Topics of Certified Public Accountant (CPA) Exam

The CPA Exam test consists of four, four-hour sections. You must clear all four sections within 18 months with a minimum score of 75 on each part. The core topics for each of the four sections are listed below. These contents are likely to be used for the examination. However, on any particular delivery of the test, other similar topics could also appear.

It is recommended that, where possible, the applicant uses these contents and/or other resources to provide background information on the exam objectives. The syllabus for the Certified Public Accountant (CPA) Exam is listed below with detail of each section and their topics:

1. Auditing and Attestation (AUD)

Objectives covered by this section:

Developing a Planned Response & Assessing Risk (20 to 30%)

• Debtor-creditor relationships
• Assessing and identifying the risk of material misstatement
• Entity's internal control
• Specific areas of engagement risk
• Materiality
• Planning an engagement

Professional Responsibilities, Ethics & General Principles (15 to 25%)

• Engagement documentation
• Communication with management
• Ethics and professional conduct
• Nature and scope
• Communication with component auditors
• A firm's system of quality control

Obtaining Evidence & Performing Further Procedures (30 to 40%)

• Internal control deficiencies and misstatements
• Acquisition and disposition of assets
• Subsequent events
• Sampling techniques
• Performing specific procedures to get evidence
• Written representation

Reporting and Forming Conclusions (15 to 25%)

• Other reporting considerations
• Reports on auditing engagements
• Review service engagements
• Reports on attestation engagements
• Reporting on compliance

2. Regulation (REG)

Objectives covered by this section:

Federal Tax Procedures, Professional Responsibilities, and Ethics (10 to 20%)

• Legal duties
• Responsibilities in tax practice
• Federal tax procedures
• Licensing and disciplinary systems

Business Law (10 to 20%)

• Debtor-creditor relationships
• Business structure
• Contracts
• Agency
• Government regulation of business

Federal Taxation of Property Transactions (12 to 22%)

• Gift tax deductions
• Cost recovery
• Acquisition and disposition of assets
• Estate and gift taxation
• Determination of taxable estate
• Gift tax annual exclusion

Federal Taxation of Individuals (15 to 25%)

• Passive activity losses
• Alternative Minimum Tax
• Computation of tax and credits
• Computation of tax and credits
• Gross income
• Filing status
• Reporting items from pass-through entities

Federal Taxation of Entities (28 to 38%)

• Partnerships
• Tax-exempt organizations
• S corporations
• Liquidation of business entities & tax treatment of formation
• Trusts and estates
• C corporations
• Limited liability companies

3. Financial Accounting and Reporting (FAR)

Objectives covered by this section:

Standard-Setting, Conceptual Framework, and Financial Reporting (25 to 35%)

• Conceptual framework
• Standard setting for non-business entities
• Special purpose framework
• Public company reporting topics
• General-purpose financial statements
• Standard setting and conceptual framework for nonbusiness entities

Select Financial Statement Accounts (30 to 40%)

• Income taxes
• Property, plant, and equipment
• Investments
• Long-term debt
• Intangible assets
• Inventory
• Compensation benefits
• Cash and cash equivalents

Select Transactions (20 to 30%)

• Accounting changes and error corrections
• Research and development costs
• Differences between IFRS and U.S. GAAP
• Contingencies and commitments
• Software costs
• Subsequent events
• Foreign currency transaction and translation
• Fair value measurements
• Derivatives and hedge accounting
• Nonreciprocal transfers
• Leases
• Business combinations

State and Local Governments (5 to 15%)

• Comprehensive Annual Financial Report (CAFR)
• State and local government concepts
• Specific types of transactions and events: calculation, measurement, presentation in a governmental entity, and valuation
• Government-wide financial statements

4. Business Environment and Concepts (BEC)

Objectives covered by this section:

Corporate Governance (17 to 27%)

• ERM (Enterprise Risk Management) frameworks
• Regulatory frameworks and provisions
• Internal control frameworks

Economic Concepts and Analysis (17 to 27%)

• Economic business cycles
• Financial risk management
• Market influences on business

Financial Management (11 to 21%)

• Financial valuation methods
• Working capital
• Capital structure

Information Technology (15 to 25%)

• Processing integrity
• Information security/availability
• Systems development of maintenance
• Role of information technology business
• IT governance

Operations Management (15 to 25%)

• Performance management
• Planning techniques
• Process management
• Cost accounting

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.

For more info read reference:

Study Guide

Exam Contents

Exam process

FAQs and Guide

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:

• Regulation (REG)
• Financial Accounting and Reporting (FAR)
• Business Environment and Concepts (BEC)
• 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.

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