The new CPA Evolution model, effective from January 2024, introduces a revamped approach to the US CPA licensure process. It shifts to a core-plus-discipline model, where candidates must demonstrate proficiency in foundational core subjects and choose one of three specialized disciplines for in-depth knowledge. Uplift Professionals is publishing an overview of the importance of each core subject and discipline:
Core Subjects (Mandatory for all candidates)
The core subjects lay the groundwork for accounting knowledge. Every candidate must pass all three core sections:
Accounting (AUD)
Importance: This subject covers the principles and standards of auditing and assurance services. It is crucial because auditing and assurance services form the backbone of the CPA profession, ensuring financial statement integrity and compliance.
Key Topics: Risk assessment, audit procedures, audit reporting, ethics, and corporate governance.
Business Environment and Concepts (BEC)
Importance: BEC encompasses a broad range of business-related topics, giving CPA candidates a holistic understanding of the business environment, operations, and information technology. It connects accounting with real-world business practices.
Key Topics: Corporate governance, economic concepts, financial management, information technology, and business processes.
Regulation (REG)
Importance: REG is crucial for understanding the legal and ethical aspects of the profession, including tax regulations and compliance, which CPAs are frequently engaged with in practice.
Key Topics: Federal taxation, business law, and professional ethics.
Disciplines (Choose One)
The discipline section allows candidates to specialize in one of three areas. Each discipline caters to different career paths within the CPA profession.
Tax Compliance and Planning (TCP)
Importance: This discipline is ideal for candidates planning to specialize in tax-related services. It delves deeper into tax regulations, planning, and compliance, which are essential for CPAs who focus on advising individuals and corporations on tax strategies.
Key Topics: Advanced taxation, estate and gift tax, business tax planning, and IRS audit procedures.
Business Analysis and Reporting (BAR)
Importance: BAR is tailored for candidates looking to pursue careers in financial reporting, analysis, and advisory roles. It places significant emphasis on complex financial reporting and data analysis, critical for CPAs working in corporate finance or financial advisory.
Key Topics: Advanced financial accounting, data analytics, and financial statement analysis.
Information Systems and Controls (ISC)
Importance: With the growing reliance on technology in business, ISC is essential for CPAs focusing on IT audit, risk management, and information systems controls. It prepares candidates to handle issues related to cybersecurity, system audits, and internal controls.
Key Topics: IT governance, cybersecurity, data management, and risk assessment.
Summary of Importance:
Core Subjects are vital because they cover foundational accounting and business knowledge that every CPA must master, regardless of their career path.
Disciplines allow candidates to specialize in areas that align with their career interests, providing an opportunity to build expertise in high-demand fields like taxation, financial reporting, or information systems.
Choosing the right discipline depends on a candidate’s long-term career goals, but all sections collectively prepare candidates for the wide array of tasks that CPAs are expected to perform.
To avail Uplift’s International CPA US study package with a pass rate of 88% at just 55K INR, write us to info@upliftprofessionals.in with your present educational qualifications and get free feedback on your CPA eligibility.