The new uniform CPA examination.

• Author: Dennis-Escoffier, Shirley
• Position: Tax Education

Significant changes are in the works for the Uniform CPA Examination. The first entails a conversion to a computer-based test. The second is an expansion of the range of subjects and skills tested, to bring them in line with today's practice needs.

Over the years, the profession has become increasingly dependent on computerized research techniques and the use of other computer tools in general. For example, effectively solving clients' problems requires CPAs to perform research online. This evolution has limited the effectiveness of a written exam to test important skills. The change to a computer-based exam allows candidates to access authoritative literature in case-based simulations and to use computer technology to develop solutions, such as narratives or spreadsheets. In addition to changing the exam's format, broadening its content will more closely reflect the wide range of business knowledge expected of practicing professionals.

Computer-based testing can include the use of online tax reference material, archived financial reports and audiovisual clips. Candidates can also use other tools, such as spreadsheets, accounting packages, financial calculators and graphical analysis packages. In addition to mimicking traditional multiple-choice formats (using check boxes or radio buttons) and simple open-ended responses (using text boxes), candidates will be able to use case-based simulations to solve different business problems.

Background

The AICPA surveyed thousands of CPAS to identify the entry-level knowledge (e.g., standards and regulations) and skills (e.g., communication, research, analysis and organization, understanding and judgment) critical to effective accounting practice. Armed with the results, the AICPA and National Association of State Boards of Accountancy formed a joint Computer Implementation Committee (CIC) to develop a computer-based exam.

In January 2001, the Board of Examiners released an exposure draft, Proposed Structure and Content Specifications for the Uniform CPA Examination (available at www.aicpa.org/members/div/examiner/exposure.htm), and the CIC issued Briefing Paper #2: Computerizing the Uniform CPA Examination--Issues, Strategies and Policies: An Update (www.aicpa.org/ members/div/exanfiner/brief2.htm), providing the details for the transition to a computer-based exam, with a target launch date of November 2003. The comment period for these documents ended on July 1, 2001. The CIC is reviewing and summarizing respondents' comments and will probably publish the key findings and any revisions resulting from the responses before 2002.

Procedures

The CIC chose Prometric, Inc. to administer the computer-based exam. Prometric currently handles computer-based testing for other licensing exams (e.g., the U.S. Medical Licensing Examination, the National Council of Architectural Registration Boards and the National Association of Securities Dealers Regulation).The company has a network of more than 300 high-security testing sites across all 54 jurisdictions and operates test centers convenient to 90% of the U.S. population (see Briefing Paper #2, Appendix B, for a list of the cities in which Prometric has test centers). The computerized testing process would begin (as it does under the current system) when an individual applies to a state board to take the exam. The current application filing requirements, fee collection and other requirements are unaffected by the change in test format. Once a state board determines an individual's eligibility to take the exam, it would notify Prometric.

After a candidate receives state board authorization, he would make an appointment to take the exam via Prometric's call center or Website. The test will have four sections (Auditing and Attestation, Financial Accounting and Reporting, Regulation, and Business Environment and Concepts), which...