Certified Public Accountant (CPA) Exam

Therefore, in this article, we will take you on a comprehensive journey to explore all the details of the Certified Public Accountant (CPA) exam. If you are an ambitious accountant planning to build a promising future, follow along to discover more.

• What is the Certified Public Accountant (CPA) exam?
• What are the benefits of the CPA exam?
• How do I register for the CPA exam?
• What are the sections of the CPA exam?
• What is the cost of the CPA exam?
• What is the role of a Certified Public Accountant?
• What are the requirements for the CPA certification?
• How can I pass the CPA exam on the first attempt?
• Frequently Asked Questions

What is the Certified Public Accountant (CPA) exam?

The Certified Public Accountant exam is a standardized exam overseen by the American Institute of Certified Public Accountants (AICPA), technically administered by NASBA, and conducted at Prometric test centers across all U.S. states. The CPA exam aims to ensure that accountants are qualified and capable of performing their professional duties to the highest standards. Passing the CPA exam allows candidates to obtain a CPA license from state regulatory boards, granting strong international recognition and opening doors to global career opportunities.

What are the benefits of the CPA exam?

Passing the CPA exam and earning the CPA certification provides many benefits, including:

1. An income increase of 10–15% compared to non-CPA holders.

2. The CPA certification demonstrates commitment and professional competence, making employers more inclined to hire CPA holders.

3. Demand for CPAs continues to grow and is expected to increase further in the coming years, ensuring strong job security.

4. The CPA certification is considered a gold standard in the field, granting its holder high credibility and professional respect in finance and accounting.

5. CPA holders are qualified to work in various fields such as auditing, taxation, financial planning, information systems, and more.

In short, the CPA certification is a major milestone in a professional career. However, proper preparation for the CPA exam is essential, whether through self-study or enrolling in CPA courses to understand the exam content and pass it successfully.

How do I register for the CPA exam?

There are specific requirements for obtaining the CPA certification, and registration for the exam is one of the most important steps. The process includes the following:

1. Choose the U.S. state from which you wish to obtain your CPA license, as each state has its own requirements.

2. Meet the eligibility requirements, such as holding a bachelor’s degree in accounting or business administration and completing the required academic credit hours, usually between 120 and 150 hours.

3. Have non-U.S. academic degrees evaluated by approved organizations such as NASBA or World Education Services.

4. Register through the relevant state board or via NASBA CPA Central/CPAES. Application fees typically range from USD 100 to 200, in addition to exam section fees, which are usually around USD 225 per section.

5. Submit required documents, including official academic transcripts, proof of identity, and foreign credential evaluations.

6. After approval, you will receive a Notice to Schedule (NTS), valid for 90 to 180 days depending on the state.

7. Schedule your exam sections through the Prometric website based on available dates.

8. On exam day, bring valid identification, a copy of the NTS, and arrive at the test center at least 15 minutes early.

What are the sections of the CPA exam?

The CPA exam consists of mandatory core sections, which include:

1. Auditing and Attestation (AUD).

2. Financial Accounting and Reporting (FAR).

3. Regulation (REG).

In addition, candidates must choose one discipline section from the following:

1. Business Analysis and Reporting (BAR).

2. Information Systems and Controls (ISC).

3. Tax Compliance and Planning (TCP).

Candidates must pass all three core sections plus one discipline section. Each section lasts four hours and includes multiple-choice questions and task-based simulations. A score of 75 out of 99 is required to pass each section. Therefore, enrolling in CPA courses can greatly enhance your chances of success.

What is the cost of the CPA exam?

The total cost of the CPA certification can be broken down as follows:

1. Application fees range from USD 20 to 150 depending on the state.

2. Registration fees per exam section range from USD 60 to 340.

3. Exam fees per section range from USD 262 to 344.

4. An additional international testing fee of up to USD 390 per section may apply outside the United States.

5. Rescheduling fees range from USD 35 (6–29 days before the exam) to USD 83 (1–5 days before the exam).

6. Additional costs may include credential evaluation, background checks, travel, study materials, and CPA review courses, which may total USD 1,000–3,000.

While the CPA certification may seem costly, it is ultimately an investment in your professional future.

What is the role of a Certified Public Accountant?

Before obtaining the CPA certification, it is important to understand the role of a CPA:

1. Auditing financial statements and ensuring accuracy.

2. Issuing audit reports, a responsibility exclusive to CPAs.

3. Ensuring transparency and integrity of financial information.

4. Preparing tax returns for individuals and companies.

5. Representing clients before tax authorities during audits and investigations.

6. Providing guidance on cash flow, budgeting, legal structure, financial performance evaluation, and internal controls.

7. Detecting and monitoring financial fraud and serving as expert witnesses in court.

8. Working as financial managers, internal auditors, regulatory consultants, or even chief executive officers.

What are the requirements for the CPA certification?

To obtain the CPA certification, candidates must meet all of the following requirements:

1. A bachelor’s degree in accounting or a related field.

2. Completion of 150 university credit hours, with specific accounting and business credits required by some states.

3. Passing all four sections of the CPA exam (three core sections and one discipline section).

4. Achieving a minimum score of 75 out of 99 in each section.

5. Completing all exam sections within 30 months.

6. At least one year of professional accounting experience in most states.

7. Passing an ethics exam in certain states.

8. Renewing the license annually, usually requiring 40 hours of continuing professional education (CPE) each year.

Obtaining the CPA certification is highly valuable, but all requirements must be fulfilled to achieve it.

How can I pass the CPA exam on the first attempt?

To pass the CPA exam successfully, consider the following steps:

1. Create a well-structured study plan after understanding the exam content.

2. Use high-quality CPA review courses that provide realistic exam simulations.

3. Practice extensively, understand the logic behind each answer, and revisit incorrect questions.

4. Take mock exams and practice under timed conditions.

5. Join CPA courses and study groups to exchange knowledge and experience.

6. Take care of your mental and physical health, especially before the exam.

7. Start with your strongest section, then move on to the others.

By understanding the CPA exam content, candidates can build an effective study plan that increases their chances of passing on the first attempt.

In conclusion, passing the CPA exam is a decisive step in building a successful professional career. The CPA certification significantly strengthens your résumé. You can visit Modarby platform to choose a qualified private tutor who can help you pass the exam successfully from the first attempt.

Frequently Asked Questions

What is the salary of a CPA holder?

Salaries vary based on experience, location, industry, and employer. Generally, entry-level CPAs earn USD 60,000–70,000 annually, with salaries exceeding USD 120,000 as experience increases.

How long does it take to study for the CPA exam?

Study time varies by candidate, but most people need 80–120 hours per section, totaling approximately 320–420 hours. This may vary depending on experience, study schedule, learning system, assessments, and work commitments.