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Financial Accounting and Reporting CPA Exam EXPERIENCE

Financial Accounting and Reporting CPA Exam EXPERIENCE

Financial Accounting and Reporting CPA Exam EXPERIENCE: Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. In the United States, the CPA is a license to provide accounting services directly to the public. It is awarded by each of the 50 states for practice in that state. Additionally, almost every state (49 out of 50) has passed mobility laws in order to allow practice in their state by CPAs from other states. Although state licensing requirements vary, the minimum standard requirements include the passing of the Uniform Certified Public Accountant Examination, 150 semester units of college education, and one year of accounting related experience.

Continuing professional education (CPE) is also required to maintain licensure. Individuals who have been awarded the CPA but have lapsed in the fulfillment of the required CPE or have requested to be converted to inactive status are in many states permitted to use the designation “CPA Inactive” or an equivalent phrase. In most U.S. states, only CPAs are legally able to provide to the public attestation (including auditing) opinions on financial statements. Many CPAs are members of the American Institute of Certified Public Accountants and their state CPA society.

State laws vary widely regarding whether a non-CPA is even allowed to use the title accountant. To illustrate, Texas prohibits the use of the designations “accountant” and “auditor” by a person not certified as a Texas CPA, unless that person is a CPA in another state, is a non-resident of Texas, and otherwise meets the requirements for practice in Texas by out-of-state CPA firms and practitioners.

Since i started preparation for the exam i worked really hard, i made up my schedule start preparing for what is best for me. i chose to take the exam from hard to easy. Financial Accounting and Reporting CPA Exam EXPERIENCE is really a challenging section for the exam. i went for the exam early as possible to change or to adjust with the environment and then i choose t calm my self down. I was mentally prepared i sit for the exam i worked out the way i do. separated the section which i need time and did the easy one first. the paper was difficult and i was literally thinking i can do it. i was focusing on my mind and my motivation to be a cpa. i crack the exam with hard work and luck. 

each section can be taken on separate days. The basic outlines of the exam sections are 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.
  • Business Environment and Concepts (4.0 hours): (BEC) – This section covers knowledge of business structures, economic concepts, financial management, information technology, and planning and measurement.
  • 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 (4.0 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.

The Uniform CPA Exam also tests primary 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 U.S. jurisdictions, or that are federal in nature. Every effort is made to avoid asking about subject matter that may have different correct answers in different jurisdictions

Financial Accounting and Reporting CPA Exam EXPERIENCE

The following is a summary breakdown of the proportion in which topics are tested in each section of the examination:

Auditing and attestation

  • Ethics, Professional Responsibilities and General Principles 15–25%
  • Assessing Risk and Developing a Planned Response 20–30%
  • Performing Further Procedures and Obtaining Evidence 30–40%
  • Forming Conclusions and Reporting 15–25%

Business environment and concepts

  • Corporate Governance 17–27%
  • Economic Concepts and Analysis 17–27%
  • Financial Management 11–21%
  • Information Technology 15–25%
  • Operations Management 15–25%

Financial accounting and reporting

  • Conceptual Framework, Standard-Setting and
  • Financial Reporting 25–35%
  • Select Financial Statement Accounts 30–40%
  • Select Transactions 20–30%
  • State and Local Governments 5–15%

Regulation

  • Ethics, Professional Responsibilities and Federal Tax Procedures 10–20%
  • Business Law 10–20%
  • Federal Taxation of Property Transactions 12–22%
  • Federal Taxation of Individuals 15–25%
  • Federal Taxation of Entities 28–38%

Financial Accounting and Reporting CPA Exam EXPERIENCE: FAR EXAM OVERVIEW & INSIGHTS

The Financial Accounting and Reporting (FAR) section of the CPA Exam is arguably the most difficult, longest and by far the most comprehensive section of the exam. FAR requires that CPA candidates have a strong knowledge of US GAAP, including concepts and standards for financial statements, typical items in financial statements, specific types of transactions and events, accounting and reporting for governmental entities, and accounting and reporting for nongovernmental and not-for-profit organizations. CPA candidates should also be able to demonstrate the skills needed to apply the financial reporting knowledge required of CPAs.

Financial Accounting and Reporting CPA Exam EXPERIENCE: FAR EXAM CONTENT

25-35% Conceptual Framework, Standard-Setting and Financial Reporting

  • Conceptual framework and standard-setting
  • General-purpose financial statements: for-profit business entities
  • General-purpose financial statements: nongovernmental, not-for-profit entities
  • Public company reporting topics
  • Financial statements of employee benefit plans
  • Special purpose frameworks

30-40% Select Financial Statement Accounts

  • Cash and cash equivalents
  • Trade receivables
  • Inventory
  • Property, plant and equipment
  • Investments
  • Intangible assets
  • Payables and accrued liabilities
  • Long-term debt
  • Equity
  • Revenue recognition
  • Compensation and benefits
  • Income taxes

20-30% Select Transactions

  • Accounting changes and error corrections
  • Business combinations
  • Contingencies and commitments
  • Derivatives and hedge accounting
  • Foreign currency transactions and translation
  • Leases
  • Nonreciprocal transfers
  • Research and development costs
  • Software costs
  • Subsequent events
  • Fair value measurements
  • Differences between IFRS and U.S. GAAP

5-15% State and Local Governments

  • State and local government concepts
  • Format and content of the Comprehensive Annual Financial Report (CAFR)
  • Deriving government-wide financial statements and reconciliation requirements
  • Typical items and specific types of transactions and events in governmental entity financial statements

Financial Accounting and Reporting CPA Exam EXPERIENCE

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