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CPA Exam

How do I prepare for the CPA Exam?

The CPA exam can be a frightening topic to think about for a lot of students. However, whether you are 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.” It is free and offers students many useful resources to prepare for the exam.

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To learn 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: CBB 304

Requirements

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

When to Start

In general, it is recommended that CPA candidates study for 300-400 hours for the CPA exam in total in order to ensure that they pass. Essentially, this equates to about 80-100 hours of CPA study hours for each exam section. It is never too early to prepare. There are various CPA exam review packages offered by our sponsors, Becker and Roger CPA. Which package 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

Sections (as of 2022)

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 won’t 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, and 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 4-hour section tests your knowledge in 5 diverse areas. Get the break-downs of each.

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

Taking the Exam in Texas?

Requirements:

None

None

None

Yes

150 credit hours (including BA)

Yes

  • 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)
  • 24 semester hours in upper-level related business courses (2 hours must be in accounting or business communications)
  • 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