CPA Exam Changes Guide

Early in 2020, the AICPA announced upcoming changes to the CPA Exam Blueprints as a result of the 2019 Practice Analysis, which focused on the duties of newly-licensed CPAs and their expected skill levels. The AICPA recently released those new blueprints with an anticipated effective testing date of July 1, 2021.

Gleim is dedicated to keeping candidates informed. Continue to check our CPA Exam News Blog for the latest information, including a brief summary of the blueprint changes. Also, read below to see what changes in each section of the new blueprints.

Beginning on July 1, 2021, the CPA Exam will undergo changes as a result of new CPA Exam Blueprints that were released in October 2020. Changes are predominately in the AUD and BEC sections, with minor revisions in FAR and REG. Read below to see the specifics for each section.

THE  SOLUTION 

Gleim has you covered through every CPA Exam update. We study every AICPA Blueprint change and pronouncement, attend every AICPA discussion, and work with a team of skilled accountants and educators to ensure that every change the AICPA makes to the CPA Exam is reflected in our materials with plenty of time to study prior to the actual changes to the exam.

The AUD section of the CPA Exam has some of the more significant changes taking place as of July 1, 2021.
The AUD section of the CPA Exam will see changes to the content & skill allocation weightings effective July 1, 2021.

• Assessing Risk and Developing a Planned Response will now be 25-35% of your exam.
• Area IV – Forming Conclusions and Reporting will change to 10-20%.
• The Analysis skill allocation will increase to 20-30% of your exam.
• The Remembering and Understanding skill allocation will decrease to 25-35%.

What does this mean? You will more than likely see more content being tested with Task-Based Simulations and less with Multiple-Choice Questions. This does not mean you will see a change in the number of MCQs or TBSs; it just means that more content will be tested at a higher skill level.

Each area of the AUD blueprint saw changes to the representative task statements as well as some of the content topic areas. Of those changes, the most significant include the following:

• Area II, topic C.2. has been change to Business processes and the design of internal controls, including IT systems. The representative tasks for this content area were also updated, supporting the need for increased knowledge in the area of overall business processes. Area II, topic C.4. – Information Technology (IT) general and application controls has been removed.
• Area II, topic G. – Planning for and using the work of others saw some changes in the representative tasks, with focus on the IT audit function.
• Area III saw significant changes to the topic areas and the representative task statements. This area has been updated to include more data analytics, an area that has been alluded to for the past year.
• Area IV – Forming Conclusions and Reporting saw minor changes in the topic areas and representative task statements.

You can rest assured that your Gleim study materials will always contain the most up-to-date information in order to prepare you for the CPA Exam. For more detailed information on the AUD Blueprint changes, check out our AUD resource page.

The BEC section of the CPA Exam also has some of the more significant changes taking place as of July 1, 2021.

The BEC section of the CPA Exam will see changes to the content weightings effective July 1, 2021.

• Area I – Corporate Governance has been renamed Enterprise Risk Management, Internal Controls and Business Processes. Its content weighting has been changed to 20-30% (previously 17-27%).
• Area II –Economics has an amended content weight of 15-25% (previously 17-27%).
• Area III – Financial Management has an amended content weight of 10-20% (previously 11-21%).

There are no changes to the skill allocation weightings.

While there are changes to all areas in the updated BEC blueprints, the most significant changes take place in Area IV – Information Technology. Changes have been made to support the increased emphasis of data analytics, including new topic areas and new representative task statements. There is an entirely new topic area titled Data management and relationships, which includes several task statements providing guidance on how testing will take place within this content area.

You can rest assured that your Gleim study materials will always contain the most up-to-date information in order to prepare you for the CPA Exam. For more detailed information on the BEC Blueprint changes, see our BEC resource page.

The FAR section of the CPA Exam will only have minor revisions to the content areas taking place as of July 1, 2021.

The FAR section of the CPA Exam will see the elimination of the International Accounting Standards Board (IASB) framework and the IFRS versus US GAAP content area. There are no changes to the content or skill allocation weightings in this section.

• Area I – Conceptual Framework, Standard-Setting and Financial Reporting, topics B.8. and B.9., Discontinued operations and Going concern have been removed.
• Area II – Select Financial Statement Accounts saw some minor revisions within the representative task statements in topic G.
• The title for Area II, topic K. was changed to Stock compensation (share-based payments) (previously Compensation and benefits).
• In Area III – Select Transactions, topic D. – Derivatives and hedge accounting, two representative task statements were removed.

You can rest assured that your Gleim study materials will always contain the most up-to-date information in order to prepare you for the CPA Exam. For more detailed information on the FAR Blueprint changes, see our FAR resource page.

The REG section of the CPA Exam will only have minor revisions to the content areas taking place as of July 1, 2021.

The REG section of the CPA Exam will see the elimination of estate taxation as well as the removal of the Securities Act of 1933 and the Securities Exchange Act of 1934 from the authoritative references.

• Area II – Business Law includes changes to representative task statements in topic C. – Debtor-creditor relationships and topic D., now titled Federal laws and regulations(previously Government regulation of business).
• Area III – Federal Taxation of Property Transactions, topic C. All task statements referencing estate taxation have been removed.
• Area IV – Federal Taxation of Individuals, topic H. – Alternative minimum tax has been removed.
• Area V – Federal Taxation of Entities, includes the removal of several representative task statements in topics C.2., D.2., E.1., and G. Topic H.2. – Obtaining and maintaining tax-exempt status, has been removed entirely.

You can rest assured that your Gleim study materials will always contain the most up-to-date information in order to prepare you for the CPA Exam. For more detailed information on the REG Blueprint changes, see our REG resource page.

On July 1, 2020, the REG section of the CPA Exam was updated to include updates related to the SECURE Act of 2019 and the Taxpayer Certainty and Disaster Relief Act of 2019, along with updates in BEC related to COSO & COBIT. REG updates related to the CARES Act began on October 1, 2020.

Beginning July 1, 2020, the CPA Exam started continuous testing for all jurisdictions except South Carolina. NASBA is working with the South Carolina board and government to institute continuous testing.

Continuous testing means candidates can test anytime—there are no blackout dates on the calendar for 2020. However, the AICPA has reserved the right to add a blackout period as necessary (typically this will be the last week of the calendar quarter) to update the exam software and make other important changes.

• Scores will continue to be released approximately four times per quarter. The AICPA will announce score release dates as they become available.
• Candidates who need to retake a section will be able to reapply for an NTS as soon as they receive their score, and the reapplication should take under 72 hours to process.
• Candidates may be able to retake a section within the same quarter depending on when they took their previous exam and when they received their score.

Previously, the AICPA updated the exam between windows. Since there will no longer be “testing windows,” the AICPA will now update the exam based on the calendar quarter.

The timing and frequency of updates remains more or less the same, usually spanning six months to a year between announcement and implementation. There is a minimum of 6 months before a new pronouncement can become testable.

• Auditing and accounting pronouncements will become testable the later of the first quarter after the pronouncement’s earliest mandatory effective date or the first calendar quarter beginning six months after the pronouncement’s issuance date.
• For Internal Revenue Code and federal tax regulations, changes will be testable the calendar quarter beginning six months after the change’s effective date.
• Other federal laws will become testable one year after their adoption by the simple majority of the jurisdictions.
• For all other topics, changes are eligible for testing the later of either the first quarter after the earliest mandatory effective date (regardless of entity type) or six months after the issuance date.