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CPA Exam Changes: Your Guide to the 2023 CPA Exam + 2024 CPA Evolution
CPA Exam changes 2023 and 2024 is one of the most popular searches that CPA candidates make. (And for good reason.) After all, the CPA Exam will change in 2024 to ensure newly licensed CPAs continue to possess the knowledge and skills necessary to protect the public interest. I’ll go over these changes, including the new CPA Exam changes that take effect in January 2024. And then, I’ll also report on essential non-content changes (like exam testing sites and CPA Exam dates), too.
Why the Need for CPA Exam Changes?
The AICPA announces minor changes to the CPA Exam from time to time. For example, in the fourth quarter of 2020, the CARES Act was added to the CPA Exam, primarily within REG. So, when major tax policies are introduced or other significant changes appear in the careers of newly licensed CPAs, the CPA Exam will reflect those adjustments.
But in 2021, the exam underwent even more noteworthy modifications. Plus, the CPA Exam had some minor revisions in July 2022. And the exam is being updated in 2024, too. So, let’s review those updates for 2023 and 2024.
CPA Exam International Testing: 2023 Changes
In June 2022, NASBA, AICPA, and Prometric announced changes to polices regarding international testing. So now, depending on your jurisdiction, most candidates are able to take the CPA Exam at any international location where the exam is offered.
In the past, candidates’ options were limited based on citizenship and residency. For example, before June 2022, candidates living in Japan could take the CPA Exam in the U.S. or Japan. However, they couldn’t test in other countries like India or Brazil. This policy update gives you much more flexibility to take the CPA Exam in 2023!
Note: This new policy only applies to “international Prometric testing locations” and does not include testing centers in the United States, Canada, Puerto Rico, Guam, and the Virgin Islands. Therefore, the international testing centers are located in the following countries:
- Bahrain
- Brazil
- Egypt
- England
- Germany
- India
- Ireland
- Israel
- Japan
- Jordan
- Kuwait
- Lebanon
- Nepal
- Republic of Korea
- Saudi Arabia
- Scotland
- United Arab Emirates
2024 CPA Exam Changes
The CPA Exam is getting a major overhaul in 2024 as well.
The AICPA and NASBA have announced plans for the “CPA Evolution” initiative. As business practices evolve in our rapidly changing world, accountants must evolve, too. The two organizations gathered input about the skills needed for future CPAs from stakeholders like the State Boards of Accountancy. The intent is to make sure that future CPAs will have the competencies they need to meet tomorrow’s accounting challenges.
The Purpose for the CPA Exam Changes 2024
Specifically, newly licensed CPAs will be required to demonstrate increased knowledge and skills related to distinct technology. So, if your journey to becoming a CPA includes taking an exam section during this time, then it is my pleasure to share what I know about the proposed changes to help you PASS.
The mission of the CPA Exam is to provide reasonable assurance to boards of accountancy that candidates passing the exam possess the minimum level of technical knowledge and skills necessary for a newly licensed CPA to protect the public interest in today’s business and financial environment.
To ensure the knowledge, skills, and tasks assessed on the CPA Exam continue to reflect the current practices of newly licensed CPAs, the AICPA’s Board of Examiners (BOE) conducts periodic practice analyses.
For instance, the BOE conducted a practice analysis before developing the CPA Evolution initiative:
(1) to explore the impact of technology on the work of newly licensed CPAs, and
(2) to identify areas where the CPA Exam has become too broad and not sufficiently focused on the core knowledge and skills required of newly licensed CPAs.
CPA Evolution
The CPA Evolution is a significant effort that involves lots of different stakeholders. For example, NASBA and the AICPA has revised the Uniform CPA Examination Blueprints. They are also working with universities to develop a curriculum that reflects the proposed changes to the CPA Exam. And finally, a new CPA Exam will launch by January 2024.
Core-Plus-Discipline Model
Under the changes, the path to CPA licensure will follow the new “Core-Plus-Discipline Model.” Candidates will need to demonstrate knowledge in accounting, auditing, tax, and technology as before. However, in addition to these core areas, CPA candidates will also need to show deeper skills in one of these three areas:
- Business reporting and analysis
- Information systems and controls
- Tax compliance and planning
Changes to the Format
The 2024 CPA Exam will still be a 4-part exam. The first three sections will assess your knowledge of the core content, while the fourth will test one “discipline” (listed above) of your choosing. So, for example, if you’re strong in tax, you may want to consider the “tax compliance and planning” discipline.
