CPA Evolution: How Firms Can Help Candidates With This Exam Overhaul.

• Author: Jarvis, Dana

there's a unique opportunity with upcoming Uniform CPA Exam changes to engage your candidates and take the role of adviser in their CPA journey.

CPA Evolution is the name given for the new model of CPA testing, which has a core in accounting, auditing, tax and technology, and a discipline to demonstrate deeper skills and knowledge. AUD, FAR and REG will remain part of the "core curriculum" and BEC will phase out giving way to the new three disciplines: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC) and Tax Compliance and Planning (TCP). Candidates must pass the three core curriculum tests and one of the disciplines within 18 months to fully complete the exam.

Understanding CPA Evolution and Other Historical Changes

To put the changes in context, it's helpful to look at other large-scale changes to the exam and California-based requirements:

* 2004: Paper-based to computer-based CPA Exam and a reorganization into new four parts (FAR, BEC, REG and FAR)

* 2014: California CPA educational requirements increase to include 30 additional units and 150 units in total

* 2020: Continuous testing with no blackout periods and other restrictions

* 2024: CPA Evolution, core plus discipline model, phasing out of BEC

CPA Evolution is set to take effect Jan. 1, 2024. There is a transition plan in terms of passed exam credit. A candidate who passes AUD, FAR, REG or BEC before the roll out will retain credit if passed by Dec. 31, 2023. A candidate that loses credit for AUD, FAR or REG after Dec. 31, 2023, must take the corresponding new core section of AUD, FAR or REG. A candidate who loses credit for BEC after Dec. 31, 2023, must select and take one of the three disciplines sections.

What This Means for CPA Candidates

Candidates who have started or are going to start their exam process within the next year will be impacted. Many will attempt to pass the current four exams (FAR, REG, AUD and BEC) by Dec. 31, 2023. Others will attempt to pass BEC by the deadline, so they bypass having to take one of the new three disciplines.

Recent college graduates will be setting up accounts with the California Board of Accountancy and navigating their way through the state educational requirements.

What you can bet on is that the upcoming deadline will likely force an uptick in the number of CPA candidates at firms who will be applying for and sitting for the exams. Firms can take a proactive approach to the upcoming deadline to support their...