The accounting & finance landscape is changing due to demographic shifts, talent needs, and the declining rate of accountants. Over 1200 accounting boards and professionals across the globe to overcome this challenge came up with a solution of introducing a CPA Evolution 2024 that would lead to flexibility and change in the CPA exam structure, CPA licensure model, salary, and work-life balance.
The Transiting BEC
The impact of CPA Evolution is more seen in the BEC section of the US CPA course. The BEC section will be replaced by three core disciplines: Business Analysis and Reporting BAR, Information Systems & Controls ISC, and Tax Compliance and Planning (TCP).
A CPA candidate can choose one of the three disciplines while taking the exams in 2024 instead of BEC. An underlying goal here is to make CPAs specialists in a particular field.
The BEC CPA syllabus covers concepts ranging from cost and managerial accounting, capital structure, and variance analysis to internal controls and economics. Since the pass rate for BEC stands at 60%, students and professionals must take cutting-edge CPA training to get into the nitty-gritty of the new core disciplines to crack the new discipline.
The exam will be of 5 sections with 4 test sections (3 Core + 1 Discipline). Some other reasons for the change in BEC content are-
- The skill gap was identified as critical and ratified by 1200 academic chairs globally.
- Fuel CPA aspirants to stay competitive in Industry 4.0 F&A landscape.
- Learn and apply competitive Technologies (AI, ML, and Data Analytics + Accounting) to tax, auditing, and financial planning processes.
- As the Big 4 announced 52,000 new roles of which 50,000 positions are technical.
- There is a 30% downfall in accounting graduates in Public Accounting firms and a 31% increase in non-accounting graduates in the accounting profession.
CPA Evolution 2024: A Transformative Shift in Accounting Licensure
In the ever-evolving landscape of accounting, change is inevitable. As businesses adapt to new technologies, regulations, and market dynamics, the accounting profession must follow suit.
In 2024, the Certified Public Accountant (CPA) licensure model is undergoing a significant transformation, recognizing the rapidly changing skills and competencies required by accountants today and in the future.
The three Core exam sections encompass a broad range of fundamental accounting topics:
- Financial Accounting and Reporting (FAR): This section delves into financial accounting principles, standards, and reporting. It equips candidates with a deep understanding of how to prepare, analyze, and interpret financial statements.
- Auditing and Attestation (AUD): AUD covers the art of auditing, providing candidates with the skills necessary to assess financial statements, internal controls, and compliance with auditing standards.
- Taxation and Regulation (REG): The REG section focuses on taxation, ethics, and regulations, ensuring that candidates are well-versed in tax law and compliance issues.
Additionally, candidates can choose one Discipline exam section to specialize in a particular area of accounting:
- Business Analysis and Reporting (BAR): BAR builds upon the FAR core and delves deeper into financial analysis, management accounting, and reporting. It prepares candidates to become strategic financial advisors capable of guiding organizations through complex financial decisions.
- Information Systems and Controls (ISC): ISC is a continuation of the AUD core but places a strong emphasis on technology. In a digital age, understanding information systems, data security, and controls is crucial for auditors.
- Tax Compliance and Planning (TCP): For those who choose this section, REG forms the basis, enabling candidates to specialize in tax compliance, planning, and strategy. Expertise in taxation is essential for helping clients optimize their financial positions.
The CPA Evolution 2024 is not just about passing an exam; it’s about preparing accountants for the challenges and opportunities of a dynamic profession.
The new licensure model acknowledges that the modern CPA must be adaptable, tech-savvy, and capable of offering strategic insights beyond traditional accounting functions.
What to expect from CPA Evolution 2024?
The CPA Evolution 2024 is set to bring in a uniform CPA examination across the globe. Secondly, it is posed to change the CPA syllabus to meet the futuristic needs of the accounting & finance industry.
It has placed advanced and critical competencies like risk assessment, IT and systems governance, and accounting analytics to bridge the talent gap and fill competitive roles at the Big 4 and top MNCs.
Miles Education is dedicated to helping you achieve your CPA certification in just 12 months, paving the way for lucrative career opportunities with top-tier organizations in India and the United States. Upon successful completion of our program, you can anticipate securing impressive salary packages of up to 8 lakhs.
As the Bureau of Labor Statistics predicts a robust 6% growth in the accounting field, this translates to a promising projection of 1,449,800 finance and accounting roles by 2030, underscoring the burgeoning demand for qualified professionals in the industry.