The accounting profession is undergoing a transformative shift driven by the relentless march of technology into every aspect of our daily lives. Emerging technologies usher in a new era of enhanced automation, efficiency, cost savings, data accuracy, security and scalability. With these advancements comes a pivotal change in the Certified Public Accountant (CPA) examination, which has intensified its focus on technology in 2024.
The CPA Evolution initiative, a collaborative effort between the National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA), aims to ensure newly licensed CPAs possess updated skill sets and competencies for today’s accounting demands. Lamar University’s online Master of Science (M.S.) in Professional Accounting program positions graduates at the forefront of this evolution, diligently preparing them with the technological expertise needed to excel on the new 2024 CPA exam and throughout their careers.
What Is the CPA Exam?
The cornerstone of professional qualification in accounting is the Uniform CPA Examination. This rigorous examination serves as a comprehensive evaluation of the knowledge and skills essential for entry-level CPAs. Comprising the essential “Three Es” — Education, Examination, and Experience — the exam is a pivotal component in the licensure process for CPAs. While each of the 55 U.S. jurisdictions may have variations in education and experience requirements, successfully completing the Uniform CPA Exam is a universal requirement. Many jurisdictions also mandate an ethics examination, referred to as the fourth “E.” Unlike some professions, there is no national CPA license; instead, each jurisdiction has a license issued independently by state boards of accountancy.
The CPA Exam itself is a robust 16-hour, computer-based test segmented into four distinct sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR) and Regulation (REG). The CPA Exam incorporates innovative simulations that mirror real-world scenarios. This approach ensures that those who emerge successfully from the examination possess a well-rounded and well-trained skillset, reflecting the complexities of modern accounting.
How Is the CPA Exam Changing in 2024?
The CPA Exam has evolved significantly, embracing a Core-Plus-Discipline model. This forward-looking licensure model mandates that CPA candidates possess not only a foundational understanding of accounting, auditing and tax but also a deeper expertise in one of three primary disciplines. The core sections ensure that all successful exam takers are well-versed in these essential areas.
In addition, candidates must demonstrate expertise in one of three primary disciplines:
- Business Analysis and Reporting (BAR), an extension of the FAR core
- Information Systems and Controls (ISC), a continuation of the AUD core
- Tax Compliance and Planning (TCP), building upon the REG core
To successfully earn a CPA license under the new model, candidates must pass all three core sections and one discipline, with the discipline chosen having no bearing on the type of license granted.
In 2024, the CPA Exam also intensifies its focus on proficiency in data and technology concepts throughout core sections and emerging disciplines. This includes evaluating skills such as transforming data for decision-making, verifying source data completeness and accuracy and utilizing automated tools for data organization and processing. Candidates must demonstrate competence in testing information accuracy, leveraging visualizations and identifying key events impacting financial statements.
What Roles Does Technology Have in Accounting?
Technology is a transformative force in automating, streamlining and enhancing operations and financial data management. An array of tools, including predictive analytics, artificial intelligence (AI), machine learning (ML), cloud computing, automation, blockchain technology and robotics process automation (RPA), empowers accountants to achieve remarkable gains in efficiency, accuracy, security and cost savings. Accountants can now automate mundane tasks, accelerate processes, reduce overhead costs, enhance data accuracy, fortify security measures and achieve scalable operations.
The Information Systems and Controls (ISC) discipline in the CPA Exam demonstrates the importance of technology and business controls, urging candidates to master subjects including IT and data governance, internal control testing and information system security.
How Will Technology Change Accounting in the Future?
The future of accounting demands expanded skills from CPAs, emphasizing aptitude in utilizing tools and techniques to organize, process and structure data. CPAs must possess deeper competencies in emerging technologies that impact tax, accounting and audit processes. Recognizing the transformative potential of technology, business leaders and accountants are increasingly turning to powerful tools such as Microsoft Power BI for data visualizations. This business intelligence platform empowers accountants to transform raw data into dynamic visuals, offering insights into trends and correlations, ultimately enabling more informed decision-making for clients.
Cloud-based accounting platforms are heralded as the future of accounting, providing accountants instantaneous access to financial data from any location. Enterprise resource planning (ERP) software further revolutionizes accounting by streamlining business activities, enabling seamless data flow and eliminating duplication. ERP systems allow accountants to optimize workflow, providing clients valuable insights and services. Blockchain technology, synonymous with cryptocurrencies like bitcoin, is poised to fundamentally alter accounting by offering a decentralized and transparent mechanism for recording transactions, potentially simplifying audits and minimizing fraud.
The evolution of data analysis tools empowers accountants to transition from mere number-crunching to data mining and gives clients comprehensive insights into their financial health and industry trends. This shift positions accountants as strategic business advisors in the digital age.
By aligning its curriculum with the 2024 CPA Exam’s Core-Plus-Discipline model, the STEM-designated, AACSB-accredited online M.S. in Professional Accounting program equips students with not only the foundational knowledge in accounting, auditing and tax but also the advanced skills needed to excel in emerging disciplines. With a strategic focus on cultivating proficiency in automated tools, data analysis and technological applications, Lamar University prepares graduates to emerge as tech-savvy leaders and strategic contributors to the industry’s evolution.
Learn more about Lamar University’s online Master of Science in Professional Accounting program
