Uniform Certified Public Accountant Examination

The Uniform Certified Public Accountant Examination (Uniform CPA Exam) is the examination administered to people who wish to become Certified Public Accountant

Certified Public Accountant

Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...

s in the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

.

The Uniform CPA Exam is developed and maintained by the American Institute of Certified Public Accountants

American Institute of Certified Public Accountants

Founded in 1887, the American Institute of Certified Public Accountants is the national professional organization of Certified Public Accountants in the United States, with more than 370,000 CPA members in 128 countries in business and industry, public practice, government, education, student...

(AICPA), and is administered by the National Association of State Boards of Accountancy

National Association of State Boards of Accountancy

The National Association of State Boards of Accountancy is an umbrella group for the 55 state boards that regulate the accountancy profession in the United States of America....

(NASBA). The CPA exam is used by the regulatory bodies of all fifty states plus the District of Columbia

Washington, D.C.

Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....

, Guam

Guam

Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...

, Puerto Rico

Puerto Rico

Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...

, the U.S. Virgin Islands and the Northern Mariana Islands

Northern Mariana Islands

The Northern Mariana Islands, officially the Commonwealth of the Northern Mariana Islands , is a commonwealth in political union with the United States, occupying a strategic region of the western Pacific Ocean. It consists of 15 islands about three-quarters of the way from Hawaii to the Philippines...

History

Until the 1990s, the Uniform CPA Exam was 19½ hours in duration, administered over two and one-half days. It consisted of four subject areas (sections) which were tested in five sittings: Auditing (3.5 hours); Business Law (3.5 hours); Accounting Theory (3.5 hours); and Accounting Practice (Part I & Part II; 4.5 hours each). Although Accounting Practice Parts I and II were given in separate sittings, the two scores were combined for grading purposes. The exam was administered twice per year: on the first consecutive Wednesday, Thursday and Friday in May and November of each year. Test takers were allowed to use only paper and pencil (no electronic calculators or computers of any kind).

In 1994, the exam was restructured into a four-section, two-day exam. The subject matter was reorganized and redundant material was eliminated, primarily between Accounting Theory and Accounting Practice (Parts I and II). In addition, innovative machine-scorable test questions were incorporated to better assess the skills needed by CPAs to protect the public. For the first time, proprietary electronic calculators were provided to CPA candidates for the two new accounting sections. The four new sections were:

Business Law
Commercial law
Commercial law is the body of law that governs business and commercial transactions...

and Professional Responsibilities
Auditing
Financial audit
A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of a legal entity, with a view to express an audit opinion...
Accounting and Reporting – Taxation, Managerial
Management accounting
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control...

, and Governmental
Governmental accounting
Governmental accounting is an umbrella term which refers to the various accounting systems used by various public sector entities. In the United States, for instance, there are two levels of government which follow different accounting standards set forth by independent, private sector boards...

and Not-for-Profit Organizations
Financial Accounting
Financial accountancy
Financial accountancy is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders...

and Reporting
Financial statement
A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...

– Business Enterprises

Until 1996, completely new versions of the CPA Exam were prepared every six months, and after each administration all questions and the keyed responses (correct answers) were published and available for purchase. Beginning with the May 1996 administration, almost all exam material was kept secure so that many high-quality questions could be reused. Though this is common practice in the world of large-scale testing, it was a policy decision that was momentous at the time, and made only after extensive comments were elicited from all key stakeholders, such as the 54 Boards of Accountancy, members of the CPA profession, accounting educators, CPA candidates, and testing professionals. By deciding to release only a small portion of each exam--to help candidates prepare for the examination experience--high quality exam material could be reused in the future. It also became possible for the first time to use statistical techniques for test equating

Equating

Test equating traditionally refers to the statistical process of determining comparable scores on different forms of an exam. It can be accomplished using either classical test theory or item response theory....

and to use criterion-referenced passing scores.

Computer-Based Examination

Since April 5, 2004, the exam has been administered only by computer

Computer

A computer is a programmable machine designed to sequentially and automatically carry out a sequence of arithmetic or logical operations. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem...

in secure testing centers. In addition to the knowledge CPAs require, the CPA Exam assesses important skills CPAs are expected to have such as the ability to use authoritative database

Database

A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...

software and electronic applications such as word processing

Word processing

Word processing is the creation of documents using a word processor. It can also refer to advanced shorthand techniques, sometimes used in specialized contexts with a specially modified typewriter.-External links:...

and spreadsheets. Professional writing skills are also assessed. In July 2009, the one millionth administration of the computerized CPA exam occurred.

