CPA Exam 2017: The Next Version of the Uniform CPA Examination

American Institute of CPAs ® The Uniform CPA Examination ™ April 1, Exam Launch

American Institute of CPAs ® The Uniform CPA Examination ™ One who has: Fulfilled applicable jurisdiction requirements Knowledge and skills typically possessed by a person with two years experience Definition has remained consistent as basis for testing AICPA / BOE aware that many candidates first sit as students or upon graduation Should not / cannot impact the standard established in terms of required knowledge and skills necessary for licensure 3 Newly Licensed CPA

American Institute of CPAs ® Shift from Memorization to Critical Thinking 4

American Institute of CPAs ® The Uniform CPA Examination ™ Greater Assessment: Higher Order Skills Analytical Ability Professional Skepticism Communication Skills Problem Solving Critical Thinking 5

American Institute of CPAs ® The Uniform CPA Examination ™ Evaluation Analysis Application Remembering and Understanding Identify 6 Leveling of Skills Perception and comprehension of knowledge Evaluation Analysis Application Remembering and Understanding Examination and use of judgment to draw conclusions Identification of relationships to determine causes and evidence supporting inferences Demonstration of knowledge

American Institute of CPAs ® The Uniform CPA Examination ™ Document Review Simulation 7

American Institute of CPAs ® The Uniform CPA Examination ™ Document Review Simulation 8

American Institute of CPAs ® The Uniform CPA Examination ™ Document Review Simulation 9

American Institute of CPAs ® Exam Design 10

American Institute of CPAs ® The Uniform CPA Examination ™ 11 Skill Allocation – Today Auditing and Attestation (AUD) Business Environment and Concepts (BEC) Financial Accounting and Reporting (FAR) Regulation (REG) 50% Remembering and Understanding 50% Application 50% Remembering and Understanding 50% Application 50% Remembering and Understanding 50% Application 50% Remembering and Understanding 50%Application

American Institute of CPAs ® The Uniform CPA Examination ™ 12 Skill Allocation – Next Exam Auditing and Attestation (AUD) Business Environment and Concepts (BEC) Financial Accounting and Reporting (FAR) Regulation (REG) 50% Remembering and Understanding 50% Application 50% Remembering and Understanding 50% Application 50% Remembering and Understanding 50% Application 50% Remembering and Understanding 50%Application Increased assessment of higher order skills 30 – 40% Remembering and Understanding 30 – 40% Application 15 – 25% Remembering and Understanding 50 – 60% Application 10 – 20% Remembering and Understanding 50 – 60% Application 25 – 35% Remembering and Understanding 35 – 45% Application 15 – 25% Analysis 5 – 15% Evaluation 20 – 30% Analysis 25 – 35% Analysis 25 – 35% Analysis

American Institute of CPAs ® The Uniform CPA Examination ™ 76 MCQs (50%) 8 – 9 TBSs (50%) 66 MCQs (50%) 8 – 9 TBSs (50%) 72 MCQs (50%) 8 – 9 TBSs (50%) 62 MCQs (50%) 4 – 5 TBSs (35%) 3 Written Responses (15%) Four Sections: Today Next Exam Auditing and Attestation (AUD) Business Environment and Concepts (BEC) Financial Accounting and Reporting (FAR) Regulation (REG) MCQs (60%) 6 TBSs (40%) 90 MCQs (60%) 7 TBSs (40%) 90 MCQs (60%) 7 TBSs (40%) 72 MCQs (85%) 3 Written Responses (15%)

American Institute of CPAs ® Exam Blueprints 14

American Institute of CPAs ® The Uniform CPA Examination ™ 15

American Institute of CPAs ® Testing Time 16

American Institute of CPAs ® The Uniform CPA Examination ™ Testing Time 1 hour added to: BEC REG 4 sections - 4 hours each 17

American Institute of CPAs ® The Uniform CPA Examination ™ Standardized Break 15 minutes Doesn’t count against time Midway through section 18

American Institute of CPAs ® Exam Administration 19

American Institute of CPAs ® The Uniform CPA Examination ™ 10-Day Test Window Extension Beginning 2016 Q2 Test Window 20 All blackout months: March June September December additional testing days NOTE: 10 days not available during the Exam 2017 Q2 launch window

American Institute of CPAs ® The Uniform CPA Examination ™ Standard Setting / Score Release 21 Test Window AICPA / Board of Examiners Review Performance Data and Set Passing Score Approximate Score Release Date 2017 Q3 July 1 – September 10, weeks*August 14 Maintain the current 20-day score release timeframe 2017 Q2 April 1 – May 31, Q4 October 1 – December 10, days September 22 December 22 *New passing score will be set during this timeframe

American Institute of CPAs ® The Uniform CPA Examination ™ Transition Candidates may pass a combination of the current version of the Exam and the next version of the Exam to qualify for licensure 22

American Institute of CPAs ® The Uniform CPA Examination ™ Exam Fee Cost increase in April 2017 A result of the extra hour of testing time in BEC and REG Consult your state board of accountancy for additional information 23

American Institute of CPAs ® Beyond the Launch 24

American Institute of CPAs ® The Uniform CPA Examination ™ User Experience Enhancement Coming in 2018 Refreshed user experience Modernized design Optimized for 23” HD monitors Enhanced ADA support 25

American Institute of CPAs ® The Uniform CPA Examination ™ Microsoft Excel in 2018 Excel to be added as a tool 2018 (when supporting software is available) Replace current generic spreadsheet Not testing Excel skills 26

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