Reading Time: 11 mins | Publish Date: 12 Apr 2024 | Update Date: 18 Apr 2024
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. It is 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, course attendance, and self-study. CPA dumps are designed in such a way to make better preparatory material.
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:
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
- Business Environment and Concepts (BEC)
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. Different types of CPA practice tests are provided by different platforms.
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. Applicants may, however, clear the exam with the right concentration and the right preparation material. Certification-questions have the most up-to-date CPA practice dumps pdf, having a fair understanding of the question trend being asked in real certification with the help of these dumps.
How much Certified Public Accountant (CPA) Exam Cost
The cost of this exam differs according to the state of but roughly it costs around USD 200 per section and a total of around USD 800 for all four sections. Hover on to the official website of AICPA and choose your state for more pricing information. Other costs may also incur like buying the CPA dumps pdf and then practicing for the exam via the CPA exam tests.
Topics of Certified Public Accountant (CPA) Exam
The CPA Exam 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 test 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
- Entity’s internal control
- Planning an engagement
- Assessing and identifying the risk of material misstatement
- Materiality
- Specific areas of engagement risk
Professional Responsibilities, Ethics & General Principles (15 to 25%)
- Nature and scope
- Engagement documentation
- Ethics and professional conduct
- Communication with management
- Communication with component auditors
- A firm’s system of quality control
Obtaining Evidence & Performing Further Procedures (30 to 40%)
- Sampling techniques
- Acquisition and disposition of assets
- Internal control deficiencies and misstatements
- Performing specific procedures to get evidence
- Subsequent events
- Written representation
Reporting and Forming Conclusions (15 to 25%)
- Reports on attestation engagements
- Reporting on compliance
- Reports on auditing engagements
- Review service engagements
- Other reporting considerations
2. Regulation (REG)
Objectives covered by this section:
Federal Tax Procedures, Professional Responsibilities, and Ethics (10 to 20%)
- Federal tax procedures
- Responsibilities in tax practice
- Legal duties
- Licensing and disciplinary systems
Business Law (10 to 20%)
- Contracts
- Business structure
- Agency
- Government regulation of business
- Debtor-creditor relationships
Federal Taxation of Property Transactions (12 to 22%)
- Estate and gift taxation
- Determination of taxable estate
- Acquisition and disposition of assets
- Gift tax deductions
- Gift tax annual exclusion
- Cost recovery
Federal Taxation of Individuals (15 to 25%)
- Passive activity losses
- Computation of tax and credits
- Gross income
- Filing status
- Reporting items from pass-through entities
- Alternative Minimum Tax
- Computation of tax and credits
Federal Taxation of Entities (28 to 38%)
- S corporations
- C corporations
- Liquidation of business entities & tax treatment of formation
- Trusts and estates
- Limited liability companies
- Partnerships
- Tax-exempt organizations
3. Financial Accounting and Reporting (FAR)
Objectives covered by this section:
Standard-Setting, Conceptual Framework, and Financial Reporting (25 to 35%)
- Public company reporting topics
- Standard setting for non-business entities
- Conceptual framework
- Special purpose framework
- Standard setting and conceptual framework for nonbusiness entities
- General-purpose financial statements
Select Financial Statement Accounts (30 to 40%)
- Property, plant, and equipment
- Cash and cash equivalents
- Intangible assets
- Investments
- Long-term debt
- Income taxes
- Compensation benefits
- Inventory
Select Transactions (20 to 30%)
- Business combinations
- Derivatives and hedge accounting
- Leases
- Research and development costs
- Subsequent events
- Differences between IFRS and U.S. GAAP
- Accounting changes and error corrections
- Contingencies and commitments
- Foreign currency transaction and translation
- Nonreciprocal transfers
- Software costs
- Fair value measurements
State and Local Governments (5 to 15%)
- Comprehensive Annual Financial Report (CAFR)
- Specific types of transactions and events: calculation, measurement, presentation in a governmental entity, and valuation
- State and local government concepts
- 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
- Internal control frameworks
- Regulatory frameworks and provisions
Economic Concepts and Analysis (17 to 27%)
- Market influences on business
- Economic business cycles
- Financial risk management
Financial Management (11 to 21%)
- Working capital
- Capital structure
- Financial valuation methods
Information Technology (15 to 25%)
- Information security/availability
- IT governance
- Role of information technology business
- Processing integrity
- Systems development of maintenance
Operations Management (15 to 25%)
- Cost accounting
- Planning techniques
- Performance management
- Process management
Who should take the Certified Public Accountant (CPA) Exam
To have a CPA designation, many businesses prefer their accountants. Applicants winning their CPA title will find themselves more hirable and will be better paid. People who wish to become business accountants and explore its dynamic culture to jump-start their certification and lifelong learning goals should take this exam. To become eligible for the exam, a candidate must have completed a 120 program approved by NYSED. Also, they must have completed their bachelor’s degree with accounting as their major. After all sorts of study, test your understanding by taking the CPA practice tests. Hover on to AICPA’s Website and take a look at study materials provided for the exam.
