The CPA exam𝐆 is a substantial undertaking and the final step to becoming a certified public accountant (CPA).

Before taking the exam, aspiring CPAs must pass undergraduate and graduate-level classes in accounting, business law, and general studies. The exact courses and grades needed will vary between states. M🌃any states require work experience as well.

Once those requirements have been met, the last step to becoming a CPA is taking and passing the Uniform CPA Examination.

CPA Exam Structure

The CPA exam consists of three required Core sections and one required Discipline section. Each candidate can choose one of three Discipline sections offered.

The Core exam sections combined comprise 200 multiple-choice questions and 22 task-based simulations. The Discipline exam sections range from 50 to 82 multiple-choice questions and have six to seven task-based simulations.

The Core exam sections are:

• Auditing and Attestation (AUD)
• Financial Accounting and Reporting (FAR)
• Taxation and Regulation (REG)

The Discipline exam options are:

• Business Analysis and Reporting (BAR)
• Information Systems and Controls (ISC)
• Tax Compliance and Planning (TCP)

Candidates have four hours to complete each section, with a total exam time of 16 hours. Each section is taken individually, and candidates can choose the order in which they are taken. Candidates must pass all four sections of the exam within 30 months. The beginning of the 30-month time frame varies by jurisdiction.

CPA Exam Scoring

The Amer♌ican 🐻Institute of Certified Public Accountants (AICPA) develops and scores the test, grading each part on a scale of zero to 99. You must score at least 75 to pass each section.

Your total score is a weighted combination of scaled scores from multiple-choice questions and task-based simulations. For the AUD, FAR, and REG sections, multiple-choice questions count for 50% of the total score and tasked-based simulations count for the other 50%.

The exam sections employ multi-stage testlets for the multiple-choice questions. The first testlet is always of moderate difficulty. Depending on your performance, the next testlet will be of the same level or slightly more difficult.

Financial Accounting and Reporting

The FAR section tests knowledge and understanding of the financial reporting framework used by business enterprises, 澳洲幸运5官方开奖结果体彩网:not-for-profit organizations, and government entities. It includes 50 multiple-choice questions as well as seven task-based simulations that use real-life work situations to test your skill.

This section deals with standards for financial statements, what needs to be included in statements, and how to account and report for government agencies, non-profits, and other types of organizations.

Test takers are expected to prepare financia🌸l statements, including:

• 澳洲幸运5官方开奖结果体彩网:Balance sheets
• 澳洲幸运5官方开奖结果体彩网:Income statements
• Statements of retained earnings, equity, comprehensive income, and cash flows

They also must review source documents and enter data into subsidiary and 澳洲幸运5官方开奖结果体彩网:general ledgers.

Test takers must show that they understand the process by which accounting standards are set and the roles of various governmental and industry groups. These ಞgroups include:

• U.S. Securities and Exchange Commission (SEC)
• 澳洲幸运5官方开奖结果体彩网:Financial Accou🔥nting Standards Board (FASB)
• Association of International Certified Professional Accountants (AICPA)
• 澳洲幸运5官方开奖结果体彩网:Governmental A𒅌ccounting Standards Boar💛d (GASB)

Auditing and Attestation

The AUD section is a bit easier, especially if you’ve tackled FAR first. It has 78 multiple-choice questions and seven task-based simulations. It covers planning and reviewing engagements, internal controls, obtaining and documenting information, and communications preparation.

Test-takers must identify situations that might be unethical or a violation of professional standards and determine the appropriate action in these situations. In addition, they must identify key risks in a financial information technology environment.

AUD also covers standards for:

• Preparing reports on audited financial statements
• Government auditing
• Compliance with laws, regulations, and internal control
• Other communications

This section will also test your knowledge of the ethics and independence required by the AICPA, the 澳洲幸运5官方开奖结果体彩网:Sarbanes-Oxley Act of 2002, the 澳洲幸运5官方开奖结果体彩网:Government Accountability Office, and the Department of Labor.

Regulation

The REG section covers ethics and professional responsibility, business law, tax procedures and accounting, and federal taxation for individuals, entities, and property transactions. This section has 72 multiple-choice questions and eight task-based simulations.

Test-takers must demonstrate that they understand the professional and legal responsibilities of certified public accountants, as well as the legal implications of business transactions as they relate to accounting, auditing, and financial reporting.

This section also deals with federal and widely adopted state laws. You must show that you understand the rights, duties, and liabilities of debtors, creditors, and guarantors, as well as the audit and appeals process employed by the 澳洲幸运5官方开奖结果体彩网:Internal Revenue Service (IRS).

Disciplines

Test takers can choose from one o💯f three Disciplines as the final, fourth section of their exam. The Discipline sections include both multiple-choice questions and several task-based simulations, though they are shorter than the Core portions of the exam.

The three available Disciplines are Business Analysis and Reporting (BAR), Information💧 Systems and Controls (ISC), aജnd Tax Compliance and Planning (TCP).

Business Analysis and Reporting (BAR)

The Business Analysis and Reporting section is designed to test aspiring CPAs' knowledge of financial risk management and financial planning techniques. There is a strong emphasis on data analysis.

The BAR Discipline consists of three content areas, with each appearing in a certain p🧔ercentage of questions and scenarios in the section:

• Business analysis (40-50%)
• Technical accounting and reporting (35-45%)
• State and local governments (10-20%)
  

Information Systems and Controls (ISC)

The Information Systems and Controls section of the exam looks at candidates' understanding of an ability to use information systems, as well as the controls and risks inherent in these systems. This includes information technology (IT), security and privacy, audit and advisory, and data management.

The three content areas of the ISC 🦋Discipline are:

• Information systems and data management (35-45%)
• Security, confidentiality, and privacy (34-45%)
• Considerations for system and organization controls (SOC) engagements (15-25%)

Tax Compliance and Planning (TCP)

The Tax Compliance an🍰d Planning section of the CPA exam covers tax compliance and planning for both individuals and entities, as well as personal financial planning. It includes data and technology concepts, as well as applying😼 research from source materials such as the U.S. Treasury Code.

The four content areas of the TCP 🎀Discipline are:

• Tax compliance and planning for individuals and personal financial planning (30-40%)
• Entity tax compliance (30-40%)
• Entity tax planning (10-20%)
• Property transactions and disposition of assets (10-20%)
  

The Bottom Line

Even with the required schooling and work experience, CPA test takers have their work cut out for them. However, the reward is a respected professional designation that most often comes with a significantly 澳洲幸运5官方开奖结果体彩网:higher rate of pay compared to other positions.

To give yourself the best chance possible when taking the exam, consider looki♚ng into a reputable CPA prep course.