Revisions to the CPA Exam Schedule
You should note that the timing of the 2024 CPA Exam will be different that the 2023 CPA Exam dates. For instance, the 2023 exam doesn’t have blackout dates. That is, you can take the CPA Exam any time that a Prometric testing center is open. However, the 2024 exam will have blackout dates because you can only take the core and discipline sections during certain times each quarter. Therefore, it’s important that you understand the CPA Exam dates.
One CPA License
Even though you’ll be able to choose from three different disciplines in the Core-Plus-Discipline-Model, there will still just be one CPA license. That is, your CPA certificate and title won’t reflect which discipline you chose to specialize in for the exam.
Overview of the 2024 CPA Exam Changes
Since the CPA Exam changes in 2024, I’ve broken out the changes below.
The 2023 CPA Exam vs. the CPA Exam 2024
CPA Exam in 2023:
- 4 sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG)
2024 CPA Exam:
- 3 mandatory core sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG)
- 1 discipline section of the candidate’s choice: Business analysis and reporting (BAR), Information systems and controls (ISC), and Tax compliance and planning (TCP)
CPA Evolution Transition Policy
NASBA and the AICPA recently announced a transition policy regarding the CPA Evolution initiative that will be implemented in January 2024. As NASBA notes:
The purpose of the CPA Exam transition policy is to allow you to continue your CPA Exam journey from where you are when we transition to the 2024 CPA Exam.
First of all, if you pass all four sections (AUD, BEC, FAR, and REG) before December 31, 2023, the CPA Evolution will not impact you.
However, if you will be in the middle of your journey, the transition policy will definitely affect you. For instance, if you pass one, two, or three sections before the end of 2023 and plan to pass the fourth in 2024, take notes about how the CPA Evolution will affect you. Basically, the transition policy maps out your path in case you don’t pass all sections prior to January 2024. And keep in mind that this is a hard cutoff—no exceptions will be given. You don’t have to worry if you plan ahead, though. Once the close turns over to 2024, you won’t lose your credits, as long as you’re still inside your 18-month rolling window and you follow the path outlined by NASBA and the AICPA.
Source: NASBA
Mapping your CPA journey: 2024 and beyond
As you can see from the chart above, the transition policy maps out your path if you plan to pass some of your CPA Exam sections after January 1, 2024. The good news is that you DON’T need to retake your passed exam sections after 2024, as long as you’re still within your 18-month time frame.
Basically, you just need to remember that the “old” exam sections (AUD, BEC, FAR, and REG) loosely translate to “new” sections. Furthermore, some old sections (AUD, FAR, and REG) align with the new “core” requirement of the Core + Discipline model, while BEC is more related to the “discipline” requirement.
To put it another way, here’s how your 2023 CPA credits will be applied to the new Core + Discipline model:
- AUD credits will be applied to your core requirement of Auditing and Attestation
- FAR credits will count for the core Financial Accounting and Reporting requirement
- REG credits will transition to the new requirement for Taxation and Regulation
- Unlike the other sections, your BEC credits will not count toward your “core” requirement but your “discipline” requirement instead. Furthermore, you can choose which of the three disciplines to apply your BEC credits toward. Your choices include Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP).
Additionally, keep in mind that NASBA clearly states that despite the transition, “the 18-month rule remains in effect for all exam sections.” (However, the rule just changed to a 30-month rule, so we’ll keep you updated about that change.)
Questions about the CPA Evolution or Transition Policy?
I know that the 2024 CPA Exam changes can be a bit intimidating if you will be in the middle of your CPA journey during the transition. If you have questions, you can always drop me a line. Or contact NASBA at Feedback@EvolutionofCPA.org.
What Does This Mean for You?
Basically, the CPA Evolution initiative means that the CPA Exam will change by January 2024. And since you will need to demonstrate your skills in the core content areas plus a sub-discipline, the CPA Exam could become much more challenging.
