By means of Gail Cole.
The Uniform Qualified Public Accountant Exam (CPA Examination) is often up to date to replicate improvements to accounting and auditing requirements in addition to tax regulations and rules — and to make stronger the potency of the examination. The subsequent replace is going into impact January 1, 2024, and puts new emphasis at the function of rising expertise in handing over accounting services and products.
Right here’s what you want to grasp.
What are the 2024 CPA Examination adjustments?
CPA Examination adjustments are regularly minimum, and the construction of the examination normally remains the similar from yr to yr. Alternatively, the updates scheduled for the 2024 CPA Examination shall be vital. There shall be a brand new infrastructure, new self-discipline sections, and a better emphasis on expertise right through.
Beginning January 1, 2024, there shall be a number of adjustments to the infrastructure of the CPA Examination. Those come with:
- A brand new manner of assessing analysis and linked vital pondering talents shall be offered
- The written communique activity (essay query) shall be eradicated
- Multistage adaptive checking out within the multiple-choice query testlets shall be eradicated
New self-discipline sections
The 2024 CPA Examination will retain 3 of the 4 current core sections — Auditing and Attestation (AUD), Monetary Accounting and Reporting (FAR), and Law (REG) — and upload 3 new Self-discipline Examination sections: Trade Research and Reporting (BAR), Data Methods and Controls (ISC), and Tax Compliance and Making plans (TCP).
A fourth core phase, Trade Atmosphere and Ideas (BEC), shall be reallocated around the 3 closing core sections and the 3 new self-discipline sections.
Applicants shall be required to choose considered one of 3 new disciplines.
New center of attention on knowledge and expertise
The 2024 CPA Examination will position a brand new emphasis on checking out knowledge and expertise ideas throughout all core sections and new disciplines. Those come with, however aren’t restricted to:
- Figuring out the right way to turn into knowledge to make it helpful for decision-making
- Verifying the completeness and accuracy of supply knowledge
- The use of the outputs of automatic gear, visualizations, and knowledge analytic ways
Amongst different talents, applicants shall be anticipated so to use automatic gear and strategies to prepare, procedure, and construction knowledge; take a look at the accuracy of data; and determine vital occasions or transactions that can affect monetary statements.
“Lately’s CPAs want deeper ability units, extra competencies and larger wisdom of rising applied sciences and their affect on tax, accounting and audit,” explains the AICPA in unveiling blueprints for the 2024 CPA Examination. “The CPA Examination has developed to align with a digital-driven market, and that implies a better emphasis on expertise and analytical talents.”
Some accounting practices are beginning to embody automation expertise through figuring out what it could take to effectively put into effect it (e.g., figuring out expertise choices and related dangers). The impending adjustments to the CPA Examination must fortify the advantages of providing purchasers automation services and products. It additionally emphasizes the desire for figuring out technology-related dangers, together with industry continuity and cybersecurity.
“As an accounting technologist and futurist, I’m excited to look those much-needed adjustments, which acknowledge the integral function that expertise performs within the supply of accounting services and products, and industry operations typically,” says Donny Shimamoto, Founder and Managing Director of IntrapriseTechKnowlogies LLC. “It’s vital that accountants assist pressure extra inventions whilst additionally making sure that their purchasers and employers handle a balanced view in their dangers like cybersecurity and industry continuity.”
What do the 2024 CPA Examination adjustments imply for accounting practices?
The AICPA and NASBA acknowledge that “technological inventions are converting each the services and products CPAs supply and the way they supply them.” Thus, they’re encouraging the accounting career to “embody those adjustments to handle its power and make stronger evolving industry wishes.”
Doing so may attraction to potential purchasers and staff.
Like many industries, the accounting career wishes extra certified other folks. There are excessive charges of retirement as a result of virtually 75% of CPAs reached retirement age in 2020, and few younger individuals are serious about changing them. “There’s now not numerous high-school scholars in the market who say, ‘I’m going to be an accountant,’” the Chair of the Accounting Division on the College of Texas instructed Trade Insider. “It’s important to promote them.”
Modernizing the accounting licensure fashion may assist. It will make the accounting box “extra related for lately’s talents,” and possibly subsequently extra sexy to younger other folks. Many practices are already making the most of new perks like far flung paintings to draw skill. Profiting from new expertise too can assist accounting practices attraction to the emerging era of accountants.
How can my apply get ready for the 2024 CPA Examination updates?
What are you able to do to arrange your accounting apply for the brand new wave of accountants? Adapt. Replace and strategically make bigger your tech stack. Display the arena how dynamic and attractive and trendy the accounting career may also be.
The 2024 CPA Examination updates underscore why electronic transformation must be a concern on your accounting apply. The emerging elegance of accountants will want to increase cast technical talents to cross the up to date 2024 CPA Examination. Many will need to put the ones talents into apply and can search out corporations that can permit them to take action.
Gail Cole is a Senior Author at Avalara. She’s on a venture to discover abnormal tax details and make complicated regulations and regulation extra digestible for accounting and industry execs.
supply By means of https://www.cpapracticeadvisor.com/2023/03/07/changes-in-2024-cpa-exam-put-technology-front-and-center/77516/