AUD, FAR, REG, and BEC. These acronyms might not be familiar to those not of the public accounting field, but those who are pursuing a certified public accounting license know them like the back of their calculator and know to “fear the FAR”.

What It Was

As it stands, the CPA is comprised of four different tests: Auditing & Attestation; Financial Accounting & Reporting; Regulation; and Business Environment & Concepts. The tests are approx. 4 hours long and all have to be passed within an 18-month period with a score of 75 or higher.

When and Why It’s Changing

Effective January 1, 2024, the new structure will be begin and will focus more extensively on core ideas and disciplines of the profession. As the job requirements of a CPA expand and develop, the tests need to adapt to adequately evaluate whether the incoming accountants are prepared for the job.

What It’s Going to Be

The exam will still consist of four 4-hour tests in an 18 month period, but the big change is in what sections the prospective CPA’s will take. Gone, will be the AUD, FAR, REG, and BEC, to be replaced by three tests that focus on Auditing, Accounting, and Tax – known as the “core” subjects, followed then by an additional test in a specific “discipline” which is chosen by the test taker. The optional disciplines are:

• Business Analysis & Reporting – an expansion of the Accounting core;
• Information Systems & Control – an expansion of the Auditing core; or
• Tax Compliance & Planning – an expansion of the Tax core.

How to Be Prepared

Prospective CPA’s may be concerned that the test is changing and won’t be the test that our professors, coworkers, and mentors took, but there is no need to fear. The tests are evaluating the same thing – our foundational education in accounting. As long as the foundation is strong and we put in the time and effort to study as preparation, we will be all set to succeed. For those future CPA’s, good luck!