subject: Understanding the CPA Exam Increases Passing Chances [print this page] Understanding the CPA Exam Increases Passing Chances
For people who want to become a licensed Certified Public Accountant, the first step we need to undergo is taking the Uniform CPA Exam. This is perhaps the most challenging requisite, after we have completed all educational and work requirements.
Certified Public Accountant - The CPA Exam, entails questions on accounting, business and regulations; divided into 4 parts: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting; and Regulation.
A thorough understanding of each of the four parts and their coverage will help exam-takers to fully prepare for the tests, checking out relevant materials for reviews.
Certified Public Accountant - The CPA Exam
Auditing and Attestation
This part of the CPA Exam covers auditing procedures and standards, testing the CPA candidate's skills when it comes to attesting engagements and skills in order to satisfactorily apply the candidate?s know-how in the following areas:
- Planning the engagement
- Internal controls
- Obtaining and documenting relevant information
- Reviewing of engagement and assessment of information
- Preparing the necessary communications
Multiple-choice tests cover 70% of the AUD exam, and the remaining 30% is based on two simulation tests.
Financial Accounting and Reporting
FAR covers the candidate's knowledge and skills pertaining to accounting principles used in businesses, non-profit organizations and government offices. This includes the following:
- Financial statements: concepts and standards
- Basic items included in these FS
- Types of transactions and events
- Accounting and reporting for government offices
- Accounting and reporting for other businesses and non-profit organizations
This section for the Certified Public Accountant - The CPA Exam likewise has the same breakdown as that of the AUD test; with 70% of the test in multiple choice and 30% in simulation.
Regulation
REG covers federal taxation, ethics, professional responsibilities including the legal aspect; and business regulations. REG includes the following:
- Ethics and professional responsibility
- Business laws or regulations
- Federal tax processes including accounting issues
- Federal taxation on property deals
- Federal taxation on individuals
- Federal taxation on entities
Likewise, this part of the Certified Public Accountant - The CPA Exam has three multiple-choice tests comprising 70% of the FAR exams and 30% covered in two simulation tests.
Business Environment and Concepts
Finally, for the Certified Public Accountant - The CPA Exam BEC section, candidates will be tested on knowledge and skills pertaining to general business environment and concepts in relation accounting and business dealings.
BEC covers the following areas:
- Business structure
- Economic concepts
- Financial Management
- Information Technology or IT
- Planning and measurement
Unlike with the other three inclusions in Certified Public Accountant - The CPA Exam, BEC is 100% multiple choice, divided into three sections.
The CPA Exams are given during specific testing windows each year, and each window allows exam-takers to take all parts of the exam in one sitting or one part at a time, provided these are all to be taken within the same testing window.
Typically, there six days per week for the exam schedules; within each window. These testing windows are January and February, April and May, July and August; and October and November.
