CPA EXAM BASICS
CONTENTS
03 INTRO:
Let’s Get Started
04 CHAPTER 1:
The Four Parts of the CPA Exam
08 CHAPTER 2:
Types of Questions on the CPA Exam
11 CHAPTER 3:
Pass Rates & Passing Score
13 CHAPTER 4:
Educational Requirements & CPA Exam Checklist
INTRODUCTION
You’re close to completing
your education in accounting
or have already been working
in the industry for a couple of
years. Regardless of your
situation, you’re ready to
take the next big step toward
your accounting career and
become a CPA. Hurray! You’re
in the right place!
This eBook is designed to provide
you with a basic overview of the
CPA Exam. We’ll answer questions
like what to expect on the exam,
how to apply for the exam, and
how to get started on the CPA Exam
journey.
And, as always, if you still have
questions after reading through the
material, our Customer Care Team
is just a phone call away! They can
be reached at 877-764-4272.
CHAPTER
1
THE
FOUR PARTS
OF THE
CPA EXAM
EXAM
STRUCTURE
AUDITING &
ATTESTATION
(AUD)
4 hrs
FINANCIAL
ACCOUNTING
& REPORTING (FAR)
4 hrs
REGULATION
(REG)
3 hrs
BUSINESS
ENVIRONMENT &
CONCEPTS (BEC)
3 hrs
The CPA Exam requires a total of 14
hours to complete and is
administered by the American
Institute of Certified Public
Accountants (AICPA). CPA
candidates must pass a total of four
sections with a score of 75 or higher
within an 18 month rolling window.
The CPA Exam is broken down into
the following sections:
• 90 questions & 7 task-based simulations
• Topics include: Standards, Planning &
Evidence, Internal Controls, Reports,
Compilations & Reviews
• 90 questions & 7 task-based simulations
• Topics include: Business Enterprises,
Governmental Entities, Not-for-Profit
Organizations
• 72 questions & 6 task-based simulations
• Topics include: Ethics, Professional &
Legal Responsibilities, Business Law,
Federal Taxation
• 72 questions & 3 written communications
• Topics include: Corporate Governance,
Economic Concepts, Financial Risk
Management, Information Systems,
Strategic Planning, Operations Mgmt.
CONTENT
AUD
12-16%: Engagement Acceptance &
Understanding the Assignment
16-20%: Understanding the Entity & its
Environment (including internal control)
16-20%: Performing Audit Procedures &
Evaluating Evidence
FAR
17-23%: Conceptual Framework,
Standards, Standard Setting, &
Presentation of Financial Statements
27-33%: Financial Statement Accounts:
Recognition, Measurement, Valuation,
Calculation, Presentation, & Disclosures
16-20%: Evaluating Audit Findings,
Communications, & Reporting
27-33%: Specific Transactions, Events &
Disclosures: Recognition, Measurement,
Valuation, Calculation, Presentation, &
Disclosures
12-16%: Accounting & Review Services
Engagements
8-12%: Governmental Accounting &
Reporting
16-20%: Professional Responsibilities
8-12%: Not-for-Profit (Nongovernmental)
Accounting & Reporting
REG
BEC
15-19%: Ethics, Professional, & Legal
Responsibilities
16-20%: Corporate Governance
17-21%: Business Law
16-20%: Economic Concepts & Analysis
11-15%: Federal Tax Process, Procedures,
Accounting, & Planning
15-19%: Information Systems &
Communications
12-16%: Federal Taxation of Property
Transactions
10-14%: Strategic Planning
13-19%: Federal Taxation of Individuals
12-16%: Operations Management
18-24%: Federal Taxation of Entities
WHAT TO EXPECT ON
AUD, FAR, & REG ON
THE DAY OF THE EXAM
START
EXAM
MULTIPLE
CHOICE
TESTLET #1
MULTIPLE
CHOICE
TESTLET #2
MULTIPLE
CHOICE
TESTLET #3
• Once you enter the Prometric Testing Center, you’ll register and then find
a seat in front of an open computer.
• After you log onto the computer and accept the terms and conditions,
your testing time will begin.
