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CPA Exam 2017:The Next Version of theUniform CPA ExaminationJoe Maslott, CPA, CGMASr. Technical Manager, Content Management

Exam Launch Exam LaunchApril12017AmericanAmAmere icann InstituteInsnstititututetutte off CPAsC As CPTheThhe UniformUnniffoorrmrm CPACPA ExCPExaminationxaminatam attioamionn 2

Practice AnalysisAmerican Institute of CPAs 3

Research Project TimelineAmerican Institute of CPAs The Uniform CPA Examination 4

Our GovernanceBoard ofExaminersState eeBusinessEnvironmentand ConceptsSubcommittee(BEC)American Institute of CPAs PsychometricOversightCommitteeFinancialAccounting e(REG)The Uniform CPA Examination 5

Newly Licensed - ertain states require a separate ethicsassessment in addition to what is tested on the Exam. American Institute of CPAsThe Uniform CPA Examination 6

Newly LicensedOne who has:Fulfilled applicable jurisdictionrequirementsKnowledge and skills typicallypossessed by a person withtwo years experienceDefinition has remainedconsistent as basis for testingAICPA / BOE aware manycandidates first sit asstudents / upon graduationShould not / cannot impact standardestablished in terms of requiredknowledge and skills necessary forlicensureAmerican Institute of CPAs The Uniform CPA Examination 7

Practice AnalysisAccomplishmentsMaintained alignmentwith the professionFocused on theknowledge and skillsrequired of newlylicensed CPAsEnsured validityand reliabilityAmerican Institute of CPAs The UniformUniforrm CPACPA Examination 8

Shift from Memorizationto Critical ThinkingAmerican Institute of CPAs 9

Critical ThinkingAnalytical AbilityProblem SolvingProfessional SkepticismCommunication SkillsAmerican Institute of CPAs The Uniform CPA Examination 10

Document Review SimulationAmerican Institute of CPAs The Uniform CPA Examination 11

Exam DesignAmerican Institute of CPAs 12

Skill Allocation – NextCurrentExamExam5 – 15%EvaluationIncreased assessment of higher order skills15 – 25%Analysis20 – 30%Analysis25 – 35%Analysis25 – 35%Analysis30 – 40%50%ApplicationApplication50 – 60%50%ApplicationApplication50 – 60%50%ApplicationApplication34 – 44%50%ApplicationApplication30 50%– 40%RememberingRemembering andandUnderstandingUnderstanding1550%– 25%Remembering andUnderstanding1050%– 20%Remembering andUnderstanding25 50%– 35%RememberingRemembering andandUnderstandingUnderstandingAuditing andAttestation (AUD)BusinessEnvironment andConcepts (BEC)FinancialAccounting andReporting (FAR)Regulation (REG)American Institute of CPAs The Uniform CPA Examination 13

Exam SectionCurrentExamNextExamAuditing and Attestation(AUD)90 MCQs (60%)7 TBSs (40%)72 MCQs (50%)9 TBSs (50%)Business Environmentand Concepts (BEC)72 MCQs (85%)3 Written Responses (15%)62 MCQs (50%)5 TBSs (35%)3 Written Responses (15%)Financial Accountingand Reporting (FAR)90 MCQs (60%)7 TBSs (40%)66 MCQs (50%)9 TBSs (50%)Regulation (REG)72 MCQs (60%)6 TBSs (40%)766MMCQs (50%)9 TBSs (50%)MCQ Multiple-Choice QuestionTBS Task-BasedAmericanSimulationInstitute of CPAs The Uniform CPA Examination 14

Exam BlueprintsAmerican Institute of CPAs 15

American Institute of CPAs The Uniform CPA Examination 16

American Institute of CPAs The Uniform CPA Examination 17

Testing Time / BreaksAmerican Institute of CPAs 18

Testing Time / BreaksTotal testing time is 16 hours1 hour added to BEC and REG4 sections – 4 hours each15-minute standardized breakDoes not count against timeOptional, timed breaks still allowedAmerican Institute of CPAs The Uniform CPA Examination 19

