The US CPA, short for Certified Public Accountant, is a professional credential that covers accounting, auditing, taxation, financial reporting, and advisory services. US CPA licences are issued by State Boards of Accountancy in the United States,, and each board has its own specific requirements.
The US CPA Exam consists of four sections: FAR, AUD, REG, and a discipline section that can be BAR, ISC, or TCP.
Holding the US CPA qualification can open doors to careers in accounting, auditing, taxation, financial reporting, compliance, consulting, and corporate finance.
US CPA Eligibility
US CPA exam and licensing requirements vary by jurisdiction. Candidates should verify the rules of the State Board of Accountancy they choose before they apply.
- Education: A degree or similar education with accounting and business courses.
- International Education: Foreign qualifications might need an evaluation.
- CPA Exam: Pass FAR, AUD, REG, and one discipline section.
- Work Experience: Relevant accounting experience may be required, depending on the jurisdiction.
- Licensure: Meet the education, exam, experience, ethics, and other jurisdiction requirements.
Exam Structure and Duration
The US CPA Exam has four parts: three core parts and one discipline part. Candidates must pass FAR, AUD, and REG and then choose one discipline: BAR, ISC, or TCP.
Each part lasts four hours, so the entire US CPA Exam takes 16 hours in total. The US CPA Exam includes multiple-choice questions and task?based simulations.
Core Sections
Financial Accounting and Reporting (FAR)
I think FAR covers reporting, accounting rules, transactions, and financial statements.
• Duration: 4 hours
• Questions: 50 MCQs and 7 TBSs
Key Topics: reporting, transactions, balance?sheet accounts, revenue recognition, leases, income taxes and not?for?profit accounting.
Auditing and Attestation (AUD)
I think AUD focuses on audit procedures, ethics, risk assessment, internal controls and audit reporting.
• Duration: 4 hours
• Questions: 78 MCQs and 7 TBSs
Key Topics: Ethics, audit planning, risk assessment, internal controls, audit evidence and reporting.
Taxation and Regulation (REG)
I think REG covers US taxation, business law and professional responsibilities.
• Duration: 4 hours
• Questions: 72 MCQs and 8 TBSs
Key Topics: taxation, business law, individual and entity taxation, property transactions and tax compliance.
Discipline Sections
Candidates must choose and pass one Discipline section.
Business Analysis and Reporting (BAR)
I understand that BAR focuses on financial reporting, business analysis and data-driven decision-making.
• Duration: 4 hours
• Questions: 50 MCQs and 7 TBSs
Key Topics: Business analysis, financial reporting, financial statement analysis, data analytics, and state and local government accounting.
Information Systems and Controls (ISC)
I see that ISC focuses on information systems, cybersecurity, data management, and internal controls.
• Duration: 4 hours
• Questions: 82 MCQs and 6 TBSs
Key Topics: Information systems, IT governance, cybersecurity, privacy, controls, and SOC engagements.
Tax Compliance and Planning (TCP)
TCP focuses on taxation, tax compliance and tax planning.
• Duration: 4 hours
• Questions: 68 MCQs and 7 TBSs
Key Topics: entity taxation, tax planning, property transactions and advanced tax compliance.
Exam Timing and Testing Availability
The US CPA Exam is a computer-based examination administered at authorized testing centers.
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Far, AUD and REG (Core sections): Available year-round through continuous testing subject, to appointment availability.
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BAR, ISC and TCP (Discipline sections): Offered during testing windows each quarter rather than continuously.
Important: The January, April, July and October testing?window information has been removed, because it no longer fits the continuous testing model.
US CPA Exam Registration Process
The US CPA Exam registration process varies by jurisdiction because each State Board of Accountancy has its own eligibility and application requirements. Candidates should review the requirements of their selected jurisdiction before applying.
Registration Steps
Here's a quick guide to obtaining a CPA license:
- Choose the jurisdiction where you meet the CPA eligibility requirements.
- Submit your application, academic transcripts, and required supporting documents.
- Receive eligibility approval from the selected jurisdiction.
- Pay the required application and CPA Exam fees.
- Receive your Notice to Schedule (NTS) for the approved exam section.
- Use your NTS to schedule your exam at a Prometric testing centre.
US CPA Licensure Requirements
Passing the CPA Exam is a step, but it does not automatically make you a licensed CPA. The State Board of Accountancy in each region sets the licensing requirements, which vary based on where you reside.
Candidates usually have to:
• Complete the education and accounting classes that are needed
• Pass all four parts of the CPA Exam: AUD, REG and one additional section
• Get the necessary work experience in the field
• Pass an ethics test if it is required
• Apply for the CPA license and send all the needed papers
• Follow any other rules that are specific to the area
Each location may have extremely distinct regulations regarding education, work experience, ethics, and obtaining a license. Anyone starting the CPA process should always look up the rules from their own State Board before they start.
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