• Once you begin your exam, you will enter M/C Testlet #1.
• The clock will begin counting down the minutes that you have left to take
the exam.
• Once you’ve finished answering all the questions, you’ll move to Testlet
#2.
• Keep in mind that once you’ve advanced a Testlet, you cannot go back to
the previous Testlet.
• You will have the ability to mark questions for review and move around
within each Testlet.
• Once you move forward into a new section, you cannot go back and
change your answers.
• When Testlet #3 is complete, you will move onto the Task-Based
Simulations.
• AUD & FAR have 7 Task-Based Simulations.
TASKBASED
SIMULATIONS
• REG has 6 Task-Based Simulations.
• 1 question will be pretested.
• 1 Task-Based Simulation will be research based.
• Each Task-Based Simulation is worth 6 to 7 points.
WHAT TO EXPECT ON BEC
THE DAY OF THE EXAM
START
EXAM
MULTIPLE
CHOICE
TESTLET #1
MULTIPLE
CHOICE
TESTLET #2
MULTIPLE
CHOICE
TESTLET #3
WRITTEN
COMMUNICATION
• Once you enter the Prometric Testing Center, you’ll register and then find
a seat in front of an empty computer.
• After you log onto the computer and accept the terms and conditions,
your testing time will begin.
• Once you begin your exam, you will enter M/C Testlet #1.
• The clock will begin counting down the minutes that you have left to take the
exam.
• Once you’re finished answering all of the questions, you’ll move to Testlet #2.
• Keep in mind that once you’ve advanced a Testlet, you cannot go back to
the previous Testlet.
• You will have the ability to mark questions for review and move around
within each Testlet.
• Once you’re finished answering all of the questions, you’ll move to Testlet #3.
• When Testlet #3 is complete, you will move on to the Written
Communication section.
• 3 questions total.
• Written Communication tests you on your ability to explain a concept.
CHAPTER
2
TYPES OF
QUESTIONS
ON THE CPA EXAM
TYPES OF QUESTIONS
ON THE CPA EXAM
?
Multiple
Choice
Task-Based
Simulations
Task-based simulations (TBS) are
case studies that allow candidates
to demonstrate their knowledge
and skills by generating responses
to questions rather than simply
selecting the correct answer.
The majority of questions on
the CPA Exam are Multiple
Choice Questions (MCQs).
•
ANSWER ALL OF THE
QUESTIONS, EVEN IF IT IS
JUST A GUESS. THERE IS
NO “GUESSING
PENALTY,” MEANING YOU
ARE NOT DOCKED FOR
WRONG ANSWERS; ONLY
REWARDED FOR
CORRECT.
•
FAR AND AUD BOTH HAVE
90 MCQS.
•
REG AND BEC HAVE 72
MCQS.
•
TASK-BASED SIMULATIONS TYPICALLY
REQUIRE CANDIDATES TO USE
SPREADSHEETS AND/OR RESEARCH
AUTHORITATIVE LITERATURE
PROVIDED IN THE EXAM.
•
FAR AND AUD BOTH HAVE 7 TBS. REG
HAS 6. BEC HAS 0.
•
REMEMBER THAT ONE OF THE TASKBASED SIMULATIONS ON EACH
SECTION IS PRE-TESTED. THIS MEANS
THAT IT WILL NOT COUNT TOWARD
YOUR FINAL SCORE; HOWEVER, KEEP
IN MIND THAT YOU WON’T KNOW
WHICH QUESTIONS ARE PRE-TESTED,
SO ANSWER ALL QUESTIONS
ACCORDINGLY.
Written
Communication
The written communication
(WC) questions are designed to
test your writing skills as well
as your ability to understand
and explain a concept.
•
YOUR ANSWERS WILL BE
IN MEMO-STYLE FORMAT,
WITH A BEGINNING,
MIDDLE, AND END.
•
BE SURE TO CHECK FOR
SPELLING AND GRAMMAR
MISTAKES.
•
THERE ARE 3 QUESTIONS
IN THE WRITTEN
COMMUNICATION
SECTION, ONE OF WHICH
IS PRE-TESTED.
