Certified Public Accountant Examination study guide
Certified Public Accountant Examination · Work through your exam, one topic at a time.
The Uniform CPA Examination is the gateway assessment that individuals seeking to qualify as U.S. Certified Public Accountants are required to pass. Its stated purpose is protective: it helps ensure that only qualified individuals become licensed as CPAs, which is why the exam is positioned as a public-interest safeguard rather than a mere academic hurdle. Candidates should understand the division of labor before they start. Topics on this exam: Auditing and Attestation (AUD), Business Analysis and Reporting (BAR), Financial Accounting and Reporting (FAR), and Regulation (REG). The Certified Public Accountant Examination study guide has 4 sections and about 1,248 words.
01Auditing and Attestation (AUD): Risk, Evidence, and Reporting
Auditing and Attestation (AUD) tests whether a candidate can plan and perform an audit under GAAS or PCAOB standards, assess risk, gather and evaluate evidence, and issue an appropriate report. The exam rewards precise use of the audit risk model, assertions, materiality, and reporting logic rather than memorized lists. The audit risk model is AR = IR × CR × DR. The auditor sets a low acceptable audit risk, assesses inherent risk and control risk, and solves for detection risk.
329 words, about 2 min02Business Analysis and Reporting (BAR): Analysis, Valuation, and Decisions
Business Analysis and Reporting (BAR) is a discipline section that tests financial statement analysis, forecasting, valuation, cost and managerial accounting, and risk analysis. Expect calculations followed by interpretation: the exam often asks which decision or adjustment follows from a number. Use common-size statements and ratio decomposition. DuPont analysis expresses ROE as net profit margin × total asset turnover × equity multiplier.
324 words, about 2 min03Financial Accounting and Reporting (FAR): Recognition and Measurement
Financial Accounting and Reporting (FAR) tests U.S. GAAP recognition, measurement, presentation, and disclosure across the financial statements. High-yield areas include revenue, leases, bonds, income taxes, pensions, earnings per share, cash flows, consolidations, and subsequent events. Apply ASC 606 in five steps: identify the contract, identify performance obligations, determine transaction price, allocate it, and recognize revenue when control transfers.
297 words, about 1 min04Regulation (REG): Tax Classification, Basis, and Practice Rules
Regulation (REG) tests federal tax rules for individuals and entities, property transactions, and the ethics and legal rules that govern tax practice. Calculations matter, but so does classification: ordinary income, capital gain, recapture, and separately stated items drive the result. Gross income includes wages, interest, dividends, rents, and business income; exclusions include certain municipal bond interest and qualified fringe benefits. Basis is cost, adjusted for improvements and depreciation.
298 words, about 1 min