00;00;00;00 - 00;00;15;04 Speaker 1 Hello and welcome to another episode of the accounting for California podcast. My name is David Hemphill. I'm the information and planning officer here at the California Board of Accountancy. I'm happy to be joined by our examinations unit manager, Mr. Eulalia Ortega. How are. 00;00;15;04 - 00;00;17;15 Speaker 2 You? I'm doing very well. Thank you for having me. 00;00;17;15 - 00;00;33;05 Speaker 1 Excellent. Well, CPA evolution is coming. It's a big topic of conversation as it really is a big time change for the CPA exam. So give us 15 minutes and hopefully you will know everything you need to know about CPA evolution. Is that a good goal? 00;00;33;06 - 00;00;36;06 Speaker 2 Absolutely, absolutely. I think that we can get it all covered. 00;00;36;07 - 00;00;48;26 Speaker 1 So Mr. Ortega deals with this on a regular basis as people are applying to sit for the CPA exam. So I guess let's just start off with the simple question what is CPA evolution and why was it needed? 00;00;49;03 - 00;01;13;11 Speaker 2 Yeah, definitely. That's the question of the day. CPA evolution is a progressive initiative that is transforming the CPA licensure model by recognizing the rapidly changing technology skills and competencies the practice of accountancy requires today. Okay, it is instrumental to the future success of licenses and the continuity of public trust in that CPA title and CPA evolution has been a joint effort of the National Association of State Board of County. 00;01;13;11 - 00;01;40;21 Speaker 2 We call them Naspa and the American Institute of Certified Public Accountants, or AICPA. They gather feedback from many different sectors of the accounting profession while putting the initiative together. Not only does it modernize the licensor model, but a big part of CPA evolution is the upcoming changes to the uniform CPA examination, or CPA exam, which will allow CPA candidates an opportunity to demonstrate they have the skills needed to succeed in this dynamic landscape. 00;01;40;23 - 00;01;43;08 Speaker 1 Why was the new CPA exam created? 00;01;43;12 - 00;02;06;23 Speaker 2 The new CPA exam was created to better prepare the next generation of newly licensed CPAs for the challenges ahead of them, exponential growth and new rules, concepts and standards, along with changes in the roles and responsibilities of these newly licensed CPAs, created a need for the body of knowledge required to expand specifically when it comes to the technology and higher order skills such as evaluation and analysis. 00;02;06;25 - 00;02;13;24 Speaker 1 Okay, so we're looking ahead. We're looking into the future. Yes, sir. That's a good thing. So what's different about the new exam than. 00;02;13;29 - 00;02;32;20 Speaker 2 The new exam model is a core plus discipline model. The model starts with a core in accounting, auditing and tax that all candidates will need to complete. The new core sections will be known as auditing and attestation, or a study of financial accounting and reporting, or for taxation and regulation. 00;02;32;23 - 00;02;39;04 Speaker 1 So those new core sections sound familiar to me. I think they have the same names as the old sections, right. But are they different? 00;02;39;07 - 00;03;05;06 Speaker 2 Yes, same names, but updated content. The new core sections will closely aligned with the old sections of the same name, but have been updated to include a greater emphasis on technology and higher order skills such as evaluation and analysis. There are other changes to, for example, the new exam re categories as some content previously assessed in FA accounting for state and local governments, has now been moved to the newly created Business Analysis and Reporting discipline. 00;03;05;08 - 00;03;13;12 Speaker 2 The Red core section retains the same general content areas, but some material currently in Regno appears in the tax compliance and planning discipline. 00;03;13;15 - 00;03;18;18 Speaker 1 Talk to me about these new discipline sections. They're taking the place of the old C section. 00;03;18;20 - 00;03;42;13 Speaker 2 That's right, the old B, C or Business Environment and Concepts is going away in favor of the three new discipline sections. Candidates will now choose a preferred discipline section in which to demonstrate greater skills and knowledge. The new disciplines reflect the three pillars of the CPA profession business Analysis and reporting, or BR Information Systems and Control, or ESI and Tax Compliance Planning, or DCP. 00;03;42;15 - 00;04;09;01 Speaker 2 These sections will provide a good foundation for our newly licensed CPAs. Bar assesses the knowledge and skills they must demonstrate related to financial statements and financial information analysis, which includes historical results, budget comparisons, and impact transition assessments. It also tests the understanding of market conditions on financial and non-financial performance measures. And lastly, select technical and financial reporting related to governmental entities. 