CPA Exam

CPA stands for Certified Public Accountant. In the United States, such accountants are regulated by governmental agencies. CPAs perform a variety of functions for businesses small and large, public and private. They perform accounting services and prepare tax returns for businesses and individuals. They also report financial records to the government and even work for local, state, and federal agencies in regulatory and auditing roles. They must be aware of government rules and regulations, especially how to document and report an employer's financial history and tax burden. To this end, they are licensed by private and not-for-profit associations that decide on industry-wide standards of education and knowledge. One part of the licensing process is a standardized test for CPAs.

States have different licensing associations, but they use similar exams. The exam is lengthy because it covers a variety of accounting topics. The exam lasts for a couple of hours a day for four days. The total time allotted for the exam is fourteen hours. The exam is broken down into four sections: auditing, financial accounting and reporting, regulations, and business practices. Each section is further broken up into small test sections that allow candidates to review questions in a manageable format. For example, the regulations section is made up of nine parts. Three of them are multiple-choice quizzes. The other six involve simulations of practical situations dealing with ethics, business law, and tax regulations. The exam can be taken in any order, meaning that a candidate can have some flexibility when scheduling an exam. The pass rates change with each iteration of the exam, but scores above 50 percent tend to fall on the passing side.