HOW ARE THE
QUESTIONS &
SECTIONS WEIGHTED
IN SCORING?
15%
WC
40%
TBS
60%
MCQ
85%
MCQ
AUD, FAR, REG
the taskFor AUD, FAR, & REG,
tions
based simulation questa
hile the
comprise 40% of the to nsl w
comprise
multiple choice questio
n
60%. For BEC, the writte
accounts
communication portion
le the
for 15% of the total whi
unt
multiple choice questions acco
for 85%. .
BEC
SAMPLE MULTIPLE
CHOICE QUESTION
Countdown clock
Click on a number to see
what question is ahead
SAMPLE TASKBASED SIMULATION
Customize your
view
You may be filling
out a form
Fill out the
orange boxes
SAMPLE TASKBASED SIMULATION
Research
question. Find
your answers
in the
authoritative
literature
Fill in the
appropriate
answer
SAMPLE TASKBASED SIMULATION
Search by topic to find the
information that you’re looking
for within the literature
Search terms
are
highlighted
SAMPLE WRITTEN
COMMUNICATION
WC questions are checked for
relevancy to the question asked
WC
questions
are to be
answered
in a memostyle
format
Includes a spell checker,
but not a grammar checker
CHAPTER
3
PASS RATES
&
PASSING SCORE
WHAT DOES IT
TAKE TO PASS?
DID YOU
KNOW?
50%
Less than
of candidates
taking the CPA
Exam
pass on their
first try.
The CPA Exam is
75
considered to
be one of the
most difficult
of all professional
licensing exams!
THE GOOD NEWS IS...
88%
OF ROGER STUDENTS
PASS ON THEIR
FIRST TRY!
CHAPTER
4
EDUCATION
&
CPA EXAM CHECKLIST
EDUCATIONAL
REQUIREMENTS
In order to sit for the CPA Exam, you must meet certain educational
requirements. Requirements vary state-by-state, but typically, 150
semester hours/225 quarter units total.
In many states, educational hours may be in business (24 semester
hours) and accounting (24-36 semester hours). However, having an
accounting degree isn’t always necessary or required. It’s important to
contact your State Board of Accountancy for the most up-to-date CPA
requirements.
CPA EXAM CHECKLIST
FOLLOW
THIS
ROADMAP
For step-bystep guidance
on how to
qualify and sit
for the CPA
Exam.
WHY CHOOSE ROGER
CPA REVIEW
At Roger CPA Review, our mission goes beyond seeing our students pass the CPA Exam—
that’s a given. We believe the key to success is enjoying what you do, and are
therefore dedicated to providing the most intuitive and engaging learning system that
simultaneously delivers results and enjoyment. We motivate and inspire our students
every step of the way, and continuously perfect our study tools to foster a preparation
process that is Efficient, Effective, and–most importantly-Enjoyable.
LEARN
Plain and simple, we teach
our students. Before diving
into practice questions, it
is essential that students
first learn and understand
the concepts. With the
guidance of the industry’s
top CPA Exam experts, we
have created a proven
system to help students
learn and retain the
concepts necessary to pass
the CPA Exam.
PRACTICE
To solidify the concepts, it
is important for students to
apply what they’ve learned
to actual AICPA questions
via a system that simulates
the computer-based CPA
Exam. To help achieve this
goal, each student has
access to the Interactive
Practice Questions from
their online course.
SUPPORT
We provide support and
guidance every step of the
way to foster the most
Efficient, Effective and—
most importantly—
Enjoyable learning
process.
LEARN
Fully integrated Micro-Lessons
Each of the four CPA Exam sections include a corresponding physical and online
textbook. As the foundational curriculum for the entire course, textbooks are
constructed by the editorial team, led by the profession’s top CPA Exam powerhouses,
Roger Philipp, CPA, CGMA (Author, Instructor) and Mark Dauberman, CPA, EMBA
(Senior Editor), pooling over 65 years of experience. Textbooks are written in a
simplified format that gets straight to the point, eliminating any unnecessary
theoretical jargon. We provide exactly what is needed to pass the CPA Exam, and
never confuse students with optional chapters.