Currently, the testing year is divided into four "windows". During each three-month window the candidates may take one or more sections, but may only take each section once.

Credit earned for passing a section is valid for 18 months. If a CPA candidate fails to pass all four sections within an 18-month period, credit is lost for any section passed more than 18 months earlier and must be retaken.

Exam Content

The sections have been reorganized as follows:

Auditing and Attestation (4.0 hours): (AUD) – This section covers knowledge of planning the engagement, internal controls, obtaining and documenting information, reviewing engagements and evaluating information, and preparing communications.
Financial Accounting and Reporting (4.0 hours): (FAR) – This section covers knowledge of concepts and standards for financial statements, typical items in financial statements, specific types of transactions and events, accounting and reporting for governmental agencies, and accounting and reporting for non-governmental and not-for-profit organizations.
Regulation (3.0 hours): (REG) – This section covers knowledge of ethics and professional responsibility, business law, Federal tax procedures and accounting issues, Federal taxation of property transactions, Federal taxation – individuals, and Federal taxation – entities.
Business Environment and Concepts (3.0 hours): (BEC) – This section covers knowledge of business structures, economic concepts, financial management, information technology, and planning and measurement.

The Uniform CPA Exam tests primarily understanding and the ability to apply authoritative literature—such as auditing and accounting standards, the Uniform Commercial Code, and the Internal Revenue Code—that are universally adopted by all US jurisdictions or are federal in nature. Every effort is made to avoid asking about subject matter that may have different correct answers in different jurisdictions.

Here is a summary of the topics which are tested in each section of the examination:

Auditing and attestation

12-16% engagement acceptance and planning
16-20% entity and internal control
16-20% procedures and evidence
16-20% reports
12-16% accounting and review services
16-20% professional responsibilities

Financial accounting and reporting

17-23% concepts
27-33% accounts and disclosures
27-33% transactions
8-12% governmental
8-12% not-for-profits

Regulation

15-19% ethical and legal responsibilities
17-21% business law
11-15% federal tax process
12-16% gain and loss taxation
13-19% individual tax
18-24% taxation of entities

Business environment and concepts

16-20% corporate governance
16-20% economics
19-23% finance
15-19% IT
10-14% strategic planning
12-16% operations management

Testing Method

Multiple-choice questions represent 60% of the total score for three of the four exam sections, with the exception of Business Environment and Concepts (BEC), while the other 40% consists of simulations. Accounting knowledge is tested in simulations through a variety of tasks, some of which require searching databases, completing written communication exercises, and working with spreadsheets and forms. The skills that simulations are intended to measure are: analysis, judgment, communication, and research.

As of 2011, BEC is the only section that contains written communication task simulations. Prior to 2011, written communication tasks were contained in all four sections of the exam.

Written communication responses are scored on the basis of three criteria:

Organization – structure, ordering of ideas, linking of ideas one to another.
Development – presentation of supporting evidence.
Expression – use of standard business English.

Responses that do not address the assigned topic are not scored.

In Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG), multiple-choice testlets account for 60%, and simulations (case studies) 40% of the score. In Business Environment and Concepts (BEC), multiple-choice questions account for 85% of the score and three written communication task simulations account for 15% of the score (which changed in 2011).

During the examination, candidates may take a break after completing a "testlet" (either a set of multiple choice questions or a simulation). Once a testlet is completed, however, the candidate is not allowed to return to it, so it is not possible to use the "break time" to improve one's score by looking up answers. The clock continues to run during breaks.

The "bank" of questions is much larger than the set presented to each candidate. Different candidates (even taking the examination at the same time) may therefore receive a completely different examination. This variance is accounted for in the scoring.