Therefore, if you are considering the CPA credential, I highly recommend that you pursue it in the next few years before the exam changes. After all, I can’t imagine that these changes will lead to an easier exam. Rather, probably the opposite is true. Tasks formerly given to entry-level CPAs are often outsourced or completed with the help of paraprofessionals or specialized accounting software. Therefore, even CPAs at the beginning of their career are expected to have more problem-solving skills and the ability to think critically and apply professional judgment.
Thoughts about the 2024 Changes from CPA Candidates and Experts
“The proposed changes by the AICPA and NASBA are new and somewhat still vague at this point. However, like any profession, accounting must continue to evolve and adapt to our changing business and technological advancements. We have no doubt that CPAs will still maintain their critical role in the trustworthiness of our financial reporting and that the new CPA specialty exams will make CPAs even stronger in their subject field of choice. These changes will solidify the CPA’s role in continuing to serve the public interest in the 21st century.”
—Gleim Publications, Inc.
The main force behind AICPA/NASBA’s decision seems to be addressing how fast the world is changing, mainly in technology. They stated processes are now more automated, so entry-level CPA’s must be able to have a deeper understanding of the concepts and apply them rather than calculate (makes sense). This will likely make it more competitive, which “protects the integrity of the credential” and indirectly addresses the rise in pass rates.
It also goes hand-in-hand with college programs putting a higher emphasis on technology, AIS, database management, etc. which had also greatly changed since the exam was originally created. The flexibility of the new initiative makes sense given how fast life is moving. The new choice of discipline will be interesting, I bet some may be more advantageous than others.
–Ashley A., CPA Exam Candidate
What Is Not Changing on the 2023 and 2024 Versions of the CPA Exam?
There will not be significant changes to any of the following:
Aggregate CPA Exam Time
For better or worse, the total time per CPA Exam section remains the same in 2023 and 2024.
2023 CPA Exam Time Limits
| 2023 Section | Section Time |
| AUD | 4 hours |
| BEC | 4 hours |
| FAR | 4 hours |
| REG | 4 hours |
2024 CPA Exam Time per Section
| 2024 Section | Section Time |
| AUD | 4 hours |
| FAR | 4 hours |
| REG | 4 hours |
| Discipline (BAR, ISC, or TCP) | 4 hours |
Content allocation ranges – 2023
The updated 2023 content allocation ranges for each CPA Exam section appear below.
AUD
| Content area | Allocation | |
| Area I | Ethics, Professional Responsibilities and General Principles | 15-25% |
| Area II | Assessing Risk and Developing a Planned Response | 25–35% |
| Area III | Performing Further Procedures and Obtaining Evidence | 30–40% |
| Area IV | Forming Conclusions and Reporting | 10-20% |
BEC
| Content area | Allocation | |
| Area I | Enterprise Risk Management, Internal Controls and Business Processes | 20–30% |
| Area II | Economics | 15-25% |
| Area III | Financial Management | 10–20% |
| Area IV | Information Technology | 15-25% |
| Area V | Operations Management | 15-25% |
FAR
| Content area | Allocation | |
| Area I | Conceptual Framework, Standard-Setting and Financial Reporting | 25–35% |
| Area II | Select Financial Statement Accounts | 30–40% |
| Area III | Select Transactions | 20–30% |
| Area IV | State and Local Governments | 5–15% |
REG
| Content area | Allocation | |
| Area I | Ethics, Professional Responsibilities and Federal Tax Procedures | 10–20% |
| Area II | Business Law | 10-20% |
| Area III | Federal Taxation of Property | 12–22% |
| Area IV | Transactions Federal Taxation of Individuals | 15-25% |
| Area V | Federal Taxation of Entities | 28-38% |
2024 CPA Exam content allocation ranges
In comparison, here is the content for the 2024 CPA Exam:
AUD – Core
| Content area | Allocation | |
| Area I | Ethics, Professional Responsibilities and General Principles | 15-25% |
| Area II | Assessing Risk and Developing a Planned Response | 25–35% |
| Area III | Performing Further Procedures and Obtaining Evidence | 30–40% |
| Area IV | Forming Conclusions and Reporting | 10-20% |
FAR – Core
