How to prepare for the CPA Exam?

The CPA exam can be a frightening topic to think about for  a lot of students. But, whether you’re a senior or a freshman, it is vital to have a plan to conquer the exam. Continue reading to learn about the basics of the exam and when to prepare. Click the button below to Join the AICPA ran website “This way to CPA” , its free and offers students with many useful resources to prepare for the exam.

Requirements

The CPA Exam requires students to have 150 credit hours. This does NOT mean you have to obtain your masters degree, you can qualify for the exam at the undergraduate level. However, there are many benefits to obtaining your masters degree and CPA. I highly encourage students to look into Bauer's PPA program, which allows students to obtain their Maters degree with just one additional year.

To learn more about the Professional Program in Accountancy click here. If you have any questions please reach out to:

Tiffany Woods

PPA Accounting Advisor

Phone: 713-743-5004
Email: ppa@uh.edu
Room: 304 CBB

Sections

You have 18 months to complete all four sections of the exam. You can take the sections in whichever order that you want. However, time starts after you PASS the first section of the exam. It is a good idea to take the hardest section first, in case you do not pass, you wont need to rush to retake it.

Financial (FAR)

Covers the typical items in financial statements, as well as the not-so-typical details in governmental and not-for-profit reporting. Some say it’s the hardest. 4 hours.

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

Auditing (AUD)

Everything from planning the engagement to internal controls, AUD weighs in at 4 hours of fun. It covers:

  • 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%)

Regulation (REG)

Ethics. Something you want to be known for. REG gives you 4 hours to prove yourself in that department.

  • 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%)

Business (BEC)

This four-hour section tests your knowledge in five diverse areas. Get the break-downs of each.

  • Corporate Governance (17-27%)
  • Economic Concepts & Analysis (17-27%)
  • Financial Management (11-21%)
  • Information Technology (15-25%)
  • Operations Management (15-25%)

 

Taking the Exam in Texas?

Requirements Include :

150 credit hours (including BA)

30 semester hours of accounting courses (15 hours require physical attendance on campus and 2 credit hours must be in accounting or taxation research and analysis). Also required for licensure: 24 semester hours in upper-level related business courses (2 hours must be in accounting or business communications) and a 3-semester-hour board-approved ethics course.

1 year of full-time non-routine accounting work experience under the direct supervision of a licensed CPA. Non-routine accounting involves attest services, professional accounting services or professional accounting work and the use of independent judgment, applying entry level or higher professional accounting knowledge and skills to select, correct, organize, interpret, and present real-world data as accounting entries, reports, statements, and analyses extending over a diverse range of tax, accounting, assurance, and control situations.

Must pass exam on Texas Rules of Professional Conduct.

When do I start?

In general, it’s recommended that CPA candidates study for 300-400 hours for the CPA exam in total in order to ensure they pass. Essentially, this equates to about 80-100 hours of CPA study hours for each exam section.

Its never too early to prepare. There are various CPA exam review packages offered by our sponsors, Becker and Roger CPA. Who you choose depends on your preference of study. Check them out! A lot of firms offer study material reimbursements and even a bonus for completing your CPA early! Be sure to communicate with your hiring firm to take advantage of these deals!