| Before understanding what CPA exam | | | | accounting and reporting, taxation, cost or |
| requirements are, you need to understand why | | | | managerial accounting, or auditing and attesting is |
| this exam is important. The CPA exam is one | | | | required. A total of at least 120 semester hours is |
| that individuals must pass in order to qualify for | | | | a necessity. Required are 24 semester units in |
| and be licensed as Certified Public Accountants. | | | | accounting and a further 24 semester units in |
| The exam is only one part of the three Es | | | | business related studies. These educational |
| required for licensure. These are Education, | | | | requirements must be met no later than 180 |
| Examination and Experience. The aim of the exam | | | | days after the date the candidate sits for the |
| is to test entry level accounting skills and | | | | first exam section. |
| knowledge of individuals before they can be | | | | In most cases, it is required that at least 30 hours |
| entrusted with financial accounting responsibilities. | | | | of upper-division accounting be covered, beyond |
| There are four basic sections in the CPA exam. | | | | the elementary level 1. Out of these, 15 hours |
| One of these is AUD or Auditing and Attestation, | | | | must be spent in a physical classroom setting. |
| which covers the auditing process. Areas covered | | | | Tax research and analysis should account for 2 |
| include acceptable auditing standards as well as | | | | semester hours out of the total accounting hours |
| other standards of attest engagements, and the | | | | spent. It is worth noting that only accounting |
| skills necessary for applying this knowledge. The | | | | subjects are tested in the exam. It is possible to |
| second section is Business Environment and | | | | sit for the exam with less than a degree if your |
| Concepts (BEC), which covers the business | | | | public accounting experience accumulates to a |
| concepts in general and also teaches the reasons | | | | satisfactory 15 years. |
| for taking particular business actions as well as | | | | Apart from rigorous coverage of accounting |
| accounting implications of business transactions. | | | | subjects, an ethics course totaling 3 semester |
| The other two sections in the exam are Financial | | | | hours is another one of the CPA exam |
| Accounting and Reporting (FAR) and Regulations | | | | requirements. This is done to ensure that high |
| (REG). FAR covers the general accepted principles | | | | standards of practice are maintained and good |
| of accounting for businesses, non-profitable | | | | conduct upheld. Strict regulations are followed to |
| organizations and government entities, while REG | | | | ensure that every candidate goes through the |
| deals with ethics, professional and legal | | | | stipulated board regulations before sitting for the |
| responsibilities, federal taxation, and business law. | | | | exam. Each candidate must produce a certificate |
| Thorough knowledge of each concept and the | | | | of enrollment during the application for the CPA |
| skills needed to apply the knowledge are major | | | | exam. This is to prove that they have indeed |
| exam requirements for each of the sections. | | | | been attending classes at a transcript-issuing |
| Educational CPA exam requirements may differ | | | | institute. Although most states do not have age |
| by state. The minimum requirement in most | | | | limitations, some states will insist on the |
| states is a bachelor's degree from a regionally or | | | | attainment of a certain age, mostly 21 years old, |
| nationally accredited university. A bias in financial | | | | as one of the requirements. |