In the last few years, the CPA exam has undergone several changes, with the main change being the structure of the exams. Previously, the CPA process consisted of four exams: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Taxation and Regulation (REG), and Business Environment and Concepts (BEC).
After December 15, 2023, the BEC exam is no longer tested. Instead, candidates take a discipline exam. The options for these exams are Business Analysis and Reporting (BAR), Information Systems and Controls (ISC) or Tax Compliance and Planning (TCP). AUD and FAR had conceptional changes, such as changes in topics tested, but the exam layout remained the same.
So, Where Did the BEC Concepts Go?
Essential BEC exam topics have been integrated into the AUD and FAR core exams and the disciplines (mostly BAR and ISC). The written communication portion of BEC was removed entirely.
The AUD exam now includes economic principles such as supply and dema
nd, business processes and internal controls. These concepts are important in every audit to determine risks and audit procedures.
The FAR content was shortened in 2024. Advanced accounting topics, such as lessor accounting, were moved to the BAR exam. Advanced governmental topics were also moved to BAR; however, the FAR exam will still test basic governmental accounting.
In addition to absorbing portions of FAR, the BAR exam now tests technical BEC concepts such as stock compensation, combinations, derivatives and hedges as well as public company reporting requirements.
ISC inherited information technology and control topics with a focus on technology systems including types of systems and how to manage and safeguard them.
REG and TCP
The REG exam was also shortened, with some topics being shifted to the new TCP, which now tests advanced topics. The purpose of the TCP exam is to test the candidate’s knowledge of tax compliance for individuals and entities. The exam tests non-routine transactions and their tax implications.
Additionally, it is important to note that if you passed sections before the changes, your credits are still valid until they expire.
In conclusion, the CPA exam has been changed to better align with the evolving business environment. The removal of the BEC exam and the integration of its essential topics into the AUD, FAR and the new discipline-specific exams aim to provide a more focused and relevant assessment for candidates. These updates ensure that future CPAs are well-equipped with the necessary knowledge and skills needed to serve their clients.
