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By Denise C. Probert, MPA, CPA
November 5, 2009
On September 25, 2009, the AICPA announced significant changes to the CPA exam
effective January 1, 2011. In this article, Kaplan CPA Review summarizes the major
technical and content changes that will occur on the CPA exam for candidates testing
on or after this date.
Background
In October, 2007, the AICPA Examination Team was charged by the Board of Examiners
(BOE) to seek input from the boards of accountancy and other stakeholders on desired
changes to the CPA exam. The last major changes to the structure of the exam occurred
in April 2004, when the first computerized based testing (CBT) was launched. A formal
evaluation of the new CBT exam has led to the most recent changes below.
Task based simulations
Currently, three of the four sections of the CPA exam test your knowledge using case-based
simulations. These are similar to the cases a professor may assign to assess your application
of knowledge to a situation similar to real-life scenarios. The CPA exam simulations that
currently appear in AUD (Auditing and Attestation), REG (Regulation), and FAR (Financial
Accounting and Reporting), have several objective assignments, a research assignment, and
one writing assignment. The simulation begins with a case scenario. As you progress through
the simulation you complete assignments based on the information given and your knowledge.
After January 1, 2011, these case-based simulations will be replaced by task-based simulations.
Instead of completing two case-based simulations, you will complete six or seven task based
simulations. Each task will likely be based on different sets of information. The new simulations
will not contain a writing component.
The decision to move to a task-based format resulted from
constituency feedback obtained by the AICPA examinations team that expressed a desire for shorter,
more focused simulations. The task-based simulations will effectively provide evidence of your
knowledge in a manner that can be evaluated by graders efficiently.
Written communication in BEC
Currently, candidates must complete a written communication assignment in each simulation. There are
two simulations in each of the AUD, FAR, and REG sections. Of these six writing assignments, three
(one per section) are graded. As of January 1, 2011, written communication will only be tested in BEC.
Ten to twenty percent of the BEC exam will consist of the written communication assignment(s).
The decision to move the assessment of written communications to BEC was driven by the desire to
expedite the grading process. Currently, three writing assignments must be graded for every candidate.
The examination team believes that one writing assignment will give adequate assessment feedback on a
candidate‘s written communication skills.
International Financial Reporting Standards
After January 1, 2011, you will be tested on International Financial Reporting Standards (IFRS). This
change will have the greatest impact on the FAR section. However, global business concepts will appear
in all four sections and International Auditing Standards will be tested in AUD.
The decision to add IFRS to the new CPA exam was essential since the U.S. Securities and Exchange
Commission (SEC) is preparing to adopt IFRS as our national financial reporting standard. It is
responsibility of every CPA to be proficient in this new, authoritative literature.
FASB Codification
You have been learning the standards by their traditional, somewhat confusing, titles (e.g.,
SFAS 141r Business Combinations). We've had SFASs, SASs, APBs, ARBs, PBs, AINs, FINs, as well as
SOPs. On July 1, 2009, FASB codified all authoritative literature and eliminated all previous titling.
The updated authoritative literature will appear on the new CPA exam beginning January, 1, 2011.
This will have the greatest impact on the research task based simulation where you will need to respond
to a research question using the new authoritative literature.
New content and skill specification outlines (CSOs/SSOs)
All content changes will be driven by the new Content and Skill Specification Outlines.
For example, strategic planning and operations management
theory have been added to the BEC section of the exam, and the AUD section will now test on professional
responsibilities.
The new CSOs/SSOs will ensure the CPA exam tests the knowledge and skills you use as an entry-level
accountant. Strong knowledge of the CSOs/SSOs will give you confidence that you are studying the correct
material. Utilizing a CPA exam review course will also serve you well in that regard, since review
providers structure their courses to meet the CSOs and SSOs.
» View examples of the new CSOs/SSOs
Computer based testing - Evolution (CBT-e)
The new CPA exam will be administered using enhanced technological advances. We will be able to see
the full impact of this enhanced technology when the AICPA publishes sample tests and tutorial in 2010.
Be prepared
You can start preparing now for the CPA exam. If you are a college student, take all of your classes
seriously, even the ones that do not specifically pertain to accounting. Non-accounting topics like
statistics, economics, and business law are tested in the BEC and REG sections of the CPA Exam. In fact,
a significant portion of the BEC section exam covers material covered in your non-accounting classes. The
elective credits you earn in these classes will also count toward the 120 or 150 hours required by your
state to sit for the exam.
Consider sitting for the CPA examination as soon as you qualify. Check with the state regulatory board
for the jurisdiction in which you will be licensed. Each jurisdiction has its own requirements. Your state
may even allow you to apply to sit for the exam before you graduate. Applying early could allow you to test
as soon as you graduate and complete all four sections sooner. Displaying such initiative always impresses
prospective employers. The sooner you apply to take the exam, the better your chances of finishing all four
sections before January 1, 2011 when the changes covered in this article will take effect.
Your career will benefit from passing the CPA exam. Every industry needs CPAs. Your CPA designation could
be your ticket to a rewarding career in public accounting, or any industry you choose. The possibilities are
endless and the opportunities are many once you've passed the CPA Exam.
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