CPA Exam Changes
Each year, the AICPA approves various changes and updates to the CPA Exam, altering pre-existing sections, adding new topics and
occasionally removing older ones. Read through the timeline below to learn about CPA Exam changes through the years. Subscribe to
our newsletter to ensure you stay on top of all of the latest changes to the CPA Exam.
2017 CPA Exam Changes: The Next CPA Exam
The next version of the CPA Exam has been announced and will launch in 2017.
The AICPA began research and development for the next version of the Exam in 2013, aiming to ensure that the content and structure
were still relevant—and most importantly— reliable measures of the knowledge and skills required to protect public interest as a CPA.
The comprehensive research, known as the Practice Analysis, was initiated by market demand for a “higher-order” skillset that CPA
Exam candidates need to demonstrate in order to execute CPA job responsibilities effectively. As a result of a multi-year effort
consisting of collaboration with the profession’s key stakeholders - including Roger CPA Review - the AICPA Board of Examiners is
adjusting the content, skill level, question type, question weight and structure, and time allotment of the CPA Exam.
CPA EXAM CONTENT CHANGES
While the subject matter of the 2017 CPA Exam will remain the same, the primary change to the exam will be the increase in the
degree - or skill level - at which that subject matter is tested.
The purpose of the upcoming CPA Exam content changes is to ensure that the CPA Exam content tests the skills that newly licensed
CPAs must know to continue to protect the public interest, including:
•
•
•
•
•
Critical thinking, problem solving, analytical ability, and professional skepticism
Effective communication skills
Well-developed research skills
A strong understanding of the business environment and processes
Ethics and professional responsibilities
INCREASE FOCUS ON HIGHER ORDER SKILLS
To ensure they test higher order skills, the AICPA has adopted a skill level framework based on the modified Bloom’s Taxonomy of
Educational Objectives.
The current CPA Exam contains content primarily designed with the following learning framework: Remembering, Understanding,
and Application. With the 2017 CPA Exam, more emphasis will be on assessing higher-order skillsets: Application, Analysis, and
Evaluation.
We will see the assessment of higher-order skillsets within the context of questions.
•
•
•
•
Remembering & Understanding: Identify, Classify, Recall, Explain, Categorize, Clarify, Compare, Define
Application: Calculate, Implement, Test, Represent, Prepare, Use, Execute, Carry Out
Analysis: Reconcile, Deconstruct, Validate, Deduce, Imply, Integrate, Distinguish, Organize
Evaluation: Justify, Critique, Conclude, Judge, Detect, Verify, Recommend, Assess
INCREASE SKILL LEVEL TESTED ON EXAM SECTIONS
The current CPA Exam equally assesses Remembering and Understanding and Application level skills in all four exam sections. In the
2017 CPA Exam, there will be a distinct shift to test higher order skills - Analysis and Evaluation – as demonstrated in the pie charts
below.
AUD is the only section in the 2017 CPA Exam in which the Evaluation skill is assessed.
AUD
BEC
FAR
REG
CSO VS BLUEPRINT
CSOs – or Content Specification Outlines – are released by the AICPA each year to identify the extent of the technical content to be
tested on each of the four sections of the CPA Exam.
With the 2017 CPA Exam changes, the AICPA will replace CSOs with Blueprints. According to the AICPA, the purpose of the
blueprint is to:
•
•
•
Provide assurance that the Exam is properly designed to test such knowledge, skills and tasks.
Assist candidates in preparing for the Exam by delineating the knowledge and skills that may be tested.
Apprise educators about the knowledge and skills candidates will need to function as newly licensed CPAs.
•
Guide the development of Exam questions
SKILL LEVELS ASSESSED BY QUESTION TYPE
The chart below shows the increased caliber of skill levels assessed by question-type for the 2017 CPA Exam.
Current CPA Exam
Multiple Choice Questions
(MCQ)
Remembering & Understanding
Task Based Simulations
(TBS)
Application
Written Communication
Ability to write on topic, with correct grammar, using proper
compositional structure
2017 CPA Exam
Remembering & Understanding
Application
Application
Analysis
Evaluation
No change
CPA EXAM STRUCTURE CHANGES
INCREASE TASK-BASED SIMULATIONS
The 2017 CPA Exam will include an increase in the amount of Task Based Simulations in all sections, including the addition of TBS
to the BEC section. Outlined in the table below, it is predicted that BEC will include four to five simulations. AUD, FAR and REG
will each include eight to nine TBSs.
