Computerized CPA Exam Only Months Away (2003)

The Uniform CPA Examination is entering a new era that gives individuals more flexibility as they prepare to take the exam. A joint effort by the AICPA, the National Association of State Boards of Accountancy (NASBA) and Prometric, a developer of technology-based testing services, has led to a groundbreaking achievement: the computerization of the Uniform CPA Examination. Beginning April 5, 2004, the computer-based test (CBT) will be offered year-round at Prometric and state-board-of-accountancy-authorized testing centers across the United States and its territories. The paper version of the exam will be given for the last time on November 5 and 6. Here is a series of questions and answers providing information about the test to help candidates prepare for it. 1. Why is the Uniform CPA Examination changing? The exam has long played a role in licensing CPAs. To keep pace with the evolution of the accounting profession and the business world--especially in the areas of technology and skills assessment--and to provide ongoing protection of the public interest, the exam itself is changing. By staying aligned with the expanding practical requirements of entry-level CPA work and by evaluating candidates' skills in critical areas, the revised exam will help ensure that CPA exam candidates continue to demonstrate the knowledge and skills needed to protect the public. 2. Aside from its being computer-based, what's different about the new test? Even more important than the way the test will be administered are the revisions to its content. In keeping with the nature of current accounting practice, the computer-based test will emphasize information technology and general business knowledge and take a broader approach to testing candidates' understanding of auditing concepts. Other significant changes include increased testing of skills in areas such as research and analysis. 3. How has the structure of the exam changed? The revised exam will have four sections and will be 14 hours long (the paper test is 15 1/2 hours). Three sections--Auditing & Attestation, Financial Accounting & Reporting and Regulation--will cover much of the same content as the paper test. The fourth section, Business Environment & Concepts (BEC), will address general business knowledge. The format will change to include multiple-choice questions and new, condensed case studies, which are referred to as In April 2004 each section of the exam--except for the BEC section--initially will contain two simulations. Those for the BEC section will be included at a later date. All sections will test candidates' skills in applying knowledge in the specific content areas. * Auditing & Attestation (4 1/2 hours). This section evaluates the individual's understanding of auditing procedures, generally accepted auditing standards and other standards related to attest engagements. * Financial Accounting & Reporting (4 hours). This section tests the candidate's knowledge of generally accepted accounting principles for business enterprises, not-for-profit organizations and government entities. * Regulation (3 hours). This area tests comprehension of federal taxation, ethics, professional and legal responsibilities and business law. * Business Environment & Concepts (2 1/2 hours). This section covers candidates' knowledge of the general business environment and the concepts needed to comprehend the underlying reasons for--and accounting implications of--business transactions. Details about the structure, length, content, skills definitions and content weighting are available on the CPA exam Web site (www.cpa-exam.org/cpa/computer.html). Simulations test candidates' knowledge and skills by means of realistic work-related situations. Each simulation complements the multiple-choice portion of the exam. All simulations will assess the knowledge and skills appropriate for, and expected of, an entry-level CPA. …