New CPA Exam Brings Changes and Opportunities

The CPA exam has been an integral part of the accounting profession since the state of New York held its first exam in 1896. In recent years, in an effort to keep up with technology and address a shrinking talent pipeline, the CPA exam has gone through a myriad of changes.

In 2017, for example, the content and structure shifted when a problem-solving component was added, emphasizing the application of skills over rote memory, and the testing window was expanded to 18 months.

In January 2024, the AICPA rolled out its latest revision, “CPA Evolution,” which has been called “the most important overhaul in the exam’s 100-year history.”

Not surprisingly, these changes have raised some challenges for aspiring CPAs and those that help them along the way. Here, exam mentors and a recent CPA recipient offer guidance on what to expect from the new exam, tips for how to approach it, and, more importantly, why the changes offer new opportunities.

WHAT’S CHANGED?

While the new exam rolls out some changes, one aspect of the exam has remained constant: It’s still a four-part test, and candidates have four hours to complete each part.

Additionally, the CPA exam continues to be comprised of three mandatory core sections: auditing and attestation, financial accounting and reporting, and taxation and regulation. However, the fourth section offers a selection of disciplines candidates can choose from, including business analysis and reporting, information systems and controls, and tax compliance and planning.

Lastly, the testing window to pass all four sections of the exam has expanded from 18 months to 30 months from the score release date of a candidate’s first passed exam section.

CHANGES BRING OPPORTUNITY

Matthew Hutchens, CPA, JD, lecturer of accounting in the University of Illinois Urbana-Champaign’s Gies College of Business, is optimistic about the new exam. He believes lengthening the passing window to 30 months may benefit CPA candidates who are in the workforce and may need extra time for juggling work and studying. He also says giving prospective CPAs the opportunity to take the fourth test in the discipline of their choice may help them align the exam with their career interests and goals.

“You’re more likely to have a better exam experience if that fourth test is on something that may be relevant to what you’re actually going to be doing in your workday,” he says. “I think these two changes are positive.”

Hutchens also says the year-round testing process makes it more convenient for candidates navigating the process versus the old way: “Remember, in the past, CPA candidates had to take all four tests over two days, and the retake rules weren’t as generous. It’s never been more convenient to take the exam as it is today.”

TIPS FOR NAVIGATING THE EXAM

Osvaldo Ruiz, now a CPA and advisory analyst at Deloitte in Chicago, says the path to success is paved with hard work and discipline. A few years ago, while still in college, Ruiz failed his first CPA exam section. Rather than giving up, he used that failure to learn how to persevere and succeed.

Ruiz suggests treating the CPA exam like a job. “I took a two-month study break and started the exam process during the summer when I had fewer distractions,” he says. “I went through the entire exam, sitting for one part of it every four or five weeks—I don’t know if I would take such an extreme approach again, but at the time, that strategy worked for me.”

To stay on track and keep motivated, Ruiz set both short-term and long-term goals. He also minimized his distractions by deleting his social media apps and keeping his phone out of sight.

Along with minimizing distractions, he encourages aspiring CPAs to prioritize self-care, including getting enough sleep and eating healthy food.

“I recommend finding a way to exercise, take walks, lift weights, or do something active,” he advises. “Keeping yourself mentally and physically fit is essential on this journey—a healthy mind and strong body will alleviate stress when the going gets tough because everyone has bad days and studying doesn’t always go as planned.”

Ruiz adds: “Remember, this is a marathon and not a sprint, and you only fail if you give up on the CPA journey altogether. This isn’t a matter of ‘if’ you’re going to pass the exam, but ‘when’ you’re going to pass it.”

Hutchens encourages students to maintain perspective, stay optimistic, and focus on the new exam’s positive aspects.

“While it’s true that many CPA candidates fail at least one section during the course of the exam, it’s available to retake at any time, and you can do it on your own schedule,” he says. “And remember, once you pass all four sections and are a licensed CPA, the number of times you took the exam becomes irrelevant.”

Hutchens recommends that prospective CPAs tackle the three mandatory core components of the exam before choosing their elective discipline. Also, when the time comes to choose that final test, there are several factors to keep in mind.

“We generally tell students to wait to decide until their first scores come out—with a 30-month testing window, there’s still plenty of time for making adjustments,” he says. “When it’s time for them to select a discipline, I recommend students take the section that aligns with what they want to do in their careers.”

Additionally, it’s important for prospective CPAs to remember that the marketplace is saturated with a variety of study guides, materials, support groups, and other resources to help them successfully pass the exam. For example, professional organizations, like the National Association of State Boards of Accountancy, AICPA, and the Illinois CPA Society, offer resources to help prospective CPAs navigate the process of applying and sitting for the exam, including guidelines for scheduling the exam, what to expect on exam day, receiving the score, and what to do if a section isn’t passed.

Universities may also offer similar resources. At the University of Illinois Urbana-Champaign, Hutchens offers Zoom sessions, which give exam candidates an opportunity to seek advice.

“Our advisers do a great job of helping students meet the educational requirements, and the Illinois Board of Examiners also has a great website and strives to make the process as smooth as possible,” Hutchens says. “At least once a year, they come to our school and talk to our students.”

REMEMBER YOUR WHY

For many who’ve already earned their credentials and for others embarking on their journey, the many hours of studying and hard work are worth it when they put those three letters next to their name.

Andrew Guerrero, CPA, senior manager at Adelfia LLC, is committed to mentoring students and young accountants, and his firm recently launched a mentoring initiative.

“Our firm requires employees to progress in the profession,” Guerrero explains. “Part of our mentoring role is guiding new accountants, some fresh out of college, toward earning their professional credentials.”

Some of the firm’s young professionals have started testing on the new exam. Others were midway through the old exam but are now rolling over into the new one.

The key to success, Guerrero says, is persistence, determination, and remembering why you’re committed to taking the exam in the first place.

“This is a time for self-discovery and self-motivation,” he says. “The CPA exam isn’t for the faint of heart, but it teaches you who you are as a person, because when you’re in the exam room, no one will be there to help you—success must come from within you.”

For Ruiz, who struggled before devoting months of his life to nothing but passing the exam, success was sweet. And when he closed the books on his fourth test, he ended his journey on a high note.

“I have both a bachelor’s and master’s degree, but I think getting my CPA credential trumps everything,” he says. “It’s the golden ticket.”

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