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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.
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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:
- Financial Accounting and Reporting (FAR)
- Auditing and Attestation (AUD)
- Business Environment and Concepts (BEC)
- Regulation (REG)
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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CPA AA Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Assurance and Related Services | 5% | - Other assurance engagements and non-audit services |
| Review, Completion and Reporting | 20% | - Evaluation of misstatements and review of work - Audit reports, modifications and other communications - Going concern, subsequent events and written representations |
| Performing Audit Procedures and Gathering Evidence | 30% | - Tests of controls and substantive procedures - Audit evidence, sampling and documentation - CIS auditing and computer-assisted audit techniques |
| Accepting and Planning Audit Engagements | 25% | - Risk assessment, materiality and audit strategy - Pre-conditions, client acceptance and engagement terms - Understanding entity and internal control systems |
| Legal, Ethical and Regulatory Environment | 20% | - Ethics, independence, professional skepticism and quality control - Anti-money laundering, fraud and corporate governance - Regulatory framework including Companies Act 2014 |