00;04;09;04 - 00;04;39;05 Speaker 2 The IRS C section test knowledge related to IT infrastructure, platforms and services, security, confidentiality and privacy, and considerations for systems and organization controls, engagements. Now TCP will test knowledge and understanding of US federal tax compliance for individuals and entities, with a focus on non-routine and higher complexity transactions and personal financial planning. But it goes further. The accuracy of data and technological concepts, and the use of applied research will be included in the assessments of those areas. 00;04;39;07 - 00;04;44;22 Speaker 1 Can I take more than one discipline section if I'm really interested in more than one? What happens if I fail though? 00;04;44;24 - 00;04;54;02 Speaker 2 No, actually Kenneth may only select one discipline section for credit. However, if Kenneth fails that discipline section, they may retake that discipline or choose a different one altogether. 00;04;54;08 - 00;05;01;23 Speaker 1 Okay. Will there be any difference in CPA licenses depending on which discipline I choose, that may limit my scope of practice? 00;05;01;23 - 00;05;17;09 Speaker 2 Actually, whichever discipline the cabinet selects for testing does not mean that they will be limited to that practice area. There's still just one CPA license with the rights and privileges consistent with any other CPA. The discipline section chosen just gives the candidate more of a concentration. Unfamiliar skill. 00;05;17;09 - 00;05;23;08 Speaker 1 Sets. Got it. Where can I go to learn more about what information is covered in each section of the new exam? 00;05;23;10 - 00;05;39;16 Speaker 2 So the CPA has published the new exam blueprints, which outlines all content tested on the new exam on its website, which can be found at w w w dot AICPA talk by clicking credentials and then become a CPA. 00;05;39;20 - 00;05;45;16 Speaker 1 Great. Once back goes away, what happens if I haven't completed it this year in 2023? 00;05;45;19 - 00;05;55;26 Speaker 2 That is a great question. Once the new exam launches on January 10th, 2024, BAC will no longer exist. At that point, you will need to take and pass one of the new discipline sections. 00;05;55;26 - 00;06;07;15 Speaker 1 Okay, so another scenario. What if I have passed 2 or 3 parts of the current CPA exam before January, but don't get it all finished? Do I have to start over with the new 2024 CPA exam? 00;06;07;20 - 00;06;30;20 Speaker 2 Luckily, no candidates will retain credit for any section that have passed prior to 2024 and will not have to retake the comparable section for the new exam. For example, you pass the old version of FA, you will have credit for passing the new core FA section. Same with Rag and OD. If you did pass back in the old exam, you will not need to take any of the new discipline sections. 00;06;30;22 - 00;06;38;00 Speaker 1 Okay got it. So I see how the transition there between the old and the new. Okay, so when is the last day I can take the old exam? 00;06;38;06 - 00;06;43;12 Speaker 2 You have the last day to take the current exam is Friday December the 15th, 2023. 00;06;43;12 - 00;06;50;09 Speaker 1 That's coming up quick. Is there a deadline to get my remittance form into the CBA to make sure I get approved to take the old exam? 00;06;50;09 - 00;07;05;22 Speaker 2 Unfortunately, it is too late to submit a first time application to take the old exam. If you've already been approved and want to reapply to take back or any of the other sections, we strongly encourage you to submit your application by November 1st to ensure it gets processed in time. 00;07;05;25 - 00;07;24;13 Speaker 1 Okay, so let's hit that again. So if you've not been approved yet, if you're a first timer, we're already past. It's too late for you to take the old exam. But if you're a repeat applicant, November 1st, strongly encourage. If you want to, make sure that you will get to take one of the old exam sections. So in other words, they got a they got a hurry. 00;07;24;14 - 00;07;29;08 Speaker 2 Yeah. These transition dates are coming to fruition and the time is drawing near okay. 00;07;29;08 - 00;07;36;28 Speaker 1 Once we, start looking ahead and moving forward, when will I be able to apply to take one of the new 2024 CPA exam sections? 