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The CPA is a globally recognized designation, administered by the American Institute of Certified Public Accountants or the AICPA, by taking the Uniform CPA Examination. In India, a Chartered Accountant or CA designation is equivalent to a CPA. The CPA certification is one of the highest standards of competence in accountancy and is a highly sought-after and versatile credential for accountants.
To become a CPA-certified professional, an individual must have the prerequisite education and experience, preferably with accounting courses. In the US, every state has its CPA exam prerequisites; Indians may choose any state they want for enrolling in the examination. Some standard eligibility criteria, however, are as follows:
The CPA Exam is a four-hour-long examination divided into four subdivisions. These subdivisions assess the skills and knowledge of individuals appearing for the examination. An individual taking the examination must finish all sections within the 18-month testing window, that is, to clear all four subdivisions within a frame of 18-months. The candidate can take up any division in any order during one open testing window.
The candidate can take any number of exams during the same window, but they cannot take the same section twice in one testing window. If a candidate fails one part of the exam, the candidate would not be able to retake that division until the next testing window opens. Every sub-division of the CPA exam has a time limit of 4 hours.
The CPA Syllabus and sections for each of the sections are listed below:
There are three sub-sections in the CPA examination for sub-divisional subjects or areas of study. These sub-sections are categorized as testlets. The testlets are further categorized into MCQ, task-based simulations, and written communication. More importance has been given to task-based simulations from the past few years. MCQs are weighted evenly along with simulations except on BEC. The AICPA has also divided the grade weightage to each topic/section under these tests:
| No. | Section | AUD | BEC | FAR | REG |
| 1 | Multiple-Choice Questions (MCQs) | 50% | 50% | 50% | 50% |
| 2 | Task-Based Simulations (TBSs) | 50% | 35% | 50% | 50% |
| 3 | Written Communication Tasks | N/A | 15% | N/A | N/A |
The CPA exam tests skills in a variety of evaluation methods and its coherent percentage weightage allotted generally by the authorities
| No. | Section | Remembering & Understanding | Application | Analysis | Evaluation |
| 1 | AUD | 25–35% | 30–40% | 20–30% | 5–15% |
| 2 | BEC | 15–25% | 50–60%* | 20–30% | — |
| 3 | FAR | 10–20% | 50–60% | 25–35% | — |
| 4 | REG | 25–35% | 35–45% | 25–35% | — |
*Includes written communication
| No. | AUD Content | Subject | Allocation % |
| 1 | Area I | Ethics, Professional Responsibilities, and General Principles | 15-25 |
| 2 | Area II | Assessing Risk and Developing a Planned Response | 25-35 |
| 3 | Area III | Performing Further Procedures and Obtaining Evidence | 30-40 |
| 4 | Area IV | Forming Conclusions and Reporting | 10-20 |
| No. | BEC Content | Subject | Allocation % |
| 1 | Area I | Enterprise Risk Management, Internal Controls, and Business Processes | 20-30 |
| 2 | Area II | Economics | 15-25 |
| 3 | Area III | Financial Management | 10-20 |
| 4 | Area IV | Information Technology | 15-25 |
| 5 | Area V | Operations Management | 15-25 |
| No. | FAR Content | Subject | Allocation % |
| 1 | Area I | Conceptual Framework, Standard-Setting, and Financial Reporting | 25-35 |
| 2 | Area II | Select Financial Statement Accounts | 30-40 |
| 3 | Area III | Select Transactions | 20-30 |
| 4 | Area IV | State and Local Governments | 5-15 |
| No. | FAR Content | Subject | Allocation % |
| 1 | Area I | Ethics, Professional Responsibilities, and Federal Tax Procedures | 10-20 |
| 2 | Area II | Business Law | 10-20 |
| 3 | Area III | Federal Taxation of Property Transactions | 12-22 |
| 4 | Area IV | Federal Taxation of Individuals | 15-25 |
| 5 | Area V | Federal Taxation of Entities | 28-38 |
Here are some quick tips to help an aspiring CPA candidate study and successfully crack the examinations:
There are 4-sections in CPA, they are:
1. Auditing and Attestation or AUD:
2. Business Environment and Concepts or BEC:
3. Financial Accounting and Reporting or FAR:
4. Regulation, or REG:
If you wish to excel in a finance career, then CPA can be an excellent option for moving ahead. Knowing the exact syllabus, creating a study plan as well as sticking to it can ensure success. Furthermore, you can always enroll in NorthStar’s CPA program to be able to get the right direction and guidance to achieve your goals.
