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CPA Evolution
The Universal CPA team has prepared a comprehensive guide to help you prepare for the CPA Evolution.
What is the CPA exam evolution?
The AICPA is expected to launch the CPA Evolution in 2024, which is the new CPA licensure model. According to the AICPA, it is a joint effort of the National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA). The whole purpose of the CPA evolution is to transform the CPA licensure model to recognize the rapidly changing skills and competencies the practice of accounting requires today and will require in the future. Based on feedback from stakeholders across the profession, new CPAs will need to enhance their knowledge and skill sets in the following areas:
- Critical thinking and the ability to interpret complex data sets
- The ability to apply professional judgement and professional skepticism in their engagements.
- Understanding and interpreting complex business systems, controls, and risk
- Performance of System and Organization Controls (SOC) engagements
How will the CPA evolution impact CPA candidates?
Under the current CPA licensure model, CPA candidates are required to pass four individual sections (AUD, BEC, FAR, and REG) within an 18-month window. Under the CPA Evolution, the licensure model is switching to a CORE + Discipline model. CPA candidates will be required to pass three CORE sections (AUD, FAR, and REG), as well as one discipline. Candidates will choose one of the three disciplines offered (learn more below). In summary, BEC is being replaced by three disciplines (BAR, ISC, and TCP), and a CPA candidate must still pass 4 individual sections to pass the CPA exam.
Important Transition Dates to Understand
While the CPA Evolution will not be effective until January 2024, there are key dates in 2023 and 2024 that you should be aware of if you expect to be a CPA candidate and part of the testing process after September 30, 2023. NASBA is working closely with the AICPA and released the following information that is subject to change. Please continue to check back or join our mailing list to receive any future updates and/or changes to the proposed transition to the CPA Evolution
Further transition details are below, but at a high-level, the last testing date under the current licensure model is December 15, 2023. There will not be any testing until January 10, 2024 when testing under the new licensure model begins.
Important 2023 Administration Dates
The last testing date under the current CPA exam licensure model is expected to be December 15, 2023. This means that you will not be able to sit for AUD, BEC, FAR, or REG from December 15, 2023 to January 9, 2024 (proposed start date of the CPA Evolution is January 10, 2024).
In addition, NASBA will no longer process a notice to schedule to sit for BEC after November 14, 2023 (will stop on November 15, 2023). Therefore, if you are planning to sit for BEC, we highly recommend you process your notice to schedule before November 1, 2023. For the new disciplines that are replacing BEC, NASBA will resume processing a notice to schedule on November 22, 2023 (tentative date, so please check back!).
For AUD, FAR, and REG, a notice to schedule can continually be submitted and the process will not be interrupted.
Important 2024 Administration Dates
As mentioned above, testing will be stopped on December 15, 2023 and resume on January 10, 2024. Per the AICPA, the time will be used to convert and integrate the new testing software. CPA candidates will be able to schedule AUD, FAR, and REG anytime from January 10, 2024 to March 26, 2024. However, for the new disciplines (BAR, ISC, and TCP), the testing window will only be from January 10, 2024 to February 6, 2024.
The table below outlines the proposed testing dates and score release dates for the Core sections and disciplines:
CPA Evolution 2024 Testing and Score Release Dates (proposed)
| Quarter | Core Test Dates | Core Score Reports | Discipline Test Dates | Discipline Score Reports |
|---|---|---|---|---|
|
Q1 - 2024 |
January 10 - March 26 |
May 14 - June 4 |
January 10 - February 6 |
March 26 - April 16 |
|
Q2- 2024 |
April 1 - June 25 |
August 1st |
April 20 - May 19 |
June 20th |
|
Q3 - 2024 |
July 1 - September 25 |
November 1st |
July 1 - July 31 |
September 3rd |
|
Q4 - 2024 |
October 1 - December 26 |
Early February 2025 |
October 1- October 31 |
December 3rd |
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Will the CPA exam be harder after the CPA evolution?
Historical CPA exam pass rates show just how hard the CPA exam is! While only time will tell, the AICPA has indicated that the CPA Evolution isn’t intended to make the exam harder. Rather, the CPA Evolution is intended to better equip a CPA candidate with the skill sets they need to succeed in the real world. While change can bring a lot of uncertainty, change is necessary to stay relevant in this ever-evolving environment!
What are the three disciplines in the CPA evolution model?
“Which discipline should I choose” is a question that will be asked a million times by CPA candidates. Is it important in the long run? Maybe. For passing the CPA exam, it will be important to choose the discipline that gives you the highest chance of passing. Our view is that the chosen discipline should be based on your existing knowledge, skill sets, and interests. Take the time to understand the topics tested and the related roles for each discipline.