Adaptive testing

The Uniform CPA exam is administered using a modified adaptive testing

Computer-adaptive test

Computerized adaptive testing is a form of computer-based test that adapts to the examinee's ability level. For this reason, it has also been called tailored testing.-How CAT works:...

model. Each CPA candidate begins the exam with a multiple-choice item testlet of moderate difficulty, after which an ability estimate based on item response theory

Item response theory

In psychometrics, item response theory also known as latent trait theory, strong true score theory, or modern mental test theory, is a paradigm for the design, analysis, and scoring of tests, questionnaires, and similar instruments measuring abilities, attitudes, or other variables. It is based...

is made. If the candidate's ability estimate is sufficiently high, the second testlet administered is more difficult. If the estimate fails to meet that threshold, another moderately difficult testlet is administered. After completing the second testlet, a new ability estimate is computed. If that estimate exceeds a predetermined threshold, a difficult testlet is administered as the third testlet. If not, a moderately difficult testlet is administered. On sections that contain simulations, these are administered after the third multiple-choice testlets. The simulations are not administered adaptively. That is, there is no relationship between a candidate's ability estimate and the simulations administered to the candidate.

A candidate is free to review and change any answers within a testlet or simulation until the candidate submits the work as completed. From that point on, the candidate may not review or change answers in a completed testlet or simulation.

The AICPA takes the position that adaptive testing allows the ability of a candidate to be assessed with fewer questions than would be required for a static, or non-adaptive, testing methodology.

Scoring

The score represents the candidate's overall performance on the identified examination section. Scores are reported on a numeric scale of 0 to 99, with 75 as the passing score. The scale does not represent "percent correct." A score of 75 indicates examination performance that hypothetically reflects a level of knowledge and skill required for the protection of the public.

Per NASBA's website, completed tests are sent to the AICPA for scoring. The Examination Section ID only is used for identification. When the candidates performance has been scored NASBA receives the scores for processing. The scores are subsequently forwarded to Boards of Accountancy for their approval and release. Each Board of Accountancy maintains its own process and schedule of releasing the scores to candidates.

Eligibility to Sit for the Uniform CPA Exam

In order to sit for the Uniform CPA Exam, a person must be declared eligible to do so by one of the 55 U.S. State Boards of Accountancy.

Requirements of state boards vary, but usually consist of a U.S. bachelors degree with a concentration in accounting (not necessarily an accounting degree) plus an extra year's study (which can be either at undergraduate or graduate level). The requirement for 5 years full time equivalent study is known as the "150 hour rule" and has been adopted by the majority of state boards. An important distinction should be made between requirements to sit for the exam, and requirements for certification. In some states, such as Minnesota, the "150-hour rule" only applies to certification; anyone with a bachelors degree (from a qualifying institution) in Accounting may sit for the exam. However, certification requires 150 credit hours.

NASBA 2008 Update: 120 Versus 150-Credit Hour Requirement to Sit for the CPA Examination
There are now only two states that do not have laws that will require 150 credits for CPA licensure; however, an increasing number allow CPA candidates to take the CPA Exam after earning a bachelors degree (120 credit hours). NASBA has issued a draft discussion paper outlining the history of, and issues surrounding, the 150-hour education requirement, as well as presenting the arguments, pro and con, for requiring either 120 or 150 credit hours before allowing CPA candidates to take the Exam.
The following information may be of historical interest, but as of December 2008 it is out of date.
Noteworthy exceptions (before 2008) to the "150 hour rule" include:

Delaware State Board of Accountancy which requires only an Associates degree (however Delaware does not accept most distance-based learning)
Colorado State Board of Accountancy requires only a four year bachelors degree. In addition, Chartered Certified Accountant
Chartered Certified Accountant
Chartered Certified Accountant was historically seen as a British qualified accountant designation awarded by the Association of Chartered Certified Accountants . However, although ACCA is UK based, it is a global body for professional accountants with 147,000 qualified members and 424,000...

s (ACCA
Association of Chartered Certified Accountants
Founded in 1904, the Association of Chartered Certified Accountants is the global body for professional accountants offering the Chartered Certified Accountant qualification . it is one of the largest and fastest-growing global accountancy bodies with 147,000 members and 424,000 students in 170...

), together with Chartered Accountant
Chartered Accountant
Chartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants , the Glasgow Institute of Accountants and Actuaries and the Aberdeen Society of Accountants were each granted a royal charter almost from...

s from eligible jurisdictions are automatically eligible to sit for the Uniform CPA Exam as a Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...

candidate.
The other U.S. jurisdictions without a "150 hour rule" are California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

, New Hampshire
New Hampshire
New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...

, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

, Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...

, the U.S. Virgin Islands and the Commonwealth of the Northern Mariana Islands
Mariana Islands
The Mariana Islands are an arc-shaped archipelago made up by the summits of 15 volcanic mountains in the north-western Pacific Ocean between the 12th and 21st parallels north and along the 145th meridian east...

. Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...

adopted a "150 hour rule" on 1 July 2006, and New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

is scheduled to follow on 1 August 2009 Details (pdf). As of March 2006, Pennsylvania appeared close to adopting the requirement as well. Details

As of October 1, 2007, CT may now require only 120 hours to sit. However 150 hrs are still required for the certificate.

As of May 14, 2009, Virginia requires only 120 hours to sit. However 150 hours are still required for the certificate.

IL state allowed in Progress Course Work: Candidates will receive "provisional" approval to take the CPA exam while completing educational requirements. Candidates will have 120 days from the time they take the exam to submit final transcripts to clear their "provisional status."

Examination Process

The steps involved in sitting for the Uniform CPA Examination are as follows:

First time applicants

Apply to one of the 55 state boards to determine eligibility. Some state boards delegate this to NASBA
National Association of State Boards of Accountancy
The National Association of State Boards of Accountancy is an umbrella group for the 55 state boards that regulate the accountancy profession in the United States of America....

. It is not necessary to apply to sit all four sections of the Uniform CPA Exam (at least one section must be applied for).
State Board notifies NASBA of eligible candidate
NASBA places candidate on the National Candidate Database and issues a Notice to Schedule (NTS). The validity of the NTS is normally 6 months, however a few states issue NTS with a validity of 3, 9, 12 or 18 months.
Candidate contacts Prometric
Prometric
Prometric is a U.S. company in the test administration industry. Prometric operates a test center network composed of over 10,000 sites in 160 countries...

to arrange to sit the examination section within the validity of the NTS. This can be done through the Prometric website.
On the day of the examination, the Prometric
Prometric
Prometric is a U.S. company in the test administration industry. Prometric operates a test center network composed of over 10,000 sites in 160 countries...

test center receives electronic data from the American Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Founded in 1887, the American Institute of Certified Public Accountants is the national professional organization of Certified Public Accountants in the United States, with more than 370,000 CPA members in 128 countries in business and industry, public practice, government, education, student...

to allow the exam to be set.
The exam responses of the candidate are sent back to AICPA, identified only by a section ID number which NASBA has provided to the candidate.
AICPA scores the examination and sends the result to NASBA
NASBA matches up the score (from the section ID) to the candidate details on the National Candidate Database
NASBA forwards the score to the candidate's State Board (some state boards allow NASBA to report the scores direct to the candidate)
State Board forwards the scores to candidates, after conducting its own review.

Re-Examination Applicants

A candidate who has previously taken a section of the Uniform CPA Exam is a re-examination applicant. The registration process for re-examination candidates with state boards is normally simpler than that for first-time candidates, and does not usually require new proof of ID or qualifications. Some state boards allow online registration for re-examination candidates. Additionally the candidate's record is already in the National Candidate Database, which allows quicker processing by NASBA. Otherwise the process is similar.

Fees

Fees to sit for the Uniform CPA Exam vary by state; however, for first time applicants sitting for all four sections, a fee between USD $550 and USD $850 is typical. The equivalent re-examination fee is normally about USD $70 less.

Fingerprint Collection & Sharing Controversy

AICPA/NASBA now mandates that exam candidates submit to a fingerprinting prior to each exam "for identification purposes." According to published AICPA and NASBA reports, all fingerprints collected are immediately transmitted over the internet to the foreign owned data-mining firm ChoicePoint/ReedElsevier (Identico Systems) for storagehttp://www.nasba.org/blog/2008/01/20/biometrics/. ChoicePoint combines personal data sourced from multiple public and private databases for sale to the US Dept of Homeland Security and to the private sector, and maintains more than 17 billion records of individuals and businesses, which it sells to an estimated 100,000 clients ChoicePoint

ChoicePoint

ChoicePoint was a data aggregation company based in Alpharetta, near Atlanta, Georgia, United States, that acted as a private intelligence service to government and industry...

.

