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Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information :  

Multiple Choice Questions: One question and four potential answers, MCQs make up the majority of each exam.

Task-Based Simulations: Questions that require you to apply practical knowledge found in the AUD, BEC, FAR, and REG exams. This question type may include filling out a form or completing a research question.

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information : The Uniform CPA Examination consists of four sections:

  • Auditing and Attestation (AUD)
  • Business Environment and Concepts (BEC)
  • Financial Accounting and Reporting (FAR)
  • Regulation (REG)

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information :  AUD, FAR, REG EXAM FORMAT

The Auditing & Attestation (AUD), Financial Accounting & Reporting (FAR), and Regulation (REG) Exams are similarly formatted. These three exams are composed of 50% Multiple Choice Questions and 50% Task-Based Simulations. The Multiple Choice Questions are broken up into 2 individual test lets: 36 questions per test let for AUD, 33 questions per test let for FAR, 38 questions per test let for REG. The MCQ portion of the exam is followed by three test lets of 2, 3, and then 3 Task-Based Simulations (TBS) for AUD, FAR, and REG, for a total of 8 TBSs per exam section.

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information : BEC EXAM FORMAT

50% of the Business Environment & Concepts (BEC) exam is comprised of Multiple Choice Questions. Just like the other 3 exams, the MCQs are broken into 2 individual test lets, with 31 questions in each. The MCQ portion of the exam is followed by two test lets of 2 Task-Based Simulations, for a total of 4 TBSs. Finally, there are 3 Written Communication questions in the final test let- one of which is pre-tested – that require a written response in a memo format.

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information :  The main content areas covered in each section are:

Auditing and Attestation (AUD)

  1. Ethics, Professional Responsibilities and General Principles
  2. Assessing Risk and Developing a Planned Response
  3. Performing Further Procedures and Obtaining Evidence
  4. Forming Conclusions and Reporting

Business Environment and Concepts (BEC)

  1. Corporate Governance
  2. Economic Concepts and Analysis
  3. Financial management
  4. Information technology
  5. Operations Management

Financial Accounting and Reporting (FAR)

  1. Conceptual Framework, Standard-Setting and Financial Reporting
  2. Select Financial Statement Accounts
  3. Select Transactions
  4. State and Local Governments

Regulation (REG)

  1. Ethics, Professional Responsibilities and Federal Tax Procedures
  2. Business Law
  3. Federal Taxation of Property Transactions
  4. Federal Taxation of Individuals
  5. Federal Taxation of Entities

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information :  FAR CPA Exam Duration

Today, FAR is a 4 hour, 240 minute, or 14,400 second monstrosity that you will overcome. During this time, you are responsible for taking on 90 multiple choice questions and 7 task-based simulations with a weight of 60 percent and 40 percent, respectively. You will see topics in the following areas: Conceptual Framework, Standards, Standard Setting, and Presentation of Financial Statements; Financial Statement Accounts: Recognition, Measurement, Valuation, Calculation, Presentation, and Disclosures; Specific Transactions, Events and Disclosures: Recognition, Measurement, Valuation, Calculation, Presentation, and Disclosures; Governmental Accounting and Reporting; and Not-for-Profit (Non-governmental) Accounting and Reporting. Looking for a test day timeline? Well, look no further. Consider using the following timeline:

Test let 1: 45 minutes

Break: 5 minutes

Test let 2: 45 minutes

Break: 5 minutes

Test let 3: 45 minutes

Break: 5 minutes

Task-Based Simulations: 90 minutes

The equates to 1 minute and 30 seconds per multiple choice question and 12 minutes and 51 seconds per task-based simulation. If you find you need more time on the multiple choice questions or prefer having fewer breaks, adjust away.

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information : REG CPA Exam Duration

As of now, REG is a 3 hour, 180 minute, or 10,800 second monster that is comprised of 72 multiple choice questions and 6 task-based simulations. The multiple choice questions make up 60 percent of the weight of the section, whereas the task-based simulations make up the remaining 40 percent of the section. Specifically, REG covers your favorite topics on Ethics, Professional, and Legal Responsibilities; Business Law; Federal Tax Process, Procedures, Accounting, and Planning; Federal Taxation of Property Transactions; Federal Taxation of Individuals; and Federal Taxation of Entities. Who wants a REG test day timeline? Love your enthusiasm! Consider using the following timeline:

Test let 1: 36 minutes

Break: 3 minutes

Test let 2: 36 minutes

Break: 3 minutes

Test let 3: 36 minutes

Break: 3 minutes

Task-Based Simulations: 63 minutes

The equates to 1 minute and 30 seconds per multiple choice question and 10.5 minutes per task-based simulation. If you find you need more time on the multiple choice questions or prefer having fewer breaks, consider changing the timeline to benefit you the most.

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information :  BEC CPA Exam Duration

Currently, BEC is a 3 hour, 180 minute, or 10,800 second behemoth that covers Corporate Governance, Economic Concepts and Analysis, Financial Management, Information Systems and Communication, Strategic Planning, and Operations Management. In this time frame, you have the opportunity to take on 72 multiple choice questions and 3 written communication tasks that are weighted at 85 percent and 15 percent, respectively. Are you interested in a test day timeline for BEC? Awesome! Consider using the following timeline:

Test let 1: 40 minutes

Break: 5 minutes

Test let 2: 40 minutes

Break: 5 minutes

Test let 3: 40 minutes

Break: 5 minutes

Written Communication Tasks: 45 minutes

The equates to 1 minute and 40 seconds per multiple choice question and 15 minutes per written communication task. If you find you need more time on the written communication tasks or prefer having fewer breaks, consider tweaking the timeline to suit your individual needs.

