Major changes to the longstanding CPA licensure exam adopted in January 2024 have altered how aspiring accountants prepare for and take the test.

At the direction of the Association of International Certified Professional Accountants (AICPA) governing council and the National Association of State Boards of Accountancy (NASBA) board of directors, the new “CPA Evolution” exam structure was launched. It replaced the familiar four-part model anchored by the broad-based Business Environment and Concepts section. In its place is a streamlined three-part core covering auditing, financial accounting, and regulation—paired with a student-selected "discipline" exam that drills deeper into either tax, business analysis, or information systems.

The goal, according to AICPA and NASBA, is to modernize the exam and address the evolving demands of the profession—where automation, data analytics, and specialization increasingly define the first years of practice. For students, it has resulted in a more personalized but still challenging journey to certification.

Students opting for disciplines like information systems and controls are finding themselves immersed in cybersecurity frameworks and IT audit walkthroughs. Meanwhile, those headed toward tax or business reporting are encountering more real-world, scenario-based questions that demand analytical thinking rather than rote memorization.

Faculty at the University of Iowa have responded by revamping coursework to better align with the new structure, incorporating more tech-savvy content and hands-on simulations.

Another change to the CPA licensure process is a new pathway that allows candidates to qualify with a bachelor’s degree and two years of relevant work experience, instead of earning a master’s or completing extra coursework to reach 150 credit hours and one year of relevant work experience. The shift aims to reduce barriers to entering the profession while still ensuring candidates demonstrate the skills needed to serve clients effectively. The model has been approved nationally by the AICPA and NASBA, and the state of Iowa has adopted this change effective July 1, 2026. Many other states have adopted or are in the process of adopting the change.

Data from NASBA’s 2024  Candidate Performance on the Uniform CPA Examination shows Tippie students are more  than holding their own under the new model.  Their first-time section pass rate  was 67.8% compared to 53.8% for all candidates, ranking 22nd out of 204 large programs (at least 60 candidates).

This article appeared in the 2025 issue of Iowa Ledger.