After having taught nearly 50% of the Regulation section under the new curriculum (the practical part), this post aims to describe the shift in the AICPA syllabus for Regulation 2024 and recommend the preparation strategies thereof.

Refer the attached file for the overall and sectional change in the Regulation syllabus.

What does it mean for the CPA aspirants?
It seems that AICPA is slowly shifting its focus from breadth to depth. Earlier, Audit was the only exam which tried to emulate real-life scenarios. An attempt is being made to bring in a similar approach in other subjects as well. In Regulation, it means, that now the simulations are testing the entire flow from source documentation (e.g. Form 1099’s, W-2’s etc) to entries in Schedules of Form 1040 (e.g. Schedule 1 for other sources of income) to master Form 1040. Or let’s say for Form 1120, the flow of source documents (receipts for charity, asset purchase and depreciation election, bad debt confirmation receipt etc.) to Schedule M1 and finally to Form 1120. The concepts alone are not enough. The actual flow of data from the source to various sub-forms and master form (1040/1120/1120S and 1065) as well as an analytical understanding of whether a given filled form is correct or incorrect is going to be tested for the first time. Also, if the form is being filled up and the Tax software used throw up errors/exceptions, the understanding of the errors (Diagnostics) and ways to correct them is going to be tested for the first time.

How should your preparation strategy change?
First, have visibility of the entire process. The forms should be studied top down (e.g. Form 1040, Schedules 1,2,3, Schedules A-F, W-2, 1099s etc). The knowledge is incomplete if the students are not able to trace the concepts to the final forms.
Cross linking of topics have become more important now than ever. E.g. FAR knowledge of US GAAP of Income statement is required to understand the conversion of book income to taxable income in Form 1120 (along with Schedule M-1/M-3). Study mindfully.

Dedicated preparation for simulations is required. The coverage of the topics alone will not ensure success in the exam.

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