Certified Public Accountant (CPA) is a licensing examination developed by American Institute of Certified Public Accountants (AICPA). It is administered by National Association of State Boards of Accountancy (NASBA) in different territorial jurisdictions throughout United States. The aim of this test is to certify skills and knowledge required by a public accountant and select suitable candidates for the profession.
Eligibility-
The eligibility for taking CPA is determined by the respective jurisdiction. The candidates interested to pursue accounting career and take CPA must contact the territorial board of NASBA in their area.
Test Overview-
The test consists of four sections- Auditing & Attestation (AUD), Business environment & concepts (BEC), financial accounting & reporting (FAR) and regulation (REG). The auditing and attestation section examines the knowledge of auditing standards and operations. The business environment and concepts section derives its content from business studies. Similarly, financial accounting and reporting section has the content from respective subject matter. The regulation section is based on business ethics, laws, federal taxation etc.
Test Format-
Each section consists of testlets and simulations. Testlet is a set of 24-30 multiple choice questions. Simulations consist of real life case studies which are to be responded by writing letters or memorandums. The auditing and attestation test consists of 3 testlets and 2 simulations. This section is administered in a time of 4 hours and 30 minutes. The business environment and concepts section has 3 testlets that are to be solved in 2 hours and 30 minutes. The financial accounting and reporting section consists of 3 testlets and 2 simulations and time allotted for this section is 4 hours and 30 minutes. There are 3 testlets and 2 simulations in regulations section, which are to be responded in 3 hours.
CPA is a computer based test. The AUD, FAR and REG sections are computer adaptive in nature. The first testlet is of moderate difficulty. The difficulty level of testlets increases or decreases depending upon that the questions are answered correctly or incorrectly.
Marking Scheme-
Each correct answer for multiple choice questions adds to the raw scores. The written responses are checked by computer or, as well by human scorers. The raw scores are converted into a scale ranging from 0 to 99. There is no negative marking in the test. The passing score for each section is 75.
Schedule-
The test is conducted in four testing windows in a year. Each testing window is of 60 days. The registrations are done by the territorial boards of NASGA in respective jurisdictions. It is administered at Prometric testing centers. Normally, the candidate is required to clear all test sections within 18 months.
Exam Fees-
The fee for CPA test varies with the jurisdictions. The territorial board of NASBA in respective jurisdiction must be contacted for knowing details of fees, test dates, registration formalities, eligibility etc.