that while the number of candidates initially appeared to decrease somewhat from the paper-and-pencil format, the actual decrease is much less pronounced," Reigle added.

So with exam passers reaching parity with pre-2004 numbers, why is there such urgency to "drive candidates" to the CPA exam?

Quite simply, the profession can't afford not to.

With the coming mass retirement of the Baby Boomers over the next several years, companies and CPA firms alike need the next generation of CPAs to take their place. With candidates more inclined to procrastinate, it's up to other CPAs and employers to encourage and support candidates in their journey to becoming a CPA. The credential is too important to the financial markets and the public at large to simply hope that candidates will follow in their predecessors' footsteps.

How can employers keep the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT