US CPA EXAM CHANGES-2021

AICPA approves all the different updates and changes that are made to the CPA examination every year, these changes include –adding new topics to the CPA course, altering the pre-existing sections, and also at times removing old ones. It is definitely necessary for one to be updated on all the changes so here is the latest information on the CPA 2021 exam changes.

It is a fact that the accounting profession is evolving and emerging at a very fast pace, therefore, the CPA exam also should do the same. Here at Simandhar Education, our main goal has always been to ensure that students are always very well prepared with the CPA course for success in the exam with the latest updated information. Our expert and experienced faculty are dedicated to assisting the students in every way with live classes, webinars by dynamic industry experts, and all other aspects of the course.

October 2020 – FAR & REG changes:
Financial Accounting & Reporting (FAR)

1. CARES Act – Coronavirus Aid, Relief, and Economic Security
   Exam Topic: Accounting for Income Taxes (Net Operating Losses)
2. Change in the definition of Accelerated filer and Nonaccelerated Filter
   Exam Topic: Reporting the Results of Operations (SEC Reporting Requirements

Regulation (REG)

1. CARES Act which is currently only applicable for Q4 of 2020
   Exam Topic: Individual and Corporate Taxation
2. Change in Definition of Accelerated Filer & Nonaccelerated Filer
   Exam Topic: Federal Securities Regulations

January 2021 Changes:
Most of the changes have been delayed due to the pandemic. Here there are minor changes made to the exam for January 2021, there isn’t a major change.
Regulation (REG)

1. Removal of the CARES Act changes which were made in October 2020
   Exam Topic: Individual and Corporate Taxation

Financial Accounting & Reporting (FAR)
· ASU 2018-14—Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.
· ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

July 2021:
Auditing and Business Environment & Concepts
Increased emphasis on the following:
· Understanding automated business processes and the risks involved
· The importance of having a digital and data-driven mindset as well as the use of data analytics, and
· System and Organization Controls (SOC) reports on controls over financial reporting at a service organization.
Other specific changes would be outlined in the January 2021 CPA Exam Blueprints
Topics Expected to be Expanded on the CPA Exam
Here are the topics which are highly expected to be expanded more in the CPA Exam in India.
Digital and Data-Driven Mindset and Other Technological Impacts

AUD (Auditing and Attestation)
· business processes and internal controls

• Use of SOC 1 reports
  · IT system infrastructure
  · Data flows
  · Effect of general and application controls on the completeness and reliability of data
  · Use of automated tools and data analytics in the audit
  · Skepticism and judgment in analyzing data
  BEC (Business Environment and Concepts)
  · business processes and internal controls
• Understanding the importance of SOC 1 reports for outsourced IT functions
  · Use of data and business intelligence
  · Data governance
  · Data management
  · Data relationships
  · Working with data (extraction, transformation, and loading)
  Topics Expected to be Removed from the Exam
  There are certain topics that are also expected to be removed from the uniform US CPA Exam which are:
  · IFRS (FAR)
  · Estate Tax (REG)
  Changes in Content and Skill Weighting:
  AUD
  · Content Area II, Risk Assessment and Planning, increasing by 5%
• Content Area IV, Reporting, decreasing by 5%
  · Skills Weighting shifting to a higher level by 5% (ie, from Remembering & Understanding to Analysis)
  BEC
  · Content Area I, Corporate Governance, increasing by 3%
• Content Area II, Economics, decreasing by 2%
• Content Area III, Financial Management, decreasing by 1%
• No change in Skills Weighting
  There are no particular weighting changes for FAR and REG

Prepare well – There’s no time to waste or wait, Simandhar is there for you to be a CPA.

Here you can watch CPA 2021 Changes by Sripal Jain(CFO of Simandhar Education)

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