Overview of the US CPA Course Syllabus
Before understanding the Certified Public Accountant syllabus, it makes sense to first know what makes the CPA exam. Doing so, undoubtedly, will help you have an easier time understanding the syllabus. The exam, as per the latest update, comprises three four-hour Core sections and one four-hour Discipline section.
The Discipline section has three subsections, out of which you need to choose one. Each subsection focuses on different accounting and business aspects.
Let's look at these Core and Discipline Sections of the Certified Public Accountant syllabus:
The Core Section
Auditing and Attestation (AUD)
The AUD section requires students to learn the ins and outs of auditing procedures, professional responsibilities, and attestation. Students should learn ethics, audit evidence, internal controls, and everything about audit reports. You should also get the hang of the International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS).
Financial Accounting and Reporting (FAR)
FAR, short for financial accounting and reporting, is another crucial section of the CPA exam syllabus. It includes financial accounting and reporting standards, delving into revenue recognition, financial statement presentation, and governmental accounting. Just like the AUD section, it helps clear the exam if you learn Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
Taxation and Regulation (REG)
The REG section is the third section of the federal taxation, business law, ethics, and professional responsibilities. If you are preparing for the CPA exam, you should definitely dive deeper into the Internal Revenue Code, business legal structures, and the ethical obligations of accounting professionals. And since taxation is a significant part of the law, you should also learn about individual, corporate, and partnership taxation.
The Discipline Section
There are three options under the Discipline sections, and you can choose any one of them for your preparation. These sections are:
- Business Analysis & Reporting (BAR)
- This section covers topics related to financial analysis and risk management, state and local government accounting, technical accounting and reporting requirements, with special emphasis on data analytics.
Students considering choosing BAR should be prepared in advanced technical accounting and reporting subjects at higher proficiency levels. This also includes assessments of revenue recognition, leases, business combinations, derivative and hedge accounting, and financial statements for employee benefit plans.
The BAR also includes state and local government accounting, addressing content and skills currently examined in the CPA Exam's FAR section.
- Information Systems and Control (ISC)
- If you are planning to choose ISC, you should know that ISC concentrates on technology and business controls. It is best suited to candidates interested in assurance or advisory services related to information security and governance, business processes, information systems, and IT audits.
ISC may also cover IT and data governance, internal control testing, and information system security, with a focus on network security, software, access, and endpoint security. If you want to score well in the CPA exam, it makes sense to learn about the execution of SOC engagements as well.
- Tax Compliance & Planning (TCP)
- For students considering TCP as one of their options under the Discipline Section, TCP covers taxation topics regarding advanced individual and entity tax compliance and extra content centred on personal financial planning and entity planning.
Individual tax planning also features inclusions and exclusions to gross income, gift taxation compliance and planning. Advanced entity tax compliance might include consolidated tax returns, transactions between an entity and its owners and multijurisdictional tax issues. Entity planning takes into account tax treatments of business entity formation and liquidation. So, overall, TCP addresses property transactions, including like-kind and involuntary exchanges and related party transactions.