Know all about AUD before the CPA Evolution 2024

The year 2024 marks a significant shift for accounting and finance professionals pursuing the US CPA course, as the CPA Evolution 2024 has already begun. The evolution is proposed to bring a change in the US CPA syllabus along with some structural changes in the exam format. The next big question is, are you prepared for the change? If you are not, this might be a handy navigator to overcome that doubt. 

CPA Evolution 2024 AICPA and NASBA have rolled out a new CPA course structure to meet the futuristic business needs of the F&A industry.  Let’s delve into the details.

The 2024 CPA Exam: A Core-Plus-Discipline Model

The CPA exam has undergone a significant evolution in 2024, shifting to a core-plus-discipline model. Here’s a breakdown of the latest syllabus and exam structure:

Core Sections (Required for all candidates):

1. Auditing and Attestation (AUD): Remains largely unchanged, focusing on audit principles, procedures, and ethics.
2. Financial Accounting and Reporting (FAR): Updated with topics like basic economic concepts, business processes, and internal controls.
3. Taxation and Regulation (REG): Retains core tax concepts but moves some areas like gross income to the discipline sections.
   

Discipline Sections (Choose one):

1. Business Analysis & Reporting (BAR): Covers financial statement analysis, data visualization, and communication skills.
2. Information Systems and Controls (ISC): Focuses on IT systems, cybersecurity, and internal controls in the digital age.
3. Tax Compliance & Planning (TCP): Delves deeper into tax preparation, planning strategies, and compliance requirements.
   

Exam Structure:

• Four sections: Each section remains a 4-hour exam.
• Question types: Both multiple-choice questions (MCQs) and task-based simulations (TBS) are present in each section.
• Question weightage: 50% MCQs and 50% TBS for all sections except ISC (60% MCQs, 40% TBS).

Changes in the AUD Section of the US CPA Syllabus:

Let’s try and understand the AUD as the first three core sections. Nitty-gritty of AUD The Auditing and Attestation (AUD) section is one of the toughest sections in the US CPA syllabus. The AUD section is designed to validate your expertise in auditing, attestation, accounting reviews, and service engagements. The AUD exam comprises four main areas namely – Ethics & general principles, Risk, Evidence, and Reporting. Candidates with prior professional auditing experience will have a better understanding of AUD concepts and could crack the AUD exam much faster than the non-professionals.  

Strategic Emphasis on AUD in CPA Exam Preparation:

Most CPA candidates prefer to study FAR and AUD together as the concepts complement each other. Since the AUD exam extends for 4 hours covering 72 MCQs and 8 Task-based Simulations, you need to build sound retention, application, analysis & investigation, and evaluation skills. Since the AUD section involves more analysis and judgemental concepts and less computing skills, it is more advantageous for a CPA to take this exam first. Placing AUD next to FAR in the order can also provide you ample preparation space and less disruption while preparing for the next sections like FAR & REG.  

A Winning Study Plan to Pass the AUD Exam:

Cracking the AUD Exam Code As the average minimum study hours required for AUD is between 150-200 hours, create a game plan and strategic study schedule. You can use the VARK approach while choosing the best CPA review institute in India that offers many immersive and informative live online classes, mock tests, CPA literature, concept-based flashcards, host webinars, alumni talks, industry leader lectures, and batch starts to increase pass rates. 

Pro tip:

Working in a public accounting firm as well as under a specialized auditor will help you crack the simulations and MCQs can enhance your judgemental and analytical skills in cracking the MCQ and TBS sections. Never try to memorize concepts as the MCQs are tricky and are more analytical-based questions with close answer choices.  

CPA Certification- A Gateway to Abundant Opportunities in the Growing Accounting Sector:

The CPA evolution places a strong focus on mastering technical skills in auditing, tax, and accounting. In particular, the AUD section is designed to equip you with the skills to build innovative audit reporting strategies, perform attestation and review engagements, and make ethically sound judgments for both macro and bottom-line accounting issues. This is especially relevant for those aspiring to work in the Big 4 and other top accounting firms.

Becoming a CPA in this thriving accounting market can be rewarding, as it opens doors to a significant number of opportunities. According to the Bureau of Labor Statistics, the accounting job market is projected to experience a 6% growth, resulting in an estimated 1,449,800 accounting job openings by 2030.