Before you even start studying for the CPA exam, it’s crucial to understand the structure and format of the exam itself. How are you going to prep for the exam if you don’t even know how it’s formatted?
You can’t. That’s why in this article, we’ll dive into the structure of the CPA Exam, so you can navigate through the parts and better prepare for this challenging test.
Contents
CPA Exam Structure Overview
The CPA Exam is divided into four sections, each designed to test a different aspect of accounting knowledge and skills. The sections include:
- Auditing and Attestation (AUD)
- Business Environment and Concepts (BEC)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
Each section is administered separately and candidates have the flexibility to choose the order in which they take them. However, all four sections must be completed within an 18-month rolling window to successfully pass the CPA Exam.
Auditing and Attestation (AUD)
- Duration: 4 hours
- Question Types: Multiple Choice Questions (MCQs), Task-Based Simulations (TBS)
- Number of Questions: 72 MCQs and 8 TBS
- Content Areas: Ethics, Professional Responsibilities and General Principles; Assessing Risk and Developing a Planned Response; Performing Further Procedures and Obtaining Evidence; Forming Conclusions and Reporting
- Score Weight: 50% MCQs, 50% TBS
AUD focuses on your ability to audit, attest, and apply those skills in real-life scenarios.
Business Environment and Concepts (BEC)
- Duration: 4 hours
- Question Types: MCQs, TBS, Written Communication Tasks
- Number of Questions: 62 MCQs, 4 TBS, and 3 Written Communication Tasks
- Content Areas: Corporate Governance; Economic Concepts and Analysis; Financial Management; Information Technology; Operations Management
- Score Weight: 50% MCQs, 35% TBS, 15% Written Communication
BEC tests your understanding of business concepts and the importance of a CPA’s professional duties and responsibilities within the business environment.
Financial Accounting and Reporting (FAR)
- Duration: 4 hours
- Question Types: MCQs, TBS
- Number of Questions: 66 MCQs and 8 TBS
- Content Areas: Conceptual Framework, Standard-Setting and Financial Reporting; Select Financial Statement Accounts; Select Transactions; State and Local Governments
- Score Weight: 50% MCQs, 50% TBS
FAR assesses your knowledge and skills in applying financial accounting and reporting standards for business enterprises, not-for-profit organizations, and government entities.
Regulation (REG)
- Duration: 4 hours
- Question Types: MCQs, TBS
- Number of Questions: 76 MCQs and 8 TBS
- Content Areas: Ethics, Professional Responsibilities and Federal Tax Procedures; Business Law; Federal Taxation of Property Transactions; Federal Taxation of Individuals; Federal Taxation of Entities
- Score Weight: 50% MCQs, 50% TBS
REG evaluates your understanding of taxation, business law, and the professional and ethical responsibilities of tax practitioners.
Additional Information
- Adaptive Testing: The CPA Exam utilizes adaptive testing in the MCQ sections, meaning the difficulty of the questions adapts based on your performance.
- Breaks: There is a standard 15-minute break during each section, which does not count against your exam time.
- Scoring: Each section of the CPA Exam is scored on a scale from 0 to 99, with a passing score being 75.
CPA Exam Duration and Format
The CPA Exam is a computer-based test, and each of the four sections is 4 hours long, totaling 16 hours of testing time. The exam is administered at Prometric test centers, providing a consistent and secure testing environment.
Question Types and Allocation
The CPA Exam consists of three main types of questions:
- Multiple Choice Questions (MCQs)
- Task-Based Simulations (TBS)
- Written Communication Tasks (only in BEC)
The distribution of these question types varies across the four sections of the exam. Generally, MCQs make up a significant portion of each section, followed by TBS, with Written Communication tasks exclusive to the BEC section.
Scoring and Weights
The CPA Exam is scored on a scale of 0 to 99, with a passing score of 75 required for each section. The scoring takes into account the difficulty of the questions and the candidate’s performance. The weightage of each question type also varies across sections:
- AUD: 50% MCQs, 50% TBS
- BEC: 50% MCQs, 35% TBS, 15% Written Communication
- FAR: 50% MCQs, 50% TBS
- REG: 50% MCQs, 50% TBS
Testing Windows and Availability
The CPA Exam is offered during designated testing windows throughout the year, with each window lasting two months followed by a month off. This provides candidates with the flexibility to schedule their exams based on their preparation and availability.
Preparation and Study Strategies for the CPA Exam
Understanding the structure of the CPA Exam is crucial for effective preparation. Candidates should allocate their study time based on the weightage of each section and question type, focusing on areas where they can maximize their score.
Use Review Courses
Many candidates opt for CPA review courses to guide them through their preparation. These courses provide structured study materials, practice questions, and simulations that mimic the actual exam, helping candidates to become familiar with the exam structure and format.
Practice and Simulations
Practicing with exam simulations is a vital part of preparation, as it helps candidates to understand the timing, navigation, and types of questions they will encounter on the actual exam.
Time Management
Effective time management is crucial during the exam. Candidates should practice pacing themselves through each section, ensuring they have enough time to answer all questions and review their responses.
Continuous Learning and Adaptation
The accounting profession is ever-evolving, and the CPA Exam reflects these changes. Candidates should stay updated on any changes to the exam structure, content, and policies to ensure they are well-prepared on exam day.
Frequently Asked Questions
How many sections are there in the CPA Exam?
The CPA Exam consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG).
What types of questions are included in the CPA Exam?
The CPA Exam includes Multiple Choice Questions (MCQs), Task-Based Simulations (TBS), and Written Communication Tasks (only in the BEC section).
How is the CPA Exam scored?
The CPA Exam is scored on a scale of 0 to 99, with a passing score of 75 required for each section. The scoring considers the difficulty of the questions and the candidate’s performance.
Can I take the sections of the CPA Exam in any order?
Yes, candidates have the flexibility to choose the order in which they take the sections of the CPA Exam, but all four sections must be completed within an 18-month rolling window to pass the exam.
By thoroughly understanding the structure of the CPA Exam, candidates can better plan their preparation, navigate the testing process with confidence, and increase their chances of success in achieving the coveted CPA designation.