On the current exam, candidates typically allot 10 to 20 minutes on each TBS. In the 2017 CPA Exam, candidates will spend 15 to 30
minutes to complete TBSs designed to assess higher order skills, Analysis and Evaluation.
The 2017 CPA Exam will also include a new genre of TBS called Document Review Simulation, which tests Application, Analysis,
and Evaluation skills. For these questions, students will need to reference phone conversation transcripts, legal letters, authoritative
literature, and other written documents to discern what’s important and what’s not important for solving the problem.
INCREASE TIME ALLOCATION & ADJUST SCORING WEIGHTS:
The chart below shows the changes in question type coming to the 2017 CPA Exam.
AUD
BEC
FAR
REG
60% MCQ 60% MCQ
60% MCQ 85% MCQ
Current
40% TBS 15% WC
40% TBS 40% TBS
50% MCQ 50% MCQ
50% MCQ 50% MCQ
2017
50% TBS 50% TBS/WC 50% TBS 50% TBS
SCORING
Multiple Choice Questions (MCQs) currently comprise 60% of the scoring weight in AUD, FAR and REG, with the balance of
scoring weight attributed to TBSs. MCQs currently comprise 85% of the scoring weight in BEC, with the remaining 15% of the
scoring weight attributed to Written Communication. Because of the increase in TBSs to assess higher order skills, we will see the
scoring weight of multiple choice questions and TBSs will be approximately 50 percent each in AUD, FAR and REG. BEC likely will
have a score weighting of 50% MCQs, 15% Written Communication and 35% Task Based Simulations.
TIME ALLOCATION CHANGES
The amount of time test takers receive for each section of the CPA Exam will change for the first time since 2011. Business
Environments and Concepts (BEC) and Regulation (REG) sections of the CPA Exam will increase by one hour to account for
increased Task Based Simulations (TBS) and the higher level skills being assessed.
AUD BEC FAR REG
Current 4
3
4
3
2017 4
4
4
4
Additionally, As a result of the 2017 exam’s increased focus on testing higher order skills, students will receive a 10-15 minute break
during each exam section. The breaks will not count against candidates’ testing time, as compared to the current exam, in which
breaks do count against testing time.
EXAM COST
CPA Candidates will see a direct cost increase of $20 for the BEC and REG portions of the CPA Exam, as a result in the increased
testing time from three to four hours.
MICROSOFT EXCEL
In 2018, the current generic spreadsheets that candidates use to complete calculations will be replaced by Excel on the CPA Exam.
The inclusion of Excel is due to profession’s input and the benefit to exam candidates because of the prevalence of excel use among
newly licensed CPAs. This will also increase Exam Costs.
HOW HAVE THE CHANGES BEEN DETERMINED?
The updated version of the CPA Exam is the result of a comprehensive practice analysis, based on extensive research, with the end
goal of determining the knowledge and skills required of newly licensed CPAs. The practice analysis took place in 2013 – 2015 and
was multifaceted to ensure the CPA Exam remains relevant to the profession. The research conducted through the Practice Analysis
has informed the next version of the CPA Exam.
TIMELINE FOR THE FINAL VERSION OF THE NEXT CPA EXAM
•
•
•
•
•
•
January 2014 – September 1, 2015 - Members of the following groups were interviewed, surveyed, invited to focus groups,
and to comment. Information from this group was combined with the practice analysis.
o Newly licensed CPAs
o Direct and indirect supervisors of newly licensed CPAs
o CPAs in business and industry
o Academics
o Standard setters
o Regulators
o Training directors
o Boards of accountancy executive directors and members
September 1, 2015 - Exposure Draft
o The AICPA plans to distribute an exposure draft: a final proposal for the next version of the Exam for review by state
boards of accountancy, standards setters, regulators, public accounting firms, academics, and state CPA societies.
o The exposure draft is the final proposal for the next version of the CPA examination.
o The exposure draft will be made available to the entire profession, with special distribution to the boards of
accountancy, standard setters, regulators, public accounting firms, academics, and state CPA societies.
o The exposure draft contains blueprints, structure, design, and administration of the next CPA Exam.
o Comments from this final round of external review will be used to finish the design of the next version of the CPA
examination before its announcement in 2016.
