About the CPA Exam

Answer 1

Individuals interested in accounting and taxation careers can pursue the certified public accountant designation. To become a CPA, you must meet specific education and work requirements and pass the CPA exam. The CPA exam is a 14-hour test that contains four separate sections. You can choose to take all four parts in one sitting or take the parts one at a time. The four parts of the exam include Auditing and Attestation, Financial Accounting and Reporting, Regulation, and Business Environment and Concepts. The CPA exam includes multiple choice questions and simulation tasks. Individuals have an 18-month time frame to pass all four parts of the exam. Many CPA study guides are available to individuals to help prepare for the exam. If you fail a section of the exam, you are given the ability to retake the section.

Auditing and Attestation

CPA candidates are allowed four hours to take the Auditing and Attestation section. The topics that comprise this section are almost equally divided. The topics include internal control and risk assessment, planning the audit engagement, performing the audit, reviewing audit reports, professional responsibilities of auditors, and review and compilation services offered by public accounting firms.

Financial Accounting and Reporting

CPA candidates are given four hours to complete the Financial Accounting and Reporting section of the exam. This section covers generally accepted accounting principles, and financial accounting and reporting topics. Other topics covered include International Financial Reporting Standards and non-profit and governmental accounting rules.

Regulation

Three hours are given to candidates to complete the Regulation portion of the exam. Topics on federal tax law make up most of the Regulation section. Other topics covered include insurance, agency, and common law contracts. Property law, security law, and anti-trust topics are also covered.

Business Environment and Concepts

Individuals sitting for the Business Environment and Concepts section of the exam are given a maximum of three hours to complete the questions. This section of the exam tests an individual's knowledge of business structure, financial management, economic concepts, information technology, and business planning.