Quick Highlights:
- To become a licensed accountant, you need to pass the CPA Exam, which has four parts and takes 16 hours.
- The CPA Exam has different sections with questions that include multiple-choice, task-based simulations, and written tasks.
- You need at least a bachelor’s degree and specific course credits to be eligible for the CPA Exam.
- Good preparation involves studying with a guide, practicing exams, and scheduling your test once you meet state requirements.
Table of contents
By taking the certified public accounting (CPA) exam, you can take the final step before becoming a licensed accountant. Because of this, it is important to read through a CPA exam overview before the big day. Many people use CPA Exam preparation tips to understand the different exam sections and questions.
While understanding exam questions can be challenging, there are many different materials available that can help. Once you have studied using your CPA Exam guide, you can pass the test and get the CPA designation you need to work as an accountant.
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Overview of the CPA Exam
In order to become a CPA, you are required to pass the CPA Exam. The CPA Exam format is broken down into four sections. These sections are:
- Auditing and Attestation (AUD)
- Business Environment and Concepts (BEC)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
In total, this test takes 16 hours to complete.
Becoming a licensed accountant involves the Four E’s of education, examination, experience, and ethics. Your accounting degree fulfills your educational requirements, and the CPA exam forms the examination portion of the Four E’s. If you can’t pass this exam, you cannot become a licensed accountant. Because of this, it is incredibly important to use your exam guide wisely and learn everything you can about CPA exam questions.
The CPA Exam is governed by the Board of Examiners (BOW) committee at the American Institute of CPAs (AICPA). They are in charge of creating the exam and scoring it. If you pass this exam, you are given the authority to work as an accountant anywhere in the United States.
Eligibility and Requirements
Before you can take this test, you must meet the CPA exam requirements and eligibility. In general, this means you will need to have at least a bachelor’s degree. However, the actual requirements are determined by each state.
While each state has different requirements, the following eligibility requirements are fairly common. You must complete 150 hours of total college credit with at least 30 of those hours in approved, upper-level accounting courses. In addition, you will need 25 hours of business credits, and 2 hours of these credits must be in accounting or business communications. Finally, you will need 3 hours of credits in accounting ethics.
These are fairly common requirements in the CPA qualification process, but the actual requirements can vary from one state to another. Once you meet your state’s education and experience requirements, you will also have to pay a fee to take the exam. Additionally, you will need to sit for the entire 16-hour exam and get a passing score in order to get your license.
Exam Format and Content
Before you take the test, devote some time to understanding the CPA Exam and CPA Exam overview. The entire exam is broken into four parts. Each section includes task-based simulations, multiple-choice questions, or written responses.
Once you have finished the exam, you will be graded on a scale from 0 to 99. To pass, you must score at least a 75. The FAR section has the lowest CPA Exam pass rate, and the BEC is known for having the highest pass rate.
CPA Exam questions come in three different formats. Multiple-choice questions involve picking one answer out of four possible answers. These are present in all four CPA Exam sections.
Similarly, task-based simulations are included in all four sections. These exam questions may involve fill-in-the-blank answers, journals, or matching questions. The best way to prepare for them is by practicing as many task-based simulations as you can.
The final type of questions you’ll find in a CPA Exam guide are known as written communication tasks. These tasks involve formatting a written response. You’ll need to use correct grammar to write out an introduction, conclusion, and body paragraphs. There are three written responses on the exam, and they are only included in the BEC portion of the exam.
Registration and Scheduling
Once you have practiced the CPA Exam overview and questions, you can register for the CPA Exam. It can take up to six weeks to register for the exam if you are taking it for the first time, so you should plan ahead.
Before you apply to take the exam, you should review the qualifications in your state. Each state has specific residency, ethics, age, and education requirements, so you should make sure that you’re eligible for the CPA Exam.
Then, you should get your documents ready. You will need to bring proof of identification and your college transcripts. Then, you will need to pay the CPA exam cost before the exam day. This cost can vary from one state to another. For instance, New York charges $170, but South Carolina charges only $135 for the application fee. Many states charge a flat fee for all of the sections, so you can reduce the overall cost by taking multiple sections at once.
The entire registration process happens through the National Association of State Boards of Accountancy (NASBA). When you register with the NASBA, you will pick the state where you want to take the test and get licensed.
Once you have applied to take the CPA Exam, the next step is scheduling your exam. You’ll receive an authorization to test (ATT) or a notice to schedule (NTS) once your application is accepted by the NASBA. You should bring this notice with your other documents to your testing center. Before you can pick your testing date, you will need to choose a testing location. Then, remember to bring all of the correct documents with you on the testing day so that you are able to take the test.
Preparation Strategies
Learning what to expect on the exam can help you prepare for test day. The following preparation tips have proven to be good strategies for figuring out how to pass the CPA Exam.
- Review exam overview courses and questions beforehand.
- Invest in a CPA Exam textbook and read through it carefully.
- Use practice exams to gauge how ready you are for the test.
- Set aside time each night to review a few questions.
- Find a study partner to work with who is also taking the exam.
- Prepare a quiet space in your home for studying.
- Start studying as early as possible so that you have plenty of time to learn and prepare.
Taking the Exam
The next step in figuring out the best CPA Exam preparation tips is to prepare for the test day. Get plenty of sleep the night before, eat a full breakfast, and show up for the test early. Make sure you review any CPA exam changes, so you are as ready as possible. Most importantly, relax. You’ve done the work, so now you need to relax and let your knowledge shine.
After the Exam
Once you’ve completed the CPA Exam, the best thing you can do is relax and wait for your results. The test is scored from 0 to 99, and you must get a 75 to pass. If you do fail a section of the exam, you can take it again. The only rule is that you must pass the remaining sections within 30 months of passing your first section.
Prepare for a Successful Career in Accounting
By understanding CPA Exam requirements, you can take the next step in a rewarding career. A CPA Exam guide can provide you with more information about the exam overview and test sections. Through the best CPA Exam preparation tips, you can make sure you’re completely ready to pass the test.