March 2003

CPA Exam Goes Digital
Computer-Based Testing to Begin in April 2004

Paper is going the way of the dinosaur, as far as the CPA exam is concerned.

Beginning in April 2004, aspiring CPAs throughout the country will sit for a new, 14-hour examination conducted completely in electronic form.

The computer-based exam will be forged and graded by the American Institute of Certified Public Accountants (AICPA), following an agreement reached last year with the National Association of State Boards of Accountancy (NASBA) and Prometric, a subsidiary of Thomson Corporation. The New York State Board for Public Accountancy will continue to be responsible for administering the exam, either directly or through a contracted service.

The three organizations announced in February that the Uniform CPA Examination will be delivered in a computer-based format beginning April 5, 2004. The final paper-based version of the CPA examination will be offered this November.

The computer-based exam will give students more flexibility to take the exam, although at a steeper price that has been the subject of some debate. In New York state, the cost could reach almost two-and-half times the current price. According to NASBA, the fees for the exam could run between $575 and $800.

But students will have more opportunities to take the exam. Currently, students can only take the exam twice a year—in May and November. The new exam will be offered “up to six days a week, during two out of every three months throughout the year,” according to the AICPA.

“The benefit is once they study, then it’s to their benefit that they can take the exam when it fits into their schedule,” said Myrna Fischman, a member of the NYSSCPA’s Higher Education Committee. But for many students the increased price will be a “detriment,” she added.

The new approach trims the test to 14 hours in four sections, including auditing and attestation (4.5 hours), financial accounting and reporting (4 hours), regulation (3 hours), and business environment and concepts (2.5 hours). Students will have four 60-day time periods in which to complete the entire exam.

A handful of NASBA members last year objected to a proposed contract involving the organizations after questions arose over the relationship between the AICPA and Prometric. Thomson Corporation has a strategic relationship with CPA2Biz, the online and offline marketing agent for AICPA products and services. The members, however, approved the contract after revisions were made later in the year.

The state board of accountancy will now make revisions to regulations to make way for the computerized exam.
Hopefully, the new exam will address cross-jurisdictional uniformity better than the existing paper-and-pencil test, said Daniel Dustin, executive secretary of the state board of accountancy.

“In general I think it’s a positive direction,” Dustin said. “We’re one of the last major professional examinations to computerize. Going that route is probably a good thing.”

State boards will have to work out specifics on costs and other considerations. Dustin said the board of accountancy will discuss five or six items that need to be changed in state regulations and posed to the New York State Board of Regents. Changes will be submitted to the Regent for discussion at its September meeting.