Overview of the US CPA Course Syllabus

Many people consider becoming a Certified Public Accountant (CPA) for the rewards and career growth the profession offers. It is also one of the most sought-after qualifications, opening doors to various opportunities in accounting and finance. To become a CPA, you must appear and clear the Uniform CPA Examination, which requires you to know the nitty-gritty of the Certified Public Accountant syllabus. This blog delves into the components of the CPA syllabus, providing insights into what you, as an aspiring CPA, need to know.

Key Takeaways

• CPA Exam Syllabus

• US CPA Exams Score

• CPA Exam Format

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:

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.

CPA Exam Format

Understanding the CPA syllabus and the exam format can help you prepare better for the examination. The exam has multiple-choice questions, written communication tasks, and task-based simulations. Along with acing these sections, you must also manage your time properly as you will have limited time.

Multiple-choice questions (MCQs)

MCQs test your knowledge and grasp of the exam content. They cover a range of topics within each section, and you will need to select the correct answer from multiple options.

Task-Based Simulations (TBS)

TBS are scenario-based simulations that check your ability to apply your knowledge in real-world scenarios. These simulations require you to analyse information, make calculations, and write your response. TBS questions mimic the challenges that accounting professionals face in their daily work lives.

Written Communication Tasks

The Discipline section includes written communication tasks that evaluate your ability to communicate effectively in a business setting. This involves writing professional and concise responses to prompts provided during the exam.

CPA Exam Content Weighting

Understanding the weightage of topics within each section is crucial for effective study planning. The CPA exam is not evenly weighted, and some topics carry more importance than others. As of the latest updates, the content weighting for each section is as follows:

- AUD: Auditing and Attestation - 20%

- FAR: Financial Accounting and Reporting - 25%

- REG: Regulation - 25%

- Discipline: 20%

Calculating Your US CPA Exams Score

To clear a CPA exam section, you must earn a minimum score of 75. Unlike percentages, the score is determined on a scale of 0 to 99. While you may think that your total reported score represents a percentage of correct answers, that is not the case and should not be treated as such. How the score is calculated does not also involve curving.  If you fail an exam section, you will receive a Candidate Performance Report reflecting your performance in that specific section.

CPA exam scoring is characterised by high significance, thoroughness, and precision. Your answers pass multiple quality assurance reviews to maintain scoring accuracy. Your overall score is a weighted mix of scaled scores taken from multiple-choice questions (MCQs) and task-based simulations (TBSs).

The Certified Public Accountant exam syllabus includes three Core sections (AUD, FAR, and REG) and one Discipline section of your choice (BAR, ISC, and TCP). The weighted combination of scaled scores comprises 50% for both MCQs and TBSs in the Core and Discipline sections, except ISC, where the ratio is 60% MCQs and 40% TBSs.

Scaled scores for the MCQ and TBS sections of the CPA exam are calculated using formulas that consider factors such as the correctness of responses and the relative difficulty of each question.

Conclusion

Decoding the CPA syllabus can help you better prepare for your CPA exam and become a Certified Public Accountant. Understanding each section's content, format, and weighting can be the stepping stone for planning your study effectively and increasing your chances of cracking the exam in one attempt. If you are considering pursuing a CPA course, consider taking CPA training from NorthStar Academy to help skyrocket your accounting career. We provide comprehensive and easy-to-understand study materials to help you prepare and clear the CPA exams. The training mentor, M Irfat Sir, has helped thousands of students get their CPA certification. Get in touch today.