The CPA syllabus comprises four core subjects: AUD, BEC, FAR, and REG. It is required to be familiar with the composition and contents of the CPA exam to plan for its preparation and clear it to acquire CPA certification.
Why Understanding the CPA Syllabus Matters
Mastering the CPA syllabus is key to preparing for the exams efficiently. The syllabus captures all important concepts, skills, and competencies covered for every section of the CPA exam. At both starting points and at points of refining study plans, knowing what’s covered and how it’s examined assists you to:
- Set clear learning objectives: Grasping subjects assists you in prioritising subjects of higher exam weightage.
- Align study resources: It is possible to choose review courses, study materials, and simulated tests that encompass all CPA courses.
- Track your progress: A clear view of the syllabus allows you to break it into weekly study goals.
Curious about what is CPA? It’s an internationally accepted certification from the AICPA (American Institute of Certified Public Accountants), which affirms that you’re competent in accounting, auditing, taxation, and regulation.
Overview of the CPA Exam Structure
The CPA exam structure comprises four sections, and every section questions a core field of accountancy. Each exam is four hours and consists of multiple-choice questions (MCQs), task-based simulations (TBS), and written communication tasks (only for BEC).
Key Elements of CPA Exam Structure:
- Four Sections: AUD, BEC, FAR, REG
- Exam Duration: 4 hours per section
- Passing Score: 75 out of 99
- Format: MCQs, TBSs, and written responses (BEC only)
- Administered by: NASBA and AICP
The sections can be ordered any way you like, although most begin with FAR or AUD because of familiarity with their contents.
AUD (Auditing and Attestation)
The AUD section tests how well you understand auditing procedures and the CPA’s ethical responsibilities.
Key topics include:
- Planning and risk assessment
- Internal control evaluation
- Evidence gathering and audit reports
- Ethics and professional conduct
BEC (Business Environment and Concepts)
BEC tests you on knowledge of the business world, business governance, and written communication.
Key topics include:
- Economic concepts and analysis
- Financial management
- IT systems and risk management
- Written communication (emails, memos)
FAR (Financial Accounting and Reporting)
The most substantive section on the CPA exam is FAR, and it will check how well you master accounting standards.
Key topics include:
- US GAAP and financial reporting frameworks
- Governmental and nonprofit accounting
- IFRS comparisons and disclosures
- Consolidations and revenue recognition
REG (Regulation)
The REG tests taxation and business law knowledge, including ethical considerations.
Key topics include:
- Federal taxation of individuals and entities
- Business structure and legal responsibilities
- Business ethics and compliance
Detailed Breakdown of CPA Subjects
All the subjects on the CPA syllabus are addressed under various sections, and all of them need to be studied for writing the exam. Below is an in-depth analysis of all the CPA subjects.
AUD: Ethics, Auditing Procedures, Risk Assessment
AUD covers:
- Professional ethics and independence: A CPA is required to abide by ethical principles and be objective and professionally skeptical.
- Audit planning and risk assessment: Understand how to identify and evaluate risks to plan appropriate audit procedures.
- Evidence and documentation: Gathering and assessing audit evidence, such as sampling and analytical procedures.
- Reporting and conclusions: Understand how to prepare different types of audit opinions based on findings.
BEC: Corporate Governance, IT, Economics
BEC focuses on:
- Corporate governance and risk management: Understanding internal controls, business continuity planning, and governance structures.
- Information technology: Topics include data security, system design, and IT general controls.
- Economics and operations: Covers economic indicators, supply chain management, and performance measures.
- Written communication: Evaluate a candidate’s ability to write clearly and concisely in professional scenarios.
FAR: Financial Reporting, Government Accounting
FAR includes:
- Conceptual framework and standard-setting: Understanding FASB, GAAP, and presentation of financial statements.
- Government and nonprofit accounting: Covers fund accounting, budgeting, and financial reporting for municipalities and NGOs.
- Asset and liability recognition: Detailed understanding of leases, pensions, income taxes, and contingencies.
- Revenue recognition and consolidation: Recording revenue according to ASC 606 and preparing consolidated statements.
REG: Taxation, Law, Business Ethics
REG consists of:
- Individual and corporate taxation: Learn about deductions, credits, and taxable income calculation for different entities.
- Business law: Understand contracts, agency relationships, commercial paper, and negotiable instruments.
- Ethics and professional responsibilities: Focuses on the AICPA Code of Conduct, tax return preparer penalties, and client confidentiality.
The detailed focus in each subject ensures that CPAs are well-versed not only in technical accounting but also in law, IT, and communication—crucial for real-world business environments.
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How the CPA Exam is Graded
The CPA exam is scored using a combination of human graders and advanced AI-driven scoring engines. Scoring Details:
- MCQs: Automatically scored, and their weight varies (around 50%).
- Task-Based Simulations (TBS): Evaluate application of concepts; also machine and human-graded.
- Written Communication (BEC only): Graded based on grammar, clarity, and technical relevance.
Candidates need to score at least 75 out of 99 on each section to pass. There is no negative marking, and performance on pretest questions does not affect your score.
How to Prepare Effectively for Each Subject
Strategic preparation is key to cracking the CPA exam. Here’s how to approach each subject:
- AUD: Focus on internal control procedures and evidence documentation. Practice understanding audit reports.
- BEC: Review business concepts, practice written communication, and strengthen your understanding of IT systems.
- FAR: Allocate more time, especially to government accounting and revenue recognition. Practice journal entries.
- REG: Create summary sheets for tax laws and legal principles. Solve plenty of MCQs to reinforce concepts.
General Preparation Tips:
- Stick to the official CPA syllabus: Don’t waste time on irrelevant material. Follow the AICPA-published blueprints.
- Use adaptive question banks: Platforms like Becker, Wiley, or Zell Education offer personalised quizzes and performance tracking.
- Practice mock exams: Simulate real exam conditions to manage time and stress.
- Join study groups: Collaborative learning improves retention and keeps you motivated.
Preparation is not just about studying long hours, but about studying smart and strategically across all CPA subjects.
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Conclusion: Planning Your CPA Journey Smartly
Earning your CPA certification requires more than just hard work—it needs smart planning. The CPA syllabus is vast and multi-disciplinary, so breaking it into achievable milestones can make your journey easier.
- Begin with a section you feel strongest in (often FAR or AUD).
- Stick to the AICPA blueprints to avoid off-topic learning.
- Schedule exams within an 18-month window to stay on track.
With the right strategy, tools, and discipline, you can master all four CPA subjects, pass the CPA exam, and achieve your CPA certification with confidence.
FAQs on CPA Syllabus
What are the four main subjects covered in the CPA exam?
The CPA exam includes four subjects: AUD (Auditing and Attestation), BEC (Business Environment and Concepts), FAR (Financial Accounting and Reporting), and REG (Regulation).
Which CPA subject is considered the most difficult?
FAR is widely regarded as the most difficult due to its breadth and depth in financial reporting and accounting standards.
Can I study the CPA subjects in any order?
Yes, there is no mandated order. You can choose the sequence based on your strengths, though many start with FAR or AUD.
How often is the CPA syllabus updated?
The CPA syllabus is updated annually by AICPA to reflect changes in laws, accounting standards, and professional practices.
