What to Expect from the Next Version CPA Exam Presented by: Joe Maslott, CPA, CGMA Senior Technical Manager – AICPA
Henrietta Eve, CPA Lead Manager –...
What to Expect from the Next Version CPA Exam Presented by: Joe Maslott, CPA, CGMA Senior Technical Manager – AICPA
Henrietta Eve, CPA Lead Manager – Product Development – AICPA
Patricia Hartman Director of Examination Services – NASBA
The Uniform CPA Examination
Overview ► AICPA and NASBA ► Why CPA? ► The Next Version Exam ► Exam Administration ► Experience ► Exam Resources
The Uniform CPA Examination
► The world’s largest membership association representing the accounting profession
► Over 412,000 members in 144 countries ► 125+ years serving the public interest ► Creates and scores the Uniform CPA Examination and offers specialty credentials for CPAs
The Uniform CPA Examination
► The world’s largest accounting regulatory organization ► Represents the interests of all 55 U.S. Boards of Accountancy (50 states and 5 territories) which license and regulate 665,000 CPAs. ► Mission is to enhance the effectiveness and advance the common interests of the Boards of Accountancy ► Accountancy Boards issue licenses to CPAs and regulate the practice of public accountancy in their jurisdiction
WHY CPA?
The Uniform CPA Examination
The CPA License Premier accounting license backed by a rigorous exam, strict licensing and a code of ethics Worldwide recognition as a leading license Expanded opportunity Job security Higher salary The Uniform CPA Examination
Stable and Steady In-demand certification* Public accounting hiring remains strong Candidates with experience in tax and audit are in particular demand Salaries are increasing
11% vs. 7%** Projected accounting job growth vs. average for all jobs
*Robert Half 2017 Accounting & Finance Salary Guide **2014 – 2024 U.S. Bureau of Labor Statistics The Uniform CPA Examination
POLL QUESTION SLIDE Which best describes you? A: I have taken one or more sections of the Exam
B: I’m an accounting student and plan to take the Exam C: I’m an accounting student but have not yet decided to take the Exam
D: I’m a business major considering accounting as a career
The Uniform CPA Examination
NEXT VERSION EXAM
The Uniform CPA Examination
Exam LaunchExam Launch
April
1
2017
The Uniform CPA Examination
HOW WILL THE EXAM CHANGE? The Uniform CPA Examination
Critical Thinking Analytical Ability Problem Solving Professional Skepticism Communication Skills
The Uniform CPAAmerican Examination Institute of CPAs®
The Uniform CPA Examination™
TodayExam Skill Allocation – Next 5 – 15% Evaluation
Increased assessment of higher order skills
15 – 25% Analysis
20 – 30% Analysis
25 – 35% Analysis
25 – 35% Analysis
30 – 40% 50% Application Application
50 – 60% 50% Application Application
50 – 60% 50% Application Application
35 – 45% 50% Application Application
30 50% – 40% Remembering Remembering and and Understanding Understanding
1550% – 25% Remembering and Understanding
1050% – 20% Remembering and Understanding
25 50% – 35% Remembering Remembering and and Understanding Understanding
Auditing and Attestation (AUD)
Business Environment and Concepts (BEC)
Financial Accounting and Reporting (FAR)
Regulation (REG)
The Uniform CPAAmerican Examination Institute of CPAs®
The Uniform CPA Examination™
12
CURRENT EXAM VS. THE NEXT EXAM The Uniform CPA Examination
Exam Section
Current Exam
Next Exam
Auditing and Attestation (AUD)
90 MCQs (60%) 7 TBSs (40%)
72 MCQs (50%) 9 TBSs (50%)
Business Environment and Concepts (BEC)
72 MCQs (85%) 3 Written Responses (15%)
62 MCQs (50%) 5 TBSs (35%) 3 Written Responses (15%)
Financial Accounting and Reporting (FAR)
90 MCQs (60%) 7 TBSs (40%)
66 MCQs (50%) 9 TBSs (50%)
Regulation (REG)
72 MCQs (60%) 6 TBSs (40%)
76 MCQs (50%) 9 TBSs (50%)
MCQ = Multiple-Choice Question = Task-Based Simulation TheTBS Uniform CPAAmerican Examination Institute of CPAs®
The Uniform CPA Examination™
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Next Exam Structure AUD
Testlet 1 36 MCQs
Testlet 2 36 MCQs
Testlet 3 2 TBSs
BEC
Testlet 1 31 MCQs
Testlet 2 31 MCQs
Testlet 3 2 TBSs
FAR
Testlet 1 33 MCQs
Testlet 2 33 MCQs
Testlet 3 2 TBSs
REG
Testlet 1 38 MCQs
Testlet 2 38 MCQs
Testlet 3 2 TBSs
S T A N D A R D I Z E D B R E A K
OPTIONAL BREAKS The Uniform CPA Examination
Testlet 4 4 TBSs
Testlet 5 3 TBSs
Testlet 4 3 TBSs
Testlet 5 3 Written Communication
Testlet 4 4 TBSs
Testlet 5 3 TBSs
Testlet 4 4 TBSs
Testlet 5 3 TBSs
Questions?