September 1 – November 30, 2015 - Exposure Draft – Comments Period.
Q2 2016 – Public Announcement - Next version of the CPA Exam will be announced.
Q2 2017 – New version of the CPA Exam launched.
2018 – AICPA Proprietary Test Drive Launched (A new testing interface utilizing Excel, audio, and video to be launched in
2018).
2015 CPA Exam Changes
Most of the 2015 CPA Exam changes are expected to appear on the Financial Accounting and Reporting (FAR) Exam. Auditing and
Attestation (AUD) will have some changes, however, none that will have a large impact on the exam during the four 2015 testing
windows. Regulation (REG) and Business Environment and Concepts (BEC) content will go through very minor changes with all of
the heavily-tested information remaining the same.
Financial Accounting & Reporting (FAR)
•
•
•
The AICPA has indicated that understanding the differences between the following Special Purpose Frameworks will now be
tested.
o General Accepted Accounting Principles (GAAP)
o International Financial Reporting Standards (IFRS)
o Tax basis of accounting
o Cash basis of accounting
The FASB modified certain rules to address the needs of smaller companies. There are three specific areas that will be
pertinent during the 2015 testing windows. The new “Small GAAP” approaches to the following topics have been developed
to simplify the procedure and reduce the cost of accounting for a smaller operation.
o A new approach has been developed for accounting for interest swaps. As a little reminder, interest swaps are
derivatives that companies use to “swap” a loan that bears interest at a variable rate into a fixed rate loan.
o A new, simpler, approach has been developed for accounting for goodwill. The new approach reduces the cost of
testing for impairment and eventually eliminates goodwill from the small company’s financial statements.
o A new approach has been developed for lease accounting for “Small GAAP” companies. While publicly held
companies are required to perform an extensive analysis to determine if the lessor should be included in the financial
statements of the lessee as a variable interest entity (VIE), nonpublic companies are now allowed to avoid analyzing a
relationship with the lessor that is related and simply account for the lease by applying lease accounting.
The AICPA is working on a major update to revenue recognition standards that will have a large impact on both the
accounting community and the CPA Exam. New International Financial Reporting Standards (IFRS) will come into effect as
part of the 2015 CPA exam. However, General Accepted Accounting Principles (GAAP) will be fully updated by
approximately 2017. Though the IFRS change is significant, it will mean much more and is likely to be more heavily tested
once GAAP is updated. For the 2015 exam, it is important to be familiar with the updated IFRS rules; however, this update
will not be as major as the other two FAR updates described above.
Auditing and Attestation (AUD)
•
•
•
A minor update to auditor responsibilities will become a part of the 2015 exam. According to the new standards, the auditor
now has additional responsibilities in relation to required supplementary information that accompanies a set of audited
financial statements.
A minor update to external auditor’s ability to use client’s internal auditor will become a part of the 2015 exam. This AICPA
update further signifies that if analysis and decision information is obtained from the internal auditor, the ultimate evaluation
of all information, at every step, is the responsibility of the external auditor.
A larger update for the AUD exam relates to the less stringent compilation and review engagements that may be requested if
an audit is not required. Minor changes to how compilation and review services are performed and the associated reports are a
part of this update. Perhaps the most significant change is the introduction of the accountant’s ability to also assist their clients
in preparation of financial statements. Whereas before an accountant could not submit financial statements without providing
at least a compilation report, a new set of standards allows the accountant to assist with preparation of financial statements as a
nonattest service.
Regulation (REG)
•
The 2015 REG update will not represent any changes to the rules and concepts tested on the exam. The update is expected to
consist of a few revisions to numerical thresholds and percentages associated with the passing of the Affordable Care Act and
elimination of expiring tax law provisions.
Business Environment and Concepts (BEC)
•
The only potentially significant change to BEC results from provisions of the Dodd-Frank Wall Street Reform and Consumer
Protection Act that have gone into effect and will be tested during the 2015 testing windows. Sections of Dodd-Frank are
already tested as part of the Regulation exam. However, the sections tested on the BEC exam are expected to concentrate on
the topic of corporate governance, thus testing a more specific set of laws.
