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Introduction to Certified Public Accountant (CPA) Exam
Passing all four sections of the Uniform CPA Test is one of the first steps to being a licensed CPA. The CPA Exam is a computer-based examination conducted by the AICPA, consisting of four parts evaluating the minimum knowledge and skills needed by a CPA. The new version of the exam takes 16 hours in total.
While each state/jurisdiction has its particular criteria for obtaining a CPA license, they all require the CPA Exam to be passed by an applicant, and you have 18 months to complete all four sections of the CPA Exam (the clock starts ticking after you pass the first section), so be aware of scheduling and preparing.
The exam contains the following four main parts which are further described in details in the following section:
- Financial Accounting and Reporting (FAR)
- Business Environment and Concepts (BEC)
- Regulation (REG)
- Auditing and Attestation (AUD)
See the CPA practice exams to get a know-how of how these sections are divided. The AUD section offers questions based on professional obligations, ethics, risk assessment in the production of plan responses, the performance of procedures and facts, and drawing conclusions and reporting of accounting information. The BEC chapter discusses topics related to corporate governance, economic concepts, and interpretation, financial management, IT, and operations management. The FAR section consists of questions that emphasize the conceptual structure and financial reporting, the selection of accounts of financial statements, the selection of transactions, and the application of state and local governments to accounting work. The REG section consists of topics that concentrate on ethics, federal tax practices, professional obligations, business law, federal property transaction taxation, federal individual taxation, and federal agency taxation.
Certified Public Accountant (CPA) Exam Certification Path
The certification path for the Certified Public Accountant (CPA) Exam consists of this Uniform CPA Examination with 4 sections that can be taken separately as in one section per test window or all sections at once. After clearing these 4 sections, an ethics exam must also be cleared before your license could be processed.
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How to Prepare For Certified Public Accountant (CPA) Exam
Preparation Guide for Certified Public Accountant (CPA) Exam
Introduction
For practitioners aspiring to become CPAs, the Standardized Certified Public Accountant test is a credentialing exam. The CPA exam tests are graded and governed by the American Institute of Certified Public Accountants (AICPA) and by the National Association of State Accountancy Boards (NASBA).
The American Institute of Certified Public Accountants (AICPA) is the United States' national professional association of Certified Public Accountants (CPAs), with more than 418,000 members in business and industry, public practice, government, education, student affiliates, and foreign associates in 143 countries. Established in 1887, the association sets ethical guidelines for audits of private businesses, non-profit organizations, federal, state, and local governments for the profession and U.S. auditing standards. It also establishes the Standardized CPA Test and rates it. The AICPA has offices in New York City; Durham, NC; Washington DC; and Ewing, NJ.
This exam guide is intended to get you to know about the exam details and help you to prepare for the Certified Public Accountant (CPA) Exam successfully. This guide includes information on the certification test target audience, recommended preparation and documentation, and a full list of exam targets, all to help you obtain a passing grade. To increase your chances of passing the test, AICPA strongly recommends a mix of on-the-job experience, a study of CPA exam dumps, course attendance, and self-study.
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CPA AA Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Review, Completion and Reporting | 20% | - Evaluation of misstatements and review of work - Audit reports, modifications and other communications - Going concern, subsequent events and written representations |
| Topic 2: Legal, Ethical and Regulatory Environment | 20% | - Ethics, independence, professional skepticism and quality control - Regulatory framework including Companies Act 2014 - Anti-money laundering, fraud and corporate governance |
| Topic 3: Accepting and Planning Audit Engagements | 25% | - Understanding entity and internal control systems - Pre-conditions, client acceptance and engagement terms - Risk assessment, materiality and audit strategy |
| Topic 4: Assurance and Related Services | 5% | - Other assurance engagements and non-audit services |
| Topic 5: Performing Audit Procedures and Gathering Evidence | 30% | - Tests of controls and substantive procedures - Audit evidence, sampling and documentation - CIS auditing and computer-assisted audit techniques |
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