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 Yesterday Professional Knowledge Technological Skills Communications Skills Research Skills Analysis & Organization Today

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 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

Visit Call Call Local Prometric Test Center Visit Call Call Local Prometric Test Center Three Options for Scheduling

Scheduling Test Appointment Open Closed April – MayJune July – August September October – NovemberDecember January – FebruaryMarch Open Closed April – MayJune July – August September October – NovemberDecember January – FebruaryMarch

Candidate Experience Candidates are asked to arrive at the Prometric Test Center 30 minutes ahead of their scheduled exam. Check In

Candidate Experience 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 Taking the Exam

signs-out collects his/her belongings turns in scratch paper is given a Post Exam Information sheet Upon completion of the examination, the candidate: Exam response data is pushed directly to the AICPA Candidate Experience At Completion

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 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 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 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. 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 Business Structures Economic Concepts Financial Management Information Technology Planning and Measurement

Exam Content Differences Paper-Pencil Based Auditing 100% Financial Accounting & Reporting –Business Enterprises 100% Accounting & Reporting –Taxation 60% –Gov/NPO 30% –Managerial Acct 10% LPR –Business Structures 20% –Other 80% Paper-Pencil Based Auditing 100% Financial Accounting & Reporting –Business Enterprises 100% Accounting & Reporting –Taxation 60% –Gov/NPO 30% –Managerial Acct 10% LPR –Business Structures 20% –Other 80% Computer Based Audit & Attest 100% Financial Accounting & Reporting –Business Enterprises 80% –Governmental 10% –Not-For-Profits 10% Regulation –Taxation 60% –Law & Professional Responsibilities 40% Business Environment –Business Structures 20% –Managerial Accounting 10% –New Areas 70%

uNo 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) uIf a PBT candidate does not pass the remaining section(s) during the transition period, credits expire uCandidate can establish credit for CBT sections passed even if PBT conditioning is lost Structure of the Examination

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 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. 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 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 Requires Adobe Acrobat Reader Version 5.0 or higher Full text, summaries, & status of all FASB Statements of Financial Accounting Standards issued since 1973 (original pronouncements) Free download Go to 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 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 $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. 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 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 Credit for passed section(s) retained for 18 months No minimum score requirement for failed sections

Next Steps Pilot in NortheastNovember 18 Candidates can request applicationsSoon Registration beginsJanuary 04 Testing beginsApril 5, 2004 Pilot in NortheastNovember 18 Candidates can request applicationsSoon Registration beginsJanuary 04 Testing beginsApril 5, 2004

Questions