The year 2024 marks a transformative era for the CPA exams, as significant changes are on the horizon. With the accounting landscape constantly evolving, it becomes imperative to address the evolving needs of the profession and the challenges faced by both aspiring and seasoned accountants. The BEC CPA exam is transforming into 3 new discipline tracks while the other cores (REG, FAR & AUD) remain the same. Let’s explore together the compelling reasons behind the impending 2024 CPA exam changes and shed light on the pain points of the industry that are driving this transformation.
Introducing the Exciting Trio: The New CPA Discipline Tracks
The BEC section has been replaced by the following discipline tracks:
Business Analytics and Reporting (BAR)
The BAR Discipline exam section will encompass more complex technical accounting topics, with certain subjects overlapping between the FAR Core and BAR Discipline sections, including revenue recognition and lease accounting. Additionally, topics such as nonfinancial performance measures, managerial and cost accounting concepts, variance analysis, budgeting, forecasting, projection techniques, factors influencing an entity's capital structure, financial valuation decision models for comparing investments, the COSO Enterprise Risk Management Framework, and the effect of economic conditions and market influences on a business will be moved from BEC to BAR. The three key areas covered in the BAR Discipline exam are:
Addressing technical accounting and reporting requirements under the FASB and SEC applicable to for-profit businesses.
Exploring financial accounting and reporting requirements under GASB that apply to state and local government entities.
Examining financial statements and financial data with a specific focus on the CPA's role in comparing historical results.
Information Systems and Controls (ISC)
The ISC Discipline section evaluates the competencies and expertise required of a CPA in the realm of information technology (IT) audit and advisory services, encompassing SOC engagements. Plus, it examines the knowledge and skills necessary for CPAs in data management, covering aspects such as data collection, storage, and utilization throughout the data life cycle.
Regarding SOC engagements, the primary focus of the ISC Discipline Exam section includes:
Tax Compliance and Planning (TCP)
The TCP Discipline section evaluates the knowledge and proficiencies a CPA should demonstrate pertaining to various aspects:
- U.S. federal tax compliance for individuals and entities, particularly emphasizing nonroutine and complex transactions.
- U.S. federal tax planning for individuals and entities, encompassing considerations of proposed transactions and available tax alternatives or business structures.
- Personal financial planning, concentrating on planning strategies and opportunities typically identified by CPAs during the preparation and review of individual tax returns.
The evaluation of federal tax compliance will focus on a CPA's involvement in both the preparation and review of tax returns. Likewise, the assessment of federal tax planning will emphasize the role of CPAs in determining the tax implications of proposed transactions and available tax alternatives or business structures.
As mentioned earlier, the current REG content will be divided between the REG Core section and the TCP Discipline section. The TCP section will specifically address non-routine and more complex tasks.
What Skills and Job opportunities will you earn with every discipline track?
Information Systems and Controls (ISC)
Skills
Business processes
Information systems
Information security
IT audits
SOC engagements
Job Opportunities
Data manager
Data engineer/scientist
CIO or CTO
IT auditor
Tax Compliance and Planning (TCP)
Skills
Advanced individual tax compliance
Personal financial planning
Advanced entity tax
compliance/planning
Property transactions
Job Opportunities
Tax Analyst
Tax Compliance Officer
Work for the tax department within a company, a public
accounting firm, the government, banks, or hedge funds
Manage your own tax practice
Business Analytics and Reporting (BAR)
Skills
Data analytics
Financial risk management/planning
Technical accounting and reporting
State and local government accounting
Job Opportunities
Auditor at a public accounting firm
Work in the accounting department
at a corporation
Controller
Chief accountant
CFO or CEO
Important dates to keep in mind
Deadline to submit evaluation documents
Secure your spot by applying for a Notice to Schedule (NTS) before the deadline
BEC re-exam candidates, this one's for you! Submit your NTS application
Last chance to take your BEC instead of taking the new discipline tracks
On a final note...
This ever-evolving accounting world requires you to stay ahead of the game. Morgan International is your trusted partner in navigating these changes and preparing you for success in the new CPA exam format. With our experienced tutors, tailored Becker CPA Exam Review changes, and 28+ years of expertise, we are committed to helping you achieve your goals, and ensuring you are Exam Day Ready!
If you’d like to stay informed about the latest news, NASBA and AICPA updates, how instructors are preparing for the evolution, the new 30-month rule, and the state of the accounting industry, book your free consultation session to learn more!