How to study the Certified Public Accountant (CPA) Exam
To study for the Certified Public Accountant (CPA) Exam, use the exam blueprints and study resources by accessing the links at the bottom of this document. Use the material on the internet to learn all the exam contents in detail and then take the practice sample tests through the AICPA website. The “Help” button on each sample test provides a link to tutorial topics that can be further used to gain more in-depth knowledge. Students are highly encouraged to join AICPA’s Certification community where they can join students from all over the world and learn together. CPA exam dumps are highly recommended for candidates as they are the best study materials. For further exam self-study materials, refer to the links down below.
As always, We recommend a combination of hands-on experience, completion of the training course, and self-study in the areas described in the Exam Outline section of this exam guide as preparation for this exam. Check for the topics mentioned in the Exam Outline section of this guide to review the online documentation, tip sheets, and user guides and study the details relevant to those topics. Refer to the links at the end of this document for more study material.
How to book the Certified Public Accountant (CPA) Exam
Follow the steps mentioned below to book the Certified Public Accountant (CPA) Exam:
- Step 1: Determine your eligibility from the NASBA website by clicking here
- Step 2: Select a jurisdiction where you want to become a licensed CPA
- Step 3: Access the application by clicking here
- Step 4: Complete the application and submit all required documents
- Step 5: Schedule your exam by following this link
What is the duration, language, and format of the Certified Public Accountant (CPA) Exam
- Duration of Exam: 16 hours of total
- Passing score: 75 for each section
- Format: Multiple choice, Task-based, communication tasks
- Language of Exam: English
The benefit of obtaining the Certified Public Accountant (CPA) Exam Certification
Many accountants joining the profession are curious about the advantages of being a certified public accountant (CPA) so that they can determine if the time and energy to undertake this achievement are worth devoting. The certification process may undoubtedly be rigorous and difficult, but for those employed in industry or finance, success offers some notable advantages. In the US, several states have their board that regulates the certification in their jurisdiction of public accountants.
The qualification process helps both new and seasoned accountants to test their qualifications, develop their abilities, and enhance their understanding of the overall discipline. Via their local state board, prospective applicants can learn more about the licensing process specifics and visit the NASBA website for information about the standardized CPA test. The growing demand for CPAs across the job market is motivated by many factors, so the trend is likely to continue soon. Accountants winning their CPA earn 10 percent more on average than non-CPA colleagues and have more chances to grow their careers. In job searching, being a CPA can also be a big boon as it shows professional dedication and makes the candidate stand out from others. Among several other specialist fields, CPA certification demonstrates qualification for auditing, business strategy, bookkeeping, and forensic accounting. Becoming accredited opens the doors to hundreds of various career paths and is essential for foreign positions in particular.
Difficulty in Writing Certified Public Accountant (CPA) Exam
In the accounting industry, any aspiring accountant who wants to sit for the CPA Exam must have significant post-secondary education. For most test managers, a bachelor’s degree from an accredited institution used to be enough.
However, today’s developments in accounting technology and new compliance laws mean that in addition to 30 hours of graduate education, the AICPA has changed the educational requirement to include 120 semester hours in a bachelor’s degree accounting program. In most US nations, these standards are implemented. As a result, a master’s degree in the field or a similar industry is required for most aspiring accountants wanting to take this exam.
One of the key problems faced by most candidates is to choose the right research materials for their exam preparation since they use the internet to find too much data that makes it difficult for them to trust, which would be helpful for them. Certified Public Accountant (CPA) Exam is not an easier one and can turn out to be a very difficult certification if not well prepared. We always recommend studying the CPA practice dumps and then before actually appearing for the exam take the CPA practice tests. For all of the changes in the course, the CPA experts check certification-questions. Certification-questions also include practice testing, which proves to be an outstanding forum for testing the information gained. Refer to the links down below to access the study materials.