The CPA Evolution initiative is a groundbreaking transformation of the CPA licensure model, designed to acknowledge the evolving skills and competencies demanded in accounting. In 2024, the CPA exam will feature three core examinations and one discipline exam of your choice. These core exams encompass:

• Auditing and Attestation (AUD)

• Financial Accounting and Reporting (FAR)

• Regulation (REG)

Additionally, you can opt for a discipline exam from the following options:

• Business Analysis and Reporting (BAR)

• Information Systems and Controls (ISC)

• Tax Compliance (TCP)

The BEC section has been eliminated.

What topics are included in the new discipline exams?

• Business Analysis and Reporting (BAR)—Assurance or advisory services, financial statement analysis and reporting, technical accounting, and financial and operations management. 

• Information Systems Control (ISC)— Business processes, information systems, information security and governance, and IT audit. 

• Tax Compliance and Planning (TCP)— Individual tax compliance and planning, personal finance planning and entity tax compliance and planning.

What is the format of CPA Evolution?

Starting Jan. 2024, you will need to take 4 exams (3 core + 1 discipline). Here is the breakdown of each: 

• AUD (core): 4 hours, 78 MCQs and 7 task-based simulations 

• FAR (core): 4 hours, 50 MCQs and 7 task-based simulations 

• REG (core): 4 hours, 72 MCQs and 8 task-based simulations 

• BAR (discipline): 4 hours, 50 MCQs and 7 task-based simulations 

• ISC (discipline): 4 hours, 82 MCQs and 6 task-based simulations 

• TCP (discipline): 4 hours, 68 MCQs and 7 task-based simulations

Will the sections I pass in 2023 disappear in 2024?

No, you will be able to keep the sections you pass in 2023. All exam sections passed before Jan. 1, 2024, will still count towards your CPA licensure. Your passed sections are grandfathered in, so no retesting is needed. 

If you pass BEC before 2024, BEC will replace a discipline section requirement.  If you pass AUD, FAR or REG, they will carry over and serve as core credits. 

Notably, the 2024 CPA exam will emphasize advanced critical thinking and problem-solving skills. While the content of the core exams will undergo minor adjustments, the discipline exams will incorporate fresh, relevant material. Expect the 2024 CPA exam to be more challenging, reflecting the dynamic nature of the profession.

The CPA Evolution initiative is a commitment to recognizing and adapting to the rapidly evolving skills and competencies required in the accounting field. It's worth noting that the demand for US CPAs is projected to increase by an impressive 22% in the coming years, highlighting the significance of staying ahead in this ever-changing landscape. Join us on this exciting journey toward a brighter future in accounting!

CalCPA has been working closely with the California Board of Accountancy (CBA) on regulatory and other policy changes to implement various extensions to CPA Exam credits to provide CPA candidates with additional opportunities to pass all sections of the CPA Exam and ultimately become licensed.

The CBA has outlined these extensions and related FAQs for impacted candidates on its website.

Specific changes include:

• Extensions for CPA Exam credits expired during the pandemic. All exam credits that expired between Jan. 30, 2020, and Dec. 31, 2023, are once again valid and extended to June 30, 2025.

• Extensions for aid in transition to CPA Evolution. All exam credits valid on Dec. 31, 2023, are extended to June 30, 2025.

• Extensions for CPA Exam testing window. All new exam credits earned beginning in January 2024 will be valid for 30 months, replacing the previous timeframe of 18 months.

Candidates do not need to do anything to take advantage of these extensions and the new credit dates will show up in their Client Account automatically.

CalCPA encourages impacted candidates to review the CBA’s new resource page and FAQs. CPAs and firm leaders are encouraged to share this information with candidates in their personal and professional networks.