00;07;37;00 - 00;07;42;04 Speaker 2 Yeah. So applications for the new test sections can be submitted starting November 21st of this year. 00;07;42;10 - 00;07;45;24 Speaker 1 All right. So when does the new exam officially start getting administered? 00;07;45;27 - 00;07;50;03 Speaker 2 The first date to sit for the new exam is January 10th in 2024. 00;07;50;03 - 00;08;09;16 Speaker 1 Okay. But I did notice there's a bit of a gap right between December 15th last day to take the old one and January 10th, first day to take the new one. It's almost a month where no CPA exam is being offered, which will make it harder to complete all four sections within the 18 month window. Is the CBA doing anything to help with this? 00;08;09;22 - 00;08;25;19 Speaker 2 Yeah, that's going to be an interesting month to assist with this transition. The CBA is in the process of extending any section credit held on December 31st, 2023 to June 30th, 2025. That's an extra 18 months to help candidates adjust to the new exam. 00;08;25;20 - 00;08;26;05 Speaker 1 All right. 00;08;26;09 - 00;08;37;19 Speaker 2 This extension isn't 100% finalized as we record this podcast, but hopefully we'll get the official approval very soon. Everyone should definitely follow us on social media to be among the first to know when this does happen. 00;08;37;19 - 00;08;47;24 Speaker 1 Great. Okay, that's a good suggestion right there. What happens with the the testing schedule and score release for the new exam? Is that going to be the same as in the past, or will there be a new format? 00;08;47;27 - 00;09;13;24 Speaker 2 There will be a modified test schedule from what existing candidates are familiar with. The AICPA has published a tentative 2024 CPA exam testing schedule and score release timeline on its website. We have completely included this on our website, and we'll continue to update the schedule if changes are made. Candidates should note that in the first quarter, while core sections can be scheduled through March 26th, the discipline sections can only be scheduled through February 6th. 00;09;13;27 - 00;09;21;29 Speaker 2 Be aware that the discipline sections won't be tested continuously, at least in the beginning, so scheduling sections may require a little more advanced planning than before. 00;09;22;00 - 00;09;23;03 Speaker 1 Oh, okay. 00;09;23;05 - 00;09;40;12 Speaker 2 Yeah. So another change is the length of time it will take to receive your score. Initially, there will be a much longer period of time between when you sit for the exam and when you find out your score. For instance, if you're one of the first candidates to take the new section in January 2024, you won't receive your score until June 4th. 00;09;40;20 - 00;09;57;06 Speaker 2 It's all an adjustment at the beginning, and another reason the CBA hopes to extend existing exam credits for those in the middle of their testing. As 2024 arrives. The farther we get into CPA evolution, we anticipate the score release dates should get closer to testing dates as the score system adapts to the new exam. 00;09;57;06 - 00;10;05;22 Speaker 1 So then the last variable is Prometric and actually trying to schedule your exam. What can we anticipate from Prometric scheduling? With the new exam? 00;10;05;22 - 00;10;23;01 Speaker 2 Prometric test centers are filling up quickly, and you should prepare to consider alternate test centers and appointment times that are not as convenient. The longer you wait to schedule. Also, keep in mind that if you schedule the week leading into December 15th, you will not be able to reschedule for any reason until the new exam format is launched in January. 00;10;23;04 - 00;10;44;00 Speaker 1 All good things to keep in mind. I hope we've covered all the bases. There's a lot going on the transition from the old sections to the new sections, trying to figure out what's covered in the new sections. And of course, you can always email us exam info at cbc.ca dot gov. We are here. KBA staff is always ready to answer your questions should you have any. 00;10;44;00 - 00;10;54;22 Speaker 1 If you are taking the test as we head into 2024, we wish you the best of luck. Mr. Ortega, thank you so much for joining us and sharing your expertise about CPA evolution with us. 00;10;54;23 - 00;11;02;16 Speaker 2 Thank you, David, for having me. I'm looking forward to 2024, and we're excited to help our future CPAs along the way in their examination process. 00;11;02;16 - 00;11;21;25 Speaker 1 We also have a video up on the KBA website with some other information. If you like your video to go along with your audio, but thank you for taking the time to listen to the accounting for California podcast. For those of you taking your exam sections, we wish you the best of luck and hopefully you are going strong on that pathway to your becoming a CPA.