What is the CPA Evolution?

The National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) came together to analyze and update the ever-changing skills needed to be career-ready in today’s—and tomorrow’s—accounting environment. Their goal with the evolution is to reexamine and improve the CPA licensure requirements to keep up with the competencies you’ll need to succeed in the field, ensuring more prepared candidates from day one.

What are these new career readiness skills?

Newly licensed CPAs need to have digital and data skills. More specifically, their jobs will demand that they:

  • Identify structured and unstructured data from key business processes.
  • Understand attributes of data repositories.
  • Understand the capabilities of tools supporting data extraction and analysis.
  • Recognize legal, ethical, business, and intellectual property considerations around data governance.
  • Exercise professional skepticism and judgment in analyzing data and information to be used as evidence. For example, is it reliable, or does it corroborate or contradict management’s assertions?

How are these job skills reflected in the CPA exam?

These evolving skill requirements are exactly why the CPA exam has changed—and how you’ll need to prepare for it. Overall, there is a continued and increased emphasis on analytical skills and problem-solving. The new model is a core PLUS disciplines licensure model.

The model starts with a deep and strong core in accounting, auditing, tax, and technology that all candidates must complete. Then, each candidate will choose a discipline to demonstrate deeper skills and knowledge. Regardless of the chosen discipline, the model leads to full CPA licensure, with rights and privileges consistent with any other CPA. A discipline selected for testing does not mean the CPA is limited to that practice area.

The model:

  • Enhances public protection by producing candidates with the deep knowledge necessary to perform high-quality work, meeting the needs of organizations, firms, and the public.
  • Is responsive to feedback as it builds accounting, auditing, tax, and technology knowledge requirements into a robust common core.
  • Reflects the realities of practice, requiring deeper proven knowledge in one of three disciplines that are pillars of the profession.
  • Is adaptive and flexible, helping to future-proof the CPA as the profession continues to evolve
  • Results in one CPA license.

How is the new CPA Exam structured?

Each candidate must take the three (3) mandatory core sections plus one (1) optional discipline section of their choice.

Mandatory core sections:

  • Accounting and Attestation (AUD)
  • Financial Accounting and Reporting (FAR)
  • Tax & Regulation (REG)

Optional discipline sections:

  • Business Analysis and Reporting (BAR)
  • Information Systems and Controls (ISC)
  • Tax Compliance and Planning (TCP)

Frequently Asked Questions

Here are answers to some frequently asked questions about the CPA Evolution.

  • Even though the names of the core sections have remained the same, the exams are NOT the same. That said, much of what is currently tested will remain testable on the new exam.
  • AICPA has moved the current content requirements into six different areas. In the Core areas, the focus is on the minimum skill and knowledge levels. The more complex and specialized topics have been moved to the Discipline areas. They have also deleted some content, such as Business Law, and added some content.
  • The new model focuses heavily on data analytics and digital acumen. Digital acumen means recognizing, learning, and utilizing changing technology to perform professional responsibilities.
  • The new CPA Exam became effective on January 1, 2024, upon approval from AICPA and NASBA.
  • You will not lose any credits! Under these circumstances, the transition policy comes into play. It is pretty straightforward. There is a one-to-one relationship for AUD, FAR, and REG – if you have passed those, you get credit for the new ones. If you have passed BEC, you get credit for one of the disciplines, BAR, ISC, or TCP. The reverse is also true – if you haven’t taken and passed AUD, FAR, or REG, you will need to take the new versions. If you haven’t taken and passed BEC, you must select one of the disciplines.
  • You will sign up for your last section like you signed up for the previous parts. Then, if you need AUD, FAR, or REG, you will sign up for the new version. You can select BAR, ISC, or TCP from the three discipline choices if you’ve not given BEC. Note that any candidate with CPA Exam credit(s) on January 1, 2024, will have such credit(s) extended to June 30, 2025. Hence, you don’t have to worry about losing your exam credits.
  • AICPA and NASBA expect candidates to select the discipline area that is most appealing to them. They have offered suggestions as to the types of candidates who might be interested in each part.
    • BAR is likely of interest to candidates planning to pursue careers in Assurance or advisory services, Financial statement analysis and reporting, Technical accounting, and Financial and operations management.
    • TCP will appeal to candidates interested in Individual tax compliance and planning, Personal financial planning, and Entity tax compliance and planning.
    • ISC is geared toward candidates who aim to practice assurance or advisory services related to a client’s business processes, information systems, information security and governance, or IT audit.
  • Candidates in most states now have 30 or 36 months to pass the exam. In the past, it was 18 months but most states have extended this period to give some breathing room in light of recent exam changes. Please be sure to check with your State Board of Accountancy to confirm what the current rule is in your state.
  • UWorld has swiftly updated its course materials to reflect the 2024 CPA Evolution. Check the updated study materials, questions, and mock exams based on the new model. You can find the latest CPA review course materials and choose the best package.
  • Yes! With all our courses, we provide unlimited access until you pass the exam – whether it’s the current exam or the new exam – and this includes all the content updates for the new exam. Updates will be provided seamlessly online through our course platform. So, whether you already purchased a course or plan to do so in the future, you can be assured you’ll have everything you need to pass the exam.

Educators: Get Your Students Ready

Are you an educator tackling how to evolve your accounting program so your students are ready for the new 2024 CPA Exam and the new demands of the accounting profession? We’re here to help. Contact us to explore integrating UWorld’s materials into your program to fill gaps that may have been created under the new CPA Evolution model curriculum.

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