Overview

NEW 2025 CPA US ExamThe CPA exam is a substantial undertaking and the final step to becoming a certified public accountant (CPA).Before taking the exam, aspiring CPAs must pass undergraduate and graduate-level classes in accounting, business law, and general studies. The exact courses and grades needed will vary between states. Many states require work experience as well.Once those requirements have been met, the last step to becoming a CPA is taking and passing the Uniform CPA Examination.Prior to 2024, the CPA Exam consisted of four sections that all candidates had to pass:Auditing and Attestation (AUD)Business Environment and Concepts (BEC)Financial Accounting and Reporting (FAR)Regulation (REG)The current format includes these three Core exams:Auditing and Attestation (AUD)Financial Auditing and Reporting (FAR)Taxation and Regulation (REG)Candidates must also pass one of three Discipline sections. Each one is centered on more specialized knowledge and skills gained in the Core sections:Business Analysis and Reporting (BAR)Information Systems and Controls (ISC)Tax Compliance and Planning (TCP)CPA Exam StructureThe core and discipline sections are each four (4) hours long and have multiple-choice questions (MCQs) and task-based simulations (TBSs). Written communication (WC) questions are no longer included on the CPA Exam.Most of the core and discipline sections have equal score weighting for MCQs and TBSs (50% for each). In ISC, however, the score weight is 60% for MCQs and 40% for TBSs.Core section - Auditing and Attestation (AUD)Area I: (15-25%) I. Ethics, ProfessionalResponsibilities And General PrinciplesEthics, Independence and Professional ResponsibilitiesProfessional Skepticism and Professional JudgmentNature and ScopeTerms of EngagementRequirements for Engagement DocumentationCommunication With Management and Those Charged with GovernanceAudit and Assurance QualityArea II: (25-35%) Assessing Risk AndDeveloping A Planned ResponsePlanning an EngagementUnderstanding an Entity and Its EnvironmentUnderstanding an Entity's Control Environment and Business Processes, Including Information Technology (It)SystemsMaterialityAssessing and Responding to Risks Of Material Misstatement, Whether Due to Fraud or ErrorPlanning for And Using The Work of OthersSpecific Areas of Engagement RiskArea III: (30-40%) Performing FurtherProcedures And Obtaining EvidenceUse of Data and InformationSufficient Appropriate EvidenceSampling TechniquesProcedures to Obtain Sufficient Appropriate EvidenceSpecific Matters that Require Special ConsiderationMisstatements and Internal Control DeficienciesWritten RepresentationsSubsequent Events and Subsequently Discovered FactsArea IV: (10-20%) Forming Conclusions AndReportingReports on Auditing EngagementsReports on Attestation EngagementsAccounting and Review Service EngagementsReporting on ComplianceOther Reporting ConsiderationsCore section - Financial Accounting and Reporting (FAR)Area I: (30-40%) Financial ReportingGeneral-Purpose Financial Reporting: For-Profit Business EntitiesGeneral-Purpose Financial Reporting: Nongovernmental Not-for-Profit EntitiesState and Local Government ConceptsPublic Company Reporting TopicsSpecial Purpose FrameworksFinancial Statement Ratios and Performance MetricsArea II: (30-40%) II. Select Balance Sheet AccountsCash and cash equivalentsTrade receivablesInventoryProperty, plant and equipmentInvestmentsIntangible assetsPayables and accrued liabilitiesDebt (financial liabilities)EquityArea III: (25-35%) Select TransactionsAccounting changes and error correctionsContingencies and commitmentsRevenue recognitionAccounting for income taxesFair value measurementsLessee accountingSubsequent eventsCore section - Taxation and Regulation (REG)Area I: (10-20%) Ethics, Professional Responsibilities and Federal Tax ProceduresEthics and responsibilities in tax practiceLicensing and disciplinary systemsFederal tax proceduresLegal duties and responsibilitiesArea II: (15-25%) Business LawAgencyContractsDebtor-creditor relationshipsFederal laws and regulations (employment tax, qualified health plans, bankruptcy, worker classifications and anti-bribery)Business structureArea III: (5-15%) Federal Taxation of Property TransactionsBasis of assetsCost recovery (depreciation and amortization)Area IV: (22-32%) Federal Taxation of IndividualsGross income (inclusions and exclusions)Reporting of items from pass-through entitiesAdjustments and deductions to arrive at adjusted gross income and taxable incomeLoss limitationsFiling statusComputation of tax and creditsArea V: (23-33%) Federal Taxation of Entities (including tax preparation)Differences between book and tax income (loss)C corporationsS corporationsPartnershipsLimited liability companiesTax-exempt organizations

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