08/29/2024
While accountants have a reputation for caution, the field of accountancy is evolving. In recent years, changes in technology and the business environment have caused seismic shifts to the field. Many traditional accounting functions have become increasingly automated, and future accountants will need to be well versed in areas such as data analytics, information technology, and strategic decision-making.
To address the changing accounting landscape, the American Institute of Certified Public Accountants (AICPA) has recently taken steps to ensure that CPAs are prepared for these challenges—and new challenges that may arise in the future. Pursuing a Master of Accountancy (M.Acc.) degree is a great way to keep up with the evolving field of accounting and prepare for the revised CPA exam.
Why Is the CPA Exam Changing?
The CPA exam was established in 1917 to ensure that anyone using the title of Certified Public Accountant has the skills and competencies that accounting requires. In response to changes in hiring trends and the accounting field at large, the AICPA—which is responsible for developing and scoring the exam—has now launched its latest revision effort, dubbed CPA Evolution.
What Is CPA Evolution?
The primary goal of CPA Evolution is to ensure that aspiring accountants are trained appropriately to meet the demands of an evolving job market. The AICPA designed the new test format, which launched in January 2024, to encourage specialization in growing areas of the field while continuing to ensure base competency for all licensed CPAs.
What Did the Former CPA Exam Entail?
In the former version of the CPA exam, all applicants took the same four tests. To qualify for licensure, test-takers had to pass all four of these sections.
| Test name | Topics and skills |
|---|---|
| Auditing & Attestation (AUD) | Audit engagements, attestation engagements, or accounting and review service engagements |
| Business Environment & Concepts (BEC) | Complex issues related to financial reporting, tax preparation, and other professional services |
| Financial Accounting & Reporting (FAR) | Financial accounting and reporting frameworks used by businesses, non-profits, and government agencies |
| Regulation (REG) | Federal taxation, tax-related ethics and professional responsibilities, and business law |
How Is the New CPA Exam Different?
The changes associated with CPA Evolution affect nearly every aspect of the CPA exam. In particular, the new exam places more emphasis on both analytical skills and technology, reflecting the needs of the modern accounting market. One of the four legacy tests, BEC, has also been eliminated, with most of its content now incorporated into other sections.
In addition, the remaining exams—especially the FAR and REG sections—have become less specialized. The three mandatory sections will now test knowledge and skills that apply more broadly to accounting. To demonstrate specialized skills, test-takers will now choose from three new discipline areas for their fourth exam.
| Discipline section | Topics |
|---|---|
| Business Analysis and Reporting (BAR) | Financial analysis, risk management and planning, and data and technology for decision-making |
| Information Systems and Controls (ISC) | Information technology audits, security and privacy, data management and information systems, and SOC engagements |
| Tax Compliance and Planning (TCP) | Federal tax compliance, federal tax planning, and personal financial planning |
To earn licensure, a CPA must pass one of these tests in addition to the three core tests (AUD, FAR, and REG).
Note that despite this new system for specialization, there will not be separate licensing for each discipline. The standard CPA license will continue to be issued to those who pass all four required tests.
If you passed any of the CPA exam tests prior to January 2024, you will not need to retake the tests you have already passed. And if you passed the BEC exam, that will satisfy the discipline test requirement.
In order to understand the requirements in order to sit for the CPA exam in Tennessee, consult the Tennessee Society of CPAs’ resources.
Why Would I Pursue a Master’s in Accountancy or Become a CPA?
Not every accounting career path will require a master’s degree or CPA licensure, but each has their benefits. CPA licensure is the gold standard of accounting credentials. Being a licensed CPA lends you trust and credibility, opening the door to new career opportunities and a higher salary.
Meanwhile, a master’s degree in accounting requires advanced coursework that can help demonstrate your professional expertise. This credential has the potential to set you apart from the competition and lead to higher-paying roles in accounting, business, or finance.
In short, CPA licensure demonstrates your competency, but a master’s in accounting teaches more complex skills that you won’t learn in a bachelor’s degree program.
Some aspiring accountants ask if they should pursue a master’s in accounting or CPA licensure, but it’s important to know that you may need both. This is because licensure in some states requires more accounting-specific credit hours than a typical bachelor’s degree can provide. An accounting master’s will help you meet these licensure requirements, in addition to ensuring that you have the comprehensive expertise needed to pass the CPA Exam.
The Master of Accountancy program offered by MTSU includes optional dedicated CPA exam review electives and coursework covering advanced technical knowledge across different accounting disciplines, including taxation, auditing, financial reporting, business law, and management accounting. The degree is also designed to build crucial skills such as problem-solving, relationship management, communication, and strategic thinking.
Earn Your Master of Accountancy From the MTSU Jones College of Business
Gain the skills you need to succeed in the expansive accounting field. With the option to take your courses online*, at our Murfreesboro campus, or a combination of the two, the Master of Accountancy affords you the flexibility to become an accounting expert without sacrificing your responsibilities and commitments.
MTSU’s Jennings A. Jones College of Business is among the top 1.5% business schools in the world with Association to Advance Collegiate Schools of Business (AACSB) accreditation in both accounting and business. Our faculty of award-winning educators, researchers, and entrepreneurs provide students with cutting-edge education in management, finance, big-data tools, and business communication.
Download a program brochure to learn more or start your application to the Master of Accountancy.
*Not all elective courses will be available online and not all online courses are offered every semester. Contact an advisor to confirm which electives are available online.
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