The CPA Exam in 2023 and 2024: CPA Evolution Explained

By now you’ve heard the CPA Exam will be changing. Some may even say it’s evolving; and in fact, the change is called “CPA Evolution.” As you may know, CPA Evolution is a joint venture between the AICPA and NASBA.

By Amy Napolski

Exam changes aren’t anything new — this is just bigger than previous changes. (The last big exam change was in 2017.) Every five or so years, the AICPA performs an analysis of the profession to make sure the exam is relevant, valid and current. This article explains how the exam is changing and how candidates can plan for the changes.

Candidates will have a choice

For the current exam, everyone takes the same four parts: Auditing and Attestation (AUD), Business Environment and

Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). Starting January 2024, candidates will have a choice. All candidates will take three “Core” exams: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). For the fourth exam, candidates will choose one of three “Discipline” exams: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). (The exams may be taken in any order.)

The goal of the new model isn’t to award a specialized license, but to allow candidates to choose their path based on the area of accounting they plan to pursue or are pursuing. The Core exams cover the essentials all CPAs need to know. The Discipline exams cover the more in-depth content of the specific areas in accounting. The graphic below shows the six exams.

Source: https://www.evolutionofcpa.org/

It’s okay not to know which Discipline to choose

Candidates may or may not know the area they will be working in, which is fine since they will have a CPA license (not a specialized license) once they pass the exams and complete the other requirements for licensure. Below is an overview of the content on the three Discipline exams. Note that if candidates fail the Discipline exam, they may choose a different Discipline for their next attempt.

Source: https://www.becker.com/cpa-evolution

The exams a candidate passes in 2023 will count in 2024

NASBA has provided a transition policy for candidates who may be taking exams in both 2023 and 2024. If a candidate passes AUD, FAR or REG in 2023, those will count as the corresponding Core exams. If a candidate passes BEC in 2023, it will count as a Discipline exam. The following illustration shows the policy.

Source: https://nasba.org/blog/2022/02/25/transition-policy/

What the changes look like in a nutshell

Another reason behind CPA Evolution is to address the issue of the amount of content being tested. The accounting profession changes at a rapid pace, with new rules and regulations happening on an ongoing basis. It’s a lot of content for the exam, so with the Core + Discipline model the candidate has the choice of the specific area (Discipline) to be tested. Content for the current four exams is being moved around for the new six exams for 2024. Below is a graphic showing shifting of content.

Source: https://www.becker.com/cpa-evolution#students

Some other notable changes:

• There will be no Written Communications piece on the new exam.

• Authoritative Literature will not be available as a searchable database. Excerpts will be provided for candidates to answer research questions.

• Microsoft Excel will be replaced with a generic equivalent with similar functionality.

Dates to know for 2023 and 2024

NASBA and the AICPA released the following tentative application information and testing schedules for late 2023.

• October 1, 2023: Application deadline for BEC exam first-time candidates applying through NASBA/CPAES*

• November 12, 2023: Application deadline for BEC exam re-exam candidates who have already been approved for a prior NTS (any section)*

• Nov. 15, 2023: NASBA’s Gateway platform will stop processing BEC Exam applications.

• Nov. 22, 2023: NASBA will start processing applications for the new Discipline exam sections (BAR, ISC, TCP).

• Dec.15, 2023: last day of testing for all sections of the current exam (AUD, BEC, FAR, and REG)

• Dec. 16, 2023 – Jan. 9, 2024: no testing, to allow for IT systems to convert to the new exam *These dates may be different for those states in which the application is through their state board.

Below is the tentative administration schedule and score release timeline for 2024.

Source: https://nasba.org/blog/2022/11/02/cpa-exams-future-key-tentative-dates-announced/

Key takeaways:

• Jan. 10, 2024: Testing begins for the new exam.

• There will be five “black-out dates” each quarter for the Core Exams.

• Testing for the Discipline sections of the exam (BAR, ISC, TCP) will only be available for approximately one month each quarter.

Making a plan

With all the changes, it may be overwhelming for candidates to decide where to start. Here are some considerations:

• If possible, candidates should pass BEC in 2023 since this passed exam will count for a Discipline exam in 2024.

• Exams that could be easier to pass in 2024 are FAR and REG since they are moving content from these sections. Now, if a candidate has time to pass all four in 2023, they should by all means do so!

• The exam that will be pretty much the same in 2024 is AUD.

• Candidates should use a calendar to map out a plan, taking into consideration the dates they can and cannot take the Core and Discipline exams. Here’s an example:

Source: Amy Napolski, Becker Senior Account Manager, anapolski@becker.com

It will take longer for candidates to get their scores

As shown in the first chart on pg. 15, there will be a limited number of score release dates because the AICPA will need more time to evaluate and score the new exams. What does this mean? Similar to what happened in 2017, candidates may take multiple exams before getting any scores, which may be nerve wracking and make planning difficult. The AICPA and NASBA are aware of this, so NASBA has proposed a credit extension policy that will impact the current 18-month window to complete the four parts of the CPA Exam. This policy would allow candidates who have passed any parts by Jan. 1, 2024, to have credit for those exams extended to June 30, 2025. The individual state boards of accountancy are in the process of adopting this policy. Below is the most current map of the states that have done so. For Wisconsin, this needs to go through the state legislature, and the WICPA is confident it will be approved.

Final thoughts for CPA Exam candidates

Change can be difficult. Let’s address that head on. Keep in mind that change can be advantageous, too. The following “mantra” can help candidates navigate the CPA Exam: I will have a choice; change is good; I will be successful. Taking time to stay on top of the changes coming in 2024 will give candidates the confidence to pass the exams and navigate the process to becoming a CPA.

Below are links to resources for CPA Evolution. This is a historical time in accounting!

CPA Evolution: https://www.evolutionofcpa.org/

• CPA Evolution Transition FAQs: https://nasba.org/ examtransitionfaqs/

• Becker CPA Evolution website, including 10-minute video on the 2024 exam: https://www.becker.com/ cpa-evolution

Source: https://nasba.org/credit-extension-map/

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