The 2025 CPA Exam: Changes, Syllabus, Eligibility
TABLE OF CONTENTS
- Introduction
- 2024-2025 Certified Public Accountant Exam Changes
The Core-Plus-Discipline Model
CPA BEC Syllabus
CPA Exam Section Content - CPA Exam Schedule
- Conclusion
- FAQs
INTRODUCTION
Certified Public Aspirants have to pass the CPA exam to acquire a license and practice in the United States and anywhere else. The exam evaluates the required skills and knowledge for newly licensed certified public accountants to practice public accounting. The AICPA or the American Institute of Certified Public Accountants, in collaboration with NASBA or the National Association of State Boards of Accountancy, develops, manages, and scores the CPA exam.
To become a licensed CPA, you must meet the education, experience, and examination requirements. Moreover, CPA aspirants must pass the Uniform CPA Examination consisting of three 4-hour Core sections and one 4-hour Discipline section of their choice. Although the CPA exam is the same for all, other requirements may vary depending on one’s jurisdiction.
Effective this year, the CPA core-plus-discipline licensure model has become the new Certified Public Accountant exam structure. This initiative is called the CPA Evolution and AICPA has released exam blueprints detailing the content of each section as well as the changes under the new model.
2024-2025 Certified Public Accountant Exam Changes
The AICPA and NASBA have restructured the CPA exam into the new core-plus-discipline licensure model that took effect in January of this year, with 3 core and 3 discipline sections. CPA aspirants should pass all three core sections and at least one discipline section of their choice. The 16-hour, four-section format remains the same. It’s important to note that the change occurred because of how technology has changed the accounting industry, the skills accountants need to function, and how they do their jobs.
The Core-Plus-Discipline Model
The new Certified Public Accountant model requires candidates to be proficient not just in accounting but in auditing and tax as well. These are the topics tested on the 3 ores sections, including:
- AUD (Auditing and Attestation)
- FAR (Financial Accounting and Reporting)
- REG (Taxation and Regulation)
CPA aspirants should also possess deeper knowledge in one of the three discipline sections below:
- Business Analysis and Reporting or BAR – a continuation of the FAR core
- Information Systems and Controls or ISC – continuation of the AUD core
- TCP (Tax Compliance and Planning) – the continuation of the REG core
Moreover, questions about technology will be infused throughout the entire exam as well.
CPA BEC Syllabus
The broad areas of the CPA BEC syllabus are as follows:
Business Environment and Concepts
Topic Percentage
Financial Management 19 – 23 percent
Corporate Governance 16 – 20 percent
Information Systems and Communications 15 – 19 percent
Economic Concepts and Analysis 16 – 20 percent
Operations Management 12 – 16 percent
Strategic Planning 10 – 14 percent
Regulation (REG)
A combination of business law and federal taxation. Regulation covers:
- Capability to comprehend legal responsibilities
- Tax concepts related to partnership, personal, and corporate
- Tax implication and its different uses in business entities
- Various tax issues and consequences where CPA aspirants will have to make alternative treatments and its application in real-life scenarios
The broad areas of the CPA REG syllabus are as follows:
Topic Percentage
Business Law 17 – 21 percent
Ethics, Professional, and Legal Responsibilities 15 – 19 percent
Federal Taxation of Property Transactions 12 – 16 percent
Federal Taxation 13 – 19 percent
Federal Tax Process, Procedures, Accounting, Planning 11 – 15 percent
Federal Taxation of Entities 18 – 24 percent
CPA Exam Section Content
Core Section
1. Auditing and Attestation (AUD)
This section tests the knowledge and skills you need to show when performing attestation engagements, audit engagements, accounting and review service engagements.
2. Financial Accounting and Reporting (FAR)
The section tests the knowledge and skills needed for financial accounting and reporting frameworks, which include those issued by the FASB or Financial Accounting Standards Board, AICPA, and the US Securities and Exchange Commission for use by non-profit and for-profit organizations.
3. Taxation and Regulation (REG)
This section tests the skills and knowledge of US ethics and professional responsibilities related to US business law, tax practices, and US federal tax compliance for individuals and organizations with a focus on routine and recurring transactions.
