The CPA Exam: Requirements and Preparation Degree Programs

Becoming a Certified Public Accountant (CPA) is a significant step for accounting professionals, demonstrating a high level of competence and ethical practice. The CPA designation opens doors to career advancement and greater earning potential. Achieving this certification requires passing the Uniform CPA Examination, a rigorous test administered by the AICPA (American Institute of Certified Public Accountants).

This article provides a comprehensive overview of the CPA Exam requirements and explores the types of degree programs that can effectively prepare candidates for success. We will cover eligibility criteria, exam structure, content areas, and suitable degree program options.

CPA Exam Eligibility Requirements

To be eligible to sit for the CPA Exam, candidates must meet specific educational, examination, and experience requirements that are determined by individual state boards of accountancy. These requirements vary by jurisdiction, so it is important to research the rules for the state where you plan to become licensed.

  • Educational Requirements: Most states require candidates to have a bachelor's degree with a concentration in accounting. The typical requirement is 150 semester hours of college credit, with a specified number of credits in accounting and business-related subjects. Some states may accept a master's degree in accounting in lieu of the 150-hour requirement. NASBA (National Association of State Boards of Accountancy) offers detailed information on state-specific requirements.

  • Examination Requirements: Candidates must pass all four sections of the Uniform CPA Examination. The exam is administered by the AICPA and graded by the NASBA (National Association of State Boards of Accountancy).

  • Experience Requirements: After passing the CPA Exam, candidates must fulfill a work experience requirement to become fully licensed as a CPA. This generally involves working under the supervision of a licensed CPA for a specified period, usually one to two years. The nature of the work experience must be in accounting or auditing.

The Uniform CPA Examination Structure

The Uniform CPA Examination is a computer-based exam consisting of four sections:

  • Auditing and Attestation (AUD): This section covers auditing procedures, attestation engagements, and ethics. It assesses a candidate's knowledge of auditing standards and their ability to apply them in real-world situations.

  • Business Environment and Concepts (BEC): This section covers a broad range of business topics, including economics, financial management, information technology, and operations management. It emphasizes a candidate's ability to analyze business situations and make informed decisions.

  • Financial Accounting and Reporting (FAR): This section is considered by many to be the most challenging, covering accounting principles for various entities, including governmental and not-for-profit organizations. It requires a deep knowledge of GAAP (Generally Accepted Accounting Principles) and the ability to prepare financial statements.

  • Regulation (REG): This section covers federal taxation, business law, and ethics. It tests a candidate's understanding of tax laws and regulations affecting individuals and businesses.

Each section of the CPA Exam is four hours long, and candidates must pass all four sections within an 18-month rolling window. This means that candidates have 18 months from the date they pass their first exam section to pass the remaining three.

Content Areas Covered in The CPA Exam

The CPA Exam covers a wide range of accounting and business topics. Here's a more detailed breakdown of the content areas for each section:

  • Auditing and Attestation (AUD):

    • Ethics, Professional Responsibilities, and General Principles
    • Assessing Risk and Developing a Planned Response
    • Performing Further Procedures and Obtaining Evidence
    • Forming Conclusions and Reporting

  • Business Environment and Concepts (BEC):

    • Corporate Governance
    • Economic Concepts and Analysis
    • Financial Management
    • Information Technology
    • Operations Management

  • Financial Accounting and Reporting (FAR):

    • Conceptual Framework, Standard-Setting, and Financial Reporting
    • Select Financial Statement Accounts
    • Select Transactions
    • State and Local Governments

  • Regulation (REG):

    • Ethics, Professional Responsibilities, and Federal Tax Procedures
    • Business Law
    • Federal Taxation of Individuals
    • Federal Taxation of Entities

The CPA Exam: Requirements and Preparation Bachelor's Degree Programs

A bachelor's degree in accounting is the most common pathway to becoming a CPA. These programs provide a solid foundation in accounting principles, auditing, taxation, and business law. Look for programs that offer a comprehensive curriculum and prepare students for the CPA Exam.

  • Bachelor of Science in Accounting (BSA): This is the most direct route to CPA eligibility. BSA programs typically cover all the core accounting topics required for the exam, including financial accounting, managerial accounting, auditing, taxation, and cost accounting.
  • Bachelor of Business Administration (BBA) with a Concentration in Accounting: This type of program provides a broader business education with a specialization in accounting. It may cover similar accounting topics as a BSA program, but with additional coursework in areas such as marketing, finance, and management.
  • Master's Degree Programs: A master's degree in accounting or taxation can provide advanced knowledge and skills that are beneficial for CPA Exam preparation. These programs are also useful for candidates who need to meet the 150-hour credit requirement for licensure.

Selecting a Preparation Program

'The CPA Exam: Requirements and Preparation Bachelor's Degree Programs' are not the only way to study for the CPA exam, exam review courses are also available. Many different courses exist, and they provide structured learning materials, practice questions, and mock exams to help candidates prepare for the exam. Look for courses that offer personalized support and adaptive learning technology.

Tips for CPA Exam Preparation

  • Start early: Begin studying well in advance of the exam date to allow ample time to cover all the material.
  • Create a study schedule: Develop a detailed study schedule and stick to it as closely as possible.
  • Use review courses: Enroll in a reputable CPA Exam review course to supplement your academic coursework.
  • Practice, practice, practice: Work through as many practice questions and simulations as possible to familiarize yourself with the exam format and content.
  • Seek support: Join a study group or find a mentor to help you stay motivated and on track.
  • Stay healthy: Get enough sleep, eat nutritious meals, and exercise regularly to maintain your physical and mental well-being during the exam preparation process.

Maintaining CPA Certification

Once you have passed the CPA Exam and met all the requirements for licensure, you will need to maintain your certification by completing continuing professional education (CPE) requirements. CPE helps CPAs stay up-to-date on changes in accounting standards, tax laws, and other relevant topics. The specific CPE requirements vary by state, so it is important to check with your state board of accountancy for more information.