The Next Version of the CPA Exam Ashley Stephens April 11 th 2016

Why the changes? In early 2014, the AICPA launched a research project to identify the knowledge and skills required of newly licensed CPAs for the next version of the Exam. The AICPA found that in order to protect the public interest, those seeking licensure as a CPA must demonstrate the following: Have the knowledge and skills necessary to perform more advanced tasks The ability to contribute to complex accounting projects early in their careers Possess higher order cognitive skills and professional skepticism

Higher-order cognitive skills, including critical thinking, problem solving and analytical ability A strong understanding of the business environment and processes Effective communication skills A thorough understanding of professional responsibilities and ethical responsibilities Professional skepticism  In addition to professional content knowledge, the AICPA and the accounting profession expect newly licensed CPAs to possess: Overview of Changes 2

4   The Exam will still be comprised of: Multiple-Choice Questions Task-Based Simulations Written Communications   Written Communication will continue to be tested ONLY on the BEC Exam What is Not Changing Certain aspects of the CPA Exam will not change.  There will still be 4 sections: Financial (FAR) Auditing (AUD) Regulation (REG) Business (BEC)

8 Identify, Classify, Recall, Explain, Categorize, Clarify, Compare, Define Calculate, Implement, Test, Represent, Prepare, Use, Execute, Carry Out Reconcile, Deconstruct, Validate, Deduce, Imply, Integrate, Distinguish, Organize Justify, Critique, Conclude, Judge, Detect, Verify, Recommend, Assess Remembering and Understanding Application Analysis Evaluation Skill Levels

Exam Blueprint Auditing and Attestation (AUD) Area III – Performing Further Procedures and Obtaining Evidence (30%-40%)

14 Current Exam 2017 Exam Current Exam 2017 Exam Both Current & 2017 Exams Question Counts and Score Weightings

16 Document Review Simulations (DRS) Enhanced TBSIntegrative TBS TBS test higher order skills by requiring candidates to complete tasks that are likely to be performed by newly licensed CPAs. The next version of the CPA Exam will feature new or enhanced TBS-types including: Task-Based Simulations

Candidates do not find the current CPA Exam spreadsheet tool to be useful Candidates will not be tested on their ability to use Excel Excel will be a tool for candidates to use during the Exam  Microsoft Excel will replace the basic spreadsheet tool on the CPA Exam in 2018 Excel on the CPA Exam 18

CPA candidates should plan to take and pass all four parts of the exam in: If you do not pass all four parts before the 2017 changes, you will be able to keep your scores on sections you passed (unless the 18 month window expired) Visit our website to learn about eligibility by state. Don’t Wait Until 2017 – Sit Now 23

10-Day Testing Window Extension NASBA announced on March 22, 2016 that in order to accommodate the anticipated demand for test center seats, the testing window will be extended through the 10th day of the third (previously “dark”) month of each testing window, which includes: June 2016 September 2016 December 2016 March 2017 During the anticipated launch window of the next version of the Exam (April-June 2017), the 10-day extension will be suspended Suspending the extension for the launch window will be necessary to allow time for the AICPA to properly calibrate the Exam for scoring. The 10-day extension will be reinstated for Q3 and Q4 of If candidates qualify to sit prior to the 2017 changes, we encourage them to do so. To schedule the Exam, visit prometric.com

For Additional Questions becker.com CPA EXAM Join our community at becker.com/edge Ashley Stephens