Certified Public Accountant (CPA) has become a popular choice for a professional career. No wonder, there is plenty of information available on the internet as CPA tutorials, but not all give a significant idea about the examination.

Individuals seeking to become Certified Public Accountants (CPAs) in the United States have to take an extensive and challenging exam. The exam is based on comprehensive topics in the finance and accounting realm covering auditing, taxation, financial reporting and regulation.

The CPA exam is managed by the National Association of State Boards of Accountancy (NASBA). Candidates looking forward to sitting for the exam need to meet certain criteria for education and experience, set by their selected state board of accountancy.

Read the blog to learn more about the exam pattern and other essential facts.

CPA Exam Pattern and Content

The CPA exam is computer-based and is divided into four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). The total exam duration is 16 hours with each section of 4 hours.

The AUD section is based on auditing methods, standards, and the auditor’s responsibilities. The major topics include planning and executing audits, gathering and documenting information, and making opinions and conclusions.

The BEC section includes the economic, legal, and regulatory environment of the organization, as well as topics related to corporate governance, business strategy, and information technology.

The FAR section is about financial reporting as well as the accounting principles and processes that are utilized to create financial statements. The balance sheet, income statement, and cash flow statement, along with accounting and financial reporting concepts, are all topics covered in this section.

The REG section includes federal taxation, ethics and professional duties, and corporate law. The topics are tax law and tax planning, ethical concerns for accountants and legal principles and issues related to corporate operations.

Scoring and Passing the Exam

The CPA exam is graded on a scale of 0 to 99, with 75 being the passing score. Scores are released almost two weeks after the end of each testing window. If a candidate fails a section of the exam, they can retake the exam for that section after a specified waiting time.

CPA Exam Preparation and Study Materials

CPA exam preparation is vital since it is known for its difficulty and extensive syllabus, including accounting and financial topics. Candidates can prepare through different CPA tutoring courses that provide comprehensive study materials, mock tests and other tools to assist in preparation. There are many review courses available, both online and in-person, that provide full coverage of exam topics as well as strategies to pass the exam.

It is also critical to know that in order to become a CPA, individuals must meet specific work experience requirements in addition to passing the CPA exam. These requirements differ by state but often involve working for a specified number of years in public accounting or a related field under the supervision of a certified CPA.

Bottom Line!!

The CPA exam is difficult for a reason. This profession involves a lot of responsibilities and vast knowledge. And, the CPA exam is to evaluate the candidate’s acquaintance with accounting, finance, and related subjects.

However, when you are preparing for the exam with strong determination and commitment, you can surely pass and become a licensed CPA. To obtain relevant resources and prepare well for the exam, you can sign up for Andrew Katz Tutoring. Andrew Katz is the best CPA tutor who offers personalized “gold standard” assistance to help students achieve success.