US CPA Exam Changes in 2024

A US Certified Public Accountant (US CPA) is a certification by the AICPA (American Institute of Certified Public Accountants) to the candidates who have cleared the Uniform CPA exam and meet the education as well as experience requirements.

 

New CPA Exam Launch in 2024:

The National Association of State Boards of Accountancy (NASBA) and the American Institute of CPAs (AICPA) are restructuring the US CPA exam into a new model of US CPA licensure. The evolution of US CPA is the term used to describe the AICPA/NASBA initiative aimed at the evolving US CPA licensure in order to reflect the knowledgeable Certified Public Accountants increasingly required in a marketplace of technology. The main objective of the AICPA and NASBA is to update the US CPA exam by 2024 to align with the new discipline model of licensure.

 

Reasons behind the changing of the US CPA licensure model:

Always, the profession of US CPA is adopting new technologies, moving forward, adopting new best practices, and new skills. At present, the job requirements of the US CPAs are entirely different from the CPAs of 20 years ago. Hence, the CPA licensure model has to change as the profession evolves.

 

Continuously, the US CPA exam evolves as the profession of accounting does the same. In order to meet the skill set requirements of the US CPA profession, the newly licensed Certified Public Accountants have to adapt to these changes. Now, the CPAs are required to perform advanced tasks and have to contribute to more complex projects. The US CPA exam has to remain relevant as a measure of the skills and knowledge Certified Public Accountants (CPAs) have to practice their profession more effectively.

 

2024 US CPA Exam Evolution:

The proposed US CPA licensure model needs the CPA candidate to be knowledgeable and skilled in a strong core based on auditing, accounting, and tax, with the technology-infused throughout. The US CPA candidates must clear one discipline and three core sections on the US CPA exam. Besides, the candidates can only pass one discipline without any option to clear another. It is essential to note that the discipline passed will not be changed if the US CPA license is granted.

 

The US CPA candidates would be required to have a piece of good knowledge in one of the below disciplines:

 

●     Information Systems and Controls (ISC)

●     Business Analysis and Reporting (BAR)

●     Tax Compliance and Planning (TCP)

 

No matter which discipline a CPA chooses, the new licensure model can result in one US CPA license.

 

Overview of US CPA Exam:

The new US CPA exam assumes that the candidate will sit for the exam after the completion of a foundational academic program which is focused on the strong accounting and business-based curriculum that offers students the skills they require to practice in the present business world and meet the public requirements.

 

Overview of US CPA Exam Disciplines:

As we have discussed earlier, there are three disciplines in the US CPA exam: Information Systems and Controls (ISC), Business Analysis and Reporting (BAR), and Tax Compliance & Planning (TCP).

 

Let's discuss each discipline in detail.

 

Information Systems and Controls (ISC): Business and technology controls are the main focus for the discipline of ISC. The US CPA candidates who are interested in advisory and assurance services related to information systems, business processes, governance, information security, and IT audits are encouraged to select this discipline. The discipline content is focused on data governance and Information & Technology, information system, and internal control testing, including software, access, network security, and endpoint security.

 

Business Analysis and Reporting (BAR): US CPA candidates who are interested in advisory or assurance services, technical accounting, financial statement reporting and analysis, and financial & operational management are encouraged to complete the discipline of BAR. The BAR discipline content includes topics like financial planning and financial risk management techniques and a data analytics focus. Also, the BAR discipline could include more advanced reporting and technical accounting concepts at the levels of higher skills, including assessment of revenue leases and revenue recognition, derivatives and hedge accounting, business combinations, and employee benefits financial planning.

 

Tax Compliance and Planning (TCP): The TCP discipline focuses on the taxation concepts involving advanced entity and individual tax compliance. The topics of this discipline focused on entity planning and personal financial planning, gift taxation compliance, and exclusions and inclusion to gross income could also be focused. The advanced entity tax compliance coverage might include multijurisdictional tax issues, consolidated tax returns, and transactions among the entity owners. The liquidation of business entities and tax treatments of the formation could also be included in the planning of an entity.

 

Technology is continuing to be growing in the profession of accounting. Hence, technology is going to be tested on the 2024 US uniform Certified Public Accountant exam throughout all the exam sections.

 

2024 US CPA Exam Structure Changes:

The uniform US CPA exam consists of three discipline sections and three core sections. To earn the US CPA licensure, the candidates must have to clear one discipline section and three core sections. The US CPA exam is expected to be in four sections and a 16-hour format.

 

Which exam is harder, the 2024 CPA exam or the present CPA exam?

The 2024 US CPA exam is moving to a model of Core-Plus-Discipline, which requires the candidates to be skilled in a strong core based on auditing, accounting, and tax. Also, the candidates will be needed to clear one discipline on the US CPA exam. The CPA Exam in 2024 is completely different from the present CPA exam; hence there is no need to compare them in the level of difficulty.

 

Conclusion:

Hope, this article helps you to know the US CPA exam changes in 2024. You might think, what is the best institute for providing the US CPA course as per the changes in 2024. Hi-Educare, a leading CPA course provider in India, is there for you to help. Any questions regarding US CPA exam changes in 2024? Feel free to contact us.

 

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