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A CPA Exam, or a Certified Public Accountant Examination, is a comprehensive professional examination that individuals pass to qualify for a CPA license.
A CPA (Certified Public Accountant) is a recognized expert in the field of accounting, with a deep understanding of accounting, tax laws, and financial reporting.
The CPA Exam is administered by the American Institute of CPAs (AICPA) and is used as a prerequisite for obtaining a CPA license. The exam is also recognized and accepted in several countries and jurisdictions.
The CPA Exam consists of four sections:
- Auditing and Attestation (AUD) covers auditing practices and standards, as well as the skills needed to attest to the fairness of a company’s financial statements
- Business Environment and Concepts (BEC) tests knowledge of general business concepts, such as economics, corporate governance, and information technology, as they relate to the accounting profession
- Financial Accounting and Reporting (FAR) covers the application of generally accepted accounting principles (GAAP) in the preparation of financial statements for various types of business entities
- Regulation (REG) focuses on federal taxation, ethics, professional responsibilities, and business law relevant to the accounting profession
In addition to passing the CPA Exam, individuals must also meet educational and experience requirements set by their state board of accountancy to obtain a CPA license:
- Earn a bachelor’s degree or higher in accounting or a related field
- Complete a specified number of hours of professional experience under the supervision of a licensed CPA
NOTE
CPAs work in various fields, such as public accounting, corporate accounting, government accounting, tax consulting, and forensic accounting.
Frequently asked questions
How difficult is the CPA Exam?
The CPA Exam is regarded as one of the most challenging professional examinations — the pass rates for the exam sections typically range from 45% to 60%.
The exam covers a broad range of topics in accounting, auditing, taxation, and business concepts, and requires a deep understanding of these subjects.
How much does it cost to become a CPA?
The cost of becoming a CPA includes exam fees, study materials and application fees.
The application fee varies by state, ranging from $50 to $200. The fee to take each exam section varies as well, and it’s approximately $800 for all four sections.