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What is the duration, language, and format of the Certified Public Accountant (CPA) Exam

• Passing score: 75 for each section
• Language of Exam: English
• Format: Multiple choice, Task-based, communication tasks
• Duration of Exam: 16 hours of total

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%)

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

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

• Communication with management
• Engagement documentation
• 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
• Written representation
• Acquisition and disposition of assets
• Sampling techniques
• Performing specific procedures to get evidence
• Subsequent events

Reporting and Forming Conclusions (15 to 25%)

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

2. Regulation (REG)

Objectives covered by this section:

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

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

Business Law (10 to 20%)

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

Federal Taxation of Property Transactions (12 to 22%)

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

Federal Taxation of Individuals (15 to 25%)

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

Federal Taxation of Entities (28 to 38%)

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

3. Financial Accounting and Reporting (FAR)

Objectives covered by this section:

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

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

Select Financial Statement Accounts (30 to 40%)

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

Select Transactions (20 to 30%)

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

State and Local Governments (5 to 15%)

• State and local government concepts
• Comprehensive Annual Financial Report (CAFR)
• 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%)

• 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%)

• Working capital
• Capital structure
• Financial valuation methods

Information Technology (15 to 25%)

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

Operations Management (15 to 25%)

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

CPA AA Exam Overview:

CPA AA Exam Syllabus Topics: