CPA
Certified Public Accountant(CPA)
CPA is a globally recognized financial course offered by AICPA (The American Institute of Public Accountants ) USA.
A CPA is a trusted financial advisor who helps individuals, businesses, and other organizations plan and reach their financial goals
All CPAs are accountants, but not all accountants are CPAs.
How to become CPA?
3 E’s are required for licensure:
- Education
- Exam or Uniform CPA Examination
- Experience
State Boards of Accountancy determine the laws and rules for each state/jurisdiction
Education
- Requirements vary by state/jurisdiction (see state requirements)
- Most states now require 120-150 semester hours
- Number of accounting hours (in the 150 total) is dependent on state requirements
Uniform CPA Examination
Computer-based format
Consists of 4 sections
- Auditing and Attestation (AUD)
- Business Environment and Concepts (BEC)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
- Same test no matter where it is taken
- Passing score is 75 on a 0-99 scale
- Question types include multiple choice, simulation and written communication
- Eligibility to sit for exam depends on state
- Examination Center
- Prometric centers in UAE, Kuwait, Bahrain, Lebanon, Japan & Brazil subject to conditions.
Exam Format
Subjects | Exam Details | |||
TIME | M | T | WCT | |
Paper 1 : Auditing & Attestation | 4 | 36×2 | 8 | |
Paper 2 : Financial Accounting & Reporting | 4 | 33×2 | 8 | |
Paper 3 : Regulation (Law & Tax) | 4 | 38×2 | 8 | |
Paper 4 : Business Environment & Concepts | 4 | 31×2 | 2 | 3 |
- MCQ – Multiple Choice Questions 2 Test lets
- TBS – Task Based Simulations
- WCT – Written Communication Task
Experience
- A candidate is an applicant for a CPA license
- Many states require the candidate to have 1 – 2 years’ experience under a CPA
- Additional requirements vary by the candidate’s
- Education – e.g., Graduate degree vs. 150 hours of undergraduate
- Employer(s) – e.g., Public accounting firm vs. industry
- Type of work – e.g., Tax professional vs. auditor