The CPA Exam is undergoing a significant transformation in 2024, moving to a Core-Plus-Discipline model. This new format will require candidates to pass three core sections and one discipline section in order to earn the CPA designation.
The CPA Exam transition policy will have a significant impact on the accounting journey of aspiring CPAs. In this blog post, we will discuss the specific ways in which the transition will impact your accounting journey, as well as provide tips for navigating the transition successfully.
Impact of the CPA Exam Transition on Your Accounting Journey:
More flexible exam format: The new exam format is more flexible than the current exam format. Candidates will be able to take the exam on their own schedule and in their own order. This can be beneficial for candidates who are working full-time or have other commitments.
More relevant content: The new exam content is more aligned with the current business landscape and the skills and knowledge that CPAs need to succeed. This includes a greater focus on data analytics, information systems, and emerging technologies.
More fair and transparent scoring criteria: The new exam scoring criteria are designed to be more fair and transparent. This means that candidates will have a better understanding of how their performance is being evaluated and what they need to do to improve.
Impacts of CPA Exam Transition at Different Stages- A Quick Guide:
If you have not yet started studying for the exam: You will need to decide whether to take the current exam format or the new exam format. The current exam format will be available through December 31, 2023, so you will have time to complete it if you start studying now. However, the new exam format will be more aligned with the current business landscape and the skills and knowledge that CPAs need to succeed, so it may be a better choice for you if you have the time to study for it.
If you are currently studying for the exam: You will need to decide whether to continue studying for the current exam format or switch to the new exam format. If you are close to completing the current exam format, you may want to stick with it. However, if you have a lot of time left to study, you may want to switch to the new exam format.
If you have already passed some sections of the exam: If you have passed one or more exam sections in 2022 or 2023 (but not all 4 sections), the exam transition policy allows you to continue the CPA Exam journey from where you are.
The transition policy is quite simple:
- Candidates who have credit for AUD, FAR, or REG on the current CPA Exam will not need to take the corresponding new core section of AUD, FAR, or REG on the 2024 CPA Exam
- Candidates who have credit for BEC on the current CPA Exam will not need to take any of the three discipline sections.
The following chart lays out the transition policy for each Exam section:
Exploring the Extended CPA Exam Credit Timeline for 2024:
In terms of the timeline, passing any CPA exam section from July 2022 to December 2023 extends the credit for that section until June 30, 2025. Instead of the standard 18-month period to complete the remaining sections, your timeline resets, granting 18 months from January 1, 2024. For instance, if you passed your first section on July 20, 2022, the 18-month credit expiring on January 20, 2024, extends automatically to June 30, 2025. This extension doesn’t apply if your first section was passed before June 30, 2022 (e.g., passing on June 20, 2022, means the credit expires on December 20, 2023, with no extension). It’s crucial to note that the proposed rule amendment in the Uniform Accountancy Act Rules, extending credit expiry from 18 to 30 months, is pending ratification by individual state boards.
Tips for Navigating the CPA Exam Transition Successfully:
- Take the help of a CPA Training Institute: A CPA Training Institute helps you assess your individual situation and make the best decision for you. With 100+ leading global and industry experts as CPA faculty, we at Miles proudly claim a CPA pass rate of more than 82% (first attempt).
- Review the AICPA’s CPA Exam Transition Guide: This guide provides detailed information about the new exam format, content, and scoring criteria.
- Create a study plan: Once you have decided which exam format you are going to take, create a study plan that will help you stay on track.
- Use a variety of study resources: There are a number of study resources available, including textbooks, online courses, and review courses. Choose the resources that work best for you and your learning style. Miles Education, through its LMS, provides the best and latest CPA syllabus to its candidate.
- Take practice exams. Practice exams can help you identify your strengths and weaknesses, and prepare you for the real exam.