The CPA Exam and Requirements. Adapted and modified from material originally created by David Reinus.
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1 The CPA Exam and Requirements Adapted and modified from material originally created by David Reinus.
2 An extra $1,024,870 with a CPA license.
3 Education Exam Experience Every state is unique
4 Step 5 Step 4 Schedule exam Step 3 Receive Notice-to-Schedule (NTS) Step 2 Pay fees (within 90 days of receiving Payment Coupon) Step 1 Apply for exam (Set up CBA Client Account at Send college transcripts to the California Board of Accountancy (CBA)
5 Educational Requirements To Sit for CPA Exam To be Licensed Baccalaureate Degree Yes Yes Unit Requirements 24 accounting units 24 business units 120 total units 30 accounting units 38 business units 10 ethics units (3 in accounting) 150 total units
6 CPA Requirements CSUN Accounting Units BUS Related Units 38 Over 40 Ethics Units 10 10
7 CPA Ethics Requirement RS units PHIL 305 or BLAW units ACCT unit Accounting Ethics Course 3 units** 10 units ** CSUN Santa Monica College Pasadena College Glendale College UCLA Extension
8 A test drive is available. 1 st Qtr Window JAN OPEN FEB OPEN MAR CLOSED* 2 nd Qtr Window APR OPEN MAY OPEN JUN CLOSED* 3 rd Qtr Window JUL OPEN AUG OPEN SEP CLOSED* 4 th Qtr Window OCT OPEN NOV OPEN DEC CLOSED* * The first 10 days of the closed months are available.
9 Financial Accounting and Reporting (FAR) Auditing and Attestation (AUD) Regulation (REG) Business Environment and Concepts (BEC)
10 Auditing & Attestation $ Financial Accounting & Reporting Business Environment & Concepts Regulation $ Application (first-time, $50 re-app) Total $873.80
11 NTS is good for 9 months. Candidates may sit for each section individually and in any order. Section(s) not passed cannot be taken within the same (3-month) window. Must pass all four sections within a rolling 18- month period.
12 Rolling 18-Month Period x x x x 1 18 Months Required x x x x x x x x 2 x 1 x 1 18
13
14 Exam Part Financial (FAR) Audit (AUD) Regulation (REG) Business (BEC) Time 4 hours 4 hours 4 hours 4 hours Total = 16 hours
15 The exam focuses on higher order skills. Remembering and Understanding
16 For details about each topic and task for the CPA exam, see the blueprints at
17 Conceptual Framework, Standard-Setting and Financial Reporting 25-35% Select Financial Statement Accounts 30-40% Select Transactions 20-30% State and Local Governments 5-15%
18 50% 50% TESTLET 1: MULTIPLE CHOICE TESTLET 2: MULTIPLE CHOICE TESTLET 3: TASK-BASED SIMULATION TESTLET 4: TASK-BASED SIMULATION TESTLET 5: TASK-BASED SIMULATION Two multiple-choice question (MCQ) testlets contain 66 questions. Three testlets containing 8 task-based simulations (TBS); research question and document review simulation included.
19 Ethics, Professional Responsibilities and General Principles 15-25% Assessing Risk and Developing a Planned Response 20-30% Performing Further Procedures and Obtaining Evidence 30-40% Forming Conclusions and Reporting 15-25%
20 50% 50% TESTLET 1: MULTIPLE CHOICE TESTLET 2: MULTIPLE CHOICE TESTLET 3: TASK-BASED SIMULATION TESTLET 4: TASK-BASED SIMULATION TESTLET 5: TASK-BASED SIMULATION Two multiple-choice question (MCQ) testlets contain 72 questions. Three testlets containing 8 task-based simulations (TBS); research question and document review simulation included.
21 Ethics, Professional Responsibilities and Federal Tax Procedures 10-20% Business Law 10-20% Federal Taxation of Property Transactions 12-22% Federal Taxation of Individuals 15-25% Federal Taxation of Entities 28-38%
22 50% 50% TESTLET 1: MULTIPLE CHOICE TESTLET 2: MULTIPLE CHOICE TESTLET 3: TASK-BASED SIMULATION TESTLET 4: TASK-BASED SIMULATION TESTLET 5: TASK-BASED SIMULATION Two multiple-choice question (MCQ) testlets contain 76 questions. Three testlets containing 8 task-based simulations (TBS); research question and document review simulation included.
23 Corporate Governance 17-27% Financial Management 11-21% Economic Concepts and Analysis 17-27% Operations Management 15-25% Information Technology 15-25%
24 50% 35% 15% TESTLET 1: MULTIPLE CHOICE TESTLET 2: MULTIPLE CHOICE TESTLET 3: TASK-BASED SIMULATION TESTLET 4: TASK-BASED SIMULATION TESTLET 5: WRITTEN COMMUNICATION Two multiple-choice question (MCQ) testlets contain 62 questions. Two testlets containing 4 task-based simulations (TBS). One testlet containing 3 written communications.
25
26
27 Accounting Experience 1 year in a CPA firm (public accounting) or 1 year in a non-cpa firm (private accounting or government) in the accounting function and under the direct supervision of a CPA. Auditing/Attest Experience (Optional) 500 hours Only required if authority to sign audit/attest reports is desired.
28 Section 2017 YTD AUD 43.47% 45.86% 47.28% 46.35% 45.87% BEC 50.39% 55.41% 56.48% 55.46% 55.83% FAR 43.14% 45.55% 46.75% 47.60% 48.32% REG 46.10% 48.45% 49.43% 49.41% 48.48%
29
30 A passing score is 75 ~Psychometrics & Psychometricians~ The MCQ testlets have two levels of difficulty medium and difficult. The questions are weighted on the level of difficulty. The difficult questions receive more points in reaching 75.
31 Testlet 1 Medium Weak Performance Testlet 2 Medium
32 Testlet 1 Medium Testlet 2 Difficult
33 ~ Recommended ~ The California Board of Accountancy Uniform CPA Examination Handbook at
34 50 multiple choice questions 90% score required 300-page self-study course 3 attempts One year to pass $150 ($125 if member of CalCPA) Membership in CalCPA is free for students and for one year while taking the CPA exam.
35 CPA Review Courses Benefits Use your study time more efficiently. Learn strategies for taking the exam. Practice task-based simulations. Keeps you disciplined and organized. Most efficient way to review what you ve already learned. Increases probability of passing. Immediate feedback from practice exams. Practice navigating the computer screen and simulations.
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