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The Purpose and Significance of CPA Examination

The Uniform Certified Public Accountant Examination (CPA Exam) is offered by the American Institute of Certified Public Accountants (AICPA) and the individuals who pass this exam will prove themselves as U.S certified public accountants. This examination is administered through the Prometric testing center with the collaboration of National Association of State Board of Accountancy (NASBA) and is used by all the fifty five states of USA. The CPA exam is regarded very important as it can prove the technical skills of the individuals regarding accountancy and can provide them with excellent employment opportunities.

The main purpose of the CPA exam is to offer reasonable and qualified professionals who have authentic skills and technical knowledge in accountancy. The CPA’s are only those individuals with licensed accountancy skills and the CPA licenses are only issued by the State Boards of accountancy.

The Content of CPA exam

The CPA exam is a computer based exam of 14 hours and is divided in the four main sections, which are mentioned as follows:

  • Auditing and attestation (AUD), it is 4 hour exam with 90 multiple choices questions and cover many auditing related topics.
  • Business environment and concepts (BEC), it is a 3 hours exam with 72 multiple choices questions and contains many topics like economics, IT, financial management, and general business topics.
  • Financial Accounting and reporting (FAR), it is the most difficult section of the CPA exam and is a 4 hours exam with 90 multiple choices questions. It mainly covers topics like governmental and non-profit accounting related topics.
  • Regulations (REG), this is a 3 hours exam with 90 multiple choices questions. Topics related to business law and federal taxation is included in it.

Eligibility Criteria For Taking The CPA Exam

The eligibility requirements for the CPA examination by each of the fifty states is different and in order to take the exam, candidates have to get themselves qualify by any of the fifty five states of U.S. Usually a bachelor’s degree is required by the candidates. Another criteria known as 150 hour rule has been declared by most of the states for taking the CPA exam. There are many authentic websites providing preparation material or CPA exams, you can definitely get help from it. For further detailed information regarding CPA exam, eligibility criteria, candidates can refer to the official resources published by the NASBA (which is available on its website).

Examination Process

The candidates can apply in any of the 55 states of US for CPA exam. The list of eligible candidates is sent to the NASBA by each state. NASBA then places the candidates in the National Candidate Database. After this process, it issues a notice to schedule (NTS) with a 6 months validity period. Candidates can contact Prometric to sit in the CPA exam within the NTS validity period. The scores of the candidates are forwarded by NASBA to the State Boards and they send the results to candidates.

Career Paths After CPA exam

Candidates can enjoy excellent career opportunities after passing this exam. For accessing the study material and training courses of the exam candidates can visit the Following are the fields in which the CPA’s can have employment opportunities:

  • Information technology
  • Taxation
  • Forensic and valuation services
  • Audit
  • Business and industry
  • Fraud prevention, detection and investigation
  • Government
  • Personal financial planning.

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