The Most Focused, Dynamic Instructional Lectures
The full course includes over 100 hours of lecture taught by the industry’s top CPA
Exam instructor, Roger Philipp, CPA, CGMA. For over 25 years, Roger’s highly
motivating teaching style has kept students engaged in their studies, and focused on
exactly what they need to know to pass the CPA Exam. He is renowned for breaking
down difficult CPA Exam topics into simplified concepts, and his memory aids and
mnemonics help students retain this information in a fun and easy way.
E-Textbooks & Physical Course Textbooks Written by CPA Exam
Experts
The course is broken down into lessons delivered with a micro-learning structure.
Each lesson incorporates a 10-25 minute video lecture, a short section from the course
textbook, and corresponding class questions. This efficient format allows for easier
consumption and retention of concepts.
Purposeful Online Learning Tools
The entire course is delivered via an interactive system, integrating purposeful tools
to enhance each student’s learning experience. For example, every student learns at
their own pace. Therefore, we have included the ability to adjust the actual speed of
the video lectures, along with the option to turn on Closed Captioning for increased
comprehension. Furthermore, students can insert video bookmarks, take online notes
and even highlight their E-textbooks. All learning tools have been tested and proven
to help students retain more information with optimum efficiency.
PRACTICE
4,000+ AICPA Released Multiple Choice Questions
& Task-Based Simulations
Practice makes perfect, and we provide students with a bank of over 4,000 questions to
do so. Questions have been provided by the AICPA, the actual writers of the CPA Exam.
This ensures students are testing themselves with questions that emulate real CPA Exam
questions.
Expert Written Solutions
While the base questions come from the AICPA, our team of CPA Exam Experts provide
full solutions. These solutions include thorough and easy to understand explanations to
why each answer is correct or incorrect, helping the students get to the root of their
topic comprehension.
Practice by Chapter with Full Practice Exams
The Interactive Practice Questions system is designed so that students can customize
their practice by individual chapters, multiple chapters or full practice exams. This
allows students to start with more focused sessions, and move into testing themselves
over a broader spectrum as they approach their exam. Questions are delivered in a
format that simulates the CPA Exam, so there are no surprises on exam day.
Diagnostic Reports
As students work through their Interactive Practice Questions, the system keeps track
of their scores on individual quizzes, as well as within each chapter. This allows
students to always have a firm understanding of their strengths and weaknesses,
guiding the focus of their studies and their final review leading up to the exam.
SUPPORT
Customizable Study Planners
Research shows that students who have a solid plan, and stick to it, are more likely
to succeed on the exam. Therefore, each student will have access to 3, 6, 9 or 12
months study planners that can be customized to meet their individual scheduling
needs. In these planners, the entire course is mapped out, including specific
lectures, textbook chapters and practice question sessions. Also incorporated are
days off, final review and suggested days for exam scheduling. This keeps students
on track with their studies, and encourages overall accountability.
Progress Assessment Tools
Many students become overwhelmed by the sheer amount of information to learn for
the CPA Exam. A great tip for these students is to always have a strong grasp of
where they are in their studies. To help, we provide several Progress Assessment
Tools. Students will always be able to monitor how far they have progressed in each
course section, each chapter and each topic. They can furthermore countdown the
days to their exam by simply plugging in their scheduled exam day.
Personal Trainer
The CPA Exam can be a daunting task….but it doesn’t have to be! The Personal Trainer
delivers tips, tricks and motivational encouragement directly to each student’s inbox.
Because this feature is tied directly to the individual student’s course, they will receive
tailored information based on their own progress. For many students, this is the extra
boost of motivation they need to reach the finish line!
Homework Help Center
At times, some students may find specific topics exceptionally difficult. This is
understandable, as the CPA Exam is no easy task! For this reason, each student has
free, unlimited access to the Homework Help Center. This 24/7 online forum is a
platform for students to ask questions and receive guidance from expert CPAs as they
progress through their studies.
“IF YOU
STUDY, YOU
WILL PASS.”