Changes to the CPA Exam

by | Feb 4, 2025 | Culture

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.

Interested in learning more about our firm? Learn more here!

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.

You may also like:

2025 Resolutions for Tax Professionals

It is no secret that the accounting profession can be taxing. As the year draws to a close, we gear up and recharge for the upcoming “Busy Season.” While our firm has worked diligently to smooth out the workload, there can still be times when long working days and...

The Vital Role of Information Technology (IT) in Accounting Firms

In today’s fast-paced business environment, accounting firms must leverage technology to stay competitive and efficient. Information Technology (IT) plays a pivotal role in transforming traditional accounting practices into dynamic, streamlined operations. Here are...

The Gift of Feedback – How to Give and Receive

Feedback, whether receiving or giving, can be challenging. Positive feedback is typically easier to give or receive as it reflects and acknowledges a person’s strengths. However, constructive feedback can be more difficult to navigate. In this blog, we'll explore why...

Accounting for Mental Health: Tips for Professionals and Firms

Being in a client-serving industry, accountants face high stress levels, long hours, and the demand to serve clients well, especially during busy seasons. Additionally, staying current with regulatory updates and new accounting standards, preparing for certification...

Improving Efficiency with the Tax Preparation Coordinator Role

At Weinstein Spira, like many accounting firms, we face periods of significant amounts of work due to compression near tax filing deadlines. To address this, our firm has invested valuable time and effort to identify a solution: the Tax Preparation Coordinator (TPC)...

Latest Posts