Discipline Section
Business Analytics and Reporting (BAR)
This section tests more complex technical accounting topics. More specifically, it assesses skills and knowledge related to:
- The required financial accounting and reporting under GASB that applies to state, local, and government entities.
- Technical accounting and reporting requirements under the SEC and FASB.
- Analyzing financial information and statements.
- Applied research, focusing on the review and use of source materials to accomplish tasks, such as analyzing facts, problem identifying, and determining the right responses.
- Data and technology concepts, including the verification of the accuracy of sources used to analyze financial information and data and determine methods to transform data into a valuable decision-making tool.
Information Systems and Controls (ISC)
The heart of just about any business in today’s era is information technology. The ISC section of the new CPA exam has never been more relevant. Furthermore, the section underscores the relevance of IT audits, which reflect the growing need for transparency and accountability in the security and management of information systems. With a focus on cybersecurity, it prepares CPA aspirants to identify vulnerabilities and implement controls that safeguard data from a range of cyber threats.
Tax Compliance and Planning (TCP)
This discipline section addresses the multifaceted nature of the United States federal, local, and state taxation to develop proficient tax professionals. Moreover, this section goes beyond the tax compliance basics, encouraging a strategic approach to tax planning. It covers aspects of tax law and its implications for personal and business finance.
The new discipline sections are intended to complement the core sections, offering a pathway for CPA aspirants to demonstrate their skills and specialized knowledge that are highly valued in the accounting landscape.
CPA Exam Schedule
Starting this year, the Certified Public Accountant exam has transitioned to a continuous testing model. This means that CPA candidates can schedule their exams all year round instead of being limited to quarterly testing windows. Moreover, the new format provides more flexibility, letting candidates take or retake sections anytime, depending on their schedule.
However, there is a black period for system maintenance. This change in the CPA exam is a remarkable enhancement, making it easier for CPA aspirants to manage their exam schedule alongside personal and professional commitments. It ultimately streamlines the path to acquiring the certified public accountant licensure.
CONCLUSION
The changing accounting landscape has paved the way for a proactive approach, thus the CPA evolution and the changes done to the CPA exam. Moreover, the emerging technologies and the focus on problem-solving make the CPA credential even more valuable in the competitive job market at present. So, if you’re planning to become a CPA, there are review courses that provide extensive coverage and professional standards to help you achieve your goals.
FAQs
Q. How different is the new CPA exam format than the old one?
Ans. The new format emphasizes a core plus discipline structure. Moreover, it aims to assess broad accounting principles and specialized skills that reflect the evolving needs of the profession.
Q. What is the CPA Evolution all about?
Ans. It’s a redesign of the CPA licensure model by NASBA and AICPA, adapting it to the changing skills required in the field. It led to the updated CPA exam that emphasizes core knowledge and specialization.
Q. What is the role of technology in the new CPA exam?
Ans. Technology is tested across several CPA exam sections. Although ISC focuses on Information Technology, system controls, and cybersecurity, BAR focuses on data analytics for decision-making and financial reporting reflecting the reliance on digital insights and tools.
Q. Are ethics still a focus in the new format?
Ans. Ethics remain a crucial focus in the new format. Despite structural changes and more emphasis on technology, professional responsibilities, and ethical reasoning remain integral components of the new CPA exam.
Q. In the new CPA exam structure, what are the three discipline exams?
Ans. The three exams in the new CPA exam structure include Information Systems and Controls, Tax Compliance and Planning, and Business Analysis. All these three enable CPA aspirants to tailor their licensure to align with their areas of interest and career goals in the field of accounting.
Q. Is Tax Compliance still important in the new CPA exam?
Ans. This is particularly true in the Tax Compliance and Planning discipline section. It underscores the relevance of staying updated with tax strategies and laws.
Q. Will the new CPA sections ensure readiness for the profession?
Ans. Structured under the CPA evolution, the new sections cover financial and essential auditing, and regulation topics, as well as specialized areas, including information systems and tax compliance. Moreover, the format ensures that CPA aspirants are prepared with the specialized skills and foundational knowledge to meet the accounting challenges today.
Q. How many times can a CPA candidate fail the exam?
Ans. There’s no limit to retaking the exam if you fail a section. Nevertheless, if you clear a section, you have to pass the remaining sections within eighteen months.