Which body is responsible for the continuing development and grading of the CPA exam?

The American Institute of Certified Public Accountants (AICPA) is the organization responsible for the ongoing development and grading of the CPA exam. The AICPA sets the standards for the CPA profession and oversees the certification process, ensuring that the exam remains relevant and comprehensive in evaluating the competencies required of a CPA. This includes the design of the exam structure, the development of exam questions, and the grading processes involved.

The role of the AICPA is crucial as it aligns the exam content with the evolving landscape of the accounting profession and incorporates changes in regulations, industry standards, and best practices. This ensures that candidates are adequately assessed on their knowledge and skills in areas pertinent to public accounting.

While other organizations like the PCAOB, FASB, and IASB play significant roles in accounting regulation and standard-setting, they do not oversee the CPA exam. The PCAOB focuses primarily on the auditing profession, and the FASB and IASB deal with financial accounting standards, but these do not include the continuous development and assessment processes for the CPA examination. Thus, the AICPA’s involvement makes it the correct answer regarding the authority over the CPA exam.