| Content area | Allocation | |
| Area I | Financial Reporting | 30-40% |
| Area II | Select Balance Sheet Accounts | 30–40% |
| Area III | Select Transactions | 25–35% |
REG – Core
| Content area | Allocation | |
| Area I | Ethics, Professional Responsibilities and Federal Tax Procedures | 10–20% |
| Area II | Business Law | 15-25% |
| Area III | Federal Taxation of Property Transactions | 5-15% |
| Area IV | Federal Taxation of Individuals | 22-32% |
| Area V | Federal Taxation of Entities (including tax preparation) | 23-33% |
BAR – Discipline
| Content area | Allocation | |
| Area I | Business Analysis | 40-50% |
| Area II | Technical Accounting and Reporting | 35-45% |
| Area III | State and Local Governments | 10–20% |
ISC – Discipline
| Content area | Allocation | |
| Area I | Information Systems and Data Management | 35–45% |
| Area II | Security, Confidentiality and Privacy | 35-45% |
| Area III | Considerations for System and Organization | 15-25% |
TCP – Discipline
| Content area | Allocation | |
| Area I | Tax Compliance and Planning for Individuals and Personal Financial Planning | 30–40% |
| Area II | Entity Tax Compliance | 30-40% |
| Area III | Entity Tax Planning | 10-20% |
| Area IV | Property Transactions (disposition of assets) | 10-20% |
CPA Exam Skill allocation ranges
Similar to the content allocation ranges, the skill allocation ranges for each section of the CPA Exam only changed slightly in 2023, but they are changing again in 2024. Therefore, the current 2023 skill allocation ranges for each section are presented below followed by the 2024 CPA skill allocations.
| 2023 Section | Remembering and Understanding | Application | Analysis | Evaluation |
| AUD | 25-35% | 30-40% | 20-30% | 5-15% |
| BEC | 15-25% | 50-60% | 20-30% | – |
| FAR | 10-20% | 50-60% | 25-35% | – |
| REG | 25-35% | 35-45% | 25-35% | – |
| 2024 Section | Remembering and Understanding | Application | Analysis | Evaluation |
| AUD – Core | 30-40% | 30-40% | 15-25% | 5-15% |
| FAR – Core | 5-15% | 45-55% | 35-45% | – |
| REG – Core | 25-35% | 35-45% | 25-35% | – |
| BAR – Discipline | 10-20% | 45-55% | 30-40% | – |
| ISC – Discipline | 55-65% | 20-30% | 10-20% | – |
| TCP – Discipline | 5-15% | 55-65% | 25-35% | – |
CPA Exam Score Reporting in 2024
It is anticipated that the 2024 CPA Exam changes also result in delayed score reporting. Doe to essential standard-setting measures, CPA Exam scores will probably only be made available once per exam section per quarter. However, the AICPA has published the anticipated score release dates, and you can utilize our CPA Exam score release schedule regardless of when you sit for the exam.
CPA Exam in India and Nepal
The COVID-19 pandemic has hit the globe in unexpected ways. It’s even affected candidates who are trying to take the CPA Exam. Although most Prometric test centers around the world are now operating at full capacity, the centers can still close or operate at limited capacity due to local restrictions.
Of course, remember that with the new international testing rules, you don’t have to test in India or Nepal if that’s where you live. Instead, you can take the CPA Exam at any international testing location.
Plus, you can find a helpful chart about the international administration of the CPA Exam on NABSA’s website. Before scheduling your exam, you should also check the Prometric website to verify that your chosen test center is open.
CPA Exam in the Republic of Korea and Japan
In recent years, CPA Exam testing was expanded to the Republic of Korea and Japan. (In the past, many candidates from these countries used the Guam testing center.) But now, changes in policies allow most candidates (depending on your jurisdiction) to take the exam at any international test location. As a result, you have lots of options if you live in Japan or the Republic of Korea.
COVID-19 CPA Exam Updates
During the peak of the COVID-19 pandemic, Prometric testing centers, where the CPA Exam is taken, temporarily closed. However, many are now open at either full or limited capacity with new social distance and vaccination guidelines.
Here’s What You Need to Know
- Many Prometric testing centers have reopened. However, depending on COVID-19 conditions and recommendations from local officials, some centers are only allowing a limited number of test-takers to maintain social distancing.
