Months to Launch

1. Countdown to Launch – The Computerized Uniform CPA ExaminationA Joint Project of the AICPANational Association of State Boards of Accountancy (NASBA) andPrometric, Inc.Ken L. BishopMember, AICPA Board of ExaminersChair, NASBA CBT Admin. Task Force

2. Months to Launch 5

3. Yesterday Entry-Level Practice Today Technological Skills Professional Knowledge Communications Skills Research Skills Analysis & Organization

4. We must test the current knowledge and skills required of entry-level CPAs We must ensure the examination keeps pace with the changes in practice We must ensure protection of the public interest is never interrupted Paper and pencil will soon be unable to meet the challenge What These Changes Tell Us About The Uniform CPA Examination

5. Why Computerize the Uniform CPA Examination? • The ability to test the new mix of skills identified by the recent practice analysis • The ability to offer the examination at more frequent intervals • The ability to offer the examination at more locations • Increased security • Administrative efficiencies

6. Starting the Process

7. National Candidate Database

8. Three Options for Scheduling • Visit www.prometric.com/cpa • Call 1-800-580-9648 • Call Local Prometric Test Center

9. Scheduling Test Appointment OpenClosed April – May June July – August September October – November December January – February March

11. Check In Candidate Experience Candidates are asked to arrive at the Prometric Test Center 30 minutes ahead of their scheduled exam.

12. Taking the Exam Candidate Experience Upon completion of check-in, the candidate: • is seated at a designated workstation • begins the exam after proctor launches the session • is monitored by a Test Center Administrator • is video taped

13. At Completion Candidate Experience Upon completion of the examination, the candidate: • signs-out • collects his/her belongings • turns in scratch paper • is given a Post Exam Information sheet Exam response data is pushed directly to the AICPA

14. The Examination • Four exam sections: • Auditing & Attestation (4.5 hours) • Financial Accounting & Reporting (4 hours) • Regulation (3 hours) • Business Environment & Concepts (2.5 hours) • 14 hour total length

15. Auditing & Attestation • Auditing Procedures • Generally Accepted Auditing Standards • Other Standards Related to Attest Engagements • Skills Needed to Apply That Knowledge

16. Financial Accounting & Reporting • Generally Accepted Accounting Principles for: • business enterprises • not-for-profit organizations • government entities • Skills Needed to Apply That Knowledge

17. Regulation • Federal Taxation • Ethics • Professional and Legal Responsibilities • Business Law • Skills Needed to Apply That Knowledge.

18. Business Environment & Concepts • Business Structures • Economic Concepts • Financial Management • Information Technology • Planning and Measurement

19. Paper-Pencil Based Auditing 100% Financial Accounting & Reporting Business Enterprises 100% Accounting & Reporting Taxation 60% Gov/NPO 30% Managerial Acct 10% LPR Business Structures 20% Other 80% Computer Based Audit & Attest 100% Financial Accounting & Reporting Business Enterprises 80% Governmental 10% Not-For-Profits 10% Regulation Taxation 60% Law & Professional Responsibilities 40% Business Environment Business Structures 20% Managerial Accounting 10% New Areas 70% Exam Content Differences

20. Structure of the Examination • No minimum score required for failed sections • PBT candidates will have an equal number of testing opportunities (or time period) to pass any remaining section(s) • If a PBT candidate does not pass the remaining section(s) during the transition period, credits expire • Candidate can establish credit for CBT sections passed even if PBT conditioning is lost

21. Examination Format • Multiple choice questions • Case-based simulations • test integrated knowledge • more closely replicate real world • assess research, written communication and other skills analytical skills

22. Simulations • Definition: Assessment of knowledge and skills in a context approximating that found on the job through the use of realistic scenarios and tasks, and access to normally available and familiar resources.

23. Simulations Interface • Tab–style screens • Consistent across simulations and tests • Mouse-driven response • On-line resources available • Split-screen capabilities • Review capabilities within a simulation

24. Online Literature • Full text, summaries, & status of all FASB Statements of Financial Accounting Standards issued since 1973 (original pronouncements) • Free download • Go to www.fasb.org • Requires Adobe Acrobat Reader Version 5.0 or higher

25. Online Accounting & Auditing Literature • The AICPA RESOURCE Auditing & Accounting library: • AICPA Professional Standards • AICPA Technical Practice Aids • AICPA Audit and Accounting Guides • Audit Risk Alerts • Accounting Trends and Techniques

26. AICPA RESOURCES Cost • $70.00 for AICPA Student Affiliate/Recent Graduate members • $30.00 for member dues • $40.00 for online RESOURCE • $75.00 NASBA Special Rate • FREEto AICPA Educator members • Nonmember educators can get free subscription by sending in letterhead confirmation

27. Tax Research Information • Because of the number of tax research vehicles, the exam research engine will be generic. • Look at RIA search engine at RIAhome.com or CCH’s at CCH.com. • Practice test in January, 04 will have good examples.

28. Score Reporting • State Boards of Accountancy distribute grades • Initially, advisory grades reported at the end of each window • Frequency of release to State Boards of Accountancy should increase within a year

29. Granting of Credit • Credit for passed section(s) retained for 18 months • No minimum score requirement for failed sections

37. www.cpa-exam.org

38. Next Steps Pilot in Northeast November 18 Candidates can request applications Soon Registration begins January 04 Testing begins April 5, 2004

39. Questions