The Uniform CPA Examination (CPA Exam) is changing significantly in January 2024, introducing a new Core + Discipline model. The CPA subjects in 2024 have also been updated, consisting of four sections. This shift reflects an important evolution in the exam’s format, aiming to better equip candidates for the dynamic nature of the accounting field.
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
- Business Environment and Concepts (BEC)
Candidates have four hours to complete each section for this cpa subject, totaling 16 hours for the entire exam. The order in which sections are taken can be chosen by candidates. Passing all four sections is required within 18 months, and the beginning of this timeframe varies by jurisdiction.
Recent Changes: BEC Replacement
Notably, BEC is being replaced by three disciplines:
- Business Analytics and Reporting (BAR)
- Information Systems and Controls (ISC)
- Tax Compliance and Planning (TCP)
The Core sections will test fundamental accounting, auditing, and tax knowledge, while the Discipline sections will assess specialized skills in the chosen area.
Candidates can choose one option from these three, tailoring their specialization to core accounting, auditing, or taxation.
These changes are designed to align the CPA Exam with the evolving demands of the accounting profession, which is becoming increasingly complex and technology-driven. The Core + Discipline model will better prepare candidates for real-world practice by providing them with a strong foundation in core accounting concepts and the opportunity to specialize in an area of their interest.
Embarking on your CPA journey in 2024?
Embarking on your CPA journey in 2024 and feeling uncertain about where to start? Miles has a mantra tailored just for you – ‘FAR first.’ Dive into the redesigned landscape of the CPA exams, where FAR stands front and center as the pivotal starting point.
The changes in the FAR section aim to streamline the structure of the CPA exam, making it more comprehensible and accessible to candidates. The intention behind these modifications is to enhance the overall testing experience and align the exam content with the evolving landscape of accounting and finance.
Pre-2024 FAR:
The FAR section of the CPA Exam prior to 2024 was known for its breadth and depth, encompassing a wide range of accounting topics and requiring a deep understanding of complex accounting principles. This often made it the most challenging section of the exam for many candidates.
Post-2024 FAR:
The FAR section under the new CPA Exam Core + Discipline model has been streamlined and simplified, focusing on the core concepts and principles that are essential for all accountants. This makes it more accessible and less daunting for candidates, allowing them to focus on the fundamental aspects of financial accounting and reporting.
Key Simplifications:
Narrower Scope: The FAR section now covers a narrower range of topics, eliminating less relevant or less frequently tested areas.
Focus on Core Concepts: The emphasis is on understanding the core concepts and principles of financial accounting, rather than memorizing intricate details and rules.
Application-Based Questions: The exam format has shifted towards more application-based questions, requiring candidates to apply their understanding of accounting concepts to real-world scenarios.
Strategic Order Matters: FAR before AUD or REG
Let us understand why it is strategically advantageous to take the FAR (Financial Accounting and Reporting) section of the CPA Exam before the AUD (Auditing and Attestation) or REG (Taxation) sections:
- Take FAR first to build a strong foundation:
- FAR provides a comprehensive understanding of financial reporting principles, crucial for auditing and tax preparation.
- Grasping FAR concepts early on enhances performance in AUD and REG, as candidates can apply their knowledge effectively.
- Starting with FAR eliminates the need to constantly refer back to accounting concepts later in the exam process.
Miles introduces monthly FAR batches with intensive face-to-face classes. Passing FAR isn’t just 25% statistically; it’s 80% psychologically. Confidence gained here makes acing the other 3 sections a piece of cake. Attend Varun’s masterclass for an enhanced FAR experience—it only gets better!
On the Expressway: Any Order After FAR
After successfully completing FAR, you have the flexibility to choose the order of AUD, REG, and BAR. If you seek our suggestion, we recommend pursuing BAR as the next exam after FAR. However, if you possess audit experience, opting for AUD is a viable choice. Similarly, if you have US tax experience, REG becomes a suitable option.
Discipline Choice: Why BAR Takes the Lead
When selecting a discipline, BAR stands out as the optimal choice for several reasons. It is a practical subject, and it boasts the expected highest pass rates for Indian candidates. On the flip side, ISC is not recommended unless you possess extensive practical experience with IT or Accounting Information Systems. Similarly, TCP is advised against unless you have in-depth practical knowledge of US Federal Income Tax. From a career perspective, the specialization you choose holds no significant weight. Regardless of the discipline you opt for in the CPA exam, whether BAR, ISC, or TCP, rest assured that Miles resources are available for all three disciplines. This means you can access comprehensive study materials and guidance irrespective of your chosen specialization, ensuring a well-rounded preparation for success in the CPA exam.
Planning for Existing Candidates: Tailored Recommendations
Guidance for existing candidates on planning their CPA journey is essential. For those who haven’t cleared any exams by December 2023, the strategic focus should be on FAR – a key principle encapsulated in the phrase, “FAR first!” Even if you’ve initiated BEC in 2023, it’s advisable to shift your attention to FAR now. Upon successfully passing FAR, the next step is BAR, which incorporates the BEC portions. However, it’s crucial not to attempt BAR before FAR, as BAR includes advanced FAR sections. On the other hand, for candidates who have passed one or more exams in 2023, the approach towards remaining cpa subjects is flexible. If FAR remains unconquered, prioritize it. Conversely, if FAR is already in the rearview, any order is acceptable for tackling the remaining exam sections. This tailored planning strategy aims to optimize candidates’ efforts and pave the way for a successful CPA journey.
Conclusions
Equip yourself with the strategic wisdom of Miles for a successful journey through the 2024 CPA exams. Remember, it all starts with “FAR first.” Your path to CPA success is paved with insights, strategic choices, and the confidence to face each section head-on. Best of luck on your journey!
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