- You can check Prometric’s website for a list of sites and their current status. Here is a list of open test centers, and these are the sites that are closed because of COVID-19 or other reasons.
- Furthermore, many Prometric sites have restrictions regarding showing proof of a COVID-19 vaccination or a recent negative test. So again, be sure to check this list of Prometric updates well before your exam date.
- If you have a CPA Exam testing date scheduled and Prometric is or will be closed on your exam date, you will not have to pay a rescheduling fee. Further, you’ll receive an email with information on how to complete CPA Exam rescheduling.
- Plus, if you were unable to take your CPA Exam because you were ill from COVID-19, you are entitled to a refund of your exam fees. If this situation applies to you, go to the Prometric Contact Us page, fill out the “Contact Us” form, and click “Request a Refund.”
- In 2020, many state boards of accountancy granted extensions to expiring credits due to the pandemic. (A chart of these 2020 extensions appears below.) However, we don’t yet know if extensions will be granted in the future.
The Prometric closure status is likely to evolve if COVID-19 hotspots continue to develop around the globe. I’ll update this article with any new information as I have it. Please be safe.
CPA State Board CPA Exam Credit Extension Guide
Since so many candidates have been affected by the COVID pandemic and Prometric closures, the Boards of Accountancy in most jurisdictions granted credit extensions in 2020 and 2021. When you pass a section of the 4-part CPA Exam, you receive a “credit” for passing that part. The expiration date of your credit will be listed with your score. Basically, once you pass your first section, you have 18 months to pass the rest. Normally, after those 18 months pass and you haven’t passed all 4 sections, your credits will start to expire.
Since so many candidates had credits that were set to expire during the pandemic, NASBA made a recommendation that Boards of Accountancy develop plans to extend candidates’ credits. And most boards established extensions because candidates were unable to continue to sit for their exams.
Here’s a summary of 2020 and 2021 extension policies
Since the future of the pandemic is unknown, I’ve included a summary of the 2020 and 2021 credit extension policies for historical purposes. I hope this helps you understand how NASBA, the AICPA, and Boards of Accountancy work together to make sure that all candidates have fair and safe access to the CPA Exam.
Most jurisdictions automatically granted extensions to December 31, 2020, for credits with expiration dates from April 1, 2020, to December 30, 2020.
Many other jurisdictions also automatically granted extensions for credits set to expire in other timeframes. Massachusetts, for example, automatically gave extensions until September 30, 2020, for credits set to expire from April 1 to June 30, 2020.
Other state boards, like Idaho, declared that their staff had the authority to grant extensions for reasons related to the COVID pandemic.
Some states have reviewed extension requests on a case-by-case basis.
| STATE or JURISDICTION | Former Board Policy on CPA Exam Credit Extensions |
| AK | Credit with expiration dates from April 1, 2020 to December 30, 2020 will be extended until June 30, 2021. |
| AL, AR, AZ, CO, DC, DE, GA, GU, IA, KS, KY, LA, MA, MT, ND, NM, NV, OH, OK, RI, SC, TX, UT, VA, WA, and WV | Credit with expiration dates from April 1, 2020 to December 30, 2020 will be extended until December 31, 2020. |
| CA, FL, IN | Credit with expiration dates from April 1, 2020 to June 30, 2021 will be extended until June 30, 2021 |
| CT | Credit with expiration dates from April 1, 2020 to September 30, 2021 will be extended until December 31, 2021 |
| HI, IL, MD, MI | Credit with expiration dates from April 1, 2020 to June 29, 2021 will be extended until Jun3 30, 2021 |
| ID | On April 28, 2020, the Idaho Board made a Proclamation already sent to candidates that Board Staff has the authority to grant credit extensions for exams passed that are expiring due to a COVID related matter, including but not limited to illness, the closure of a testing site or the unavailability of seats in an open site in 90 increments. This Proclamation is in effect through the Governor’s current Orders relating to COVID-19 or any further Order from the Governor. |
| MO, NH, SD, VT | Board will review requests for credit extensions on a case-by-case basis. |
| ME | Credit with expiration dates from March 1, 2020 to December 30, 2020 will be extended until December 31, 2020. |
| MN, NE, PR, TN | Credit with expiration dates from December 31, 2020 to September 29, 2021 will be extended until September 30, 2021. |
