Having a lucrative career in the field of finance, accounting, and audit entails finishing a degree and of course, passing the board exam. The Certified Public Accountant (CPA) Exam is a necessary precursor to success in this profession. As preparation, you have to be aware first of the four different sections that make up the comprehensive examination. But don’t fret because you’ll be given a total of 14 hours to finish all four sections. By knowing the coverage of the test and studying smart (take note, smart NOT hard), you’ll surely be on your way towards acing that exam.
Here are the four different sections that comprise the CPA examination:
FINANCIAL ACCOUNTING AND REPORTING (FAR)
This section is one of the longest parts of the exam. It is composed of five categories namely, accounting and reporting for non-government and not-for-profit organizations, accounting and reporting for government entities, specific types of transactions and events, concepts and standards for financial statements, and typical items in financial statements. It is composed of 3 multiple choice tests and 7 task-based simulations. Don’t worry, you have four long hours to finish this part.
AUDITING AND ATTESTATION (AUD)
The Auditing and Attestation portion of the test is the longest. The time allotted for this is 4.5 hours and is made up 7 task-based simulations and 3 multiple choice tests. Topics under this category include planning the engagement, internal controls, obtaining and documenting information, review of engagement and evaluation of information, and preparing communications.
BUSINESS ENVIRONMENT AND CONCEPTS (BEC)
This is a three-hour exam that covers five categories: business structure, economic concepts, information technology, financial management, and planning and measurement. The allotted time for this part is 2.5 hours and it has three written simulations and three multiple choice tests.
Six topics make up the Regulation portion of the exam: ethics and professional responsibility, business law, federal tax procedures and accounting issues, federal taxation of property transactions, federal taxation for individuals, and federal taxation for entities. This section has 3 multiple choice tests and 6 task-based simulations, both must be finished in 3 hours.
The CPA Exam is one of the most, if not the most critical step in propelling oneself to a rewarding career in the financial industry. Being aware of the exam’s content is indeed the first step you can take towards getting that dream job of yours.