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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%)
- Specific areas of engagement risk
- Debtor-creditor relationships
- Planning an engagement
- Assessing and identifying the risk of material misstatement
- Materiality
- Entity's internal control
Professional Responsibilities, Ethics & General Principles (15 to 25%)
- Communication with component auditors
- Engagement documentation
- A firm's system of quality control
- Ethics and professional conduct
- Communication with management
- Nature and scope
Obtaining Evidence & Performing Further Procedures (30 to 40%)
- Acquisition and disposition of assets
- Subsequent events
- Internal control deficiencies and misstatements
- Written representation
- Sampling techniques
- Performing specific procedures to get evidence
Reporting and Forming Conclusions (15 to 25%)
- Review service engagements
- Other reporting considerations
- Reports on auditing engagements
- Reporting on compliance
- Reports on attestation engagements
2. Regulation (REG)
Objectives covered by this section:
Federal Tax Procedures, Professional Responsibilities, and Ethics (10 to 20%)
- Federal tax procedures
- Licensing and disciplinary systems
- Legal duties
- Responsibilities in tax practice
Business Law (10 to 20%)
- Contracts
- Agency
- Debtor-creditor relationships
- Business structure
- Government regulation of business
Federal Taxation of Property Transactions (12 to 22%)
- Gift tax deductions
- Acquisition and disposition of assets
- Determination of taxable estate
- Cost recovery
- Gift tax annual exclusion
- Estate and gift taxation
Federal Taxation of Individuals (15 to 25%)
- Computation of tax and credits
- Computation of tax and credits
- Gross income
- Filing status
- Reporting items from pass-through entities
- Passive activity losses
- Alternative Minimum Tax
Federal Taxation of Entities (28 to 38%)
- Trusts and estates
- Limited liability companies
- S corporations
- Tax-exempt organizations
- Partnerships
- C corporations
- Liquidation of business entities & tax treatment of formation
3. Financial Accounting and Reporting (FAR)
Objectives covered by this section:
Standard-Setting, Conceptual Framework, and Financial Reporting (25 to 35%)
- General-purpose financial statements
- Conceptual framework
- Special purpose framework
- Standard setting for non-business entities
- Public company reporting topics
- Standard setting and conceptual framework for nonbusiness entities
Select Financial Statement Accounts (30 to 40%)
- Investments
- Income taxes
- Property, plant, and equipment
- Long-term debt
- Intangible assets
- Inventory
- Compensation benefits
- Cash and cash equivalents
Select Transactions (20 to 30%)
- Differences between IFRS and U.S. GAAP
- Subsequent events
- Software costs
- Nonreciprocal transfers
- Foreign currency transaction and translation
- Derivatives and hedge accounting
- Accounting changes and error corrections
- Research and development costs
- Fair value measurements
- Leases
- Contingencies and commitments
- Business combinations
State and Local Governments (5 to 15%)
- Specific types of transactions and events: calculation, measurement, presentation in a governmental entity, and valuation
- State and local government concepts
- Comprehensive Annual Financial Report (CAFR)
- Government-wide financial statements
4. Business Environment and Concepts (BEC)
Objectives covered by this section:
Corporate Governance (17 to 27%)
- Regulatory frameworks and provisions
- ERM (Enterprise Risk Management) frameworks
- Internal control frameworks
Economic Concepts and Analysis (17 to 27%)
- Market influences on business
- Economic business cycles
- Financial risk management
Financial Management (11 to 21%)
- Capital structure
- Financial valuation methods
- Working capital
Information Technology (15 to 25%)
- Processing integrity
- Systems development of maintenance
- Information security/availability
- IT governance
- Role of information technology business
Operations Management (15 to 25%)
- Performance management
- Cost accounting
- Planning techniques
- Process management
What is the duration, language, and format of the Certified Public Accountant (CPA) Exam
- Passing score: 75 for each section
- Duration of Exam: 16 hours of total
- Language of Exam: English
- Format: Multiple choice, Task-based, communication tasks
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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 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, prepare from the CPA exam dumps and submit all required documents
- Step 5: Schedule your exam by following this link
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