CPA Evolution is Here!

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As skills and competencies change in the accounting profession, the CPA Evolution initiative — a joint effort between NASBA and the AICPA — aimed to transform the CPA licensure model alongside these changes. After reviewing feedback from stakeholders, NASBA and the AICPA decided to introduce new disciplines to the Uniform CPA Exam. Under the initiative, all testing for BEC officially ended in December 2023, and as of January 10, 2024, new disciplines have become available through the launch of a new Uniform CPA Examination, which marks the biggest advancement to the Exam since computerization.  

Replacing BEC are three new disciplines – Business Analysis and Reporting (BAR), Information Systems and Controls (ISC) and Tax Compliance and Planning (TCP).  

BAR will assess knowledge and skills related to analyzing financial statements and financial information (including the use of data); select technical accounting and reporting requirements applicable to for-profit business entities (e.g., stock compensation, business combinations, derivatives) and higher order skills related to revenue recognition and lease accounting, and state and local government accounting and reporting requirements. 
ISC will assess knowledge and skills related to IT audit and advisory services, including SOC engagements, data management, including data collection, storage, and usage throughout the data life cycle. 
TCP will assess knowledge and skills related to U.S. federal tax compliance for individuals and entities with a focus on nonroutine and higher complexity transactions, U.S. federal tax planning for individuals and entities, and personal financial planning.

To ensure candidates are aware of the changes to the Exam, NASBA and AICPA hosted a “Navigating the U.S. CPA Exam” webinar on January 30. The webinar, which attracted over 2,700 registrants, featured NASBA Director of Client Services Patricia Hartman and Joseph Maslot, Associate Director – Examinations – Public Accounting with the AICPA. The duo shared the latest developments regarding the Exam process, administration and scoring; upcoming changes for CPA Evolution; the Exam Blueprints and international candidate administration.