Under the fingerprinting program, a US passport, even when combined with a driver's license is considered "insufficient for identification" causing critics to assert that this clearly more about biometric data collection than exam security. Industry insiders (Accounting Today, WebCPA) report that the fingerprint collection program has sparked significant opposition due to the risks to candidates' privacy and possible identity theft (WebCPA Journal, "CPA Exam Fingerprinting Provokes Controversy" http://www.accountingtoday.com/news/27829-1.html. Mary-Jo Krancher, Editor-in-Chief of the influential NY CPA Society (CPA Journal) has also published and editorial critical of the fingerprinting program (October 2008, p.82) http://viewer.zmags.com/publication/a943c4ab#/a943c4ab/82

ChoicePoint has had significant privacy and legal violations in its recent past, including being assessed the largest fine in the history of the US Federal Trade Commission for "making false and misleading statements about its privacy policies" and for "its security and record-handling procedures violating consumers’ privacy rights and federal laws." http://www.ftc.gov/opa/2006/01/choicepoint.shtm A similar exam fingerprinting-as-ID practice has been ruled to be illegal under Canadian privacy law (PIPEDA) by the Office of the Privacy Commissioner of Canada. http://www.priv.gc.ca/cf-dc/2008/389_rep_080529_e.cfm

Score Reporting Timescale

The timescale for score reporting depends on:

when AICPA forward results to NASBA
NASBA processing time
state board processing time (unless the state board delegates this to NASBA)

As of July 2006, scores of some applicants who sit for the exam in the first month of a testing window are reported by AICPA sooner, usually in the third week of the second month of that window. For example, some scores of persons who sat for the Uniform CPA Exam in April 2006 were reported in the third week of May 2006. The remaining scores from April 2006, plus the scores from May 2006 attendees, were reported in the last two weeks of June 2006.

Candidates who do not receive a score by the end of the first month after the testing window in which they sat for the exam are advised to contact their state board. For example, all scores of candidates from the April/May 2006 test window should be reported by 30 June 2006. It is however, unusual for a result to be received so late.

Failed Sections

Where a candidate fails a section, it may be re-done without any penalty other than a re-examination fee and the risk of credits for other sections expiring under the "18 month rule". Re-sitting for a failed section in the same testing window is not permitted.

Rescoring and Appeals

A candidate who fails a section may request that the exam be rescored. As of July 2006, the fee for a rescore is USD150 for the Business Environment and Concepts section (BEC) and USD200 for the other sections. Application for a re-score must be made by a particular deadline, usually around the end of the first month after the testing window in which the examination was taken. For example, for the April/June test window, an application for a rescore must be made before the end of July.

Some but not all state boards allow a failed candidate to file a score appeal where the candidate can review the examination section and challenge the response. This involves paying a fee of USD500 and traveling to the NASBA offices in Nashville, TN. Under secure conditions, the examination can be reviewed and specific questions can be challenged for a fee of USD100 each. In addition, no material is allowed to be brought in as reference. The deadline for filing an appeal is the same as that for a rescore.

Results of either process take about 8 weeks and are sent by NASBA to the candidate's state board of accountancy. It is unusual for either rescores or appeals to result in a changed score for the candidate. Filing a rescore or appeal application does not prevent the candidate from applying to retake the examination.

Changes to the Exam as of January 1, 2011

Significant changes will be made to the Uniform Certified Public Accounting Exam as of January 1, 2011. These changes will affect the content of the exam, the exam structure, the time allocations applied to each section of the exam, and the scoring and weighting processes.

Content

The following content will be removed from the current CPA Exam:

The testing of written communication in the Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG) sections of the exam.
18 multiple choice questions from the Business Environment and Concepts (BEC) and REG sections.
Some IT-based testing content

The following content will be added to the current CPA Exam:

The testing of written communication in the BEC section of the exam
Project-management-based content
Content based on the International Financial Reporting Standards (IFRS)

The content of the exam that revolves around IFRS is very important to note because of the ongoing debates as to whether or not the United States should adopt the international standards, or if it should continue to follow the Generally Accepted Accounting Principles (GAAP) being practiced in the United States. IFRS provides fewer reported details than U.S. GAAP, especially in its practice of revenue recognition. Some major differences between IFRS and GAAP are:

In regards to inventory, U.S. GAAP permits First-In, First-Out, or FIFO (a method in which the Cost of Goods Sold is recorded at the price of the inventory purchased first), and also Last-In, First-Out, or LIFO (a method in which the Cost of Goods Sold is recorded at the price of the most recently purchased inventory). IFRS does not permit LIFO.
In regard to impairment write-downs, which reduce overstated book values to fair value, GAAP permits a two-step write-down, while IFRS employs a single step write-down. This causes write-downs to occur more frequently in IFRS.
Classification of debt also varies between the international and U.S. standards.

