CPA is a globally recognized US certification offered by American Institute of Certified Public Accountants (AICPA) in the field of Accountancy, business studies, management and finance
Who Can Do CPA ?
The following professional who are working in the various organization as:
- Chief Executive Officer
- Directors
- Manager
- Accounts Manager/Finance Manager
- Auditor(Internal/External)
- Executives etc
Pre-Requisites of the Certification
There are 55 states in the US which are offering CPA. Every state has its own criteria of eligibility for CPA. Some states require 120 credit hours, some require 150 credit hours and some even require 24 credit hours in Accounting and 24 credit hours in business subjects. The eligibility depends upon your previous educational studies. However, in general if you are holding any one of the following educational qualifications, then you are eligible for CPA like;
3 years B.Com/BBA with the following courses:
- Auditing
- Taxation
- Cost/Management Accounting
- Financial Accounting
4 Years graduation with major in Financial Accounting3 years graduation in any discipline with Masters (MBA/M.Com) major in Financial Accounting
The CPA exam consists of four papers:
-
- Financial Accounting & Reporting (FAR)
- Auditing & Attestation (AUD)
- Regulation (REG)
- Business Environment & Concepts (BEC)
Minimum Passing Mark for CPA Exam
Passing Criteria for CPA Certification in each subject is 75%.
CPA Certification Credits for passed papers are available for 18 months.
Auditing & Attestation (AUD) : Duration: 4 Hours Exam
Syllabus: | 2 MCQ Testlets | Task Based Simulations | |||
Weightage | Testlets | Weightage | Testlets | Weightage | |
Ethics, Professional Responsibilities and General Principles | 15-25% | 36 Questions each | 50% | 3 (Total 8 Questions ) | 50% |
Assessing Risk and Developing a Planned Response | 20-30% | ||||
Performing Further Procedures and Obtaining Evidence | 30-40% | ||||
Forming Conclusions & Reporting | 15-25% |
Financial Accounting & Reporting (FAR) : Duration of the Exam: 4 Hours
Syllabus: | 2 MCQ Testlets | Task Based Simulations | |||
Weightage | Testlets | Weightage | Testlets | Weightage | |
Conceptual Framework, Standard Setting and Financial Reporting | 25-35% | 33 Questions each | 50% | 3 (Total 8 Questions ) | 50% |
Select Financial Statement Accounts | 30-40% | ||||
Select Transactions | 20-30% | ||||
State and Local Governments | 5-15% |
Regulation (REG) : Duration: 4 Hours Exam
Syllabus: | 2 MCQ Testlets | Task Based Simulations | |||
Weightage | Testlets | Weightage | Testlets | Weightage | |
Ethics, Professional Responsibilities and Federal Tax Procedures | 10-20% | 38 Questions each | 50% | 3 (Total 8 Questions ) | 50% |
Business Law | 10-20% | ||||
Federal Taxation of Property Transactions | 12-22% | ||||
Federal Taxation of Individuals | 15-25% | ||||
Federal Taxation of Entities | 28-38% |
Business Environment & Concepts (BEC) : Duration of the Exam: 4 Hours
Syllabus: | 2 MCQ Testlets | Task Based Simulations | |||
Weightage | Testlets | Weightage | Testlets | Weightage | |
Corporate Governance | 17-27% | 31 Questions each | 50% | 2 (Total 4 Questions ) | 35% |
Economic Concepts and Analysis | 17-27% | ||||
Financial Management | 11-21% | ||||
Information Technology | 15-25% | ||||
Operations Management | 15-25% | ||||
3 Written Communication Tasks (WCs) (15% weightage) |
For more details on Eligibility requirements : https://nasba.org/international/