2014 CPA Exam Changes
Auditing and Attestation:
As of January 1, 2014, the Clarified U.S Auditing Standards (AU-C) replaced the AU standards (pre-clarified standards) on the CPA
Exam. The Clarity Project was created in an effort to streamline auditing standards content, and to merge U.S. standards with
international standards. These changes to standards and terminology affect the following areas within Audit Reports:
•
•
•
•
•
Unmodified Report (formerly Unqualified Report) for non-public companies/non-issuers, and Report for public companies
(issuers), are now similar to the old Audit Report (3 paragraphs).
Extra paragraphs are now called Emphasis-of-Matter and Other Matter paragraphs (previously called explanatory paragraphs).
Each portion of the report will require its own Subheading.
Division of Responsibility is now called Group Financial Statements.
Qualified opinions are now called Modified opinions (Qualified except for, Disclaimer, and Adverse).
Other AUD Updates:
•
•
•
Slight revision to Governmental Auditing Standards (Yellow Book)
Updates on US standards vs. International AUD standards
PCAOB Auditing Standards (AS-16) regarding communications with Audit Committees became effective.
Regulation:
•
•
•
•
American Taxpayer Relief Act of 2012 was fully integrated into the REG section.
The Surtax on Unearned Income that resulted from the institution of the Patient Protection and Affordable Care Act (PPACA)
was added.
Adjustments were made to the Treasury Circular 230.
Adjustments were made to the Federal Security Regulations as a result of the JOBS Act and Dodd Frank Rules enactments.
BEC
•
•
FAR
Expanded information on the COSO's Internal Control Integrated Framework, which codifies 17 Principles of Internal Control,
has been included.
Dodd Frank Rule adjustments have been incorporated.
•
•
Adjustments made to Governmental Accounting Chapter have been added due to updated GASB Statements.
Terminology changes were made in the Equity section, changing Net Assets to Net Position.
2013 CPA Exam Changes:
AUD:
The Clarity Project (Begins Q3 2013): The Clarity Project was created in an effort to streamline auditing standards content, and to
converge U.S. standard with international standards. These changes to standards and terminology will predominantly affect the
following areas within Audit Reports:
•
•
•
•
•
•
Unmodified report (old name was unqualified report) for Non-public companies/non-issuers
Report for Public companies (issuers) is similar to old Audit report – (3 paragraphs)
Extra paragraphs are now called Emphasis-of-Matter and Other Matter paragraphs (previously called explanatory paragraphs)
Each portion of the report will require its own Subheading
Division of Responsibility now called Group Financial Statements
Qualified opinions now called Modified opinions (Qualified except for, Disclaimer and Adverse)
Other AUD Updates:
•
•
•
•
•
Changes to the Accounting and Auditing Pronouncements to take effect on July 1, 2013
Ethics and Independence
A Firm's System of Quality Control
Updates on US standards vs. International AUD standards
Big changes due to the ASB Clarity Project take effect on January 1, 2013 in the accounting industry; however, these changes
will not be reflected on the CPA Exam until Q3 2013
REG
•
•
The 2013 REG Exam includes the JOBS act as it relates to the SEC regulations Updates due to the Bush Tax cuts are still
TBD, so Roger CPA Review will be sure to provide updates regarding this change as they develop
American Taxpayer Relief Act of 2012
BEC
•
Expanded information on the COSO's Internal Control integrated framework Dodd Frank Rule adjustments have also been
incorporated
FAR
•
GASB 65, 66, 67, 68 have made many adjustments to the Government section
2011 CPA Exam Changes
FAR, AUD, REG and BEC - Allotted Test Time
•
Allotted test times have changed for all four testing sections of the CPA Exam: FAR and REG remain 3 hours, but AUD loses
30 minutes for an allotted test time of 4 hours. BEC gains 30 minutes for an allotted test time of 3 hours.
Exam Scoring Weights
•
Score weighting has changed for the AUD, REG, and FAR sections. Multiple choice questions move from 70% to 60%,
simulation questions from 20% to 40%, and all written communication questions starting at 10% weight are moved completely
into BEC with 15% weight. Multiple choice questions in BEC changed from 100% weight to 85% weight.