CPA Exam Changes 2021: The Digital-Driven Direction Through Data Analytics

Candidates preparing to take the CPA exam must use the latest information when studying for the test. Significant changes are in store for those who take the test in 2021, which is why this is critical. Starting on July 1, 2021, the new Blueprint issued by the AICPA will be implemented. This blueprint provides information newly licensed CPAs must know, such as skills and concepts. The changes will cover several areas, but the biggest one will center on having a digital and data-driven mindset. What does this mean?

A Digital and Data-Driven Mindset

A person might ask during CPA Exam Prep what it means to have a digital and data-driven mindset. This question is reasonable, as they want to ensure they know what to study. The exam creators want to see if candidates have a thorough understanding of data sources. The candidates must also have the ability to determine the accuracy and relevancy of this data. They need to be capable of approaching tasks based on accounting while analyzing the data sources simultaneously. 

To do so, the candidate has to comprehend how transactions flow within business processes and information systems. When they do so, they determine the data’s reliability and availability in terms of its accuracy and completeness. Advances in technology have led to the need for a digital and data-driven mindset, according to the AICPA. Every newly licensed CPA must understand the data, where and how to access it, and how to talk with clients about this data and how they may use it. 

Changes to the Exam

Incorporating the data-focused changes into the CPA led to alterations to the AUD and BED sections. When candidates prepare for these sections, they must know how to complete task-based simulations (TBSs). These simulations determine their data analytics capabilities. 

The AUD Portion

When students take the AUD Blueprint, they see additional testing of digital skillsets relating to the audit function. The exam will delve into their knowledge of audit data analytics, and they will be asked to analyze the outcomes of an audit data analytic procedure to find any anomalies. They must be able to show where the data is irregular in different contexts as well as interpret the results to establish the groundwork for creating audit procedures. 

When changing the test, the AICPA reviewed the content on how to use automated tools during audit sampling. The organization did the same with audit data analytics, recognizing the role automation now plays in data management. The candidate must know how to analyze the accuracy of the tools and procedures. 

The BEC Portion

Students will find the BEC portion of the test now contains a larger section that deals with data. They must answer questions related to data governance and relationships. In addition, they must have knowledge of extracting and transforming data. Data governance questions revolve around controlling data assets, which is crucial when the CPA must frame data valuation in financial statements. 

The newly licensed CPA must understand what goes into extracting data, such as the source and integrity of the data. They must also have knowledge of the attributes of relational databases, as the exam covers this topic. The candidate must show they can properly handle data in the latest version of the exam. 

Students should study for the test as they would prior to these changes. However, they need to cover the changes when doing so to make certain they prepare for all portions of the test. The 2021 CPA Exam Blueprints and Practice Analysis Final Report cover the changes, so include them in study materials to ensure you are prepared.