Countdown to Launch –
The Computerized
Uniform CPA
Examination
A Joint Project of the
AICPA
National Association of State Boards of
Accountancy (NASBA) and
Prometric, Inc.
Ken L. Bishop
Member, AICPA Board of Examiners
Chair, NASBA CBT Admin. Task Force
Months to Launch
Entry-Level
Practice
Today
Yesterday
Technological Skills
Professional Knowledge
Communications Skills
Research Skills
Analysis & Organization
What These Changes Tell Us
About The Uniform CPA
Examination
• We must test the current knowledge
and skills required of entry-level CPAs
• We must ensure the examination keeps
pace with the changes in practice
• We must ensure protection of the
public interest is never interrupted
• Paper and pencil will soon be unable to
meet the challenge
Why Computerize the
Uniform CPA
Examination?
• The ability to test the new mix of
skills identified by the recent
practice analysis
• The ability to offer the examination at
more frequent intervals
• The ability to offer the examination at
more locations
• Increased security
• Administrative efficiencies
Starting the Process
National Candidate Database
Three Options for Scheduling
• Visit www.prometric.com/cpa
• Call 1-800-580-9648
• Call Local Prometric Test Center
Scheduling Test
Appointment
Open
April – May
July – August
October – November
January – February
Closed
June
September
December
March
Candidate Experience
Check In
Candidates are asked to arrive at the
Prometric Test Center 30 minutes ahead of
their scheduled exam.
Taking the Exam
Upon completion of check-in,
the candidate:
• is seated at a designated workstation
• begins the exam after proctor
launches the session
• is monitored by a Test Center
Administrator
• is video taped
Candidate Experience
Candidate Experience
At Completion
Upon completion of the examination, the
candidate:
•
•
•
•
signs-out
collects his/her belongings
turns in scratch paper
is given a Post Exam Information
sheet
Exam response data is pushed directly to the AICPA
The Examination
• Four exam sections:
– Auditing & Attestation (4.5 hours)
– Financial Accounting & Reporting (4
hours)
– Regulation (3 hours)
– Business Environment & Concepts (2.5
hours)
• 14 hour total length
Auditing & Attestation
• Auditing Procedures
• Generally Accepted Auditing
Standards
• Other Standards Related to
Attest Engagements
• Skills Needed to Apply That
Knowledge
Financial Accounting &
Reporting
• Generally Accepted
Accounting Principles for:
– business enterprises
– not-for-profit organizations
– government entities
• Skills Needed to Apply That
Knowledge
Regulation
• Federal Taxation
• Ethics
• Professional and Legal
Responsibilities
• Business Law
• Skills Needed to Apply That
Knowledge.
Business Environment &
Concepts
• Business Structures
• Economic Concepts
• Financial Management
• Information Technology
• Planning and
Measurement
Exam Content Differences
Paper-Pencil Based
•
Auditing 100%
Computer Based
• Audit & Attest 100%
•
Financial Accounting
& Reporting
–
Business
Enterprises 100%
• Financial Accounting &
Reporting
– Business Enterprises
80%
– Governmental 10%
– Not-For-Profits 10%
•
Accounting &
Reporting
–
Taxation 60%
–
Gov/NPO 30%
–
Managerial Acct
10%
• Regulation
– Taxation 60%
– Law & Professional
Responsibilities 40%
•
LPR
–
Business
Structures 20%
–
Other 80%
• Business Environment
– Business Structures
20%
– Managerial
Accounting 10%
– New Areas 70%
Structure of the Examination
 No minimum score required for failed sections
PBT candidates will have an equal number of
testing opportunities (or time period) to pass
any remaining section(s)
 If a PBT candidate does not pass the remaining
section(s) during the transition period, credits
expire
 Candidate can establish credit for CBT sections
passed even if PBT conditioning is lost
Examination Format
• Multiple choice questions
• Case-based simulations
– test integrated knowledge
– more closely replicate real world
– assess research, written
communication and other skills
analytical skills
Simulations
• Definition:
Assessment of knowledge
and skills in a context
approximating that found on
the job through the use of
realistic scenarios and tasks,
and access to normally
available and familiar
resources.
Simulations Interface
• Tab–style screens
• Consistent across
simulations and tests
• Mouse-driven response
• On-line resources
available
• Split-screen capabilities
• Review capabilities within
a simulation
Online Literature
• Full text, summaries, & status of all
FASB Statements of Financial
Accounting Standards issued since
1973 (original pronouncements)
• Free download
• Go to www.fasb.org
• Requires Adobe Acrobat Reader
Version 5.0 or higher
Online Accounting & Auditing
Literature
• The AICPA RESOURCE Auditing &
Accounting library:
– AICPA Professional Standards
– AICPA Technical Practice Aids
– AICPA Audit and Accounting Guides
– Audit Risk Alerts
– Accounting Trends and Techniques
AICPA RESOURCES Cost
• $70.00 for AICPA Student
Affiliate/Recent Graduate members
– $30.00 for member dues
– $40.00 for online RESOURCE
• $75.00 NASBA Special Rate
• FREE to AICPA Educator members
• Nonmember educators can get free
subscription by sending in letterhead
confirmation
Tax Research Information
• Because of the number of tax
research vehicles, the exam research
engine will be generic.
• Look at RIA search engine at
RIAhome.com or CCH’s at CCH.com.
• Practice test in January, 04 will have
good examples.
Score Reporting
• State Boards of Accountancy
distribute grades
• Initially, advisory grades reported at
the end of each window
• Frequency of release to State Boards
of Accountancy should increase
within a year
Granting of Credit
• Credit for passed section(s) retained
for 18 months
• No minimum score requirement for
failed sections
www.cpa-exam.org
Next Steps
Pilot in Northeast
November 18
Candidates can request
applications
Soon
Registration begins
January 04
Testing begins
April 5, 2004
Questions