2014 Recruiting Tip #4: Understanding the CPA Exam

CPA requirements vary by state, but most require 150 semester hours of instruction, which is 30 hours beyond the typical four-year bachelor’s degree. That means you have to decide whether you will focus in another area or get a master’s degree.

The CPA exam consists of four separate exams, which are taken one at a time. Candidates may take the exams in any order however, once you pass the first exam, you must pass the other three within 18 months.

Audit and Attestation (AUD): This is the longest section, at 4.0 hours. It covers topics like performing audits, evaluating evidence, professional responsibilities, ethics and communicating audit findings.

Financial Accounting and Reporting (FAR): This section is 4.0 hours and covers topics such as typical financial statements, specific transactions, governmental accounting and non-profit accounting.

Regulation (REG): This section is 3.0 hours long and tests candidates on tax ethics, business law, federal tax procedures and more.

Business Environment and Concepts (BEC): This section is 3.0 hours and is still tough, covering things like corporate governance, information systems and strategic planning.

 

Candidates may sit for the CPA exam during the first two months of every quarter: January/February, April/May, July/August, October/November. Months when the exam is not offered are referred to as “black out dates.”

It’s important to plan ahead and decide how you will get your 150 credit hours before graduation. Most employers will want you to already have a plan in place to earn your CPA certification.