JP Thomas, CPA

If you are a current CPA Candidate taking your exams, you may be wondering how to navigate the CPA Exam Evolution coming up in 2024.

This evolution primarily involves the exit of the BEC portion of the exam. BEC stands for Business Environment and Concepts. BEC has long been considered the easiest portion of the four parts to pass. From 2017 to 2022, the pass rate of BEC averaged 59.87% (Data from Surgent.com).

With the exit of BEC, candidates will now have the option to choose from three new CPA disciplines.

Business Analysis & Reporting (BAR)

Not to be confused with the BAR legal exam, the BAR CPA exam will cover topics related to financial analysis and risk management, technical accounting, and state and local government accounting. State and local government accounting was recently removed from the FAR exam.

Information Systems & Controls (ISC)

ISC will cover the following:

1. Information Systems and Data Management
2. Security, Confidentiality, and Privacy
3. Considerations for System and Organization Controls (SOC) Engagements

ISC will heavily cater towards CPA candidates with IT backgrounds and those looking to pursue a career in IT Auditing among other roles. IT Auditing has become increasingly important at Public Accounting Firms as the PCAOB places higher importance on data and where data is being stored and sourced from.

Tax Compliance & Planning (TCP)

TCP is the exam that seems to have the most overlap with a core section – REG. TCP will cover these areas:

1. Tax Compliance and Planning for Individuals and Personal Financial Planning
2. Entity Tax Compliance
3. Entity Tax Planning
4. Property Transactions

TCP dives into the weeds with these advanced tax topics. REG is such a comprehensive exam and covers so many tax laws. It cannot go into the detail needed for someone pursuing a career in tax. This exam will allow for more detailed study of tax law outlined above. Additionally, it appears this section would be valuable for those seeing themselves as a tax advisor, planner, or consultant in the future.

Should I take BEC before the deadline on December 15th, 2023?

If I were to be a current CPA Candidate, I would be trying to pass BEC before the deadline. The idea of new exams is exciting, especially if you have an interest in one of the three disciplines. But new exams can have their downsides. These new exams will be testing new questions that have likely not been seen in other exams. I would far rather take BEC which has years of history. The CPA Exam Review courses like Becker, Roger, and Surgent have had years to perfect their learning and practice questions. You may very well be a “guinea pig” by taking the new exams come January.

On the other hand, if you are a tax wiz or an IT genius, you may succeed by taking the exams in an area that you excel in.

Ultimately the choice is yours.

As always, good luck and keep studying!

-JP Thomas, CPA