The Uniform CPA Examination, otherwise known as the CPA Exam, is the licensing exam for professionals seeking to become certified public accountants. It is developed and graded by the American Institute of Certified Public Accountants (AICPA) and administered in conjunction with the National Association of State Boards of Accountancy (NASBA).
What comprises the CPA Exam?
The CPA Exam is a four-part exam that tests entry-level accountants’ skills to practice public accounting. The exam contains four separate exams, referred to as sections. Testing time totals 16 hours, equal to four hours per section, and assessment occurs at the Prometric test center.
CPA Evolution
The CPA Exam has changed! Check out our resources to help you strategize for the new exam.
CPA Exam format
The exam includes three core sections which all candidates must take: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). Additionally, each candidate must choose one of three discipline exams to complete the CPA Examination: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP). The following question types appear on the CPA Exam:
Multiple-choice questions (MCQs)
- One-sentence to paragraph-length questions
- Four potential answers
- Candidates select the best response
Task-based simulations (TBS)
- Practical questions
- Require typed-in responses
- May include research questions, journal entries, form completions or account reconciliations
Each of the four exam sections is subdivided into five testlets that contain a variety of question types. Here is a breakdown of the questions found within each section of the test:
Core Sections
AUD
- Testlet 1: 39 MCQs
- Testlet 2: 39 MCQs
- Testlet 3: 2 TBS
- Testlet 4: 2 TBS
- Testlet 5: 3 TBS
FAR
- Testlet 1: 25 MCQs
- Testlet 2: 25 MCQs
- Testlet 3: 2 TBS
- Testlet 4: 2 TBS
- Testlet 5: 3 TBS
REG
- Testlet 1: 36 MCQs
- Testlet 2: 36 MCQs
- Testlet 3: 2 TBS
- Testlet 4: 2 TBS
- Testlet 5: 3 TBS
Discipline Sections
BAR
- Testlet 1: 25 MCQs
- Testlet 2: 25 MCQs
- Testlet 3: 2 TBS
- Testlet 4: 2 TBS
- Testlet 5: 3 TBS
ISC
- Testlet 1: 41 MCQs
- Testlet 2: 41 MCQs
- Testlet 3: 2 TBS
- Testlet 4: 2 TBS
- Testlet 5: 2 TBS
TCP
- Testlet 1: 34 MCQs
- Testlet 2: 34 MCQs
- Testlet 3: 2 TBS
- Testlet 4: 2 TBS
- Testlet 5: 3 TBS
CPA Exam scoring by section and question type
Core Sections
AUD
- 50% MCQs
- 50% Task-based simulations
FAR
- 50% MCQs
- 50% Task-based simulations
REG
- 50% MCQs
- 50% Task-based simulations
Discipline Sections
BAR
- 50% MCQs
- 50% Task-based simulations
ISC
- 60% MCQs
- 40% Task-based simulations
TCP
- 50% MCQs
- 50% Task-based simulations
CPA Exam skills tested by section
Core Sections
AUD
- 30-40% Remembering and understanding
- 30-40% Application
- 15-25% Analysis
- 5-15% Evaluation
FAR
- 5-15% Remembering and understanding
- 45-55% Application
- 35-45% Analysis
REG
- 25-35% Remembering and understanding
- 35-45% Application
- 25-35% Analysis
Discipline Sections
BAR
- 10-20% Remembering and understanding
- 45-55% Application
- 30-40% Analysis
ISC
- 55-65% Remembering and understanding
- 20-30% Application
- 10-20% Analysis
TCP
- 5-15% Remembering and understanding
- 55-65% Application
- 25-35% Analysis
CPA Exam content areas, topics and weightings by section
Core Sections
Auditing and Attestation (AUD)
AREA I: Ethics, professional responsibilities and general principles (15-25%)
- Ethics, independence and professional conduct
- Professional skepticism and professional judgment
- Nature and scope
- Terms of engagement
- Requirements for engagement documentation
- Communication with management and those charged with governance
- Audit and quality assurance
AREA II: Assessing risk and developing a planned response (25-35%)
- Planning an engagement
- Understanding an entity and its environment
- Understanding an entity’s control environment and business processes, including information technology (IT) systems
- Materiality
- Assessing and responding to risks of material misstatement, whether due to fraud or error
- Planning for and using the work of others
- Specific areas of engagement risk
AREA III: Performing further procedures and obtaining evidence (30-40%)
- Use of data and information
- Sufficient appropriate evidence
- Sampling techniques
- Procedures to obtain sufficient appropriate evidence
- Specific matters that require special consideration
- Misstatements and internal control deficiencies
- Written representations
- Subsequent events and subsequently discovered facts
AREA IV: Forming conclusions and reporting (10-20%)
- Reports on auditing engagements