In addition to these changes, long simulations in the Auditing and Attestation, Financial Accounting and Reporting, and Regulation sections of the

exam will be replaced with shorter “Task-Based Simulations” (TBS). Task-Based Simulations normally contain 6 or 7 tasks, one of which is usually is research problem.

Exam Structure

The structure of the new exam distributed in 2011 will be as follows

Auditing and Attestation

a. 3 Multiple Choice Question (MCQ) testlets (30 questions each)

b. 7 short task-based simulations, including one research question

Business Environment and Concepts

a. 3 MCQ testlets (24 questions each)

b. 3 written communication tasks based on current topics

Financial Accounting and Reporting

a. MCQ testlets (30 questions each)

b. 7 task-based simulations, including one research question

Regulation

a. 3 MCQ testlets (24 questions each)

b. 6 task-based simulations, including one research question

Time Allocations

The total hours allowed for the exam will remain at 14. However, the times associated with each section have been altered, and will be given as follows:

Auditing and Attestation: 4 hours (previously 4.5 hours)
Financial Accounting and Reporting: 4 hours
Regulation: 3 hours
Business Environment and Concepts: 3 hours (previously 2.5 hours)

Scoring & Weighting

The following is the approved scoring and weighting system of the 2011 CPA exam

Auditing and Attestation

a. Multiple Choice Questions - 60%

b. Simulations - 40%

Business Environment and Concepts

a. Multiple Choice Questions - 85%

b. Written Communication - 15%

Financial Accounting and Reporting

a. Multiple Choice Questions - 60%

b. Simulations - 40%

Regulation

a. Multiple Choice Questions - 60%

b. Simulations - 40%

These changes will take place on January 1, 2011 and will affect those professionals taking the CPA exam from there forward.

Confidentiality

The Uniform CPA Exam is a confidential examination. All persons involved with the Uniform CPA Exam, including candidates, must sign a confidentiality agreement not to disclose the contents of specific questions asked.

International Qualification Examination (IQEX)

Certain overseas qualified accountants may sit for the International Qualification Examination

International Qualification Examination

The International Qualification Examination is an examination sat by certain non-U.S. qualified accountants seeking the Certified Public Accountant designation in the United States....

(IQEX) is an alternative to the Uniform CPA Exam. As of July 2006 this eligibility extends to most Canadian, Irish and Australian Chartered Accountant

Chartered Accountant

Chartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants , the Glasgow Institute of Accountants and Actuaries and the Aberdeen Society of Accountants were each granted a royal charter almost from...

s together with Australian CPAs

CPA Australia

CPA Australia is one of three professional accounting bodies in Australia, the others being the Institute of Public Accountants and the Institute of Chartered Accountants of Australia....

and the Instituto Mexicano De Contadores Publicos (Mexican Institute of Public Accountants).

Non-U.S. candidates

There is no specific bar to non-U.S. candidates sitting for the Uniform CPA Examination, however:

It is now possible to sit for the CPA outside the USA but only in select country locations which currently include Japan, United Arab Emirates, Lebanon and Kuwait.
Most states will accept non-U.S. education credentials, however they must normally be evaluated by a member of the National Association of Credential Evaluators. Some states prefer specific evaluators, such as Foreign Academic Credential Services or World Education Services, while the Illinois State Board of Accountancy prefers to conduct credential evaluations itself.
Approximately one-third of the state boards require a candidate for the Uniform CPA Exam to be living or working in that state. However, the majority have no residence requirement.
A few U.S. states (such as the Alabama State Board of Public Accountancy) require the candidate to be a U.S. citizen
United States nationality law
Article I, section 8, clause 4 of the United States Constitution expressly gives the United States Congress the power to establish a uniform rule of naturalization. The Immigration and Naturalization Act sets forth the legal requirements for the acquisition of, and divestiture from, citizenship of...

External links

The source of this article is wikipedia, the free encyclopedia. The text of this article is licensed under the GFDL.

History

Computer-Based Examination

Exam Content

Testing Method

Adaptive testing

Scoring

Eligibility to Sit for the Uniform CPA Exam

Examination Process

First time applicants

Re-Examination Applicants

Fees

Fingerprint Collection & Sharing Controversy

Score Reporting Timescale

Failed Sections

Rescoring and Appeals

Changes to the Exam as of January 1, 2011

Confidentiality

International Qualification Examination (IQEX)

Non-U.S. candidates

See also

External links