The Uniform CPA Examination
EXAM BLUEPRINT
The Uniform CPA Examination
The Uniform CPA Examination
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The Uniform CPA Examination
POLL For those who plan to take the next version Exam, what is your biggest concern? A Not enough study time B Not enough preparatory resources C Material will be too difficult D Other
The Uniform CPA Examination
Questions?
The Uniform CPA Examination
EXAM ADMINISTRATION
The Uniform CPA Examination
Standard Setting & Score Release 2017 Q2 (4/1 – 5/31) Standard Setting: 10 Weeks* Score Release: August 14
2017 Q3 (7/1 – 9/10) Standard Setting: 10 Days Score Release: September 20
2017 Q4 (10/1 – 12/10) Standard Setting: 10 Days Score Release: December 20 *passing score set during this time The Uniform CPA Examination
Testing Time / Breaks
1 hour added to BEC and REG 4 sections – 4 hours each 15-minute standardized break Does not count against time Optional, timed breaks still allowed
The Uniform CPA Examination
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Testing Windows
As of Q2 2016, 40 additional testing days Testing offered quarterly: • • • •
January 1 – March 10 April 1 – May 31* July 1 – September 10 October 1 – December 10
*testing will close on May 31 during the Exam launch window in 2017 The Uniform CPA Examination
Transition Candidates may pass a combination of the current version of the Exam and the next version of the Exam to qualify for licensure
The Uniform CPA Examination
Exam Fees
Cost increase in 2016 Result of extra hour for BEC and REG
Consult NASBA and local state board of accountancy for information
The Uniform CPA Examination
Questions?
The Uniform CPA Examination
HOW TO BECOME A LICENSED U.S. CPA The Uniform CPA Examination
Newly Licensed - Eligibility
Education Experience Examination
*Ethics
*Certain states require a separate ethics assessment in addition to what is tested on the Exam. The Uniform CPA Examination
Education Requirements Varies among jurisdictions 150 semester hours and B.A. or graduate degree Concentration in accounting 30 semester hours in accounting
24 semester hours in business administration subjects
Minimum 15 semester hours in accounting must be upper division or graduate level The Uniform CPA Examination
Experience Requirement Varies among jurisdictions Minimum of 1 year (2,000 hours)
Verified by a licensed CPA Should include accounting, attest, auditing or tax
The Uniform CPA Examination
Questions?
The Uniform CPA Examination
THE EXAMINATION PROCESS The Uniform CPA Examination
The Examination Process ► Determine Eligibility ● Check with your selected jurisdiction on requirements to sit for the Exam (state requirements vary between 120 or 150 hours of education) ● Meet eligibility requirements for selected jurisdiction
► Submit Application ● Complete application and submit required documentation ● Application is evaluated to verify eligibility to sit for Exam ● Candidates receive Notice to Schedule (NTS) ► Schedule Exam ● Schedule Exam with Prometric after receiving NTS ● Any U.S. site can be used regardless of jurisdiction ● International locations require an additional fee ● NTS is valid for 6 months in most jurisdictions (varies by state) The Uniform CPA Examination
The Examination Process ► Sit for the Exam ● Study, study, study ● Arrive 30 minutes prior to appointment ● Bring your NTS and proper identification
► Receive Scores ● Consult http://www.aicpa.org/cpaexam, www.nasba.org or the AICPA Insights blog for score release timelines ► Apply for License ● Requires a passing score on all four sections and other requirements
The Uniform CPA Examination
Uniquely position to provide guidance to CPA candidates, NASBA’s Advisory Evaluation aligns a candidate’s current education with a chosen jurisdiction and puts them on the right path to examination or licensure. The Uniform CPA Examination
EXPERIENCE
The Uniform CPA Examination
Experience Verification from NASBA NASBA recognizes that accounting professionals may have trouble finding a CPA to sign off on their experience for licensure. This service aims to provide accounting professionals worldwide with a reputable option for experience verification and a clear path to licensure.
The Uniform CPA Examination
To apply for the Experience Verification service, applicants must meet the following requirements: ► Pass the Uniform CPA Examination ► Meet the educational requirements for licensure (as outlined by the specific U.S. Board of Accountancy) ► Accrue 1-2 years of accounting experience
The Uniform CPA Examination
The NASBA Experience Verification Process
The Uniform CPA Examination
Experience Verification from NASBA NASBA currently offers the Experience Verification service to applicants seeking licensure in the following jurisdictions. Please note that you are able to transfer Exam scores from other jurisdictions when applying for licensure.