| MS | The Board has authorized Board staff to approve exam grade expiration extensions for candidates impacted by test site closures during the COVID pandemic and with grades expiring through September 2021. Such extensions will be for no more than 90 dates. Candidates should submit their request for grade extensions to administrator@msbpa.ms.gov. |
| NC | Credit with expiration dates from December 31, 2020 to March 30, 2021 will be extended until March 31, 2021. |
| NJ | Credit with expiration dates from March 9, 2020 to December 30, 2020 will be extended until December 31, 2020 |
| NY | Credit with expiration dates from June 30, 2020 through March 31, 2021 will be extended until June 30, 2021. |
| OR | Credit with expiration dates from March 15, 2020 to June 30, 2020 will be extended until September 30, 2020. Anything outside of that timeframe is case-by-case. |
| PA | Due to the COVID-19 emergency disaster declaration signed by the Governor on March 6, 2020, a waiver was granted of the requirement that CPA candidates must complete all parts of the CPA examination with an 18-month period. Candidates whose exam credits expire during the time of the emergency declaration will be granted an extension which lasts for the duration of the emergency plus an additional 180 days from the end of the emergency. This exam credit extension replaces the 90-day extension that was recently granted to CPA candidates by way of a letter from the Board. |
| VI | All credit expiring April 1, 2020 through June 20, 2020 will be extended 90-days. |
| WI | Credit with expiration dates from March 16, 2020 to December 30, 2020 will be extended until December 31, 2020. |
| WY | All candidates who sat and passed prior to July 14th with unexpired credit will have those credits extended by 6 months from their original date. |
What about future extensions?
As for now, no additional extensions are planned. Of course, if more extensions are granted at a later date, I’ll keep you updated.
In the future, if your jurisdiction automatically grants extensions, you don’t need to do anything. Your NASBA CPA Candidate Account will be updated, but please allow 4 weeks for everything to be processed and for your records to reflect the new credit expiration dates. However, if your state is only reviewing extensions at a candidate’s request, you’ll need to contact your Board of Accountancy.
Conclusion about CPA Exam Changes
In conclusion, while the CPA Exam changes are always a cause for concern, I do not anticipate that the changes have made the exam any more difficult in 2023. And I also doubt that we’ll see any material changes in the 2023 CPA Exam pass rates as a result of these changes.
In fact, for those CPA candidates who despise REG, you may even find that the 2023 version is less difficult than the previous one. So, in this case, the REG changes are especially positive.
Changes to accounting exams are becoming the norm
For instance, a few years ago, the IIA released CIA exam changes that aligned the exam content with more relevant technology information. Similarly, the ICMA published CMA exam changes that allowed the exam to focus more on technology and analytics. Also, the CMA exam dropped topics that weren’t considered relevant for CMAs, like internal auditing. So, what the AICPA is doing to update the CPA Exam is quite expected at this point.
2024 CPA Exam Difficulty
However, it’s possible that the 2024 CPA Exam changes could make the exam more difficult for many candidates. Unless you had additional college courses or significant practical experience in one of the “disciplines” in the new “Core-Plus-Discipline” Model, you might find the future version of the CPA Exam harder than the current one. Therefore, if you are thinking about going after a CPA, I would do it now. After all, we don’t yet know the full impact that the CPA Evolution initiative will have on the exam or the pass rates.
Planning for CPA Exam Changes
Now, should these changes cause you to plan for your exams any differently? Not really. However, I recommend you personally assess how the proposed changes may affect you and plan accordingly. For example, if the changes will give you an advantage, then wait to take the exam until the changed version becomes available. Conversely, if the changes would put you at a disadvantage, plan to take the exam(s) before the changes take effect.
About the Author Stephanie Ng
I am the author of How to Pass The CPA Exam (published by Wiley), and I also passed all 4 sections of the CPA Exam on my first try. Additionally, I have led webinars, such as for the Institute of Management Accountants, authored featured articles on websites like Going Concern and AccountingWeb, and I'm also the CFO for the charity New Sight. Finally, I have created other accounting certification websites to help mentor non-CPA candidates. I have already mentored thousands of CPA, CMA, CIA, EA, and CFA candidates, and I can help you too!