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information :  AUD CPA Exam Duration

The AUD Exam is 4 hours long, though the candidate is not required to use all the allotted time, and consists of 72 Multiple Choice Questions (MCQs) and 8 Task-Based Simulations (TBSs).

Of the 72 MCQs, 60 are operational, meaning they count toward the exam score, while 12 are pretested and do not count toward the exam score. Of the 8 TBSs, 7 are operational and 1 pretested. Other than scoring, there is no functional difference between operational and pretested questions and no sure way for the candidate to tell the difference between an operational and pretested question.

The AUD Exam is organised into five test lets – two 36-question MCQ test lets followed by a 2-question TBS test let, then an optional 15-minute break that does not count against the 4-hour test time, then two additional TBS test lets of three questions each. Once a test let has been submitted, it cannot be revisited.

Types Of Questions In CPA Exam Information

CPA  Auditing and Attestation (AUD) For 2017 Exam :  The Auditing & Attestation (AUD) section of the CPA Exam covers the entire auditing process, including auditing procedures, generally accepted auditing standards, standards related to attest engagements and the AICPA Code of Professional Conduct. It’s important to remember that the AUD exam tests on how well a CPA candidate applies their audit and attestation knowledge when solving problems and performing specific Blueprint tasks, not how well they are able to memorise auditing concepts.

CPA  Auditing and Attestation (AUD) For 2017 Exam : 

15-25% Ethics, Professional Responsibilities and General Principles

  • Nature and Scope of Audit and Non-Audit Engagements
  • Ethics, Independence and Professional Conduct
  • Terms of Engagement for Audit and Non-Audit Engagements
  • Requirements for Engagements Documentation
  • Communication with Management and Those Charged with Governance
  • Communication with Component Auditors and Parties Other Than Management and Those Charge with Governance
  •  A Firm’s System of Quality Control, Including Quality Control at the Engagement Level

20-30% Assessing Risk and Developing a Planned Process

  • Planning an Engagement
  • Understanding an Entity and Its Environment
  • Understanding an Entity’s Internal Control
  • Assessing Risks Due to Fraud
  • Identifying and Assessing the Risk of Material Misstatement and Planning Further Procedures Responsive to Identified Risks
  • Materiality
  • Planning for and using the Work of Others, Including Group Audits, the Internal Audit Function and the Work of a Specialist
  • Specific Areas of Audit Risk

30-40% Performing Further Procedures and Obtaining Evidence

  • Understanding Sufficient Appropriate Audit Evidence
  • Sampling Techniques
  • Performing Specific Procedures to Obtain Evidence
  • Specific Matters that Require Individual Attention
  • Misstatements and Internal Control Deficiencies
  • Written Representations
  • Subsequent Events and Subsequently Discovered Facts

15-25% Forming Conclusions and Reporting

  • Reports On Auditing Engagements
  • Reports On Attestation Engagements
  • Accounting and Review Service Engagements
  • Reporting On Compliance
  • Other Reporting Considerations

70-76% Auditing Engagements and Standards

  • Engagement Acceptance and Understanding
  • Understanding the Entity, its Context, and its Internal Control
  • Audit Procedures and Evidence Evaluation
  • Audit Reports and Opinions

16-20% Professional Responsibilities

  • Ethics
  • Independence

12-16% Accounting & Review Services

  • Engagement Planning
  • Evidence
  • Reports

Types Of Questions In CPA Exam Information

This section covers knowledge of general business environment and business concepts that candidates need to know in order to perform audit, attest, accounting and review services, financial reporting, tax preparation, and other professional responsibilities in their role as certified public accountants, and the skills needed to apply that knowledge.

Types Of Questions In CPA Exam Information

Types Of Questions In CPA Exam Information : The Business Environment and Concepts (BEC) section of the CPA Exam tests CPA candidates’ understanding of business concepts and the significance of a CPA’s professional duties and responsibilities within the larger context of the business environment. Areas covered on the BEC Exam are corporate governance, economic concepts and analysis, financial management, information systems and communications, strategic planning and operations management. One unique aspect of the BEC exam is that it requires the candidate to prepare and submit three Written Communication responses.

Many CPA candidates consider BEC to be the easiest section of the CPA Exam. However, BEC pass rates have historically been only slightly higher than those for other sections, and the exam still requires a serious study effort.

CPA Business Environment and Concepts  : BEC EXAM CONTENT

17-27% Corporate Governance

  • Internal control and enterprise risk management frameworks
  • Other regulatory frameworks and provisions

17-27% Economic Concepts and Analysis

  • Economic and business cycles
  • Market influences on business
  • Financial risk management

11-21% Financial Management

  • Capital structure
  • Working capital
  • Financial valuation methods and decision models

15-25% Information Technology (IT)

  • IT governance
  • Role of IT in business
  • Information security/availability
  • Processing integrity (input/processing/output controls)
  • Systems development and maintenance

15-25% Operations Management

  • Cost measurement concepts, methods and techniques
  • Variance analysis
  • Process management
  • Planning techniques

Types Of Questions In CPA Exam Information

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