- Reports on attestation engagements
- Accounting and review service engagements
- Reporting on compliance
- Other reporting considerations
Financial Accounting and Reporting (FAR)
AREA I: Financial Reporting (30-40%)
- General-purpose financial statements: for-profit business entities
- General-purpose financial statements: nongovernmental, not-for-profit business entities
- State and local government concepts
- Public company reporting topics
- Financial statement ratios and performance metrics
AREA II: Select balance sheet accounts (25-35%)
- Cash and cash equivalents
- Trade receivables
- Inventory
- Property, plant and equipment
- Investments
- Intangible assets
- Payables and accrued liabilities
- Debt (financial liabilities)
- Equity
AREA III : Select transactions (25-35%)
- Accounting changes and error corrections
- Contingencies and commitments
- Revenue recognition
- Accounting for income taxes
- Fair value measurements
- Lessee accounting
- Subsequent events
Taxation and Regulation (REG)
AREA I: Ethics, professional responsibilities and federal tax procedures (10-20%)
- Ethics and responsibilities in tax practice
- Licensing and disciplinary systems
- Federal tax procedures
- Legal duties and responsibilities
AREA II: Business law (10-20%)
- Agency
- Contracts
- Debtor-creditor relationships
- Federal laws and regulations (e.g., employment tax, qualified health plans, bankruptcy, worker classification and anti-bribery)
- Business structure
AREA III : Federal taxation of property transactions (5-15%)
- Basis of assets
- Cost recovery (depreciation and amortization)
AREA IV: Federal Taxation of Individuals (22-32%)
- Gross income (inclusions and exclusions)
- Reporting items from pass-through entities
- Adjustment and deductions to arrive at adjusted gross and taxable income
- Loss limitations
- Filing status
- Computation of tax and credits
AREA V: Federal Taxation of Entities (23-33%)
- Differences between book and tax income (loss)
- C corporations
- S corporations
- Partnerships
- Limited liability companies
- Tax-exempt organizations
Discipline Sections
Business Analysis and Reporting (BAR)
AREA I: Business Analysis (40-50%)
- Current period/historical analysis including the use of data
- Prospective analysis, including the use of data
AREA II: Technical accounting and reporting (35-45%)
- Indefinite-lived intangible assets, including goodwill
- Internally developed software
- Revenue recognition
- Stock compensation (share-based payments)
- Research and development costs
- Business combinations
- Consolidated financial statements
- Derivative and hedge accounting
- Leases
- Public company reporting topics
- Financial statements of employee benefit plans
AREA III : State and local governments (10-20%)
- Format and content of the financial section of the annual comprehensive financial report
- Deriving government-wide financial statements and reconciliation requirements
- Typical items and specific types of transactions and events: measurement, valuation, calculation and presentation in governmental entity financial statements
Information Systems and Controls (ISC)
AREA I: Information systems and data management (35-45%)
- Information systems
- Data management
AREA II: Security, confidentiality and privacy (35-45%)
- Regulations, standards and frameworks
- Security
- Confidentiality and privacy
- Incident response
AREA III : Considerations for Systems and Organization Controls (SOC) Engagements (15-25%)
- Considerations specific to planning and performing a SOC engagement
- Considerations specific to reporting on a SOC engagement
Tax Compliance and Planning (TCP)
AREA I: Tax compliance and planning for individuals and personal financial planning (30-40%)
- Individual compliance and tax planning considerations for gross income, adjusted gross income, taxable income and estimated taxes
- Compliance for passive activity and at-risk loss limitation (excluding tax credit implications)
- Gift taxation compliance and planning
- Personal financial planning for individuals
AREA II: Entity tax compliance (30-40%)
- C corporations
- S corporations
- Partnerships
- Trusts
- Tax-exempt organizations
AREA III : Entity tax planning (10-20%)
- Formation and liquidation of business entities
- Tax planning for C corporations
- Tax planning for S corporations
- Tax planning for partnerships
AREA IV : Property transactions (disposition of assets) (10-20%)
- Nontaxable disposition of assets
- Amount and character of gains and losses on asset disposition and netting process
- Related party transactions, including imputed interest