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Computerization of the CPA Exam

Beginning early in 2004 (currently scheduled for April) the CPA exam will convert to computer-based testing (CBT), and will be offered on demand at Prometric Testing Centers throughout the fifty-four jurisdictions that recognize the exam. In addition to changing to a computerized format, the exam will also be altered in terms of content and question format.

Content of the New Exam

The new CPA exam will have four sections. Much of the material to be tested will be the same as the material on the current exam, but some content has been rearranged or de-emphasized and some content has been added. The four sections are described in the following table.

Section Content Length
Auditing & Attestation This section covers what is now covered in the Auditing section of the current exam. 4.5 hours
Financial Accounting & Reporting This section covers what is now covered in the Financial Accounting & Reporting section of the current exam, with the addition of the governmental and not-for-profit sections of the Accounting & Reporting section of the current exam. 4.0 hours
Regulation This section covers primarily what is now covered in the Business Law & Professional Responsibilities section of the current exam, with the addition of the taxation sections from the Accounting & Reporting section of the current exam. 3.0 hours
Business Environment & Concepts This section covers business structure (20%), economic concepts (10%), financial management (20%), information technology (25%), and planning and measurement (25%).Much of this material is new, but some is covered in the Business Law & Professional Responsibilities section of the current exam (i.e., legal aspects of business structure) and the management section and a portion of the tax section of the Accounting and Reporting section of the current exam. 2.5 hours


The detailed content specifications for the new exam are posted on the AICPA's website at www.cpa-exam.org.

Format of the New Exam

The new exam will include two types of questions: multiple choice questions and simulations. The multiple-choice questions will be similar to those on the current exam. Simulations are short cases that will test your knowledge and skills using realistic work-related situations. They will require you to demonstrate such skills as using computer databases to do research, using spreadsheets to do analysis, and writing memos to express your conclusions. Each simulation will be designed to be performed in from 20 to 40 minutes. Many of the responses to questions in the simulation will be in objective format. As an example, you may be asked to select the correct response or responses from a list provided. Alternatively, you may be asked to complete a spreadsheet with selected cells having pull-down lists-you must select an amount or formula for inclusion in the each cell to complete the spreadsheet.

Most simulations will have a research component requiring you to search a database of accounting or tax literature. Some will have a writing component, which may be graded for both content and writing skills. If a particular question is graded for writing skills, it will be assessed using the following criteria:
  • Coherent organization,
  • Conciseness,
  • Clarity,
  • Use of English,
  • Responsiveness, and
  • Appropriateness to the reader.
Each section of the exam will consist of three testlets containing about 25 multiple choice questions each. Each of the testlets may include questions from any and all topics covered in that section. In addition, all sections will have one or two simulations. However, initially the Business Environment & Concepts section will only have multiple-choice questions. The approximate weighting for the overall score on a section will be 80% for the multiple choice questions and 20% for the simulations.

The multiple choice questions and the simulations will allow the AICPA to assess your technical knowledge of the topics tested in each section as well as the following skills that are necessary for an entry-level CPA:
  • Communication
  • Research
  • Analysis
  • Judgment
  • Understanding
Administration of the New Exam

As indicated above the exam will be administered at computer testing centers throughout the country and other jurisdictions. The exam will be offered on demand in two-month windows, succeeded by a month in which the AICPA will be performing analyses. Thus, the first window should be April and May of 2004. During June, the exam will not be offered, and the next window of opportunity will be July and August of 2004, etc. You will be allowed to sit for any or all sections during an exam window but you may only sit for each section once during a particular window. As an example, you can only sit for Auditing and Attestation once during the April and May, 2004 window. You may sit for the sections in any order, but to receive credit for all four sections you must pass them within a rolling eighteen-month period.

Conditional Credit

If you have conditioned on the current exam, you will likely be given credit for a comparable part on the new exam. However, this will depend on the policies adopted by your state board. The AICPA has recommended the following condition credit policies:

If you have passed: You should receive for:
Auditing Auditing & Attestation
Financial Accounting & Reporting Financial Accounting & Reporting
Accounting & Reporting Regulation
Business Law & Professional Responsibilities Business Environment & Concepts


Preparing for the New Exam

To keep informed about the progress of the movement to the new CPA exam, refer back to this website and the AICPA's website at www.cpa-exam.org. Wiley is prepared to help you pass the new computer-based exam. Our newly-development materials are scheduled to be available Fall / Winter 2003.

Ray Whittington CPA, Ph.D.
DePaul University