CPA Exam Changes and Updated Regulations 2024-2025

The new exam structure is designed to better prepare future CPAs for the challenges they will face in their careers, with a focus on enhanced integration of emerging technologies, updated content areas, and a more streamlined approach to the testing process.

Keep reading to get a comprehensive overview of the most current CPA Exam changes, to better understand what to expect and how to prepare for this next step in your professional journey.

Core-Plus-Discipline Model

The CPA Exam now follows a new “Core-Plus-Discipline” model. This structure consists of three core sections that all candidates must complete, along with one discipline section that candidates can choose based on their area of interest or specialization.

Core Sections:

• Auditing and Attestation (AUD): Focuses on ethics, risk assessment, and audit procedures.
• Financial Accounting and Reporting (FAR): Covers financial accounting, financial statement preparation, and reporting.
• Taxation and Regulation (REG): Encompasses federal taxation, business law, and ethics.

Discipline Sections (Choose One):

• Business Analysis and Reporting (BAR): Emphasizes financial planning, analysis, and reporting.
• Information Systems and Controls (ISC): Focuses on information technology, risk management, and internal controls.
• Tax Compliance and Planning (TCP): focuses on advanced taxation topics and tax planning.

• Some topics from the Business Environment and Concepts (BEC) section (no longer a part of CPA Exam) are being integrated into the AUD section. This includes areas like business processes and internal controls, which are essential to auditing. 
• The AUD section will continue to focus on the knowledge and skills needed for performing audits and attestation engagements. 
• The exam format remains similar with a combination of Multiple-Choice Questions (MCQs) and Task-Based Simulations (TBSs), maintaining a 50% weight for each component. 

Read our free resource to learn everything you need to know about the AUD CPA Exam.

• FAR has also integrated a few topics from the BEC section, particularly those related to financial ratios and performance metrics. This reflects the growing importance of understanding how financial data is used in broader business analysis.
• While FAR has always had governmental and not-for-profit accounting topics, this year there’s an increased emphasis on these areas. Candidates will need to have a more detailed understanding of how financial reporting operates in these sectors, including the unique accounting standards that apply.
• The format and structure of the exam remain consistent with previous years, featuring a four-hour duration and five testlets. The exam still includes two types of questions: multiple-choice questions (MCQs) and task-based simulations (TBS).
• However, the number of questions has been adjusted slightly. The exam now consists of a total of 50 MCQs and 7 TBS. The scoring is evenly split, with MCQs accounting for 50% of the score weight, and the remaining 50% coming from the TBS section.

Read our free resource to learn everything you need to know about the FAR CPA Exam.

• Certain highly specialized or less commonly encountered areas in tax law may have been streamlined or de-emphasized to focus more on what newly licensed CPAs are likely to encounter.
• The focus is more on domestic tax issues, with international tax topics slightly reduced in scope.
• The new blueprint places more emphasis on ethical considerations, especially in tax practice, and federal tax procedures. Business Law and Federal Taxation of Property Transactions areas continue to be heavily tested.
• The REG exam now includes 72 multiple-choice questions (MCQs) and 8 task-based simulations (TBS).

The knowledge and skills needed to succeed as a newly licensed CPA (nlCPA) change over time as the industry changes and different regulations, laws, codes, etc., are updated. In order to ensure the CPA exam is preparing nlCPAs properly and testing on relevant skills and knowledge, the AICPA revises the CPA exam to ensure nlCPAs are being prepared adequately.

These revisions can be large or minor and can include anything from adding new topics to removing outdated information, to improving the testing experience.

The CPA Exam Blueprints are documents that outline the minimum knowledge and skills nlCPAs need to be proficient in their industry. These blueprints are used to update the CPA exam as they summarize the scope and content of each section that is covered in the exam.

The most recent CPA Exam Blueprints released by AICPA went into effect on January 1, 2024. These changes are what dictated the CPA exam changes in AUD, FAR, and REG and the new discipline sections.

New blueprints are released yearly or multiple times per year, but fortunately, CPA exam review prep courses like UWorld CPA keep track of these changes and account for them when developing CPA exam study material, so you have less to worry about.

As you review the changes to the CPA Exam, you are probably wondering how prepared you are to sit for the exam. Well, we have good news because you can take UWorld’s Free CPA Practice Exam to see exactly where you stand. Developed in consultation with subject matter experts from UWorld CPA Exam Review, this free CPA practice exam is helpful for both individuals considering taking the CPA exam and those currently studying for the exam.