As a part of our Examinations crew’s ongoing efforts to preserve the validity, reliability, and relevance of the Uniform CPA Examination® (CPA Exam), we conduct periodic research to learn extra approximately the present day nation of the profession and the work of newly licensed CPAs (nlCPAs). The findings of our research inform capability changes and updates to the CPA Exam and help us keep its alignment with expert practice.
Building on the foundation of the remaining Practice Analysis finished in 2016, our team began a centered Practice Analysis in early 2019 to evaluate the impact of audit analytics and era on the work finished by way of nlCPAs. We additionally re-examined the evaluation of core accounting abilities that every one CPAs ought to possess in an effort to defend the public interest.
With the Practice Analysis studies completed, our group published a report comprising two elements:
• An Exposure Draft that outlines deliberate CPA Exam updates, including content material to be added, modified or deleted.
• An Invitation to Comment that gives stakeholders the possibility to provide similarly input on associated topics or capability changes which might be longer-term proposals and require further considerations.
We will accept comments until April 30, 2020. If you've got questions, please touch [email protected]
CPA Exam Frequently Asked Questions (FAQs)
What is a Practice Analysis?
A Practice Analysis is a comprehensive, in-depth studies effort that files the state of the career and investigates the present day function of a nlCPA; specifically, the understanding and competencies most applicable to their work and their component in protecting the general public interest. It is one of several approaches our Examinations team keeps the CPA Exam aligned with professional practice. We last conducted a Practice Analysis beginning in late 2013 through April 1, 2016, which caused the modern CPA Exam structure. The introduction and implementation of the CPA Exam Blueprints provided a robust platform for destiny modifications.
Why is the Practice Analysis necessary?
Technology is fast-evolving, specifically because it relates to the paintings of nlCPAs. New technology and software, automation, and outsourcing are all converting the way those specialists do their jobs. The CPA of the future needs to have a information and virtual mindset as a way to understand complicated business procedures and controls and to work with virtual tools and technology. The Practice Analysis aids our Examinations team in figuring out the associated expertise and capabilities that the CPA Exam ought to assess to make sure minimal technical competency of these getting into the profession.
What is the goal of modern-day Practice Analysis?
The modern Practice Analysis is a centered studies attempt that focused on the impact of the era revolution on the work of nlCPAs, so that it will bring about changes to the CPA Exam. As part of the studies, we also re-examined contemporary CPA Exam content material to identify regions that may no longer be critical for nlCPAs in their role of protecting the public.
What is the timeline for the Practice Analysis?
We commenced our Practice Analysis in early 2019 and published a research document on December 23, 2019. The research report comprises an Exposure Draft that outlines planned CPA Exam updates, consisting of content material to be added, modified or deleted. The studies file also includes an Invitation to Comment that offers a potential, destiny CPA Exam modifications primarily based on comments from the Practice Analysis. These subjects require extra studies and/or extra giant structural adjustments so in addition stakeholder input is necessary. Given the nature of the Invitation to Comment subjects and the want for additional studies, there are no definitive plans or anticipated implementation timelines. Stakeholder responses to each the Exposure Draft and Invitation to Comment may be accepted until April 30, 2020.
Are there outside stakeholders involved inside the CPA Practice Analysis?
Yes. The Practice Analysis commenced with meetings among our Examination crew and leaders from approximately 15 public accounting firms of varying sizes. The contributors discussed a number of topics, inclusive of the impact of an era at the paintings of nlCPAs, crucial knowledge, and abilities for those entering the profession, and firm recruiting developments of college college students and CPA candidates.
Then, with the help of a third-party research company, we commenced a three-phase studies challenge with eight virtual focus groups comprising CPAs who directly supervise the work of nlCPAs. Focus group participants, of varying ages and from distinct parts of the country, represented firms of all sizes and enterprise and industry. Topics discussed throughout the cognizance organizations protected the evolving work of newly licensed CPAs, the impact of an era on their roles, the position of records analytics in engagements, and other related subjects.
Next, we held eight digital content ranking panels with CPAs who directly supervise the work of nlCPAs. The panelists reviewed the present CPA Exam Blueprints and ranked the importance of all testing content because it relates to the role of a nlCPA.
Lastly, we held four virtual content affirmation panels aligned with each of the CPA Exam sections. Participants blanketed CPAs who without delay supervise the work of nlCPAs. The panelists rated their degree of settlement with changes proposed to their respective CPA Exam Blueprint section.
As is practice with all potential changes to the CPA Exam, the consequences of the studies have been reviewed and approved by way of the AICPA Board of Examiners, its committees and subcommittees, that are made up of extra than seventy-five volunteer challenge matter professionals from the career, academia, and regulatory bodies.
Will I be capable of percentage my thoughts approximately the Practice Analysis?
Yes, as noted above, we published a Practice Analysis studies report for public comment. The comment period will continue to be open until April 30, 2020.
How quickly will the Practice Analysis effects effect the CPA Exam?
Proposed modifications outlined in the Practice Analysis Exposure Draft can be carried out no later than mid-2021. Updated CPA Exam Blueprints reflecting the adjustments will be approved by means of December 31, 2020. Topics presented within the Invitation to Comment don't have any planned implementation timeline.
Will this unique Practice Analysis lead to another most important overhaul of the CPA Exam?
The remaining Practice Analysis (completed in April 2016 and operational in April 2017) supplied a robust platform for future modifications with the introduction and implementation of the CPA Exam Blueprints. We don’t expect main structural changes to the current, four section-CPA Exam as all updates will consciousness on content. At the present time, we do not anticipate a need for rating holds.
We’ve moved far from multi-year studies projects that bring about “big-bang type” CPA Exam releases and dramatic exchange that creates angst amongst ingredients and disrupts the candidate pipeline. The goal is to conduct greater centered studies efforts, such as the modern-day Practice Analysis, along with continuous improvement paintings, as a way to permit the CPA Exam to confirm and continue to be aligned with professional practice without the want for comprehensive adjustments. However, as the needs of the profession evolve, extra enormous CPA Exam modifications may be required to keep the Exam’s foreign money with the profession.
How is the Practice Analysis exclusive from CPA Evolution?
The Practice Analysis is how our Examinations group maintains the relevance and professional currency of the CPA Exam, responds to changes happening inside the profession today, and reviews important knowledge/talent checking out for the safety of the public interest. CPA Evolution is a joint AICPA/NASBA attempt centered on the destiny of the licensure version and the transformation of the career as it relates to technology. Although these are separate projects, the groups stay informed of each other’s work. If you’d like greater information about CPA Evolution, you could visit the Evolution of CPA site.
About Simandhar education
Simandhar is the official partner of Becker and AICPA, Simandhar offices in Bangalore, Hyderabad, Delhi, Ahmedabad Gurgaon, Kerala,Cochin (Kochi), Trivandrum, Kottayam, Kozhikode, Malappuram, Chennai and Mumbai.