Business Analysis & Reporting (BAR)
If you are interested in assurance or advisory services, financial statement analysis and reporting, technical accounting, and financial and operations management, then you should consider choosing BAR.
Information Systems & Controls (ISC)
ISC is focused on technology and business controls and targets for candidates interested in assurance or advisory services related to business processes, information systems, information security and governance, and IT audits.
Tax Compliance & Planning (TCP)
TCP would cover taxation topics involving more advanced individual and entity tax compliance, plus additional content focused on personal financial planning and entity planning.
To learn more about each discipline from the AICPA, visit the link below:
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How is Universal CPA preparing for the CPA evolution?
Universal CPA Review has been working directly with the AICPA and NASBA to prepare for the CPA Evolution. The team at Universal CPA reviews all information that is released regarding the CPA Evolution. The Universal team has subject matter experts that have implemented changes to the CPA exam in the past and will continue to ensure that the students of Universal CPA Review are ready for the CPA Evolution.
Frequently Asked Questions on the CPA Evolution
The short answer is that you will only be impacted if you do not pass all 4 sections of the CPA exam (AUD, BEC, FAR, and REG) prior to December 31, 2023. If you have not passed one or more sections, then you will be impacted by the CPA Evolution. You will be required to sit for that section under the new licensure model and the 2024 CPA Exam blueprints.
No. Candidates who have credit for AUD, FAR, or REG on the current CPA exam will receive credit for the corresponding section. If a candidate has passed BEC, they will need to choose which discipline they would like to receive credit for.
In short, the answer to that question is absolutely not. The AICPA has outlined a transition policy. Essentially, if you have passed AUD, FAR, or REG, you will receive credit for those sections under the new model. If you have passed BEC, you will choose which of the three disciplines you would like credit for (Tax compliance and planning, information systems and controls, or business analysis and reporting).
Yes. If you aren’t familiar with the 18-month policy, it means that after you pass your first section, you have 18 months to pass your remaining 3 sections. You will start to lose credit for sections passed if your timeline extends beyond 18-months.
The AICPA expects each candidate to choose a discipline based on their interests and future career path. The AICPA offered additional insight on the role:
Business Analysis & Reporting (BAR) – A candidate should choose this discipline if they are interested assurance or advisory services, financial statement analysis and reporting, technical accounting, and financial and operations management.
Information Systems and Controls (ISC) – A candidate should choose this discipline if they are interested in assurance or advisory services related to business processes, information systems, information security and governance, and IT audits.
Tax Compliance & Planning (TCP) – A candidate should choose this discipline if they are interested in individual and entity tax compliance, as well as personal financing planning and entity planning.
No. The under the new licensure model, every CPA candidate will be required to pass AUD, FAR, and REG.
The AICPA has confirmed that the blueprints will be different. However, based on the proposed 2024 CPA Exam blueprints that were published for comment on July 1, 2022, it appears that AUD, FAR, and REG will largely (75%-85%) test candidates on the same topics.
The AICPA has stated that the 2024 CPA Exam blueprints will be published in January 2023.
It is difficult to answer this question objectively, but new college accounting graduates and those that recently completed the CPA Evolution will have desirable skill sets that public accounting firms place value on.
No. The AICPA confirmed that there will not be any changes to the rights and privileges a CPA will have under the new licensure model.
Our current understanding is that a CPA candidate only needs to pass one of the three disciplines. A CPA candidate will have the option to try and pass another discipline if they sit for a discipline and fail.
Yes, under the new CPA Evolution licensure model, each section will still be 4 hours. Candidates will sit for a total of 4 sections for 4 hours each. The total exam time will remain at 16 hours.
Yes. Our understanding is that each section will consist only of multiple-choice questions and task-based simulations. The written communication section is expected to be removed from the exam altogether.
According to NASBA, the last date to sit for any section under the current CPA licensure model will be December 15, 2023. Testing will not resume until January 10, 2024.
According to NASBA, testing will note resume until January 10, 2024 once the CPA Evolution is effective. NASBA has also stated that testing will end on December 15, 2023. Therefore, there will be no testing from December 15, 2023 to January 10, 2024.
Yes – there will not be any interruptions for AUD, FAR, or REG. For BEC, the last date an NTS will be issued is November 15, 2023. You will then be able to obtain an NTS for each discipline beginning November 22, 2023.
The AICPA and NASBA have recommended that each state/jurisdiction extend the credit expiry date to June 30, 2025. This means that each candidate that has credit for at least one exam section as of January 1, 2024 will receive an automatic 18-month extension. Note that each exam credit will be automatically extended and note just credit for one exam.
For more information regarding credit extensions by jurisdiction, visit the NASBA credit extension map!
According to the AICPA and NASBA, the last day to sit for the CPA exam under the current model will be December 15, 2023.