Exam StructureAmerican Institute of CPAs 20

Exam Structure with BreaksAUDTestlet 136 MCQsTestlet 236 MCQsTestlet 32 TBSsBECTestlet 131 MCQsTestlet 231 MCQsTestlet 32 TBSsFARTestlet 133 MCQsTestlet 233 MCQsTestlet 32 TBSsREGTestlet 138 MCQsTestlet 238 MCQsTestlet 32 TBSse4STestletT 4 TBSsANDATestlete4R 3 TBSsDIZEe4DTestletTestletesst 53 TBSsTTestletesst 53WWrittenCommunicationmu4 TBSsTestletesst 53 TBSsTBREestlet 4eATestletK 4 TBSsTestletesst 53TTBSsOPTIONAL BREAKSAmerican Institute of CPAs The Uniform CPA Examination 21

Exam AdministrationAmerican Institute of CPAs 22

Testing WindowsAs of Q2 2016, 40 additionaldays added to each windowTesting offered quarterly: January 1 – March 10April 1 – May 31*July 1 – September 10October 1 – December 10*testing will close on May 31 during theExam launch window in 2017American Institute of CPAs The Uniform CPA Examination 23

Standard Setting &Score Release2017 Q2 (4/1 – 5/31)Standard Setting: 10 Weeks*Score Release: August 142017 Q3 (7/1 – 9/10)Standard Setting: 10 DaysScore Release: September 222017 Q4 (10/1 – 12/10)Standard Setting: 10 DaysScore Release: December 22American Institute of CPAs *passing score to be set during this timeTheThe UniformUniforUnormm CPACPA ExExamExaminationmininatatioon 244

TransitionCandidates may pass a combination of the currentversion of the Exam and the next version of the Examto qualify for licensureAmerican Institute of CPAs The Uniform CPA Examination 25

Exam FeesCost increase in 2016Result of extra hourfor BEC and REGConsult NASBA and localstate board of accountancyfor informationAmericanAmmerericiccanan Institutetee ofof CPAsCPAsCPAs TheThhe UniformUnififforUnormm CPACPA ExExaExaminationaminnattioionn 266

Beyond the LaunchAmerican Institute of CPAs 27

User Experience RedesignComing in 2018Refreshed userexperienceModernized designOptimized for23” HD monitorsEnhanced ADA supportAmerican Institute of CPAs The Uniform CPA Examination 28

Microsoft ExcelExcel to be added in 2018When supporting softwareis availableNot testing Excel skillsAmerican Institute of CPAs TheTThe Uniform CPACPPA ExExamExaminationamiininatiotioon 299

Future Candidate AssessmentExpanding professional skepticism & judgment intoaudit simulationsExpanding data analytics & analysis skills(including Excel or other tools)Enhancing communication, analysis andinterpretation in simulations with open-ended casesAmerican Institute of CPAs The Uniform CPA Examination 30

Exam ResourcesAmerican Institute of CPAs 31

American Institute of CPAs The Uniform CPA Examination 32

aicpa.org/nextcpaexamaicpa.org/nextcpaexamAmerican Institute of CPAs The Uniform CPA Examination 33

aicpa.org/nextcpaexamAmericann Institute of CPAs The Uniform CPA ExamExamination 34

Thank You 2016 American Institute of CPAs. All rights reserved.

American Institute of CPAs The Uniform CPA Examination Exam Structure with Breaks 21 AUD Testlet 1 36 MCQs Testlet 2 36 MCQs Testlet 3 2 TBSs BEC Testlet 1 31 MCQs Testlet 2 31 MCQs Testlet 3 2TBSs FAR Testlet 1 33 MCQs Testlet 2 33 MCQs Testlet 3 2TBSs REG Testlet 1Testlet 1 38 MCQs Testlet 2Testlet 2 38 MCQs Testlet 3Testlet 3 2 TBSs Testlet 4 4 TBSs Testlet 5 3 TBSs