CPA Exam Review

111 flashcards by MentisLibrary

The CPA Exam under the Core plus Discipline model: what each section tests, the accounting and auditing content behind it, question formats, scoring and the licensure requirements that vary by state.

How many sections does the CPA Exam have under the Core plus Discipline model?
Four. Every candidate takes the three Core sections, AUD, FAR and REG, and chooses one Discipline from BAR, ISC or TCP.
Which section did the Core plus Discipline model retire?
BEC, Business Environment and Concepts. Its content was redistributed to the Core sections and to the Disciplines, and written communication tasks left the exam with it.
How long is each CPA Exam section?
Four hours of testing time, so a candidate who sits for all four sections spends sixteen hours under exam conditions.
What score does a candidate need to pass a CPA Exam section?
A 75, on a reported scale that runs from 0 to 99.
What two question types appear on every CPA Exam section?
Multiple-choice questions and task-based simulations.
How are multiple-choice questions and simulations weighted in scoring?
Fifty percent each on AUD, FAR, REG, BAR and TCP. ISC weights multiple-choice questions sixty percent and simulations forty percent.
What is multi-stage adaptive testing on the CPA Exam?
The difficulty of the second multiple-choice testlet depends on how the candidate performed on the first. Simulation testlets are not adaptive.
Does the CPA Exam penalise a wrong answer?
No. Scoring counts correct responses, so an unanswered question and a wrong answer cost the same.
What are the four content areas of the AUD blueprint?
Ethics, professional responsibilities and general principles; assessing risk and developing a planned response; performing further procedures and obtaining evidence; and forming conclusions and reporting.
Which AUD content area carries the largest score weight?
Performing further procedures and obtaining evidence, at thirty to forty percent of the section.
What are the three content areas of the FAR blueprint?
Financial reporting; select balance sheet accounts; and select transactions.
What are the five content areas of the REG blueprint?
Ethics, professional responsibilities and federal tax procedures; business law; federal taxation of property transactions; federal taxation of individuals; and federal taxation of entities.
How much of REG is federal taxation?
Roughly two thirds. Individuals carry twenty-two to thirty-two percent, entities twenty-three to thirty-three percent, and property transactions five to fifteen percent.
What does a CPA Exam blueprint publish for each topic?
The content area, the group and topic, the representative tasks, and the skill level tested: remembering and understanding, application, analysis, or evaluation.
Which section is the only one that tests at the evaluation skill level?
AUD. The other sections top out at analysis.
Which Discipline covers state and local government accounting?
BAR. Governmental accounting moved out of FAR when the Core plus Discipline model took effect.
What does the ISC Discipline test?
Information systems and data management; security, confidentiality and privacy; and considerations for engagements to report on controls at a service organisation.
What does the TCP Discipline test?
Tax compliance and planning for individuals, entity tax compliance, entity tax planning, and property transactions on the disposition of assets.
What does the BAR Discipline test?
Business analysis; technical accounting and reporting topics such as revenue, leases, derivatives and business combinations; and state and local government accounting.
What are the three Es of CPA licensure?
Education, examination and experience. Every United States jurisdiction requires all three, though the specific hours and supervision rules are set by the state board.
How many semester hours of education do most jurisdictions require for licensure?
One hundred and fifty semester hours, which is more than a standard four-year bachelor's degree supplies. Several boards have added alternative pathways, so the rule that binds you is your board's.
How long does a candidate have to pass the remaining sections after passing the first?
A conditional credit window set by each state board. NASBA's model rule extends the window to thirty months, and many boards have adopted it in place of the older eighteen-month rule.
Who writes the CPA Exam and who issues the licence?
The AICPA develops and scores the examination and NASBA coordinates the national candidate database and score reporting, but only a state board of accountancy issues a licence.
What is a Notice to Schedule?
The authorisation issued after a board approves an application and fees are paid, allowing the candidate to book a section at a test centre. It carries an expiration date.
Does passing the CPA Exam make someone a CPA?
No. Licensure also requires the education and experience the board demands, and most boards require a separate ethics examination.
What is a task-based simulation?
A condition-based item that asks the candidate to complete a work-paper task: fill a form, reconcile an account, analyse a document set, or research authoritative literature.
What is a research task-based simulation?
A simulation that asks the candidate to locate and cite the paragraph of authoritative literature that answers a question, using the research tool built into the exam.
What is a pretest question?
An unscored item embedded in a section to gather statistics for future exams.
Can a candidate return to a testlet after submitting it?
No. Once a testlet is submitted, its items are closed.
What is the standardised break during a CPA Exam section?
A break offered partway through the section that does not count against testing time. Other breaks are allowed, but the clock keeps running during them.